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Investor Day 2012: US & Asia Pacific


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Investor Day 2012: US & Asia Pacific

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Investor Day 2012: US & Asia Pacific

  1. 1. US AND ASIA PACIFIC: POSITIONED FORPROFITABILITY &GROWTHLiz GrahamPresident & CEO US and Asia PacificEVP & Chief Operating Officer Aimia
  2. 2. THE US LOYALTY OPPORTUNITYThe US economy remains challenged at a However, 83% of loyalty programmodest pace of recovery... marketers expect to maintain or grow their budgets in 2012:• Real (inflation-adjusted) GDP will grow at an annual rate of 2¼ percent• Unemployment rate will stay above 8% for remainder of 2012• Rate of inflation in consumer prices will remain low 81 loyalty program marketersSource: CBO (Congressional Budget Office) Aug. 2012 Source: Forrester Research/Q3 2011 Global Loyalty Benchmark Online Survey
  3. 3. THE US PROPRIETARY LOYALTY MODEL AND AIMIA’SUNIQUE POSITION IN THE MARKETPLACEWe have a unique modelWe reach and engage the end customer DIRECT $$through B2B, B2E2C and B2B2C loyaltyapproaches . ))) COMPANY RETAILCreating a 360 degree aligned customer dexperience as a binding framework EMPLOYEEAllowing us the ability to service many clientbusiness models DISTRIBUTOR e
  4. 4. ASIA PACIFIC LOYALTY OPPORTUNITYThe Asia Pacific region is growing, with Expansion of loyalty in APAC will trackpopulation and overall wealth very strong. the maturation of consumer buying power Aimia Presence• Region is growing as markets come to maturity Mature/Affluent Emerging •Japan •India• Demographics are aligning very well to our •Australia •China industry •Hong Kong •South Korea •New Zealand Malaysia• Asia is 65% of the global population •Singapore Indonesia• Total Asia GDP expected to reach 28 to 33% •Taiwan of Global GDP by 2012
  5. 5. STRENGTHENING OUR POSITION IN ASIA THROUGHFULL ACQUISITION OF INTERACT IN INDONESIAInteract has leadership position inIndonesias loyalty sector•Indonesia is one of Asia’s fastest growingemerging economies Aimia will take full ownership position•Interact has a solid portfolio of blue chip in Interactclients. Recent wins include: Binding LOI signed to acquire balance – Nestle of equity by year end – Mazda
  6. 6. US AND ASIA PACIFICTREMENDOUS OPPORTUNITIES FOR GROWTH US Asia PacificContinue investments in capabilities and Leverage our local presence in thetalent to differentiate our proprietary loyalty mature markets.businessProvide end-to-end, integrated loyalty Set strategies for growth aligned to Asia’sservices, continuing acquisitions where demographics which are moving well in lineappropriate with loyalty growth and buying powerContinue to explore the build of a US-based Adopt a full-suite business developmentcoalition strategy to capture the large affluent markets
  7. 7. GROWING LOYALTY WITH PROVEN LEADERSHIP Jay Lee Chief Strategy Officer As head of Strategy for the US Region, Jay Lee brings together the latest loyalty thinking from Aimia’s global products, services and expertise to help companies build better relationships with their customers.
  8. 8. CUSTOMER LOYALTYJay LeeChief Strategy Officer
  9. 9. LOYALTY PROGRAMS ARE MORE IMPORTANT THAN EVER ANDTHE US IS THE LARGEST LOYALTY MARKET Global Addressable Loyalty Spend• US Loyalty program membership is increasing and has exceeded 2B in 2010• Number of loyalty memberships in the US has more than doubled since 2000• And the number of programs per household rose from 12 to 18, growing by more than 50% since 2006 ~$10Bn US Addressable Loyalty Spend Sources McKinsey, internal Aimia analysis 10
  10. 10. LOYALTY PROGRAMS ARE BEING AUGMENTED BYDIGITAL AND MOBILE COMMERCE INNOVATIONSCompetition for Innovations in Millennialmobile wallets mobile payments mobile preference
  11. 11. LOYALTY HAS BECOME A NATURAL HUB OF VAST AMOUNTSOF PERSONAL AND TRANSACTIONAL INFORMATIONThe individual is at the center of Consumer acceptance of the corporate diverse types of personal data use of personal data SEARCHES SOCIAL CALENDARS GRAPH THE INDIVIDUAL INTERESTS LOCATION PURCHASES World Economic Forum, June 2010 Aimia Digital Consumer Research , Aug, 2012 unpublished
  12. 12. LOYALTY PROGRAMS ARE A TRUSTED COMMUNICATIONSCHANNEL THAT CREATES A COMPETITIVE ADVANTAGE % who always read email or text communications from this source Aimia Digital Consumer Research , Aug, 2012 unpublished
  13. 13. THESE CHANGES IN THE MARKETPLACE HAVECREATED SIGNIFICANT COMPLEXITY FOR BUSINESSES Greater need to Greater need for incorporate new Greater need for trusted and relevant payment customer insights communications technologies from data Rate of innovation in the Data is overflowing from Customers are industry around payments many different sources and overloaded with and the digital experience channels marketing messages continues to shift How do we manage this data How do companies get How do we stay on top of and create action which their key messages new capabilities being produce results? though? created for customers?
