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© 2006 Hewlett-Packard Development Company, L.P.

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  • PurchasEdge is a customer rewards program that creates greater customer loyalty and increased supplies revenue for resellers Rewards program is based on a point system. One point for every $4 spent on qualifying supplies PurchasEdge is a long term supplies program and HPs largest supported by a significant infrastructure investment to support reseller and member needs
  • Benefits: Customers Earn free products for continuing to purchase genuine HP supplies Point value equates to a 3 to 4% discount Members receive greater rewards through quarterly promotions Resellers Improve customer loyalty Grow supplies revenue
  • Unprecedented supplies growth at compound annual growth rate of 36.5% Attributed the following 3 reasons: Quarterly promotions Free products consume supplies Business supplies shift to a dealer with a rewards program
  • 06 was a big year for reseller and member adoption This program has acquired mass and loyal members It can determine which reseller a customers buys from
  • Over 40,000 products have been redeemed since the program inception Printers are largest redeemed product which consume supplies Fairly even split between ink and laser
  • This diagram illustrates a reseller direct integration model Customer purchases from reseller Reseller reports member invoice data to purchasedge Purchasedge converts into points Customer redeems points for free products
  • This diagram represents an indirect integration model An indirect integration is when a reseller uses a third party to collect and submit their customer invoice data PurchasEdge has integrated with key ecommerce service providers in the supplies industry to enable automated invoice submission capabilities PurchasEdge has enabled over 2,300 independent resellers with the ability to automatically submit invoices by integrating the following ecommerce providers: Britannia ECI2/DDMS Red Cheetah tBN (Canada) Resellers must obtain a PurchasEdge Reseller ID (RID) from their ecommerce service provider regardless if they had a previous RID before joining a ecommerce provider
  • Format examples at available at www.purchasedge.com/reseller Resellers can upload submission files directly to www.purchasedge.com/reseller Resellers can also auto-post invoice submissions using xml Submit customer invoice data at least monthly if not more frequently The more frequent invoices are submitted, the faster customers will have access to their points
  • Resellers should have their reps register for a “reseller rep account” at www.purchasedge.com/reseller. By doing so, they’ll gain access to training and tools to help them be successful Registering for a reseller rep account is the best way to stay informed regarding promotions and program changes
  • One of the most efficient and cost effective methods that resellers have found to invite customers into the program is by using the email invitation system located at www.purchasedge.com The email invitation is designed to provide an overview an a direct path to enroll When customers accept the email invitation, they will be automatically added to the resellers customer list
  • Invitations are always current and ready for use Send invitations individually or do a mass distribution by contacting resellersupport@purchasedge.com Email invitations can be co-branded when doing a mass email distribution
  • Follow-up email invitations with a customer call to answer any remaining questions and to secure customer interest and enrollment
  • When customers enroll, they receive 150 welcome points and a new member welcome kit
  • Everything that a member needs to participate in PurchasEdge can be found on the member web site
  • Quarterly member promotions are a key element of the PurchasEdge Promotions increase customer rewards and promote supplies purchases
  • Presentation Title Co-branded materials are provided at no cost. Resellers are responsible for any printing or shipping costs Contact resellersupport@purchasedge.com regarding any marketing and member campaign questions
  • Transcript

