Periodic Reporting for period 1 - ANTAVO-LOYALTY (ANTAVO LOYALTY PLATFORM WITH IN-STORE EXPERIENCE TERMINAL, engaging omnichannel loyalty)
Berichtszeitraum: 2019-11-01 bis 2020-02-29
Ongoing digital innovations have changed mindsets and raised expectations. Consumers are no longer interested in simply finding the best price, but they want to have a great experience. ‘Brick and mortar’ stores play an indispensable role in retail; however, they face huge challenges. The rise of ecommerce giants threatens to force retailers to close their stores. Plus, younger generations have higher expectations, which contributes to a higher rate of churn.
The Antavo Loyalty Platform with In-store Experience KIOSK is a next-generation loyalty program and new paradigm for a “unified user experience” in retail stores, uniting the online and offline shopping worlds. This solution can help businesses stand up against the ecommerce giants and provide better services to their consumers, thus reducing churn.
Most current solutions focus on the online space. The few offline solutions available are expensive and difficult to implement. Antavo provides more engagement touchpoints between retailers and their customers. Consumers have a better user experience, personalization and gamification, while also saving 30% of their time.
In the Phase1 our main objectives were to conduct a technical viability check covering the feasibility of production, maintenance, cost optimization, and lean ‘waste’ reduction; conduct market surveys to support our concept and conduct an FTO analysis. We also formulated the project plan of Phase 2 and a detailed business plan.
The Antavo Loyalty Platform with In-store Experience KIOSK is a next-generation loyalty program and new paradigm for a “unified user experience” in retail stores, uniting the online and offline shopping worlds. This solution can help businesses stand up against the ecommerce giants and provide better services to their consumers, thus reducing churn.
Most current solutions focus on the online space. The few offline solutions available are expensive and difficult to implement. Antavo provides more engagement touchpoints between retailers and their customers. Consumers have a better user experience, personalization and gamification, while also saving 30% of their time.
In the Phase1 our main objectives were to conduct a technical viability check covering the feasibility of production, maintenance, cost optimization, and lean ‘waste’ reduction; conduct market surveys to support our concept and conduct an FTO analysis. We also formulated the project plan of Phase 2 and a detailed business plan.
During Phase 1 of this grant proposal, a detailed feasibility study has been worked out in order to specify the needed new modules/features to elevate the current technological readiness level (TRL 7) to industrial readiness and identified how to prepare for the first business period. In Phase 1, we have modeled the Phase2 innovation project as well as the first business period related to our developments, potential market channels, applied business models, pricing, utilizations and risks.
The main chapters describe our achievements:
• Technical viability: Possible development alternatives and technical solutions were investigated with respect to the aimed TRL level (TRL9). Further developments contain 3 main technical objectives and 4 capacity-building objectives to accomplish TRL9. We examined the main competitive advantages against the competing technological solutions. Besides this we have analysed the risks concerning the R&D activities, technological barriers and quality assurance issues to be solved during the implementation period.
• IP evaluation: To the priority position of the know-how, a freedom-to-operate analysis has been carried out on the basis of an own patent search and of the official international search report for certain aspects, with positive outcomes. Furthermore we concluded an IPR strategy in order to enable us to protect our IPR rights in the most effective way.
• Phase2 project plan: Based on the feasibility and technical viability checks, a detailed professional project plan has been established utilizing international professional methods. We used an agile project planning method. A 1.14 million EUR Phase 2 project was prepared with the aim of developing TRL8, product maturity Antavo Loyalty Platform with In-store Experience KIOSK, taking into account the necessary HR, financial and infrastructural resources. Further costs – meaning all activities above TRL8, until reaching the adjusted break-even point - will be secured from own capital and VC investment in the form of bridge financing.
• Market research and Business plan: We conducted a series of market research events and tests, contacting a large number of retailers to better understand the market conditions and customer / end user needs. We used an Executive Report market study for market sizing and market segmentation purposes, and also for drawing up the market trends for the next five years. Our elaborated business plan has been compiled in harmony with results of the primary market research and the freedom-to-operate analyses. The plan includes legal environment analysis, business KPIs, a detailed commercialization plan (incl. market entry & scaling-up), business model analysis, return on investment calculations, organizational/HR action plans and stakeholder strategy. We communicated to the public the gained SME project by placing the news in our website also on social media pages of our company.
