Building profitable customer loyalty

Agenda

Who we are

Loyalty Discussion

What IQ 724 can do for You

Who is iQ7/24?

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

iQ 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

Coalition Marketing(Latin America)

Automotive

Recreational Vehicles

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

20%

38% 49%

82%

93%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree

% S

atis

fact

ion

% "The communications I receive from this program are relevant to me."

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 1st step towards developing any long term relationship and profitability.

iQ7/24 integrates with your POS system to capture transactional data automatically and in real time

iQ7/24 platform gathers customer information about their purchase history, behaviour, trends and financial relevance to your business.

iQ7/24 uses customer data to segment customers and prospects based on high, medium and low value.

A Turn-key Solution

iQ7/24 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 iQ7/24 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 SiSense dashboards

Performance analysis and key indicators

Historical reports, profiles, transactions, etc.

Custom web portal.

Integration with the iQ 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?