Roundtable 2004 chandler

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  • 1. The decisive competitive advantage! SM more knowledge l better advertising l increased loyalty l more sales
  • 2. competitive edgeCompetitive success today requires:• better consumer data• accurate customer profiling• and more targeted marketing productsAdd large volume weekly advertising and achieve aquantum leap in consumer participationRainbow Rewards delivers every aspect in onestate-of-the-art, integrated local area marketingsystem giving neighborhood merchants a decisivecompetitive advantageRainbow Rewards is a true pay for performance systemwhere you only pay when we deliver customersaffiliated 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
  • 3. the database• 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 more knowledge l better advertising l increased loyalty l more sales
  • 4. data analyzed 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 marketingmore knowledge l better advertising l increased loyalty l more sales
  • 5. the merchantadvantageExclusive - local trade area exclusivity = competitive advantageFree - no joining fees and no capital expenditureKnowledge - customer profiles & monthly tracking reportsAdvertising - substantial promotions in local trade areaLoyalty - simple reward proposition attracts customersTargeting - data-refined direct marketing programsMembers Club - ability to make confidential offersCost - a viable marketing fee on actual sales to RR membersProfitable - more customers and less price competitionTime - minimal time involvement. no staff trainingTo join - it’s simple! just register your existing POS terminals more knowledge l better advertising l increased loyalty l more sales
  • 6. marketing muscle for Weekly 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
  • 7. merchants 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 more knowledge l better advertising l increased loyalty l more sales
  • 8. how it works Merchant marketing fee 5% = $1.50 $30 (will vary to suit each merchants economics) Purchase SM Member consumers use any MasterCard or Visa credit card registered with Electronic Rainbow Rewards on any Statement existing POS terminal at a member merchant web.email.text One Third 33% Operating Costs 19% Advertising Fund * 10% Two Thirds 67% Sponsors Beneficiaries 4% Consumers Rainbow Rewards 50 cents Points Account Worth $1.00 cents2*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 creativeand the delivery costs incurred for the direct marketing campaigns more knowledge l better advertising l increased loyalty l more sales
  • 9. merchantexclusivity and fees• 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 Catagories per yellow pages Transaction fee examples Low margin: Food, gas 1% Weekly: Liquor, pharmacy 3% Standard: Books, flowers 5% Services and other retail 5-10% Restaurants, entertainment, etc. 10-15% Merchants selected from all the Business to Consumer categories in the yellow pages more knowledge l better advertising l increased loyalty l more sales
  • 10. marketing automation Tiered Segmentation. Fast Processing Speeds. Flexible Reporting. Target eXpress • Loyalty TransactionsInternal / External Data • Members Club • Demographics • Delivery Preference • Communication Preference ASTECH Cleanse - Standardize Planning & Reporting Integrate - Enrich DATA CENTER Segmentation & Analysis • Merchant Files • Consumer Files Modeling & Data Mining • Special Offer Sales • Call Center Information Campaign Management • Online Registrations & Tracking 4 * System used by Gannett, New York Times, Denver Post, Hearst etc more knowledge l better advertising l increased loyalty l more sales
  • 11. marketing process Merchants $ SM Transaction Data Knowledge Databases $ and Marketing Loyalty Instructions Sophisticated Customers Segmentation Marketing $ Rewards more knowledge l better advertising l increased loyalty l more sales
  • 12. consumers will love it • 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 well6 • Support for local charities more knowledge l better advertising l increased loyalty l more sales
  • 13. launch processTimetableThe launch to the consumer in the five Denver counties is in October 2004 and inBoulder County six months later. We seek to enroll as many merchants as possible priorto launch to ensure consumers will have sufficient member merchants to shop at for alltheir regular needs on joiningConsumer participationTarget - 320,000 consumers enrolled by July 2005, secured by 12 months of sustainedadvertising, direct marketing and one million sponsor-endorsed invitations to joinRainbow RewardsOption on exclusivityThe merchant invitation to join Rainbow Rewards is valid for 30 days. During that timethe exact nature of the exclusivity arrangement can be negotiated 7 more knowledge l better advertising l increased loyalty l more sales
  • 14. credible partners 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 Rewardsmore knowledge l better advertising l increased loyalty l more sales
  • 15. 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 Rainbow Rewards Colorado, Inc is owned by Rainbow Rewards USA, Inc. The ultimate majority shareholder is Ed Sutton Manners and his family more knowledge l better advertising l increased loyalty l more sales
  • 16. The decisive competitive advantage! SM more knowledge l better advertising l increased loyalty l more sales