  14. 14. WE’RE POSITIONING OUR BUSINESS TO ADDRESS THELARGE-SCALE NEEDS OF THE US MARKET LOYALTY • Significant activity in helping companies reimagine their loyalty strategy LOYALTY STRATEGY • Raising the bar in modeling the economic impacts of loyalty program designs STRAEGY LOYALTY LOYALTY • Deploying analytics capabilities across disparate client data sources ANALYTICS ANALYTICS • Integrating analytics deeper into vertical-specific strategies LOYALTY • Leveraging patented intellectual property for Code on Pack OPERATIONS • Investing in scalable loyalty and rewards platforms
  15. 15. PROCTER & GAMBLE USES LOYALTY TO AFFECTPURCHASE DECISIONS AT EACH STAGE IN THE CUSTOMERLIFECYCLE • Leverages proprietary Code on Pack intellectual property • Delivers personalized offers at key points in the purchase lifecycle • Scales loyalty currency spend to match the behavior and desired outcome of each consumer~125,000 codes are entered each day for Pampers Gifts to Grow
  16. 16. DELIVERING MEASURABLE RESULTS USING DEEPLOYALTY ANALYTICS • Vertical-specific predictive model delivers 34% increase in ROI • Leveraging multiple data sources enabled better discriminate between pet owners • Reached 6.7 million households with an 82% higher response ROI in 2011 was 122%, highest in program’s 13 year history rate
  17. 17. KELLOGG’S FAMILY REWARDS USE LOYALTY MARKETING TOUNIFY CUSTOMER DATA ACROSS THEIR BRANDS • Hundreds of brands and SKUs using the same Code on Pack business process • Goal is to cross-sell and up-sell consumers within the Kellogg’s Morning Foods Frozen Foods Snacks & Cookies family of products • Common platform and currency unifying previously disparate Promotions brand promotional activities Over 800 products within Kellogg’s family of brands
  18. 18. POSITIONING THE US CUSTOMER BUSINESS FOR GROWTHWe’re investing in technology, leveraging intellectual property and delivering high value analytics
  19. 19. GROWING LOYALTY WITH PROVEN LEADERSHIP Fay Beauchine President, US Business Loyalty A proven leader in Aimia US Business Loyalty since 2007, Fay brings a variety of expertise in cross-enterprise marketing and sales strategy, and has held executive positions in the travel sector. She leads the team that helps corporations gain and retain enthusiastic employees, committed and aligned business partners and loyal customers.
  20. 20. BUSINESS LOYALTYFay BeauchinePresident, US Business Loyalty
  21. 21. MARKETERS KNOW WHAT THEY NEEDGlobal CMOs share the perspective thatdata across all channels is criticalto interpreting and solving theirbusiness challenges. deliver value capture value, foster lasting Areas for Improvement to empowered connections measure results customers Source: IBM Oct. 2011 Global CMO Study
  22. 22. BUT RECOGNIZE THAT THEY ARE UNDERPREPAREDAND NEED HELPAreas where CMOs feel most underpreparedData explosionImplications of social media 66% of respondents saidGrowth of channel and device choices improving quality of leads,Shifting consumer demographics and maximizing selling time are most important 68% of best-in-class companies have sales intelligence that’s Sources: IBM Oct. 2011 Global CMO Study enhanced by data Aberdeen Group Study
  23. 23. AIMIA’S ANALYTICS PROVIDE CRITICAL INFORMATIONTO TARGET AND CONVERT SALES OPPORTUNITIES 42% of organizations have Hi Tech insufficient knowledge of needs of prospective buyers for user conferences Automotive 40% are unable to identify the most likely buyer of their warranty service Source: Aimia Decision Sciences
  25. 25. OUR INSIGHTS AND STRATEGIC DESIGN CONNECT B2BAND B2C INITIATIVES B2B: B2C: COMPANY-TO-DEALER & COMPANY-TO-EMPLOYEE COMPANY-TO-CUSTOMER • Insight & Strategy • Data Management• Product & Skills Training • New Customer Acquisition Programs• Recognition & Reward Programs • CRM & B2C Communications• Business Meetings & New Product Launches • Event Marketing• Employee & Channel Communications • Repurchase & Service Programs• Flexible Employee Engagement Platforms All supported by in-house centers of excellence: Creative, Media, IT, Analytics, Research, Travel & Awards
  26. 26. DRIVING DEEPER ENGAGEMENT USING GAMEMECHANICS IN EMPLOYEE CHANNEL Innovating through new channels 27 (gamification) Centurylink