    • 1. HP PurchasEdge Overview Mike Gibson March 22, 2007
    • 2. PurchasEdge program overview
      • Allows customers to earn points toward free HP products and services for buying HP Supplies (like print cartridges, storage media, and paper)
      • Members earn 1 point for every $4 spent on qualifying supplies
      • Started in 1998
      HP PurchasEdge is designed to maintain and increase B2B customer loyalty for resellers and HP supplies. Customized statements Rewards Exclusive promotions Value-added Web content Support Center TCE Members enrolled through promotions, resellers, and direct marketing strategies
    • 3. Customers get free HP products, resellers get loyal customers HP PurchasEdge is a rewards program for loyal HP customers and helps resellers enhance customer relationships. Promotions provide greater member return and encourages additional supplies purchases Increased customer rewards with quarterly promotions Creates a “value add” service which promotes customer loyalty. Electronic invoice submission makes reporting fast and simple Simply earn and redeem for free HP products. Resellers submit the necessary information Resellers see increased sales as members redeem points for products which consume supplies Free HP products for purchasing qualifying supplies. Free Products include (printers, digital cameras, PDAs and more) Reseller End Customer
    • 4. Average supplies growth 160% 140% 120% 100% 80% 60% 40% 20% 0% 1 2 3 4 40.97% 71.42% 102.97% 138.48% Years in Program Linear Growth Member supplies purchase growth in PurchasEdge program through 2005. Average CAGR: 36.5%
    • 5. FY06 results Data as of 10/02/06
      • 600 new Independent Resellers
      • Over 40,000 members
      • 35% annual member growth
      • 78% SMB members
      $605,564,188 Total $477,995,861 Top 10 total $8,628,296 Reseller 10 $8,948,863 Reseller 9 $11,051,342 Reseller 8 $12,437,803 Reseller 7 $20,154,213 Reseller 6 $31,178,983 Reseller 5 $34,883,758 Reseller 4 $71,986,389 Reseller 3 $101,176,456 Reseller 2 $177,549,753 Reseller 1 FY06 purchase submissions Top 10 Resellers
    • 6. FY 06 YTD Redemptions May 12, 2010 LaserJet detail: 4,678 (71%) Mono 1527 (23%) Color 293 (4%) AIO 92 (2%) MFP inkjet detail: 2,069 (35%) Deskjet 1,746 (30%) Officejet 1,412 (24%) Photosmart 360 (%) Fax 274 (5%) Business Inkjet
    • 7. Direct reseller integration model customer Purchases supplies Redeems points Data flow transactional data reseller PurchasEdge reporting data
    • 8. Indirect reseller integration model Data flow transactional data Purchases supplies Redeems points reporting data end-user customer PurchasEdge reseller ecommerce service provider
    • 9. Data requirements
      • Able to track and report purchases via a unique customer identifier and include the following data fields:
        • Reseller ID (RID)
        • Reseller customer ID (RCID) or PurchasEdge member ID (PID)
        • Invoice date
        • Invoice number
        • Product number (HP SKU)
        • Product quantity
        • Product price (price paid per item)
      • Able to export customer data in one of two acceptable formats:
        • XML (extensible markup language)
        • Tab-delimited text (text file with values separated by spaces, can be exported directly from Excel)
    • 10. PurchasEdge enrollment process Invitation by reseller rep
      • Registration benefits:
      • View detailed information about customers invited to the program
      • Automatically populate contact in customer invitations
      • Access secure content on the PurchasEdge Reseller Web site
      • Include personal note in customer invitations
      Reseller rep registration URL: www.purchasedge.com/go/registration/resellername Step 1: Reseller rep registers via co-branded online form
    • 11.
      • Features:
      • PurchasEdge system verifies customer is not already enrolled or has not previously declined to participate
      • Customer profile provided by reseller rep is pre-populated for customers who opt in
      PurchasEdge enrollment process Invitation by reseller rep Step 2: Reseller rep fills out invitation form for customer
    • 12.
      • Features:
      • Invitation e-mail has link to co-branded reseller enrollment form
      • If invitation is declined, customers opt-out status appears on PurchasEdge Web site; no further action is taken
      PurchasEdge enrollment process Invitation by reseller rep Step 3: Customer receives invitation to PurchasEdge
    • 13.
      • Features:
      • Completed applications sent to PurchasEdge Support Center for approval
      • Once approved, a welcome e-mail is sent to both the new member and their reseller rep
      PurchasEdge enrollment process Invitation by reseller rep Step 4: Customer fills in information not previously provided by rep and submits form to complete application process
    • 14. New Member Welcome Kits
      • Includes:
        • Program overview
        • Terms and conditions
        • Support center contact information
      Mailed to new members following enrollment approval
    • 15. New Member Website
      • Log-in page
      • New program demo (Flash 6.0)
      • New site provides significant
      • improvements:
        • New shopping cart redemption interface
        • Updated invoice tracker and account management tools
        • Added content/messaging
      • www.purchasedge.com
        • User name: sample
        • Password: 99999
    • 16. Promotions Example
      • New promotions each quarterly
      • Increased point rewards
      • Product discounts
    • 17. e-Statements
      • Opt-in, quarterly frequency
      • Account information, including point balance
      • Content briefs, with push to website for complete story
      • Periodic promotions
      • PE Support Center contact information
    • 18. Marketing materials Available at www.purchasedge.com/reseller
      • Reseller Fact Sheet
      • Member Fact Sheet (customizable)
      • HTML e-mail
      • Telemarketing script
      • Direct Mailer (customizable)
      • Reseller Brochure
      • Member Brochure
      • Web banners (customizable, available on www.purchasedge.com)
      Brochures Direct Mail Fact Sheets Telemarketing Script HTML e-mail and web banners
    • 19. Getting started
      • 1. Obtaining a Reseller ID (RID)
          • > Resellers who use an ecommerce service provider like ECI2/DDMS,
          • Red Cheetah, Britannia or tBN regarding how to obtain a RID and set
          • up automated invoice submission.
          • OR
          • > All other resellers should contact PurchasEdge directly at [email_address]
    • 20. Getting started
      • 2 . Target
          • > $500 annually in HP supplies
          • > SMB focused
          • > Value driven
      • 3 . Invite (3 touch approach)
      3 – Follow-up Call 2 - Email 1 - Web Banner Secure customer interest by calling to answer any questions and to re-enforce enrollment Professional html email template Pre-populate online customer enrollment and view status Easy and cost effective to implement Two banners to choose from or rotate all Link to custom co-branded enrollment form Easy and cost effective to implement
    • 21. PurchasEdge Contacts
      • PurchasEdge Support Center
      • 1.888.264.6599
      • [email_address]
      • Reseller Integration Support
      • Mark Ritchie
      • [email_address]
      HP Program Manager David Llamas [email_address] Marketing & Promotions Melissa Heye [email_address] New Reseller Integrations Mike Gibson [email_address]
    • 22. Questions?

    ×