Loyalty 2.0New Ways to Engage and Reward Your Cardholders

April 2017Dan Caggiano

Loyalty Landscape

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Loyalty landscape fast facts

What’s in their wallets?

Of the 13.4 memberships per

person, only active in 6.7 this year

Redemption is key to experience

More than 1/5 of members

have never made a

redemption

>1/5

Non-redeemers are 2.3X

more likely to defect than

those who did in last 12 mo

2.3X

More opportunity with mobile

57% of members

would like to

engage with

loyalty programs

via a mobile

device

49% of members don’t

even know if

there is an app

for their program

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80%of credit card

spend goes on a

card with rewards

4

Knowing what consumers want, means we can solve the toughest challenges

22%

36%

51%

51%

55%

0% 30% 60%

Easy enrollment options

Access to exclusive dealsand coupons

Ease of earning points

Monetary rewards

Ease of redeeming rewards

Drivers of consumer satisfaction

Source: Gallup, Colloquy, Cisco, Maritz

of consumers won’t

even consider

applying for a card

without rewards

64%

of all payment cards

have a

rewards component

60%

of all credit card

spend goes on a card

with rewards

80%

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Key themes – rewards & loyalty Retailers, T&E providers and issuers are investing in their rewards programs to drive long-term customer engagement and value.

Value

proposition

enhancement

Engagement

across

channels

Data

monetization

Partnerships &

coalitions

Program providers have sought to make their value propositions richer in

order to effectively compete in what can be categorized as a rewards

“arms race”.

A handful of providers have made strides in deploying a truly multi-

channel experience for customers, though many have prioritized such

efforts in the near term.

Several financial companies (e.g., Chase and Barclay’s) are using rich

data repositories to either guide internal strategy (“big data”) or, more

recently, sell externally as a product (e.g. data monetization).

In an effort to increase the relevancy of loyalty programs, providers are

seeking to expand their reach with partnerships and coalitions.

Source: First Annapolis 5

Constructing the best offering….

Expectations are increasing

93% of U.S. consumers say type of reward offered is important factor in decision to join and engage with a loyalty program or brand

Influencing choice

63% of Consumers are influenced by rewards offered when choosing a new bank and credit card

Digitization of everything

78% of consumers would like better access/ability to redeem their rewards

Ease of use

94% of consumers who have a low effort service experience will engage again w/in 12 months

Driving desired behaviors

69% of consumers will break habit to earn more

rewards

63%

Confluence of forces

93%

78%

94%69%

Sources: Collinson Latitude, Points.com, CEB, Colloquy

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FIS Loyalty Overview

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Serving the unique needs of our clients in the U.S. and internationally

Market reach

cards processed

848M

10B

$9T

financial trade records

processed per hour

moved globally every

year

Solution breadth

solutions

+400

$300M

BPO, consulting and transformational services

invested annually in next-generation advancements

Industry expertise

Dedicated market practices

+40

+3,000

+55,000

210

years FinTech experience

consultants

employees worldwide

operational facilities (81 in the U.S.)

Client relationships

top global

banks

+20,000clients

9/10

top U.S.

retailers

~75%U.S. credit

unions

20/25

Federal government and 40 state governments

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FIS has quietly established a leadership position in customer loyalty

• 25 years operating card marketing and loyalty rewards programs

• 3,100+ loyalty specific clients

• 6,800+ individual programsIndustry expertise

Solution breadth

Proven

partnershipsScalable

solutions

Full service

supportSolid

infrastructure

Custom design

and options

Consulting

services

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Industry recognized solutions

Fuel Redemption

Best POS Innovation

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Premium Payback™

Best POS Innovation

Loyalty solution set

Redemption &

fulfillment

Marketing and

promotions

Platform and

point banks

Point of sale

integrations

Turn key

solutions

Program

services

Campaign

mgt tools

Analytics &

reporting

Scoring

engine

Complex

settlement

Integration

hubAggregate

& exchange

SKU level

informationReal-time

earn/burnVertical

expansion

Manufacture

offers

Traditional

online

Mobile

walletsPointopia™ Point of sale

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Credit, debit, business & prepaid rewards

• Flexible scoring platform & administrative tools

• Comprehensive reporting & marketing materials

• Client support services & training

• Marketing promotions, sweepstakes & reward catalogs

• Cardholder website & 24x7 customer support

• External interfacing capabilities

• Full customization opportunities

A market-leading rewards program that builds relationships, increases revenue and improves the ability to acquire, activate and retain accounts.

Available in multiple currencies to include Bonus Points, CashBack, or Hybrid option.

