18 Sep, 2014 - Confidential

Unleashing the Power of Loyalty to Drive Engagement and Sales

CUSTOMER LOYALTY 2014:

ASEAN CONFERENCE

Presented by

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Overview

1. What can Loyalty Programs do?

2. How to get the best out of your Loyalty Program?

• Case 1: Hospitality Industry

• Case 2: Specialty Retail

• Case 3: Consumer Electronics

3. Summary

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Overview

1. What can Loyalty Programs do?

2. How to get the best out of your Loyalty Program?

• Case 1: Hospitality Industry

• Case 2: Specialty Retail

• Case 3: Consumer Electronics

3. Summary

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Leveraging the data that really matters

They know what

you like:

They know what

you look for:

They know what

you really buy:

Loyalty Programs

collect the most

valuable data on your

customers

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Member Master Data

• address / contacts

• socio demographics

• household income

• age, sex, profession,

children, pets, etc.

360° Customer

Data Base

Behavioral Data

• shopping schedules

and habits

• cross-usage

• redemption choices

Survey Data

• response to member

surveys

Customer Contact

Center Data

• contact history and topics

• complaint reasons

• suggestions

External Data Sources

• (micro) geographic

• lifestyle

• Financial indicators

• regional socio

demographics

Online / Mobile Data

• web usage

• key words

• click rates

• geo-data

Direct Marketing Data

• response to

communication and

campaigns

• coupon activation and

usage

Transaction Data

• data from many

different sectors

• category / SKU level

• PoS selection

• cross-usage (across

partners)

Loyalty helps create rich data

Loyalty Programs are a REAL basis to collect a full 360° customer data.

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The Power of Loyalty Programs

Today businesses across sectors understand the value of data to optimize their business.

Product /

Category Mgmt.

higher sales by optimized

categories

Pricinghigher prices for less price

sensitive segments

Who bought product A and B at the same time?

Who shops frequently, who doesn’t?

What do my price sensitive clients buy?

Who values quality over price?

Who responds well to campaigns?

Promotionshigher transaction rates by

personalized offers

Store Layoutcategory sales increase by

optimized placement

Customer Service

recognition of valuable

customers; cross- & up-

selling; churn reduction

Personal Marketing

Behavioral

Transaction

External Sources

Survey

Service

Online / Mobile / Social

360° CUSTOMER DATA

CUSTOMER INSIGHT

BUSINESS OPTIMIZATION EXAMPLES

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1. What can Loyalty Programs do?

2. How to get the best out of your Loyalty Program?

• Case 1: Hospitality Industry

• Case 2: Specialty Retail

• Case 3: Consumer Electronics

3. Summary

Overview

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Our 3 Step Approach

Step 1: The Loyalty Platform

A flexible and dynamic loyalty platform that provides end-to-end loyalty services

Robust loyalty

platform with a

flexible end-to-end

IT solution

Points / Miles / Customer Score

1

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Case Study 1: Hospitality Industry

Impact of A Powerful Technology Platform

%2660% of these members

were International Guests

contributing 18% of Total Revenues

of total revenues

were from members

Leading 5 star hotel chain in India, severed it’s collaboration with a Global Hotel Group and it’s frequent guest program

3 months at hand to replace the

program

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The Solution

A loyalty platform which met 90% of the requirements out of the box

Solution:

• A central loyalty system enabling de-centralised

management for individual Hotels, Customer Care

and Loyalty managers

• Offered equivalent or higher status levels to

existing program members

• Offered an array of redemption offers including

attractive exchange of currency in to FFPs,

International retail programs and others

• Targeted offers basis profile & usage to deliver

higher returns

Minimize the impactof the severance and

retain frequent guests

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The Results

New Program successfully launched in 3months (on the very next day of the old program

closing down)

Business Impact

• Close to 60% of revenues is now contributed by

members

• Managed to run over 50 different campaigns in the

first 18 months, resulting in 15% increase in

occupancy levels year on year

• For every point redeemed at the Hotel members

spent > 3X as cash at the hotel

• Voted amongst the leading Hotel Loyalty

Programs (3 times in a row)

Retained over 70% of members

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Step 2: Customer Insight

Understanding your customer and what drives their behavior

Generate customer

insight through business

intelligence to enable

one-to-one

communication

2AchievementStrategic

goals

Transaction Data

Customer data

Service Data

Campaign Data

External Data

MarketResearch

Segmentation

(customer value,

customer lifecycle,

potentials)

CustomerStrategy

IncreasedProfitability

Customer-centricofferings & services

Revenue Optimization

CustomerRetention

Increased MarketShare

Understandingof

customersneeds

("CustomerInsight")

Our 3 Step Approach

Robust loyalty

platform with a

flexible end-to-

end IT solution

1

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Case Study 2: Retail

Customer Insight

Over 85% of their top

customers felt there was not

enough recognition

One of the largest jewellery retail chains in Asia, serving millions of customers on an annual basis

%30 Of their customers were

repeat buyers

Below average response

rates to Campaigns

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Solution:

