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Confidential. Not for redistribution.
LOYAL3 Overview
An innovative program of stock gifting to a company’s community,
using ownership to promote brand loyalty
LOYAL3 Stock Rewards Overview
The Opportunity The Value We Create
• Thousands of companies offer loyalty programs,
with 3.3 billion total memberships in 20141
• But existing loyalty programs lack differentiation, fail
to provide enough value to consumers, and haven’t
kept pace with technology
• 58% of loyalty reward program members don’t even
bother to participate after they’ve signed-up1
• $16 billion of rewards go unredeemed annually2
• Align companies’ most important customers with direct
rewards of equity
• Provide a brand-positive redemption tool for loyalty
points
• Offer a uniquely long-term asset that may become
even more valuable over time, while being dynamic
and engaging on a daily basis
• A beautiful, simple user experience on mobile and web
1 Colloquy, “Is Your Loyalty Program Working for You, or Wasting Your Money?” October 2015. 2 Crowell Moring, April 29, 2015
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Confidential. Not for redistribution.
Stock Rewards Thought Starters
Referring others to become
customers
Becoming a new customer
Spending more, visiting more,
staying longer
Point Conversion use loyalty points
to redeem stock
Offer shares of your company’s stock to customers for:
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Confidential. Not for redistribution.
Why a Stock Rewards Program: Business Benefits
Increased
Customer Acquisition
& Engagement
Increased Loyalty
(Customer Retention
& Referrals)
Increased
Customer Spend
Increased
Branding/PR
New Customer
Data & Insights
CUSTOMERS LOYALTY REVENUE AWARENESS DATA
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Confidential. Not for redistribution.
Ownership Matters: Net Promoter Score Increases
19point increase in NPS after
customers own stock
NPS Score Before and After
Stock Ownership
29
10
Before Ownership After Ownership
3x
Survey data from a sample of LOYAL3 customers who purchased stock on our platform (December 2014 - January 2016).
Net Promoter Score, “NPS”, is a standard metric used by thousands of companies to measure customer, employee, and partner loyalty. It is based on the question: “On a scale of 0 to 10, how likely are you
to recommend this company’s product/service to a friend or a colleague?” Respondents are classified as: Promoters (9,10), Passive (7,8) and Detractors (0-6). The Net Promoter Score is determined by
subtracting the percentage of customers who are detractors from the percentage who are promoters.
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Confidential. Not for redistribution.
Ownership Matters: Spend Intent Increases
93%of shareholders intend to
increase or maintain their
spending, with 32% spending
more32%
61%
7%
0%
25%
50%
75%
100%
More Same Less
Survey data from a sample of LOYAL3 customers who purchased stock on our platform (December 2014 - January 2016).
Net Promoter Score, “NPS”, is a standard loyalty metric used by thousands of companies to measure customer, employee, and partner satisfaction.
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Confidential. Not for redistribution.
Ownership Matters: The Shareholders Hold Their Shares
96%
85%
74%
Averages of all IPO affinity purchasers (e.g., employees, customers, partners etc.) on LOYAL3 through January 2016.
96%of investors hold their
shares on the first day
Day 1
Holding
Period
Day 30
Holding
Period
6 Month
Holding
Period
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Confidential. Not for redistribution.
How It Works: Stock Rewards Program (Great Outdoors Company Example)
Communicate Enroll Measure/Engage
• Leverage highly branded, user-
friendly UI design for simplicity
and positive consumer
experience
• Utilize digital and social
channels to communicate
program to key audiences
• Collect data and analytics
through dashboard providing
information including
demographics, financials, NPS,
as well as engagement
capability
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Confidential. Not for redistribution.
74%
continue to hold
their shares
17pt
increase in NPS
26%
of participants intended to spend
the same or more on Kraft
Program Overview:
In 2014, Kraft partnered with LOYAL3 to enable its customers to purchase shares in Kraft through a highly-branded customer
engagement program. The program reached >2MM Kraft customers through targeted email and customized content across the
company’s digital channels (e.g., Facebook, Twitter, brand sites, Recipes and its magazine).
Kraft Social Stock Plan Case Study
26% of the people who bought stock were Millennials aged 18-34
Objectives
• Convert their customers to owners
(to drive retention and referrals)
• Enhance brand identification and affinity
among Millennials
• Increase % of retail investors in their
shareholder base
Survey data of LOYAL3 customers who purchased Kraft stock on our platform (December 2014 - January 2016).
Net Promoter Score, “NPS”, is a standard loyalty metric used by thousands of companies to measure customer, employee, and partner satisfaction.
Campaign took place prior to the merger with Heinz in 2015
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Confidential. Not for redistribution.
Why LOYAL3
• Product & Marketing:
Deep brand, product,
digital marketing and
PR expertise
• Technology: Proven,
secure and scalable
platform, with flexibility to
meet client requirements
• Registered Broker-
Dealer: Integrated broker-
dealer and experienced
customer support team
• Seamless for Issuers:
LOYAL3 operates
as an extension
of your team with a
standardized development
and launch process
• Simple and Easy for
Customers: 100% online,
3 easy steps, no fees to
redeem and a dedicated
LOYAL3 support team
Proven Experience
• Innovation: First to offer a
platform that enables you
to engage your customers
with stock ownership
• Execution: Successfully
executed 18 capital
markets transactions
• Regulatory: Years of
positive SEC collaboration;
deep expertise on use of
innovative yet fully
compliant offering
techniques and content
Unique Capabilities Easy Implementation
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Confidential. Not for redistribution.
address LOYAL3 Holdings, Inc.
150 California Street, Suite 400
San Francisco, CA 94111
email jimk@loyal3.com
phone 415.981.0700
website www.loyal3.com
To find out more information about this program.