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Merchandise redemption options

• Thousands of merchandise items available

• Electronics, home goods, recreation, personal

• Gift cards, cash options, charitable awards, custom awards

• Brand name manufacturers

• Achievable award levels

• Awards are 100% guaranteed

• Award costs include freight and handling

• Hot deals & special values

• Monthly promotions and specials

• International fulfillment capabilities

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Travel redemptions

• Full service booking – air, hotel, car, cruise, experiential

• No maximum ticket amount,

advance notice, or Saturday stay

required

• Fuel/security fees included in

reward cost and can be paid for

using points vs. out of pocket

• You choose the value proposition

(cost per point). The cost will

dynamically convert to points

• Cardholder can pay with all points or

points plus cash

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Cash redemption options

Traditional cash back program

• Annual payouts

• Statement credit

• Check

• Combination of credits and checks

• Set a minimum amount for a check. All cash rebates less than the specified amount will be credited to the statement

Cash back plus

• New breakage options

• Monthly, quarterly, semi-annually payouts

• ACH

• Statement credits

• Checks

• Gift cards

• Consumer-facing website & redemption options

Traditional bonus points with Cash award options

• Add cash award options into bonus points award assortment

• Set your own cash award amounts and point requirements

• FIS™ or self-fulfillment options available

• ACH

• Statement credits

• Checks

• Gift cards

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Product/sub-product processing

Cardholder segmentation

• Leverage existing consumer segments or create new ones

• ScoreCard® will allow for you to cater to your unique customer positioning strategy

Multiple earnings and redemption value

options

• Distinguish earnings opportunities and award options amongst your cardholders

• For example:

• Reward your high spenders more with higher base and promotional earnings

• Offer lower spend consumers more incentive to use their cards with one-time high-value promo earnings offer

Scoring and award options

• Each program in ScoreCard is assigned scoring and award options

• Programs defined using Product/subproduct Processing allow for each prefix/plan and product/subproduct combination to be defined individually

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One earning pool

Multiple Accounts

Credit

Debit

HouseholdingEnables cardholders to combine their reward

points from multiple card accounts (debit and credit;

consumer and commercial) into one earnings pool.

1 product

2 products

3 products

Relationship rewardsReward your cardholders for their aggregate account

value of each of their relationships. This program

enhancement allows for breakage and float.

Householding and relationship rewards

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Merchant funded analytics driven offers

• Fine dining, casual, fast food, coffee, etc.

• Local and national partners

Restaurants

• Top brands across verticals

• Online and in-store flexibility

Major retail

• Mix of special discounts and rewards

Service and entertainment

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Fuel redemption options

3. Save at the participating

retailer instantly

2. Swipe your card at the

pump to see your reward

1. Spend with your

payment card for

everyday purchases

Cardholders are auto-enrolledCardholder inserts payment card (with

rewards) at the POS (at the gas pump)

Gas price rolls back immediately at the

pump and prints rewards/savings info on

the receipt

Cardholder is prompted with an option to

redeem points for a gas discount via real-

time call to rewards platform, while

payment pre-auth is happening

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Marketing drives success

Personalized

one-on-one

marketing

consultations

All marketing

completely

customizable or

fully turn-key

Contests &

Sweepstakes for

cardholders &

employees

Full suite of

marketing materials

available

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Flexible score and promotional opportunities

• Account opening

• First log-in

Acquisition

• First use

• Minimum spend

Activation

• Merchant category codes

• Merchant IDs

Usage

• Anniversary & birthdays

• Balance transfers

Retention

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Recent Enhancements

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Fuel Redemption Network – value proposition

Allows for rewards currency to be

expanded outside of the traditional

rewards redemption website and used as

a payment tender at the point-of-sale

(POS), specifically the gas pump.

Fuel Redemption

Network

Loyalty

Services

Financial institution Cardholder/consumer

New lower cost rewards offering (point burner strategy) Increased buying power

Allows for higher interchange Higher brand affinity

Promotes top-of-wallet status Access to specialized offers/deals

High value, innovative real-time rewards offering Ease of redemption

Enables enterprise rewards approach High perceived value

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Fuel discount redemption awardHow it works

Redemption is about CHOICE

for the consumer: Everyone wants something different.

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Sweepstakes – point burners and gamification

Engagement

for low points

Low CPPR

Point burner

strategy

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Redemptions for stocks

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Future state – low cost redemption options

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Mobile Responsive Site

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New login page

New login page redesigned for optimal layout across all devices. Also

features increased security features throughout the site.29

New home page

New home page improves the

user experience with friendlier,

softer messaging and display.

Also, new design results in fewer

clicks to complete actions and

users are presented with tooltips

to guide them through the entire

process.

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New merchandise page

New merchandise page

features a graphic focused

display to help users quickly

identify items of interest. Site

also features an improved

search functionality to easily

get users to their desired

sections and items.

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New product page

New product page features a cleaner layout as well as improved product

imagery so users can inspect items fully before redeeming.32

What’s Coming…

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Loyalty product strategy: Premium Payback

LOYALTY SERVICES

Premium

Payback™Convert

Aggregate

Redeem

Exchange

Settle

Point banks

Online

redemptions

POS

redemptions

Coalitions

Mobile wallets

QSRs

Travel

Merchandise

Sweepstakes

& Games

Stocks

Mobile wallets

POS integrations

FIS’ solution breadth, market reach, client relationships and industry expertise enables us to create a redemption network of micro and macro coalitions that will transform the market.

Large financial

institutions and

other loyalty

providers

Other micro and

macro coalitions

Big Box

Other fuels

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Campaign management

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Loyalty dashboard reporting

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Pointopia – “rewards as a currency”

Cardholders see their rewards balances

Choose where they want to shop

Use any value from any or all of your programs

Combine with offers, coupons, gifts and other tenders

Present at POS for real-time redemption or gift to anyone via text message

Key Features

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Questions?

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Dan Caggiano

Daniel.caggiano@fisglobal.com

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