  27. 27. ENGAGING THE SALES CHANNEL THROUGHEDUCATION AND COMMUNICATIONAimia’s Positive Engagement methodology applied toSubaru dealership employees drives increased sales DRIVERS OFand customer satisfaction scores POSITIVE ENGAGEMENTCertified salespeople sell 2X more vehiclesthan non-certified InnovatingSalespeople using portal sell more vehicles throughthan non-users employeesFour position increase in J.D. Powers Sales SatisfactionIndex ACHIEVEMENT APPRECIATIONOnly automaker in 2011 to post US sales increases over INNOVATION SUBARUfour consecutive years MASTERY CONNECTIONProgram won 2011 Brandon Hall Excellence Award for best WELL-BEINGSales Training and Performance program
  28. 28. WE HAVE ACQUIRED EIM, SOLIDIFYING OUR POSITIONIN BUSINESS LOYALTY • Leader in business loyalty management • Our combined company has a significant market footprint –11 of Fortune 20 –24 of Fortune 100 –7 of top 10 auto manufacturers –4 of top US telecom providers –3 of top 5 pharmaceutical companies
  29. 29. EIM STRENGTHENS AIMIA’S VALUE PROPOSITIONThe combination reinforces Aimia as aworld-class loyalty management company enhancedwith global execution abilities, strong employee and EIM adds industry expertise andleadership, talent and capabilities channel capabilities that enhance Aimia’s engagement employee and channel offerings suite best in class EIM’s technology platform technology enhances Aimia’s on-demand platform employee and sales incentives technology platform expanded Clients will benefit from a full-suite loyalty loyalty management portfolio which management now includes data analytics, portfolio customer experience and customer learning systems
  30. 30. EXCELLENTCUSTOMER EXPERIENCEDRIVES PERFORMANCE 81%of companies with strong capabilitiesfor delivering an excellent customer experience outperform their competition 31 Source: Peppers and Rogers Group
  31. 31. ASIA PACIFICKarl SchusterPresident Asia Pacific
  32. 32. GROWING ASIA WITH PROVEN LEADERSHIP Karl Schuster President, Asia Pacific • 12 year Asia Pacific Aimia veteran • Previous experience includes executive roles at Bates, Rapier and Ogilvy across three continents. • Resides in Singapore to stay close to the big opportunities in the emerging and mature markets
  34. 34. ASIA:No rth Am e ric aWe ste r nE ur op eAf f lu en tA s iaSo u th Am e ric aEa s ter nE urN op Af e ri ca /M Ea s t PERCENTAGE SHARE OF GLOBAL TOTAL GDPCh in aDe v. As iaIn d ia
  35. 35. AIMIA IN ASIA – MARKET TYPES Mature Frontier •Japan •Cambodia •Australia •Philippines •Hong Kong •Laos •New Zealand •PNG •Singapore •Burma •Mongolia •North Korea Emerging •Bangladesh •India •Vietnam •China •South Korea •Malaysia •Indonesia •Taiwan •Thailand
  36. 36. AIMIA IN ASIA – GEOGRAPHIC FOOTPRINT Mature Frontier Japan •Cambodia Australia •Philippines Hong Kong •Laos New Zealand •PNG Singapore •Burma •Mongolia •North Korea Emerging •Bangladesh India •Vietnam •China •South Korea Malaysia Indonesia •Taiwan •Thailand
  37. 37. THE CONSUMER IN ASIA The main story for the next decade is a lifecycle wave that brings together rapid growth in the 40+ age bracket with a sharp rise in their spending power. Smartphone Owners in Select Countries Likelihood that Internet Users and Regions Who Access Mobile Internet Worldwide Will Buy Groceries Daily, Q2 2011 Online, by Region, Q1 2011 % of Respondents ASIA JAPAN PACIFIC LATIN CHINA AMERICA INDIAMIDDLE EAST/ AFRICA US EUROPE BRAZIL EUROPE NORTH AMERICA AUSTRALIA Source: Nielsen, “Global Online Shopping and Savings Strategies Survey.” Note: ages 15+ Oct. 10, 2011 Source: InSites Consulting, “Social media Around the World 2011,” Sep. 14, 2011
  38. 38. THE CONSUMER IN ASIA MIDDLE EAST &The main story for the next decade is a AFRICAlifecycle wave that brings together rapid LATIN AMERICAgrowth in the 40+ age bracket with a sharp NORTH AMERICArise in their spending power. EUROPE ASIA-PACIFIC Broadband Household Share Worldwide, by Region 2009-2015 % of total Note: includes connections with permanent access to the internet via cable modem, DSL, fiber and wireless/satellite technologies; excludes mobile Source: eMarketer, March 2011
