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Investor Day 2013: Technology at the Core of Customer Loyalty
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TECHNOLOGY ENABLES ROBUST
CUSTOMER LOYALTY: AIMIA LOYALTY
PLATFORMS
Susan Doniz /
Michael Zea
September 18, 2013
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FORWARD-LOOKING STATEMENT
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Forward-looking statements are included in the following presentation. These forward-looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, ”should” and similar terms and phrases, including references to assumptions. Such statements may involve but are not limited to comments with respect to strategies, expectations, objectives, goals, aspirations, intentions, planned operations or future actions.
Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Any forecasts, predictions or forward-looking statements cannot be relied upon due to, among other things, changing external events and general uncertainties of the business and its corporate structure. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, dependency on top Accumulation Partners and clients, the effective implementation of Aeroplan Program enhancements and a new financial card partnership and associated cardholder migration, conflicts of interest, greater than expected redemptions for rewards, regulatory matters, retail market/economic conditions, industry competition, Air Canada liquidity issues, Air Canada or travel industry disruptions, airline industry changes and increased airline costs, supply and capacity costs, unfunded future redemption costs, failure to safeguard databases and consumer privacy, changes to coalition loyalty programs, seasonal nature of the business, other factors and prior performance, foreign operations, legal proceedings, reliance on key personnel, labour relations, pension liability, technological disruptions and inability to use third party software, failure to protect intellectual property rights, interest rate and currency fluctuations, leverage and restrictive covenants in current and future indebtedness, uncertainty of dividend payments, managing growth, credit ratings, as well as the other factors identified throughout this presentation and throughout our public disclosure record on file with the Canadian securities regulatory authorities.
Certain slides of this presentation contain forward-looking statements with respect to certain financial metrics in 2014 and 2015, respectively. These statements are not intended to constitute, nor should they be considered as, financial outlook or guidance within the meaning of applicable securities laws.
The forward-looking statements included in this presentation exclude the effects of fluctuations in currency exchange rates and Aimia Inc. (“Aimia” or the “Corporation”) has made a number of general economic and market assumptions in making these statements, including assumptions regarding the performance of the economies in which the Corporation operates and market competition and tax laws applicable to the Corporation’s operations. In addition, Aimia has made a number of specific assumptions in making these statements, including, (i) a level of growth for Aeroplan’s financial card business that is consistent with the general Canadian premium credit card market, and (ii) growth in the Corporation’s non-Aeroplan related business consistent with the Corporation’s three year plan. The Corporation cautions that the assumptions used to make these statements, although reasonable at the time they were made, may prove to be incorrect or inaccurate. In addition, these statements do not reflect the potential impact of any non-recurring or other special items or of any new material commercial agreements, dispositions, mergers, acquisitions, other business combinations or transactions. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way or in the same way we present known risks affecting our business. Accordingly, our actual results could differ materially from the forward-looking statements made in this presentation.
The forward-looking statements contained herein represent the Corporation’s expectations as of September 18, 2013 and are subject to change. However, Aimia disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
For further information, please contact Investor Relations at 416 352 3728 or karen.keyes@aimia.com.
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INTRODUCTIONS
• Appointed Regional President in Jan 2013 to invigorate US business development and growth
• Former McKinsey Partner where he led the Global Loyalty Marketing Practice; 20+ years of experience in marketing and strategy
• Started career in revenue management and sales for United and American Airlines
• Appointed Global CIO in June 2011 to define the strategy to deliver innovation and growth
• Recipient of Canada’s Most Powerful Women Top 100 in 2011, Trailblazers & Trendsetters category and serves on several boards
• 17 years of experience in Technology, including senior leadership roles at Procter & Gamble
Michael Zea PRESIDENT & CEO – U.S. REGION
Susan Doniz GLOBAL CHIEF INFORMATION OFFICER
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TECHNOLOGY ENABLES CUSTOMER LOYALTY AND IS CENTRAL TO OUR VALUE PROPOSITION
Mobile Social
Real-time Achievement Analytics
Scale
Interaction Centricity
