Three companies are using the web and the most advanced technologies to disrupt loyalty programs. How will internet, software-as-a-service (Saas), blockchain, predictive technologies, mobile beacons, NFC, reshape the loyalty and rewards programs into the new Fintech era?

1. Three companies are
disrupting loyalty and
rewards program
industry
CRM / Loyalty workshop
J. Sanghvi
August 17th 2016

2. • New trends and technologies are transforming the loyalty program and
rewards industry
• Loyalty programs as we know them are being disrupted by new players
• New loyalty platform and program providers are creating new
paradigms
• We will take a look at the current Loyalty market
• Then we see what some new trends are and how three companies are
taking advantage of them to create new paradigms in Loyalty and
Rewards programs
What we will discuss today

3. Some numbers on loyalty market
• AIMIA alone 1.5 Bln USD in Gross Billings
in 2015 up from 1.3 Bln USD in 2013
(Aimia annual report 2014)
• The gaming industry has 156.5 million
loyalty program members, 4% growth
over last year (Colloquy 2015)
• In 2014 Over 10 Billion USD in prizes in
the US Retail alone. Over 50 Bln USD if
we include Financial Services and Travel.
Loyalty Market

4. Loyalty Market
Some numbers on loyalty coalitions
• Around 2.07 billion consumers worldwide are
likely to be members of at least one coalition
loyalty program (Finaccord 2015)
• The largest coalition loyalty program in the world
by number of members (with around 397 million)
is India's Max Get More program
• Of the total figure for all coalition loyalty
programs (2.07 billion), 500.5 million belong to
the banking sector (Finaccord 2015)
• The average number of external accumulation
partners per coalition loyalty program is around
93 (Finaccord 2015)
• The average number of external redeem partners
per coalition loyalty program is 73 (Finaccord
2015)
Coalition
Loyalty

5. Some numbers on loyalty and digital
64% of enterprise mobile marketers said that their top
priority for mobile apps is to enhance the customer
experience and drive customer loyalty
(FollowAnalytics 2015)
57% of mobile users admitted that loyalty programs
and points are the top feature in a mobile wallet, with
56% giving that title to discounts and deals (Forrester
2015)
36% of millennials said they shared digital content “to
receive a coupon / discount / promotion.” (Annalect
2015)
25% of mobile users search or redeem coupons on
their smartphones (Forrester 2015)
Loyalty Market
Digital

6. Some numbers on loyalty and
financial services
Financial services has 577.9 loyalty program
memberships, a 5% increase over last year (Colloquy
2015)
42% of millennials continue to participate in a
program because it has a mobile payment option
(Colloquy 2015)
Only 1 in 10 consumers say financial services
rewards programs offer an excellent service
(Collinson Latitude 2015)
77% of financial firm executives are concerned
about losing customers to companies like Apple,
Google, Amazon, Lending Club, etc., who could
offer alternative financial services (Makovsky 2015)
Loyalty Market
Financial
Services

7. What are the key trends
and technologies
affecting the market?

8. Blockchain technology
Blockchain is a distributed database
that maintains a continuously-growing
list of records secured from tampering
and revision.
It consists of data structure blocks that
may contain dataor programs with
each block holding batches of
individual transactions and the results
of any blockchain executables.
Each block contains a timestamp and a
link to a previous block.
What is it used for:
• Digital currencies like
Bitcoin
• Proof of ownership for
assets, contracts and
content
• Market place for digital
assets
• Decentralized databases
• Decentralized storage
• Decentralized IoT
Source: Wikipedia, Letstalkpayments

9. The rise of Fintech and of new players
Financial technology, also known as FinTech, is a line of business based on using software
to provide financial services. Financial technology companies are generally startups
founded with the purpose of disrupting incumbent financial systems and corporations
that rely less on software.
Global investment in private fintech companies totaled $5.7 billion in Q1 2016, with
$4.9bn specifically invested in VC-backed fintech companies across 218 deals, a 96% jump
compared with the same quarter a year ago.(CB Insights)

10. Other trends shaping loyalty
Chatbots are computer programs designed to simulate conversation with human users, especially
over the Internet
Platform as a service (PaaS): is a category of cloud computing services that provides a platform
allowing customers to develop, run, and manage applications without the complexity of building
and maintaining the infrastructure
Beacons: allow Mobile Apps to listen for signals from beacons in the physical world and react
accordingly.
Social Media: Not only Facebook and Twitter, but the entire social media ecosystem from Instagram
to Linkedin
Mobile Payments: NFC, Mobile wallets, Mobile Carrier Billing, Mobile Remittance
Big Data: extremely large data sets that may be analysed computationally to reveal patterns, trends,
and associations, especially relating to human behaviour and interactions

11. Who is taking advantage of
new technologies and
trends to disrupt loyalty with
innovative solutions?

12. Company #1

13. • Founded in: February 2014
• Headquarters: New York (USA)
• Description: Loyyal is a loyalty and rewards platform which brings
interoperability to the currently fragmented industry.
• Founders: Sean Dennis, Gregory Simon
• Total Equity Funding: 1.5 mln USD
• Website: http://www.loyyal.com/
• Twitter: @loyyalcorp
About Loyyal
Source: Crunchbase 2016