  39. 39. THE LOYALTY LANDSCAPE IN ASIA Key Trends Business Opportunity South East Asia • Fast-growing smaller economies • Proprietary loyalty a big opportunity • Largely immature from a loyalty standpoint • Limited medium term coalition plays • Low client sophistication • Limited medium term ISS opportunities Australasia • Mature loyalty markets • Large scale proprietary opportunities • Experienced clients • Mature coalition markets • Significant penetration of both proprietary and • New wins will be driven through innovation (eg coalition loyalty Cardlytics). North Asia • Japan a large stable, mature markets. • Large scale coalition markets in Japan and Korea • Korea a rapidly emerging economy • China a large, complex emerging market
  40. 40. UNMATCHED PROFILE IN ASIASingapore Headquarters Cross-region and local delivery capabilityExperienced in region Leadership Team • 500 people across eight markets • Management • Multi-market solutions • Operations Enviable portfolio of leading global, regional and local brands • Finance • IT • Legal • People and Culture
  41. 41. STRENGTH IN RELATIONSHIPS TENURE MARKET SERVED SERVICES Australia’s 11 years Australia Proprietary No 1 Bank Singapore World’s largest oil 9 years Malaysia Proprietary company Hong Kong Pamper’s: $10bn 2 years Japan Proprietary global brand Australia’s Australia 7 years Proprietary No 2 airline New Zealand New Zealand’s 15 years New Zealand Proprietary No 2 Bank
  42. 42. BENEFITING FROM THE AIMIA FULL SUITE MARKET SERVED SERVICES Australia’s Australia ISS No 2 supermarket chain Asia’s fastest growing 15 markets across Proprietary bank Middle East and Asia India’s leading private India Proprietary bank JV partnership with India’s leading Coalition India industrial/consumer Development conglomorate
  43. 43. KEY FACTS86,865 employeesOperations in 71 marketsOperating income $17.6bnPBT $6.7bnFocus on Asia, Africa and Middle East6 million credit card customers inscope for Aimia
  44. 44. OUR SOLUTION SET 5 Languages Reporting 15 Markets and Analytics Catalogue Bank Systems Data AIMIA Travel Rewards Integration Payment Gateway Loyalty eVouchers Platform Third Parties Affiliate Mall Fulfillment Member Rewards Support Portfolio >5M Members Website Contact Centre Mobile
  45. 45. DEVELOPING IN INDONESIA• Aimia takes full ownership position in key strategic Asian markets• Long term relationship with Jakarta based on integrated agency – 40% shareholding in Interact• Binding LOI signed to acquire balance of equity by year end• Indonesia is one of Asia’s fastest growing emerging economies• Interact has leadership position in emerging loyalty sector• Solid portfolio of blue chip clients• Multiple large scale proprietary loyalty opportunities recent wins include: – Nestle – Mazda
  46. 46. THE OPPORTUNITY AND CHALLENGE IN ASIAThe opportunity The challenges• Buoyant economic environment • Many early stage opportunities: sorting the• Expertise gap in emerging markets presents potential winners from losers proprietary opportunities • Adapting the business model to local• Large affluent markets maturing, presenting conditions coalition and analytics opportunities • Affluent market maturity: managing the cost• First mover advantage to establish key of entry strategic alliances • Geographic diversity and cultural differences• Aimia a desirable partner for its expertise, scale, reach, resources, clout, technology, insights and financial stability and strength.
  47. 47. AIMIA’S ASIA ADVANTAGEAs a region, Asia Pacific is and Aimia is the largest player in the Significant business will continue to be in positive region and has a solid platform development activity and growth territory for business development success We are in the best place We have the best footprint We will be the number one loyalty player in all major Asian markets
  48. 48. RECAP – ASIA PACIFIC• Partnering with leading brands• Evaluating opportunities to expand full suite• We are aggressively exploiting a first mover advantage• Expanding footprint
  49. 49. RECAP – US• Investing in: Acquisitions to expand market share and footprint Standardizing and enhancing our global technology platforms Analytics to add scale and broader range of vertical specific capabilities• Leveraging Aimia generated IP• Good progress on a next generation coalition loyalty program
  50. 50. THANK YOU