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SCENE
                                                 ®




                       LOYALTY PROGRAM
                       CASE STUDY




© 2012 Maritz Canada Inc. All Rights Reserved.
Combine relevant,
   strategic, digital
   abilities with
   deep consumer
   insights to build
   innovative digital
   communications.




© 2012 Maritz Canada Inc. All Rights Reserved.
SCENE® is the first and only entertainment loyalty program in Canada. It is a
      unique partnership between Sco abank and Cineplex Entertainment, and has
  grown into one of Canada’s largest loyalty programs.



  WHERE DID WE START?
  Cineplex had no visibility into who its customers were and wanted to get a full
  view of them.
  Sco abank lacked a strategy to acquire young bank customers.
  Sco abank and Cineplex Entertainment formed a partnership to create SCENE, an
  entertainment loyalty program. SCENE allows entertainment lovers to earn points
  by presen ng their SCENE card to purchase Cineplex movie ckets, as well as by
  opening a Sco abank bank account or acquiring a Sco abank SCENE VISA card.
  Members can redeem points for entertainment rewards, such as movies, music,
  and restaurant gi cards, par cipate in exclusive contests, and also qualify for
  a 10% discount on all concession purchases.



  CLIENT OBJECTIVES
  Cineplex Entertainment’s objec ve was to iden fy theater patrons, develop and
  grow a customer database for tailored marke ng, generate revenue and influence
  movie-going behavior. Studies conducted by the Maritz Research team show that
  63% of Canadians aged 12 to 49 go to the movies at least once a month.
  Sco abank was interested in the loyalty ini a ve as a means to a ract new bank
  customers and deepen rela onships with exis ng customers, especially those in the
  14- to 44-years-of-age market segments, to promote its brand and increase profits.
  Its goal was to focus on increasing day-to-day accounts and new VISA customers,
  par cularly in the student “first card in my wallet” market.



  PROGRAM GOALS
  The SCENE program objec ves shi ed from an emphasis on enrollment/acquisi on
  at the end of the first year of opera on to a focus on ac vity and purchase
  frequency. In 2009, one of the key priori es for SCENE was Member Engagement
  (i.e., ensuring that members were ac vely par cipa ng with the program). More
  specifically, engagement was defined primarily as earning and/or redeeming points
  at Cineplex theaters, as well as using the Sco abank VISA or Sco abank products.




© 2012 Maritz Canada Inc. All Rights Reserved.
OUR APPROACH
The evolu on of the loyalty strategy was to deliver dynamic and real- me
messages by email, the content of which was driven dynamically by a member’s
individual recency and frequency of engagement with the program. These
engagement prompts were triggered emails that either tailored offers specific to
latency or reinforced frequency. The objec ves were to acknowledge and reward
good behavior and re-kindle behavior to help s mulate engagement. Member
Engagement communica ons were enabled by three key elements:
1.
Adap ve Loyalty Marke ng Engine and targe ng algorithms — by leveraging this
powerful communica on engine, Maritz’ Adap ve Loyalty Marke ng Pla orm, we
were able to develop and deliver triggered real- me one-to-one communica ons
in accordance with member behavior data and member preferences. The pla orm
monitors member behavior data in real me with triggered email messages
deployed to members according to a complex set of business rules and targe ng
parameters (including demographics, member value, points balance, recency
of ac vity, etc.), and content priority matrices — all aligned and relevant to the
member’s individual lifecycle stage.
2.
Segmenta on Model — we created and refined a customer segmenta on model
to measure the extent to which members are engaged with each of the core
elements of the SCENE program value proposi on. Nine engagement segments
emerged, the insights from which improved targe ng and customiza on of member
communica ons, specifically with the objec ves of driving member ac vity
across movie-going frequency, concession spend and payment card usage. The
segmenta on model directed an increased focus on the “Bankers” and “Movie Buff ”
segments to drive further program engagement, while ensuring reten on of the
most highly engaged segment.
             SCOTIA




3.
Op mized Bonus Offers — mul ple champion-challenger tests were implemented
to iden fy the op mal bonus amount and structure for each member segment.
Rigorous control-group methodology was implemented to ensure li and ROI could
accurately be measured.
RESULTS:
  ACQUISITION & MEMBERSHIP
  Through strong segmenta on strategies and cluster modeling that informed highly
  targeted campaigning, SCENE has substan ally exceeded its 3-year member acquisi on
  goal. The successful program design has resulted in SCENE experiencing a significant
  year-over-year growth in enrollment, which currently sits at over 3 million members.



