World Practice Roundtable Maggie Watkins Meritas President October 25, 2004
Roundtable 2004 chandler
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Transcript of Roundtable 2004 chandler
The decisive competitive advantage!
more knowledge l better advertising l increased loyalty l more sales
SM
competitive edge
affiliated sponsors: The Denver Post, The Rocky Mountain News beneficiaries: Mile High United Way and The Children’s Hospital
Competitive success today requires:
• better consumer data
• accurate customer profiling
• and more targeted marketing products
Add large volume weekly advertising and achieve a
quantum leap in consumer participation
Rainbow Rewards delivers every aspect in one
state-of-the-art, integrated local area marketing
system giving neighborhood merchants a decisive
competitive advantage
Rainbow Rewards is a true pay for performance system
where you only pay when we deliver customers
more knowledge l better advertising l increased loyalty l more sales
affiliated sponsors: The Denver Post, The Rocky Mountain News beneficiaries: Mile High United Way and The Children’s Hospital
more knowledge l better advertising l increased loyalty l more sales
• Uses unique proprietary techniques to collect data on large numbers of
individual consumers based on identifying their past and likely future behavior
and spending habits
• This data is then mined to obtain the knowledge needed to perfect unique
advertising strategies in a micro market
the database
more knowledge l better advertising l increased loyalty l more sales
This database drives for the benefit of
member merchants:
• Geographically zoned & psychographically
targeted catalog magazines
• A precision direct marketing operation to
secure new customers
The loyalty program then solidifies the
habits of new customers. The result is a
substantially improved return on investment
by cutting the excessive waste in traditional
neighborhood marketing
data analyzed
more knowledge l better advertising l increased loyalty l more sales
Exclusive - local trade area exclusivity = competitive advantage
Free - no joining fees and no capital expenditure
Knowledge - customer profiles & monthly tracking reports
Advertising - substantial promotions in local trade area
Loyalty - simple reward proposition attracts customers
Targeting - data-refined direct marketing programs
Members Club - ability to make confidential offers
Cost - a viable marketing fee on actual sales to RR members
Profitable - more customers and less price competition
Time - minimal time involvement. no staff training
To join - it’s simple! just register your existing POS terminals
the merchant advantage
data analyzed
merchantsmarketing
muscle forWeekly Sustained Advertising - Targeting All Consumers
• Weekly catalog magazine with 24 neighborhood editions
• Geographic targeting and ad designs increases impact
• Inserted in Denver Post & Rocky Mountain News with a minimum 600,000 print run every week
• Multi-media advertising – Press, Radio, Internet and TV
Precision Data-refined Direct Marketing
• Merchants gain a decisive competitive advantage to secure long-term new customers
• We specialize in low volume high success direct marketing
more knowledge l better advertising l increased loyalty l more sales
merchants
more knowledge l better advertising l increased loyalty l more sales
Simple Loyalty Reward
• Shifts market share to member merchants
• Increases return purchase loyalty and average transaction values
The Exclusive Members Club
• Member merchants may make password secure confidential offers
• 24 local information websites mirroring the 24 catalog editions
• Consumers participate with personal information to ensure communications are relevant to their interests
Expertise - A Rainbow Rewards marketing consultant will help you maximize your return from using each of these sophisticated marketing tools
how it works
2*An advertising fund of $600,000 per annum for each of the 24 zones is targeted for 2005**The marketing fee pays for running the entire system, the only extras are the creative and the delivery costs incurred for the direct marketing campaigns
One Third 33% Operating Costs 19%
Advertising Fund * 10% Sponsors Beneficiaries 4%
50 centsTwo Thirds 67%
Consumer's Rainbow Rewards Points Account Worth
$1.00 cents
Electronic Statement
Merchant marketing fee 5% = $1.50
(will vary to suit each merchants economics)
more knowledge l better advertising l increased loyalty l more sales
$30 Purchase
web.email.text
Member consumers use
any MasterCard or Visa
credit card registered with
Rainbow Rewards on any
existing POS terminal at a
member merchant
SM
more knowledge l better advertising l increased loyalty l more sales
• Local trade area exclusivity negotiated then guaranteed
• No joining fees. No capital expenditure
• Merchants determine their own transaction marketing fee rate to suit their business and gain consumer interest. Rate may be changed with 90 days notice
• Bonus reward points may be offered
• Higher reward points may be offered for large transactions
• Transaction fees are invoiced electronically every day with audit trail
merchant exclusivity and fees
Merchants selected from all the Business to Consumer categories in the yellow pages
Catagories per yellow pages
Low margin: Food, gas
Weekly: Liquor, pharmacy
Standard: Books, flowers
Services and other retail
Restaurants, entertainment, etc.
