LIPS Pitch Deck - English

L I P S

EMPOWERING CONSUMERS. BOOSTING BRANDS.

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4 Background OUR HISTORY WHAT WE STAND FOR INDUSTRY BACKGROUND

8 ValueProposition Contents

HOW DOES LIPS WORK? ADVANTAGES

12 Benchmark COMPETITIVE LANDSCAPE MARKET SIZE

16 Strategy STRATEGIC PRIORITIES OUR TEAM EXPENSES REVENUE SOURCES WHAT EXPERTS SAY

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Executive Summary

LIPS is a commercial platform that creates a balance between consumers and brands, caring for the interests of both. On one side, consumers have absolute control over their data privacy and on the other, brands can identify and focus their efforts towards their most valuable consumers. All this works thanks to our Open Data System in the cloud that stores and analyzes the most valuable information for brands and businesses.

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Background

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OUR STORY

Background

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LIPS was born as CXNOW, a concept that sought to enhance communication between the consumers and their favorite brands. Improving customer experience is what initially inspired the idea. After more than two years of building industry understanding, it evolved into LIPS by integrating the concept of anonymized, individual consumer data.

Value Proposition

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Benchmark

S Strategy

Initially, the concept was aimed to create a universal Voice of the Customer feature that brands could adopt to better know their clients. This idea was motivated by what were seen as tremendous opportunity areas: 1. There is no privacy-friendly and effective ways for consumers and brands to interact, 2. Feedback tools have always been created under a business-first philosophy that bothers consumers (mandatory questions, online behavior tracking, etc.), and 3. Consumer insight doesn’t flow adequately to the branches of the company that should receive the message.

4. Emotional attachment, shown by user-brand engagement, is not being created in an effective way with target audiences, greatly impacting brand sales and profitability.

The forerunning concept attempted to capture and store huge amounts of consumer insight in a consolidated manner, but it lacked the ability to filter out the most valuable consumers, which are the ones the brands want to listen to the most. Without an appropriate filtering strategy, the flux of information couldn’t be possibly handled: paying atten-

tion to everyone means paying attention to no one.

Inspired by input from customer-centric guru, Peter Fader, from Wharton School, as well as extensive research, the LIPS Model was created as a real solution that integrated granular, individual-level, consumption data into the process of identification of consumer value. Over the years, major retailers have been able to build valuable consumption data repositories, but this data has never flowed to brands.

The next step was designing a mechanism that would make it both profitable and enjoyable for consumers to report their consumption and insights. By integrating this, LIPS was consolidated as a holistic model that redirects the flow of data and money between consumers and brands, allowing for the originally intended bilateral communication, but also providing brands with the most powerful prospecting tool to date.

LIPS’s specific features empower consumers on one side, leading to optimal Consumer Experience , and boost brands on the other, enhancing their growth process.

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WHAT WE STAND FOR

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Background

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LIVE CONSUMER LIFESTYLES ARE SHAPED

BY THE GOODS AND SERVICES THAT FRAME THEIR EXPERIENCES.

Value Proposition

INSPIRE

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OPPORTUNITIES FOR BRAND IMPROVEMENT ARE POINTED OUT BY THEIR MOST VALUABLE CLIENTS.

Benchmark

PROMOTE

S Strategy

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CONSUMERS ENDORSE BRANDS AFTER RECEIVING AN ASTONISHING SERVICE.

SUCCEED BRANDS IMPROVE THEMSELVES WHILE CONSUMERS ARE EMPOWERED. BOTH SIDES PROFIT.

INDUSTRY BACKGROUND

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Background

LIPS FIXES WHAT WE HAVE IDENTIFIED AS A BROKEN BRAND-CONSUMER RELATIONSHIP

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Value Proposition

Consumers

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Before

After

Consumers experience an important lack of control over their privacy and their data.

Consumers have total control over the consumption data they share. They decide what they share, when, and how.

Consumers are not being rewarded for the data and information they generate.

Consumers are acknowledged and rewarded by the brands because of the data and value they generate for them.

Benchmark

Brands

S Strategy

Before

After

Brands’ prospecting efforts are mostly guided by online behavior data, and not consumption data, which can lead to wrong results and ineffective prospecting efforts.

Brands’ prospecting efforts are guided by direct consumption data, which translates in more accurate results and a more effective sales closure.

Brands do not have a way to precisely measure a marketing ROI per user on sales generated.

Brands have a precise tool to measure ROI per user in sales generated through our platform.

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Value Proposition

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HOW DOES LIPS WORK?

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Background

LIPS Cloud

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Value Proposition

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Benchmark

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S Strategy

2.

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Users upload their consumption data, in an anonymized manner, through the LIPS App.

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The Consumer data is analyzed by our sophisticated Artificial Intelligence System to estimate an affinity between every Consumer and Brand in the market.