  RESULTS & ENGAGEMENT
  STATISTICS
  Since the incep on of the program, SCENE has issued an extensive number of points, with
  an impressive percentage of those points issued in the last 12 months alone. Similarly,
  a substan al number of points have been redeemed through the program to date,
  with a solid por on of those redemp ons occurring in the same last 12-month period.
  As a testament to the success of the program, SCENE has realized significant increases
  year over year in the following areas:
         •     Average yearly customer visits
         •     Annual concession spend
         •     Customer ac vity (earn and burn point transac ons)
         •     Customer Communica ons (engagement emails)
         •     Click-through rates on targeted vs. mass emails
  In a 2011 Na onal Research Study of 6,000 Canadians, SCENE was iden fied as the
  top-performing retail loyalty program in Canada on the following a ributes:
         •     Freshness of program
         •     Frequency of communica ons
         •     Ability to reach desired rewards
         •     Ease of redeeming for rewards
         •     Quality of rewards
         •     Number of ways points can be obtained




  Sco abank has exceeded their business plan objec ves. Bank customers with SCENE
  products have significantly less a ri on, more bank products per customer and higher
  spend. Cineplex has also exceeded their goals, acquiring a strong understanding of their
  customers, and driving frequency and concession purchases.




© 2012 Maritz Canada Inc. All Rights Reserved.
This is your
Grandfather’s brand of loyalty.
   LIKE HE NEVER IMAGINED
   That personal rela onship that felt real and authen c in every interac on is what characterized the first rela onship
   between a business owner and a truly valued customer. It’s the founda on of a life-long commitment that lived up
   to the expecta ons of each gree ng, conversa on and par ng saluta on — un l next me.
   A true recogni on of the way people relate to one another as human beings — not just as customers — is s ll the
   fodder for loyalty today. The company we keep will always say a lot about who we are. Now, more than ever, we
   need that bond pronounced in the brands and businesses we choose to deal with.
   With progressive strategies, enabled by de ly capable technology and a sensi ve approach to communica ons, we can
   build a rela onship your Grandfather would be proud of. This is the new loyalty, the next genera on of rela onship.
About Maritz Canada Inc.
  Maritz Canada Inc., based in Toronto, ON, specializes in true loyaltysm
  marketing through the design and delivery of Loyalty, Engagement
  Marketing and Customer Experience solutions. By understanding,
  enabling and motivating our clients’ employees, channel partners,
  customers and consumers, Maritz Canada drives business performances
  for its clients through the integration of Loyalty, Learning, Insights &
  Analytics, Research, Creative, Event, Incentives and Digital disciplines.
  Maritz Canada Inc. has been operating in Canada since 1980 with over
  400 employees and is wholly owned by Maritz Inc., which is based
  in St. Louis, Missouri.




                                                                                                                        8/12
© 2012 MCI. All Rights Reserved.                                              SCENE is a registered trademark of SCENE IP LP.

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Loyalty Program Case Study: How SCENE® Became One of Canada's Largest Through Data Insights

