Building profitable customer loyalty Agenda Who we

Building profitable customer loyalty

Agenda Who we are Loyalty Discussion What IQ 724 can do for You

Who is i. Q 7/24? We are a digital agency focused on creating customer retention, activation, loyalty and acquisition programs for small and medium size retailers.

Our Experience in Loyalty i. Q has designed and implemented North America’s only manufacturer/car dealership loyalty program with Kia Canada 178 dealerships have their own independent program that also marries with Kia Canada National program

Some of Our Other Clients Automotive Recreational Vehicles Coalition Marketing (Latin America) Retailers Spa & Hospitality

Loyalty In Canada 94% of Canadian consumers own a loyalty card Average consumer carries 4 different loyalty cards

Loyal Customers Loyal customers impact directly on company profitability: They buy more Are willing to pay more Are more forgiving, and Their endorsement is highly valued

Research Insights 94% of members indicated that they prefer to receive communication from their programs • 77% of loyalty members say e-mail is the preferred method for receiving rewards communications. • The relevance of communications is strongly linked to satisfaction

Research Insights A recent Maritz survey found: 80% of loyalty program participants agree that the programs are “definitely worth the effort of participating” 70% agree that loyalty programs are “part of my relationship with the company” 57% say that they modify where they buy items to maximize their points 79% indicate that “programs make me more likely to continue to do business with certain companies. ” Overall, the survey found that 71% of respondents: “have room for more programs in their wallets. ”

Research Insights Yet only 53% describe the communications they receive as relevant • Relevance can be achieved by customizing communication with personalization that goes beyond just using the member’s name • The top “Cool and Exciting” uses of personal information are:

Our Philosophy The purpose of any successful customer management program is not points or rewards, or discounts or plastic cards. It is, rather, the ability to: IDENTIFY your customers TRACK their behaviour MOTIVATE and REWARD meaningful behaviours ENGAGE them through personalized communications, and MEASURE results

The First Step Knowing your customers and their buying behaviour is the 1 st step towards developing any long term relationship and profitability. i. Q 7/24 integrates with your POS system to capture transactional data automatically and in real time i. Q 7/24 platform gathers customer information about their purchase history, behaviour, trends and financial relevance to your business. i. Q 7/24 uses customer data to segment customers and prospects based on high, medium and low value.

A Turn-key Solution i. Q 7/24 offers complete support to help you to operate your customer retention/loyalty program including: Strategic Program Planning Creative Design Tactical Initiative Development Campaign Management Customer Intelligence Analytics Member Service Helpline

The i. Q 7/24 Integrated Marketing Tool Box A relationship loyalty program and commitment to your customers with points, $, rewards and sustained marketing communications. A tactical promotions program, targeted and focused, without long-term commitment The acquisition and management of member data, data mining, reporting, performance analysis and marketing intelligence

Relationship Loyalty Program Membership card or unique identifier Continuous points program, $, benefits and rewards Historical profiles, transactions, online help - custom web portal Data transfer set-up and POS system integration Dynamic management of the database Periodic statements Creation of targeted customer engagement campaigns Performance analysis and key indicators A team of consulting services and experienced support

Tactical Promotions Program Acquisition, analysis and data cleansing Data transfer set-up and optional POS system integration Targeting customers / prospects based on various criteria - dates of visits, $ spent, time of visit, day of week, items purchased, etc… Creation of promotional customer engagement campaigns Promotional tactics: free or conditional offers, discounts, special events, contests, etc. . . Digital or postal communication Communication analysis and performance A team of consulting services and experienced support

Cutomer Intelligence Management Acquisition of data via transfer or in real-time Dynamic management of the database Powerful user-friendly Si. Sense dashboards Performance analysis and key indicators Historical reports, profiles, transactions, etc. Custom web portal. Integration with the i. Q business rules engine Customer engagement campaign-builder interface A team of consulting services and experienced support

The ultimate loyalty platform for flexibility and simplicity

Conclusions There is significant opportunity to promote consumer retention and increase purchase volume through a loyalty program A successful Loyalty Program should: • Place high value on best customers • Motivate medium users to increase their level of purchase • Provide a vehicle for Heavy Users to become brand advocates in order to drive referrals • Offer relevant, attainable rewards • Regularly communicate to members on a relevant and personal level using email • Leverage brand strengths

Questions?