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Brands spot their most valuable prospects in the LIPS Cloud. Because of LIPS’s open-data nature, Brands get to identify their competitor’s prospects as well.

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Brands can invest their advertising budget directly into their prospects. Selected Users get to accept or reject an interaction request. Upon acceptance they receive money, leading to a unique advertising experience.

Brands can precisely measure their ROI, according to their sell revenue reported by their selected users who previously accepted an interaction request.

Out of each User-Brand interaction, LIPS charges a commission to Brands.

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ADVANTAGES

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Background

LIPS’ open-data nature allows forbrands to win over the competition’s clients.

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Value Proposition

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Benchmark

S Strategy

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Easy and affordable analytics for businesses of all sizes.

Strong network effect that creates entry barriers.

An elastic software architecture that enhances LIPS’ inherent scallability.

Easily build momentum with just hundreds of users.

LIPS CHANGES THE GAME IN CUSTOMERBRAND ENGAGEMENT 13

Benchmark

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COMPETITIVE LANDSCAPE

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Background

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Value Proposition

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Current commercial intermediaries harm user experience and deliver sub-optimal results.

LARGE PLAYERS IN DIGITAL MARKETING • Do not take into account consumption data to predict sales.

• Closed data systems for brands.

• Tracks and compromises user privacy.

Benchmark

S Strategy

TRADITIONAL MARKETING PROVIDERS • Shotgun marketing, massive and disperse.

• Can’t measure a ROI accurately.

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ADVERTISING MARKET SIZE

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Background

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Value Proposition

The size of the advertising market worldwide is $600 billion USD a year.

Over 50% of ad spend in the USA is digital.

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Benchmark

S Strategy

USA / $200 billion USD

Rest of the world https://www.emarketer. com/content/us-digitalad-spending-will-surpasstraditional-in-2019

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The average clickthrough rate (CTR) in Facebook ads across all industries is only 0.9%*

Laura Alonso. (2017). Cuรกl es el CTR en Facebook Ads por sectores. 6 de Marzo, de Marketing 4 ecommerce Sitio web: https://marketing4ecommerce.net/rendimientodel-ctr-en-facebook-ads-por-sectores-infografia/*

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Strategy

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ROADMAP

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Background

Pilot

STO (Security Token Offering)

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Value Proposition

Q2 ‘19

Q2 ‘19 Data from 35k transactions from 1.2k users.

LIPS For Business - MVP

Worldwide capital raising.

Q2 ‘19 Alpha

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Benchmark

Q3 ‘19 Invitation-only access to 3k users in Monterrey.

Full Version

S Strategy

Q3 ‘20

Functional platform with real consumer data.

Beta

Q1 ‘20 10k users, 100 national-reach Brands and 500 local Brands

Guadalajara, Mexico City, and other cities in LATAM and USA.

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REVENUE SOURCES

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Background

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Benchmark

S Strategy

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Expected Revenue (Million US Dollars)

Value Proposition

1) Market Intelligence

2) Advertising

3) Sales Prospecting

• Customized Market research Reports.

• Comissions through individual targeting (Brand Request). (~10%20%)

• Automated salesforce • Notifications on highly defined leads.

$700

$525

$350

$175

$0 2020

2021

2022

2023

2024

2025

EXPENSES

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Background

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PRODUCT DEVELOPMENT AND EXPANSION 2019-2020

Value Proposition

Software Developement Admin/Legal

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Human Resources Data Pilot Project Marketing Sales

Benchmark

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2M USD

Strategy

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OUR TEAM

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Background

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Value Proposition

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Benchmark

S Strategy

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WHAT EXPERTS SAY

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Background

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Value Proposition

“The rise of analytics startups speaks to a growing desire for alternatives to the corporate ecosystems controlled by giants like Google, Amazon, and Apple, a swell that has helped privacy-focused search engine Duck Duck Go reach 36 million searches in a day. There’s even an entire website dedicated to alternatives to all of Google’s services”

-Katharine Schwab, It’s time to Ditch Google Analytics.

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Benchmark

“He went on to talk about reinventing media, advertising, and agency relatinships around “mass reach with one-to-one precisión.” Many marketers will have trouble holding these two opposing thoughts in their brain simultaneously- the continuing knock on targeting is that it can’t deliver scale. Pritchard challenges the industry to get past this outmoded duality and learn to do both.”

- Jim Nail, on Marc Pritchard’s, Procter & Gamble’s Chief Marketing Officer, appearance on ANA Media Conference.

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“I would not want the cloud to be in the hands of a few elites. The cloud is the biggest computing technology Man has created and the marriage between Cloud and AI is the perfect vehicle to democratize it.”

– Fei Fei Li, Ex Chief Scientist of Ai and Machine Learning at Google Cloud.

Strategy

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info@lipsweb.com

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