  • 1. SCENE ® LOYALTY PROGRAM CASE STUDY © 2012 Maritz Canada Inc. All Rights Reserved.
  • 2. Combine relevant, strategic, digital abilities with deep consumer insights to build innovative digital communications. © 2012 Maritz Canada Inc. All Rights Reserved.
  • 3. SCENE® is the first and only entertainment loyalty program in Canada. It is a unique partnership between Sco abank and Cineplex Entertainment, and has grown into one of Canada’s largest loyalty programs. WHERE DID WE START? Cineplex had no visibility into who its customers were and wanted to get a full view of them. Sco abank lacked a strategy to acquire young bank customers. Sco abank and Cineplex Entertainment formed a partnership to create SCENE, an entertainment loyalty program. SCENE allows entertainment lovers to earn points by presen ng their SCENE card to purchase Cineplex movie ckets, as well as by opening a Sco abank bank account or acquiring a Sco abank SCENE VISA card. Members can redeem points for entertainment rewards, such as movies, music, and restaurant gi cards, par cipate in exclusive contests, and also qualify for a 10% discount on all concession purchases. CLIENT OBJECTIVES Cineplex Entertainment’s objec ve was to iden fy theater patrons, develop and grow a customer database for tailored marke ng, generate revenue and influence movie-going behavior. Studies conducted by the Maritz Research team show that 63% of Canadians aged 12 to 49 go to the movies at least once a month. Sco abank was interested in the loyalty ini a ve as a means to a ract new bank customers and deepen rela onships with exis ng customers, especially those in the 14- to 44-years-of-age market segments, to promote its brand and increase profits. Its goal was to focus on increasing day-to-day accounts and new VISA customers, par cularly in the student “first card in my wallet” market. PROGRAM GOALS The SCENE program objec ves shi ed from an emphasis on enrollment/acquisi on at the end of the first year of opera on to a focus on ac vity and purchase frequency. In 2009, one of the key priori es for SCENE was Member Engagement (i.e., ensuring that members were ac vely par cipa ng with the program). More specifically, engagement was defined primarily as earning and/or redeeming points at Cineplex theaters, as well as using the Sco abank VISA or Sco abank products. © 2012 Maritz Canada Inc. All Rights Reserved.
  • 4. OUR APPROACH The evolu on of the loyalty strategy was to deliver dynamic and real- me messages by email, the content of which was driven dynamically by a member’s individual recency and frequency of engagement with the program. These engagement prompts were triggered emails that either tailored offers specific to latency or reinforced frequency. The objec ves were to acknowledge and reward good behavior and re-kindle behavior to help s mulate engagement. Member Engagement communica ons were enabled by three key elements:
  • 5. 1. Adap ve Loyalty Marke ng Engine and targe ng algorithms — by leveraging this powerful communica on engine, Maritz’ Adap ve Loyalty Marke ng Pla orm, we were able to develop and deliver triggered real- me one-to-one communica ons in accordance with member behavior data and member preferences. The pla orm monitors member behavior data in real me with triggered email messages deployed to members according to a complex set of business rules and targe ng parameters (including demographics, member value, points balance, recency of ac vity, etc.), and content priority matrices — all aligned and relevant to the member’s individual lifecycle stage.
  • 6. 2. Segmenta on Model — we created and refined a customer segmenta on model to measure the extent to which members are engaged with each of the core elements of the SCENE program value proposi on. Nine engagement segments emerged, the insights from which improved targe ng and customiza on of member communica ons, specifically with the objec ves of driving member ac vity across movie-going frequency, concession spend and payment card usage. The segmenta on model directed an increased focus on the “Bankers” and “Movie Buff ” segments to drive further program engagement, while ensuring reten on of the most highly engaged segment. SCOTIA 3. Op mized Bonus Offers — mul ple champion-challenger tests were implemented to iden fy the op mal bonus amount and structure for each member segment. Rigorous control-group methodology was implemented to ensure li and ROI could accurately be measured.
  • 7. RESULTS: ACQUISITION & MEMBERSHIP Through strong segmenta on strategies and cluster modeling that informed highly targeted campaigning, SCENE has substan ally exceeded its 3-year member acquisi on goal. The successful program design has resulted in SCENE experiencing a significant year-over-year growth in enrollment, which currently sits at over 3 million members. RESULTS & ENGAGEMENT STATISTICS Since the incep on of the program, SCENE has issued an extensive number of points, with an impressive percentage of those points issued in the last 12 months alone. Similarly, a substan al number of points have been redeemed through the program to date, with a solid por on of those redemp ons occurring in the same last 12-month period. As a testament to the success of the program, SCENE has realized significant increases year over year in the following areas: • Average yearly customer visits • Annual concession spend • Customer ac vity (earn and burn point transac ons) • Customer Communica ons (engagement emails) • Click-through rates on targeted vs. mass emails In a 2011 Na onal Research Study of 6,000 Canadians, SCENE was iden fied as the top-performing retail loyalty program in Canada on the following a ributes: • Freshness of program • Frequency of communica ons • Ability to reach desired rewards • Ease of redeeming for rewards • Quality of rewards • Number of ways points can be obtained Sco abank has exceeded their business plan objec ves. Bank customers with SCENE products have significantly less a ri on, more bank products per customer and higher spend. Cineplex has also exceeded their goals, acquiring a strong understanding of their customers, and driving frequency and concession purchases. © 2012 Maritz Canada Inc. All Rights Reserved.
  • 8. This is your Grandfather’s brand of loyalty. LIKE HE NEVER IMAGINED That personal rela onship that felt real and authen c in every interac on is what characterized the first rela onship between a business owner and a truly valued customer. It’s the founda on of a life-long commitment that lived up to the expecta ons of each gree ng, conversa on and par ng saluta on — un l next me. A true recogni on of the way people relate to one another as human beings — not just as customers — is s ll the fodder for loyalty today. The company we keep will always say a lot about who we are. Now, more than ever, we need that bond pronounced in the brands and businesses we choose to deal with. With progressive strategies, enabled by de ly capable technology and a sensi ve approach to communica ons, we can build a rela onship your Grandfather would be proud of. This is the new loyalty, the next genera on of rela onship.
  • 9. About Maritz Canada Inc. Maritz Canada Inc., based in Toronto, ON, specializes in true loyaltysm marketing through the design and delivery of Loyalty, Engagement Marketing and Customer Experience solutions. By understanding, enabling and motivating our clients’ employees, channel partners, customers and consumers, Maritz Canada drives business performances for its clients through the integration of Loyalty, Learning, Insights & Analytics, Research, Creative, Event, Incentives and Digital disciplines. Maritz Canada Inc. has been operating in Canada since 1980 with over 400 employees and is wholly owned by Maritz Inc., which is based in St. Louis, Missouri. 8/12 © 2012 MCI. All Rights Reserved. SCENE is a registered trademark of SCENE IP LP.