COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL

Loyalty at the Point of SaleThrough Real-Time Rewards

22nd Annual Card Forum & Expo

May 2010

COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL2

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

Irrelevant Offers

• Offer not tied to actual behavior

• Can’t distinguish between segments

• Program doesn’t support brand

strategy

Too Much Work

• Must bring back paper coupon to redeem offer

• Multi-step registration

• Must carry multiple loyalty cards (or choose which to carry)

Communication Challenges

• Unclear rules and benefits

• Behavior and reward too separated

• Offers communicated when customer isn’t likely to buy

Current Customer Loyalty Challenges

COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL4

Real-Time Loyalty’s Strategic GoalA Virtuous Cycle of Targeting and Timeliness

Program reinforcement at the moment of

purchase

Real-time program feedback

Strategy based on practical

results

Communications across multiple

channels

COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL55

CustomerPersonalized

offerReceipt

Communication

Your Bank Rewards

POINT BALANCE 50,000

REDEEM? 10,000

($5O.OO)

TO PAY $25.41

CUSTOMER RECEIPT2/5/09 10:13 AM

Account Number

xxxxxxxxxxxx1234

Exp. 12/10

Card Type MC

TOTAL PURCHASE $25.41

Ref # 50891527

Auth # 683007

Your Bank RewardsPurchase amount $ 75.41Redeemed - $ 50.00-----------Paid $ 25.41Prior balance 50,000Redeemed 10,000Earned 2500---------New balance 42500

1) Identifies The

customer

2) Links to point bank and

promotionaldatabase

3) Deliverspersonalized offer/pointredemption

4) PrintsTransaction

detail onreceipt

The Same Swipe that Pays…

Real-Time Means Non-Disruptive

COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL6

Promotional Offer

Increase frequency

New customer incentive/ product showcase

Reward customer behavior

Thanks for joining our loyalty program. Enjoy

20% off on your next visit

Receive a free product when you use your card

Come back 2 more times in the next 30 days and receive 15% off your

entire purchase

FrequencyVisit 3 times or less in a 6 month period

GenericNewly enrolled customers

Item

Over 5 visits per month; spend $125 -$175 per visit

Increase spend

$10 off a purchase of $75 or more

MonetarySpend $45 –$65 per visit

CampaignTypeSegmentObjective

Real-Time Means Segment-Driven

COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL77

At the POS• Point Redemption

• Promotional Offers

• Joint bank/retailer Offers

Discount Offer

20% off your next visit when you buy…

On their Mobile• Offers/ Alerts

• Targeted Communication

• Money Management

Online/Email• Targeted Offers

• Targeted Communication

• Personalization

Your Bank

RewardsPOINT BALANCE 12,500

REDEEM? 5,000

($5O.OO)

TO PAY $25.41

Real-Time Means Cross-Channel

At the ATM• New Products

• Reinforcing Messaging

COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL8

Program Platform

PaymentNetworks

POS

CUSTOMER RECEIPT

1/27/09 9:16 AM

Acct# xxxxxxxxxxxx1234

Exp. 12/10

Card Type MC

TOTAL PURCHASE $ 52.73

Ref # 50891789

Auth # 683123

Your Rewards

Thank you for being a valued customer you received 20% off

your purchase today.

Customer swipes card at the transaction device (physical or online)

1

2

3

4

1

3

2

4

4POS queries Program Platform for current campaign(s) for this customer

Pre- or post-interchange, based on campaign implementation

POS delivers campaign to customer (point earning, promotions, instant rewards, etc.)

Technology Flow

COPYRIGHT 2010, AFFINITY SOLUTIONS ET AL9

Reference Rollouts

www.barclaycard.co.uk/freedom/