• A loyalty program with a mix of 3 Es

• Tracking preferences and purchases

• Communication and responses closely

monitored

• Member segmentation and analysis –

customer lifecycle

• Outlets empowered to run personalized

campaigns

Need to build a

one-on-one connect

with the customer

The Solution

Developed a 360° view of the customer

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The Results

Increase customer satisfaction and repeat purchase

Repeat Purchaserscontribute to over

55% of Revenues

Business Impact

• Customer dormancy decreased by

over 15%

• Higher customer satisfaction amongst

their top customers by 18%

• Personalised campaigns (at outlets)

achieved response rates of over 20%

• Awarded the best retail loyalty

program in it’s sector

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- Preferences- Location- Past history

- Occasion

- Profile.......

Creation of a

personalized

rewarding

customer

experience

based upon

Loyalty program serves the member

throughout the whole experience.

Increase of program touchpoints for

members

Seamless

Personal

Step 3: Multi-channel Marketing

Engage customers with personalized offers through their preferred medium

1010

3Drive customer behavior through personalized offers, rewards and communication to engage customers

Generate customer

insight through

business intelligence

to enable one-to-one

communication

2

Our 3 Step Approach

Robust loyalty

platform with a

flexible end-to-

end IT solution

1

Customers can

access the

program

through all

channels

Multiple

Channels

- At outlet (kiosk), portal, etc.- Website, Facebook, twitter- Mobile: App, Text message- Mailings, Email-- Call Centre, IVR

Customer-centric

multi-channel

communication

Web portal

SocialMedia

Mobile

ServiceCentre

Mailings

Newsletter

Outlet

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Case Study 3: Consumer Electronics

Multi-channel Marketing

Brand recall amongst the youth,

their key TA had dipped by 15%

Of their market share was

wiped out by their largest

competitor

A global brand in consumer electronics, facing a tough challenge from established and new players

10%

Key sponsors of a sports team and

were leveraging the relationship

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Solution:

• Loyalty program built around the

“sports team” using gamification

• Multiple channels used for

engagement – SMS, Social media (fb,

twitter, youtube), Email, website &

owned retail outlets

• Drove engagement through content,

participation in activities, referrals, viral

messaging, etc.

Retain Market Share

& Increase Brand Recall

The Solution

Engage and connect with customers through their preferred channel

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Delivered 1.3X of the program sales

target

Business Impact

• Over 1.7 million members

• 30 Million SMS Interactions with 20

Million Page views

• Over 1 million shares, generatin over

500,000 referrals

• Sales increase by 5% across

participating outlets visa-vis

7% decline in sales at other outlets

The Results

Increased Engagement and Retained Sales

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Case Study 4: Building Materials

Business Challenge

Commoditized business wanted to

create a business differentiator

Growth with a decreasing share of wallet amongst multi-brand dealers

A leading brand in Building materials, facing growth stagnation and increasing defection in it’s sales channel

0%

Ad-hoc promotions giving lesser

returns as easily being duplicated

by competition

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The Solution

A First of it’s kind long terms loyalty program for the Channel community

Solution:

• A rewards program aimed at rewarding

“desired” behaviour from the dealer• Achieving Sales targets

• Electronic payments

• Higher share of wallet

• Exclusive vs Multi-brand

• Higher retailer base, etc.

• Build rewards offering across the life of the

dealer – Me, My family, My Business & My

Community.

• Varied market conditions across regions,

enabling sales team to target individual

dealers with specific campaigns

Create an exit barrier by building true

loyalty

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Beat Growth and Sales targets by

14%

Business Impact

• Dealers got locked into long term

business objectives of the company

• E-payments increased from 20%

usage to >95%

• Increased Exclusive to Multi-brand

coverage from 30% to 36%

• Increased retailer penetration by

extending program to retailers

The Results

Increased Engagement and Retained Sales

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Overview

1. What can Loyalty Programs do?

2. How to get the best out of your Loyalty Program?

• Case 1: Hospitality Industry

• Case 2: Specialty Retail

• Case 3: Consumer Electronics

3. Summary

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Unleashing the Power of Loyalty

The 3-Step Approach

Multi-Channel M

arketing

Profiling &

Segmentation

Scoring

Targeting Generating customer

insight

Create segments by

combining profile and

past transaction history

Develop personalized

offers

• Across

• Custom Offers

• Surprise Benefits

• Rewards Shop

• Partners / External

• Personalised

Flexibility to create and

run promotions instantly

Give “surprise” benefits

to members who have

crossed milestones

Collect all customer

data in to a central

database

OnlineOffline

Mobile

Drive program

engagement by

deploying “preferred”

channel based

communication

Track & manage

campaigns , report

ROI

Earn Burn

Social

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Contact: Kunal Mohiuddin

kunal@loyaltyprime.com

Loyalty Prime Ltd.

US : +1- (347)-474-6640

UK : +44-(203)-026-6385

India : +91-(981)-026-7872

Happy to take any

questions?