Custom Online Panels & Customer Loyalty

Slide 1: “You have to know your customers deeply and provide programs that will differentiate your store and resonate with your customers.” FairIsaac Beyond the Card: Shaping Next Generation Loyalty Programs in Retail “Retailers should enhance the simple profile that most current [loyalty] programs store, which generally only includes a member’s name, address, and transaction history, in order to provide a more comprehensive understanding of the customer.” An Oracle White Paper: Gaining Competitive Advantage Through Effective Retail Loyalty Programs

Slide 2: Uncover the Why. Complement Your Loyalty Program. Add a Custom Online Panel. Webinar: August 14th 2007 Mark Bergen: VP, Retail & CPG Practice 604.647.3587 / mark.bergen@visioncritical.com Scott Switzer: Manager Retail Practice 604.647.3591 / scott.switzer@visioncritical.com

Slide 3: “Average promotional lift ranged between 8% and 26%.” “During the Q4’06 research cycle, the panel generated two product ideas which went on to become highly successful staple offerings. In one example, sales increased 400%.” Book and Music Retailer complementing their loyalty program with a custom online panel

Slide 4: Agenda Get to Know Your Customers Deeply – Defining the Panel – Loyalty Program – Integrating Panels and Loyalty Programs Case Study Introducing Vision Critical Q/A

Slide 5: Custom Online Panel.

Slide 6: Custom Online Panel - Defined A dedicated group of customers who provide their opinions, feedback and advice to a company, online. • The group can range in size from a few 100 to a few 100,000+. • Engage the panel in surveys, online forums, and 3D environments. • Speak to the group as often as you like, whenever you want.

Slide 7: Custom Online Panel - Benefits 1. More confident, customer validated, project-able decisions 2. Digestible, accelerated and timely research 3. Engaged community with response rates up to 60% 4. Deep profiling that grows deeper with every study 5. Insights tracked over time, watch as they evolve, sniff trends 6. Quantitative and qualitative three-way dialogue 7. ROI – more research for less than a focus group/month

Slide 8: Custom Online Panel - Example Image: Banana Republic Panel Login

Slide 9: Custom Online Panel - Example Image: Panel Invite

Slide 10: Custom Online Panel - Example Image: Survey Question – Ad Testing

Slide 11: Custom Online Panel - Example Image: Banana Republic Insiders Newsletter

Slide 12: Loyalty Programs.

Slide 13: Loyalty Programs - Goal “The primary goal of a loyalty card scheme, from a business' perspective, is to improve their customer relationship management. Companies gather information on customers so that they can target them more effectively with marketing communications.” Wikipedia on Loyalty Program

Slide 14: Loyalty Programs - Goal 1. Spend more 2. Spend more frequently 3. Purchase more items 4. Purchase items from areas of the store not previously shopped 5. Increase their likelihood to recommend

Slide 15: Loyalty Programs - Goal Be relevant to me, not relevant to people just like me. Are your customers suffering from contact fatigue? Technology now enables one-to-one instead of one-to- many. Developing profitable customer models. Do you know if your most frequent is the least profitable? Retail Loyalty: Turning the Tide on Discounting A trend report prepared by ICLP, June 2007

Slide 16: Panel & Loyalty Programs.

Slide 17: Panel & Loyalty - How

Slide 19: Panel & Loyalty - How Import/export your customers transactional information. Image: Panel Admin Dashboard

Slide 20: Panel & Loyalty - How Target your discussions and research on a demographic, psychographic and behavioral (transactional) level. Image: Panel Sampling

Slide 21: Panel & Loyalty - How Engage them using surveys, forums and 3D environments to provide their feedback. Image: Visual Question Type within Panel

Slide 22: Panel & Loyalty - How Use a panel management system to track responses overtime to build a robust profile on each customers Image: Panel Reporting

Slide 28: Panel & Loyalty - Why “We only have two sources of competitive advantage – the ability to learn more about our customer faster than the competition and the ability to turn that learning into action faster than the competition” Jack Welch

Slide 29: Panel & Loyalty - Why Once we can open an iterative dialogue with our customers, we can begin to study and learn from each them – uniquely. How does a top 10% customer view promotions and how does it differ from a bottom 30% customer? What does the overall share of wallet look like in the top 3 deciles of my database? What do the top 20% of my database think of my Closest competitors latest promotion?

Slide 30: Case Study.

Slide 31: Case Study – The Feedback Loop A client in the books and music space has built a large panel (14k panelists) on the back of their loyalty program. Question: What kind of marketing offer / promotion does a tier x customer claim to resonate with?

Slide 32: Case Study – The Feedback Loop Based on the segmentation of the panel, the retailer uniquely tested DM and catalogue pieces. Each wave was monitored from a spend perspective. Direct segment specific feedback was also captured to illuminate quantitative results. Net contribution was calculated post test. Post-test, analysis was done and the executive briefed before the next round of research was begun.

Slide 33: Case Study – The Feedback Loop “Average promotional lift ranged between 8% and 26%.” “During the Q4’06 research cycle, the panel generated two product ideas which went on to become highly successful staple offerings. In one example, sales increased 400%.”

Slide 34: Introducing Vision Critical.

Slide 35: Introducing Vision Critical • Leading the Industry in Custom Online Panels. (source: Inside Research’s U.S. Proprietary Panel Index :: June 2007) • Custom panel experts who leverage a suite of innovative online tools to create highly engaged advisory panels • 190+ Market Researchers, Marketers, Client Service Specialists and Software Developers

Slide 36: Introducing Vision Critical \"If you are seeking a more respondent-friendly way of conducting research, then this is certainly one to review.\" Tim Macer's review of Panel+ \"Vision Critical's panel management system is very user friendly, cost efficient and results are immediate. There is nothing else to say but “perfect”, perfect supplier and perfect product.” Nestle

Slide 37: Questions.

Slide 38: Uncover the Why. Complement Your Loyalty Program. Add a Custom Online Panel. Webinar: August 14th 2007 Mark Bergen: VP, Retail & CPG Practice 604.647.3587 / mark.bergen@visioncritical.com Scott Switzer: Manager Retail Practice 604.647.3591 / scott.switzer@visioncritical.com

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