The main chapters describe our achievements:
• Technical viability: Possible development alternatives and technical solutions were investigated with respect to the aimed TRL level (TRL9). Further developments contain 3 main technical objectives and 4 capacity-building objectives to accomplish TRL9. We examined the main competitive advantages against the competing technological solutions. Besides this we have analysed the risks concerning the R&D activities, technological barriers and quality assurance issues to be solved during the implementation period.
• IP evaluation: To the priority position of the know-how, a freedom-to-operate analysis has been carried out on the basis of an own patent search and of the official international search report for certain aspects, with positive outcomes. Furthermore we concluded an IPR strategy in order to enable us to protect our IPR rights in the most effective way.
• Phase2 project plan: Based on the feasibility and technical viability checks, a detailed professional project plan has been established utilizing international professional methods. We used an agile project planning method. A 1.14 million EUR Phase 2 project was prepared with the aim of developing TRL8, product maturity Antavo Loyalty Platform with In-store Experience KIOSK, taking into account the necessary HR, financial and infrastructural resources. Further costs – meaning all activities above TRL8, until reaching the adjusted break-even point - will be secured from own capital and VC investment in the form of bridge financing.
• Market research and Business plan: We conducted a series of market research events and tests, contacting a large number of retailers to better understand the market conditions and customer / end user needs. We used an Executive Report market study for market sizing and market segmentation purposes, and also for drawing up the market trends for the next five years. Our elaborated business plan has been compiled in harmony with results of the primary market research and the freedom-to-operate analyses. The plan includes legal environment analysis, business KPIs, a detailed commercialization plan (incl. market entry & scaling-up), business model analysis, return on investment calculations, organizational/HR action plans and stakeholder strategy. We communicated to the public the gained SME project by placing the news in our website also on social media pages of our company.
The objective of the Phase 2 project is to finalize the Antavo Loyalty Experience KIOSK with two types of hardware devices (KIOSK+enrollment), in order to bring our solution to TRL 9 ready for launch in the initial market segment in 2022.
Antavo solution is answering the needs of the retail businesses and EU-wide challenges (broader impact):
1) Provide a better user experience for customers. By understanding customer preferences and giving customers real-time, in-store product recommendations based on current inventory, we can help them find relevant products in 30% less time. With an average 200 visitors/day/store staying 8 minutes in the store, the time saving ends up at 121 days/store/year, which can be utilised freely by the customers.
2) Businesses can also learn about local communities at different locations and tailor their product offering and in-store experience to local community needs. By collecting and analyzing data (in a GDPR compliant way) businesses can optimize their entire value chain, reduce waste and have a positive impact on the environment.
3) Reduce the impact of e-commerce giants (like Amazon) on EU jobs. Delivering something unique and exciting locally helps European retailers compete against the convenience these giants provide and retain market share.
4) As the United Kingdom is leaving the European Union, we would like to build an “economic bridge” with our headquarters in the UK and the development center in Hungary, which generates economic benefits to both parties.
Antavo solution is answering the needs of the retail businesses and EU-wide challenges (broader impact):
1) Provide a better user experience for customers. By understanding customer preferences and giving customers real-time, in-store product recommendations based on current inventory, we can help them find relevant products in 30% less time. With an average 200 visitors/day/store staying 8 minutes in the store, the time saving ends up at 121 days/store/year, which can be utilised freely by the customers.
2) Businesses can also learn about local communities at different locations and tailor their product offering and in-store experience to local community needs. By collecting and analyzing data (in a GDPR compliant way) businesses can optimize their entire value chain, reduce waste and have a positive impact on the environment.
3) Reduce the impact of e-commerce giants (like Amazon) on EU jobs. Delivering something unique and exciting locally helps European retailers compete against the convenience these giants provide and retain market share.
4) As the United Kingdom is leaving the European Union, we would like to build an “economic bridge” with our headquarters in the UK and the development center in Hungary, which generates economic benefits to both parties.