Transaction fee examples
1%
3%
5%
5-10%
10-15%
4
marketing automationTiered Segmentation. Fast Processing Speeds. Flexible Reporting. Target eXpress
* System used by Gannett, New York Times, Denver Post, Hearst etc
Cleanse - Standardize Integrate - Enrich
• Loyalty Transactions
• Members Club
• Demographics
• Delivery Preference
• Communication Preference
• Merchant Files
• Consumer Files
• Special Offer Sales
• Call Center Information
• Online Registrations
Inte
rnal
/ E
xtern
al
Data
Planning & Reporting
Segmentation & Analysis
Modeling & Data Mining
Campaign Management & Tracking
more knowledge l better advertising l increased loyalty l more salesmore knowledge l better advertising l increased loyalty l more sales
ASTECH DATA
CENTER
marketing process
more knowledge l better advertising l increased loyalty l more sales
Merchants
$ and Marketing Instructions
$ Transaction
Data
$ Rewards
Loyalty
Knowledge Databases
Sophisticated Segmentation
Marketing
Customers
SM
6
consumers will love it
more knowledge l better advertising l increased loyalty l more sales
• It’s simple and compelling
• Easy registration process
• No joining or annual fees
• Cash rewards every 3, 6 or 12 months or on 14 days demand
• Special offers via the Members Club
• Average reward $325 per year
• Diverse mix of merchants
• Less intrusion, privacy respected
• No extra card - register any MasterCard or Visa credit card to join
• Earn credit card loyalty points as well
• Support for local charities
7
launch process
Timetable
The launch to the consumer in the five Denver counties is in October 2004 and in
Boulder County six months later. We seek to enroll as many merchants as possible prior
to launch to ensure consumers will have sufficient member merchants to shop at for all
their regular needs on joining
Consumer participation
Target - 320,000 consumers enrolled by July 2005, secured by 12 months of sustained
advertising, direct marketing and one million sponsor-endorsed invitations to join
Rainbow Rewards
Option on exclusivity
The merchant invitation to join Rainbow Rewards is valid for 30 days. During that time
the exact nature of the exclusivity arrangement can be negotiated
more knowledge l better advertising l increased loyalty l more sales
more knowledge l better advertising l increased loyalty l more sales
Technology
• Vital Processing Services Inc GRS division (Visa USA own 50%)
• Vital GRS is Visa CISP security certified
• ASTECH InterMedia of Denver (marketing automation)
Affinity Beneficiaries
• Mile High United Way, The Children’s Hospital
• United Way will select charities to support in each zone
• We will work in partnership with the beneficiaries to invite their community to join Rainbow Rewards
Media Sponsors
• Denver Post and the Rocky Mountain News
• Will invite their subscribers to join Rainbow Rewards
credible partners
more knowledge l better advertising l increased loyalty l more sales
executive team• Dr Ed Sutton Manners FCA, Chairman and
Publisher, is the architect of Rainbow Rewards. He has worked in the media for 30 years
• Rick Chandler, President and CEO, is a successful strategic marketer. He has years of experience in the high technology sector ranging from F 500 companies to start ups
• Tom Ratkovich is President of ASTECH InterMedia Inc and has 20 years experience in data-driven marketing automation
• Vere Spandow is a hands on experienced technical manager of loyalty programs. He is a former Vice President of Cendant Corporation
• Stuart Graham, Vice President Sales, is an expert in registered card loyalty programs and an experienced CEO
• Gene McConnell, Treasurer, is an experienced Financial Controller and a Tatum CFO Partner. Our Auditors are Clifton Gunderson
credible partners
Rainbow Rewards Colorado, Inc is owned by Rainbow Rewards USA, Inc. The ultimate majority shareholder is Ed Sutton Manners and his family
The decisive competitive advantage!
more knowledge l better advertising l increased loyalty l more sales
SM