Insight & Operations
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Analytics self serve (ISS) currently deployed with CVS Aimia Loyalty Platform in beta testing with US client
US EXAMPLE: DEPLOYING CAPITAL SELECTIVELY TO STRENGTHEN IT PLATFORMS AND COMPETITIVE ADVANTAGE
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US$28 million acquisition of
EIM in August 2012 to
advance position in
business loyalty; integration
nearly complete and client
list intact
US$18 million acquisition of
Smart Button in July 2013
to deliver new “Plug and
Play” solution to SaaS
clients
Leverage
acquisitions to
strengthen
existing
positions and
access new
capabilities
Invest in global
product-based
platforms
which address
US needs but
enable
economies of
scale
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EVOLVING OUR OPERATING MODEL: PURSUING A PRODUCT-BASED APPROACH TO TECHNOLOGY
• Maintain a catalogue of products
• Consolidate and export products across regions
• “Innovate often and fail fast” approach for new ideas
• Manage Aimia global products
• Establish Global Product Center to for our product suite
• Standardize for optimization and speed
• Represent regional market needs
• Integrate regional and global products to create solutions
• Leverage regional and global centers for scale delivery
Global
Product
Management
Global Product
Strategy & Management
Regional Execution & Delivery
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US EXAMPLE: ADDRESSING 75% OF THE US RETAIL IT PLATFORM MARKET WITH PRODUCTIZED SOLUTIONS
• Straightforward needs/buyer
• Typically a single program and brand
• “DIY” solution; $50K-1M spend
$500M Mid-Market ~10,000 retailers
$400M
Small Business ~200,000 retailers
$1.6B
US Retail Loyalty Platform Market
• Complex needs/buyer
• Typically global or multi-brand company
• Comprehensive solution with significant system interconnections; $2-5M spend
$700M
Enterprise ~300 retailers
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Verticals Retail CPG
Fin Svcs
BU’s Proprietary Coalition Regions
EMEA, US, CAN & APAC
Winning
Loyalty
Platform
Robust Feature Set
1,000+
Requirements
Functional Groupings
160 Core
Functions
Prioritization Process
Ongoing
Release
Plan
3rd Party Experts
External
Validation
Distinctive Functionality
• Loyalty Toolkit
• Dashboard Reporting
• Local or Store Manager Portal
• Social by Design
• Gamification – Challenges
• Real-Time Offer Management
• Location-Based Services
• Mobile Loyalty Applications
• Reduced Time to Market
Competitive Functionality
Baseline Functionality
OUR ENTERPRISE PLATFORM LEVERAGES EXPERTISE FROM ACROSS OUR BUSINESSES GLOBALLY
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THE AIMIA LOYALTY PLATFORM PROVIDES OUR ENTERPRISE SOLUTION FOR COMPLEX PROGRAMS
Aimia Loyalty Platform
Groups & Households
Partner Monetisation
Interactions & Transactions
Global Currencies
Advanced marketing tools for complex program management
Customer Service
Members
Marketer
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Demographic program level
segment targeting
80/20 configuration
& customization
Multi-program regional by brand
by channel
First 10 SaaS clients
First 10M+ member
retail client
First 1M+ member retail client
50 SaaS clients
Acquired by
Founded
1994 2000 2007 2008 2012 2013
SMART BUTTON HAS BEEN IN BUSINESS SINCE 1994, TARGETING THE RETAIL MID-MARKET WITH 50+ CLIENTS
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SMART BUTTON DELIVERS SELF-SERVICE PROGRAM MANAGEMENT WITH AN OUT-OF-THE BOX SOLUTION
Simple Configuration
Tools
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OUR PLATFORMS HELP CLIENTS CREATE A UNIQUE CUSTOMER JOURNEY AND EXPERIENCE
Promote & Offer Capture Purchases
Targeted Offers
Partners & Progress Tracking
Rewards, Promotions & Charities
Sharing & Rewarding
via Facebook Members Engage Others via Twitter
Enroll & Welcome
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Customer Experience Product Approach Continuous Innovation
• Enhanced user experience design to drive increased program engagement
• Intuitive tools that put control in the hands of the marketer
• Flexible set of platforms targeted to address specific market segments to win
• Features and delivery models to match solutions with buyer needs to drive value
• Innovative products that are cost efficient to deal with today’s marketing challenges
• Combining deep and broad loyalty expertise with leading loyalty technology features
OUR PRODUCT APPROACH WILL CONTINUE TO EVOLVE, BUT WILL ALWAYS START WITH THE CUSTOMER
Our People and Platform Capabilities Combined to Deliver Results
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OUR IT PRODUCTS ARE DESIGNED TO ENABLE OUR STRATEGY BY DELIVERING OUR LOYALTY EXPERTISE
“Be the recognized global leader in loyalty, inspiring brands to build
unparalleled relationships with their customers by
making engagement more rewarding, lasting, and fun”
Break away from the pack
Codify and replicate successful models globally
Strengthen our current position
Evolve our operating model
Develop or acquire solutions for new market segments
Strategic Aspiration Strategic Pillars Focus Areas
Scalable global product model in development and delivery
Embed our loyalty experience into our Enterprise platform
Match platforms and delivery models to specific market segments
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