Periodic Reporting for period 1 - keyper (Captive Customer Connection: Easy and Secure Sharing and Selling of Tickets - and Other Personal Rights)
Reporting period: 2019-10-01 to 2019-12-31
60% of customers are unknown and not reachable because a single ticket purchase consists of 2.5 tickets on average (so 1.5 ticket owners are not known to the organizer). As a result, ticket buyers do not represent the real visitors. Real event visitors cannot be contacted for offers (missing connection), and handed over tickets, lose counterfeit protection as well as control by organizers.
10% of all sport and entertainment tickets expire unused (no-shows) due to a lack of customer friendly, secured and easy-to-use tools. This is the case for all tickets related to operations such as transferring, re-selling or sharing. Simultaneously, customers lack the motivation to pro-actively forward tickets due to missing incentives and tools.
10% to 20% additional secondary market revenue is lost for live entertainment promoters such as sport clubs or concert organizers. In addition, price excesses cannot be avoided and result in a poor image for the promoters, who need to get back full control of the customer lifecycle process .
The ticketing market has always been price-sensitive; although, consumer prices have increased significantly in recent years.
The margins for ticketing service providers are low and between 2% and 10% . These are still shared among ticket agencies, payment service providers and ticketing system operators.
The cost of transferring tickets, or losing revenues due to difficulties in transferring tickets, accounts for 91% of all ticket sales. This is because people usually buy one ticket only as they cannot/are not allowed to transfer any additional tickets they buy for other people.
Cost savings for the event organization companies: keyper has been able to reduce no-shows or unused seats, enabled customers to access parking and venue facilities, and stopped unauthorized dealers from stealing their client’s money. This allows many organizers to avoid moving on to a large reseller platform that is not white labeled and takes a high commission.
We completed a technological roadmap, business model assessment, risk analysis, IP assessments and updated our Business plan.
1. Market Strategy. Apart from taking more market share in the ticketing market, there are many further use cases where keyper could offer great value for money. We have studied different markets and revised our competition to determine the market potential and sales/marketing strategy.
2. Technological Roadmap. We built keyper based on the needs of our first clients and conducted a series of improvements in order to cover all types of tickets. Based on our market strategy, we have planned to add specific features. We have also performed a systematic and detailed technological feasibility study to validate our assumptions and draft a specific technological roadmap. We have gained clarity on our innovation and drafted a Phase 2b work plan .
3. Business Model Assessment. We decided to continue following a SaaS model with three levels after fine-tuning our business model for each new vertical and running several business model simulations. Our goal is to ensure the market acceptance and our competitive advantage, optimizing our profit generation.
4. Risk Analysis. We have identified the potential main risks, their impact, probability, and design a contingency plan. Having assessed the risk factors, we ensure that our envisaged contingency plans do not delay the commercial impact of keyper.
5. Intellectual Property (IP) Assessment. We have confirmed freedom to operate and consulted a legal team (free from charge – they will charge us if we proceed with actual IP protection activities). This team recommended to stick to our existing IP strategy that is creating competitive barriers and thereby prevent our competitors from capturing our market share.
6. Business Plan. A business plan has been extended and further details added (SWOT, Porter’s 5 Forces, Lean Business Canvas, etc).
We have decided to pursue our initial objective and apply for the EIC Accelerator Phase 2b funding.
Consumers have control and convenience: If consumers buy a ticket from a company that uses keyper, they can hand on and even sell tickets without any hassle. This gives control with subscriptions / season tickets as individual tickets can be simply sent, which was not possible until today. Unused tickets can be offered for sale via a private marketplace controlled by the beneficial right holder. This creates a win-win situation for all participants as an optimal condition for dissemination and economic success!