Presentation I delivered at Card Forum 2010, Orlando FL

1. Loyalty at the Point of Sale
Through Real-Time Rewards
22nd Annual Card Forum & Expo
May 2010
COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL

2. Participants
Jonathan Silver
President & CEO, Affinity Solutions
Jake Sterling
VP Partnerships, Maritz Real-Time Rewards
John MacMillan
VP Product Management, Comerica Bank
Gerry O’Brion
VP Marketing, Red Robin Restaurants
COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL
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3. Current Customer Loyalty Challenges
Irrelevant Offers Too Much Work
• Offer not tied to • Must bring back paper
actual behavior coupon to redeem offer
• Can’t distinguish • Multi-step registration
between segments • Must carry multiple
• Program doesn’t loyalty cards (or choose
support brand which to carry)
strategy
Communication Challenges
• Unclear rules and benefits
• Behavior and reward too
separated
• Offers communicated when
customer isn’t likely to buy
COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL

4. Real-Time Loyalty’s Strategic Goal
A Virtuous Cycle of Targeting and Timeliness
Strategy based Real-time
on practical program
results feedback
Program
Communications
reinforcement at
across multiple
the moment of
channels
purchase
COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL
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5. Real-Time Means Non-Disruptive
Personalized Receipt
Customer offer Communication
CUSTOMER RECEIPT
2/5/09 10:13 AM
Account Number
xxxxxxxxxxxx1234
Exp. 12/10
Your Bank Rewards Card Type MC
TOTAL PURCHASE $25.41
POINT BALANCE 50,000
REDEEM? 10,000 Ref # 50891527
($5O.OO) Auth # 683007
TO PAY $25.41
Your Bank Rewards
Purchase amount $ 75.41
Redeemed - $ 50.00
-----------
Paid $ 25.41
Prior balance 50,000
Redeemed 10,000
Earned
2500
---------
New balance 42500
The Same Swipe that Pays…
2) Links to 3) Delivers 4) Prints
1) Identifies
point bank and personalized Transaction
The
promotional offer/point detail on
customer
database redemption receipt
COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL
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6. Real-Time Means Segment-Driven
Campaign
Objective Segment Type Promotional Offer
Increase Spend $45 – $10 off a purchase of $75
Monetary or more
spend $65 per visit
Over 5 visits
Reward
per month; Receive a free product
customer Item
behavior spend $125 - when you use your card
$175 per visit
New customer Thanks for joining our
incentive/ Newly enrolled
customers Generic loyalty program. Enjoy
product 20% off on your next visit
showcase
Come back 2 more times
Visit 3 times or
Increase in the next 30 days and
less in a 6 Frequency
frequency receive 15% off your
month period
entire purchase
COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL
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7. Real-Time Means Cross-Channel
Discount Offer
Your Bank 20% off your
Rewards next visit when
POINT BALANCE 12,500
you buy…
REDEEM? 5,000
($5O.OO) On their
Mobile
TO PAY $25.41
• Offers/ Alerts
At the POS • Targeted
• Point Redemption Communication
• Promotional Offers • Money
Management
• Joint bank/retailer
Offers
Online/Email
At the ATM • Targeted Offers
• New Products • Targeted Communication
• Reinforcing • Personalization
Messaging
COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL
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8. Technology Flow
Payment Program 1 Customer swipes card at
Networks Platform the transaction device
(physical or online)
2 2 POS queries Program
4 Platform for current
campaign(s) for this
customer
POS 3 POS delivers campaign to
customer (point earning,
4
CUSTOMER RECEIPT
1/27/09 9:16 AM
Acct# xxxxxxxxxxxx1234 promotions, instant
rewards, etc.)
Exp. 12/10
1 Card Type MC
TOTAL PURCHASE $ 52.73
4 Pre- or post-interchange,
Ref # 50891789
Auth # 683123
3 Your Rewards
Thank you for being a valued based on campaign
customer you received 20% off
your purchase today.
implementation
COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL
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9. Reference Rollouts
www.barclaycard.co.uk/freedom/
COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL
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