14. • Too much fragmentation in the Loyalty Industry
• Too time consuming for enterprises (e.g. a bank or airline) to set-up or
enter a loyalty program partnership -> improve interoperability
• Improve liability management
• Improve security of customer privacy
• 53% of customers unhappy of their loyalty program
What issues does Loyyal want to solve?
Sources: loyyal.com ;
pymnts.com (K. Webster interviews Ron Quaranta)

15. Loyyal is the universal
loyalty and rewards
platform, built with
blockchain and smart
contract technology.
What is Loyyal’s solution?
Sources: loyyal.com ;
pymnts.com (K. Webster interviews Ron Quaranta)

16. • Programs could easily expand their partnership networks and remove
the friction from the redemption process, improving their member value
proposition and reducing liability as more points are redeemed.
• All loyalty points would be tokenized, providing security and
traceability as the points are exchanged across partners.
• New partners and coalitions could be added to a program almost
instantly, and with low security risk even when a partner is unknown
or not yet trusted.
• The platform would allow for the dynamic valuation of points based on
the situation.
• Lastly, for consumers a blockchain loyalty program would provide
greater choice, a single wallet to manage their currency.
What are the advantages of Blockchain
Sources: loyyal.com ; hotelnewsnow.com
pymnts.com (K. Webster interviews Ron Quaranta)

17. Company #2

18. • Founded in: May 2015
• Headquarters: Amsterdam (Netherlands)
• Description: koomalooma offers a loyalty program based on an open
coalition framework designed specifically for mobile and web companies
• Founders: Massimiliano Silenzi, Simonluca Landi
• Total Equity Funding: Undisclosed
• Website: http://www.koomalooma.com
• Twitter: @koomalooma_biz
About kooma∙looma
Source: Crunchbase 2016

19. The conversion vs loyalty program dilemma for E-Commerce and:
• Loyalty Program = More Loyalty, More User Motivation , but Less
Conversion
The reason is that in the digital space users can opt out at any moment
during the purchase activity (Run out of the shop)
Anything distracting the user during the process, for example requesting
to insert a rewards program membership number would most likely
decrease conversion.
The benefit of the loyalty program can be diluted by decreased conversion
and this is the issue koomalooma wants to resolve
What issue does koomalooma want to
resolve?
Sources: business.koomalooma.com;
blog.koomalooma.com

20. Retroclaim proprietary technology
Retroclaim allows users to collect
points anonymously and sign up after
the purchase is completed.
Koomalooma keeps track of all points
issued to anonymous users.
When user decides to become member
all previously earned points can be
“Retroclaimed” to the new registered
account.
Merchants integrates koomalooma’s
API and javascript widget and can
manage the program and points from
the backend panel
What is koomalooma’s solution
Sign-up
Earn
Points
Get
rewards
Traditional Programs that reduce conversion online
Earn
points
Sign-up
Get
rewards
Koomalooma Solution
Sources: business.koomalooma.com;
blog.koomalooma.com

21. • New user experience paradigm. Merchant doesn’t have to worry about
negative consequences on conversion because user is not distracted (no
program opt-ins, no registration or sign ups) until the purchase (or call-
to-action) is completed.
• Easy integration and management of the program
• Merchants can join the multi-partner coalition easily
• User signs up to the program when he/she is more motivated to do so
(when closer to redeeming the reward)
• Happier and more loyal customers
What are the advantages of Retroclaim
Sources: business.koomalooma.com;
blog.koomalooma.com

22. Company #3

23. • Founded in: March 2011
• Headquarters: Singapore
• Description: Perx is a powerful mobile CRM application that makes
customer engagement a reality for businesses of any size.
• Founders: Anna Gong, Andrew Roth, Jon Sugihara, Rob Roach
• Total Equity Funding: Undisclosed
• Website: http://www.getperx.com
• Twitter: @Perxenterprise
About Perx
Source: Crunchbase 2016

24. “With the verge of digital arena, mobile
platforms are now serving as the single
constant touch point for consumers these days.
If consumers spend anywhere from 18-20
hours/day on their mobile, how will companies
engage, learn, influence, and reward your
customers?
Most of large enterprises have fought the war
of customer acquisition for years while not
paying much attention to the engagement &
retention part.
Businesses have deluge of data collected on
their customers but lack the right technology to
gain insights from this data to help them
engage with their customers in real time.”
What issue does Perx want to resolve?
Sources: getperx.com; e27.co ;

25. What is Perx’s solution
Perx offers an End-to-
end customer
engagement CRM
platform offered SaaS

26. • Perx is designed for the Social and Digital consumer with specific
features for Mobile (e.g. beacons, geo-fencing and proximity marketing)
• Perx supports, integrates into and exploits the newest marketing tools
and trends such as Social Media and Gamification
• Perx has engines that support predictive analysis allowing to take data-
driven decisions
What are the advantages of Perx’s platform

27. Three very innovative loyalty solutions
For: PSPs, banks, airlines,
large physical and digital
retailers and platforms
Key Features:
#Blockchain
#Smartcontracts
#Liabilitymanagement
#Security #interoperability
#partnership
For: Mobile and web
platforms, e-commerce,
games and apps
Key Features
#Retroclaim #UX
#Conversion #Frictionless
#Engagement #Retention
#API #PaaS #Coalition
#Mobile #Chatbots
For: Any size physical and
digital business
Key Features:
#Saas #CRM #Predictive
#Socialmedia
#Gamification #Proximity
#Mobile #Engament
#Omnichannel