LocalPerks - Local Loyalty Coalition

Model: z-ai/glm-4.7
Status: Completed
Cost: $0.255
Tokens: 162,542
Started: 2026-01-05 14:39

User Research & Validation Plan

LocalPerks: Coalition Loyalty Validation Strategy

1 Key Assumptions to Validate

Problem Assumptions

Assumption Risk Method Target Evidence
Small businesses lose customers to chains (Starbucks) specifically due to rewards programs. HIGH Business Interviews 60%+ cite rewards as churn driver
Consumers actively avoid local shops because they "lose out" on points accumulation. MED Consumer Survey 40%+ confirm this behavior
Current "punch card" solutions are too fragmented to influence behavior. HIGH User Observation Users possess 3+ unused cards
Business Associations are actively seeking solutions to help members compete. MED Stakeholder Interviews 3+ Associations agree to pilot

Solution Assumptions

Assumption Risk Method Target Evidence
Businesses will accept a "cross-redemption" model (paying for rewards earned elsewhere). CRITICAL Concierge MVP Settle 50+ cross-redemptions
Consumers will trust a third-party app with their unified local wallet. MED Landing Page Test >10% conversion to waitlist
"No hardware" (tablet/phone) is a sufficient alternative to dedicated POS terminals. MED Process Observation <3s added to checkout time

Business Assumptions

Assumption Risk Method Target Evidence
Businesses will pay $29-$59/mo subscription + 5% redemption fee. CRITICAL Pricing Interviews 70%+ accept price structure
CAC via Business Associations is <$50 per business. MED Pilot Partnership Close 5 deals per association
5% redemption fee is cheaper than their current customer acquisition cost. HIGH Financial Deep Dive Current CAC > 10% of margin

2 Customer Discovery Interview Guide

Part 1: Business Context (10 min)

  • Can you describe your typical customer profile?
  • What percentage of your business is repeat vs. new customers?
  • How do you currently track or encourage repeat business?
  • What are your top 3 operational challenges right now?

Part 2: Problem Deep Dive (20 min)

  • Tell me about the last time a customer mentioned Starbucks or a chain competitor's rewards program.
  • How do you feel when you see a customer using a competitor's app?
  • Walk me through how your current punch card system works (or doesn't work).
  • Have you tried digital loyalty solutions (Toast, Square, Belly) before? What happened?
  • If you could magically fix one thing about customer retention, what would it be?

Part 3: The "Coalition" Concept (20 min)

  • How would you feel if a customer earned points at the coffee next door and spent them here?
  • What would make you comfortable accepting a "liability" for points earned elsewhere?
  • Would you be willing to share an anonymous email list with other local businesses for joint marketing?
  • What is your current monthly budget for marketing/customer acquisition?
  • Who would need to approve a $50/month software expense?

Part 4: Wrap-up & Commitment (10 min)

  • On a scale of 1-10, how important is solving this retention problem?
  • What would this solution need to guarantee for you to sign up today?
  • Can I introduce you to the neighboring business owner to discuss this idea?
  • Would you be willing to run a 2-week paper-based pilot with us?

3 Survey Design

Screening Survey (B2B)

Purpose: Identify qualified business owners for interviews.

1. Business Type: [Coffee] [Retail] [Restaurant] [Service]

2. Location: [Zip Code]

3. Current Loyalty Method: [None] [Punch Cards] [Digital App]

4. Pain Level (1-10): [Slider Input]

5. Monthly Marketing Budget: [$0] [$1-500] [$500+]

6. Willingness to partner with neighbors: [Yes] [No] [Maybe]

7. Email for Interview Invite: [Input]

Validation Survey (B2C)

Purpose: Quantify consumer interest in a unified local wallet.

1. How often do you shop locally? [Daily] [Weekly] [Monthly]

2. Do you use Starbucks/Chain rewards? [Yes] [No]

3. Why do you choose chains over local? (Select all)
[ ] Convenience [ ] Price [ ] Rewards/Points [ ] Consistency

4. Would you use ONE app for 20 local shops? [Definitely] [Maybe] [No]

5. Feature importance: [Points] [Discovery] [Exclusive Deals]

6. Email for Early Access: [Input]

4 Validation Experiments

A. Landing Page Test

Goal: Test "Coalition Value Prop" vs "Individual Value".

Variant A (Network):
"One Card for Every Shop in Downtown. Earn Points Anywhere."
Variant B (Individual):
"The Simple Loyalty Program for Your Business. No Hardware Needed."
Success Criteria:
  • >5% Conversion to "Join Waitlist"
  • Variant A should outperform B (validates coalition model)
  • Cost: $300 Ad Spend

B. "Concierge" MVP

Goal: Simulate the cross-redemption experience manually.

Setup: Founder acts as the "Ledger." Users text receipts to a dedicated number.
Process:
  1. User buys coffee at Shop A.
  2. User texts receipt. Founder credits points.
  3. User goes to Shop B to redeem.
  4. Founder calls Shop B to authorize discount.
  5. Founder invoices Shop B later.
Duration: 2 Weeks with 5 businesses.

5 Fake Door & Pre-Order Strategy

The "Fake Door" Test

Place a "Redeem LocalPerks Points Here" sticker on the doors of 10 partner businesses.

  • Action: Customer scans QR code.
    • Result: "We're launching in your neighborhood soon! Join the waitlist for 500 free points."
  • Metric: Scan rate vs. foot traffic estimate.

The "Founding Member" Pre-Order

Offer a "Lifetime Lock-in" rate of $29/mo (normally $59) for the first 20 businesses.

  • Action: Collect credit card (no charge until launch).
  • Metric: Conversion rate of "Interested" to "Committed".
  • Goal: 10 pre-committed businesses validates pricing.

6 8-Week Validation Timeline

Week 1-2: Problem Discovery

Conduct 20 Business Owner interviews. Distribute Screening Survey (target 200 responses). Interview 3 Business Association Directors.

Deliverable: Problem Validation Report

Week 3-4: Solution Interest

Launch Landing Page with A/B testing ($300 spend). Set up "Fake Door" QR codes in 5 partner shops. Run Consumer Validation Survey.

Deliverable: Interest Metrics & Waitlist

Week 5-6: Pricing & Commitment

Conduct Van Westendorp pricing survey. Pitch "Founding Member" deal to warm leads. Attempt to close 10 pre-orders.

Deliverable: Pricing Model & Pre-orders

Week 7-8: Concierge MVP

Execute manual "Concierge" MVP with 5 businesses. Process cross-redemptions manually. Calculate unit economics (time cost vs. fee).

Deliverable: MVP Retrospective

7 Go/No-Go Decision Matrix

Metric Target (Green Light) Actual Status
Problem Validation (Interviews) 80% confirm "Chain Reward Pressure" [___] ☐
Coalition Willingness 60% willing to accept external points [___] ☐
Landing Page Conversion >5% Signup Rate [___] ☐
Pricing Acceptance 10+ Pre-orders at $29/mo [___] ☐
Concierge MVP NPS >40 (Business Users) [___] ☐
Go Condition: Must hit 4 out of 5 targets. Pricing acceptance is mandatory.

8 Research Synthesis Template

Problem Validation Summary: [Insert Top 3 Pain Points & Quotes]

Solution Validation Summary: [Insert Most Desired Features & UX Concerns]

Pricing Validation Summary: [Insert Optimal Price Point & Competitor Anchors]

Strategic Pivot: [Based on data, do we pivot to B2C first? Focus on specific vertical like Coffee only?]