Copyright 2017 CPI Card Group

Dynamic Personalization for a Stronger Customer Experience

Print-On-Demand:

Copyright 2017 CPI Card Group

Abstract

At a time when the customer experience can be an

important competitive differentiator, personalization

has emerged as a powerful feature to bring to the

table. For financial institutions, prepaid program

managers, retailers, healthcare providers and more,

delivering personalized experiences through uniquely

customized cards, imagery and collateral can

contribute to critical relationship-building and serve

as a key competitive advantage. Print-On-Demand

(POD) solutions enable companies to extend a

bespoke touch in their programs and allow them to

do so with no compromise to their cost-efficiency.

Instead, the integration of POD technology provides

flexibility and streamlines operational processes

to create cost efficiencies and enhance speed to

market – while adding versatility in design, order, and

fulfillment functions that enhance the effectiveness of

campaigns and ROI. By partnering with an effective

and next generation POD provider, businesses can

benefit from a dynamic solution that goes above

and beyond the call of duty, infusing added value

that further strengthens internal returns and external

competitiveness. This white paper from CPI Card

Group takes a closer look at these advantages,

illuminating the value proposition of POD and the

factors making it an essential tool for companies

today and tomorrow.

Is POD for you? The types

of organizations commonly

leveraging POD include:

• Emergency Service

• Employer

• Financial Institution

• Government

• Grocer

• Healthcare

• Insurance

• Prepaid Program Manager

• Restaurant

• Retailer

• Service Provider

• Sports/Entertainment

• Transportation

• Utility

Applications for POD include:

• Charity

• Contactless/RFID

• Customer Loyalty

• Gift

• GPR/Credit/Debit

• Healthcare/Insurance

Benefits

• Incentives/Rebates

• Lottery

• Loyalty

• Payroll Program

• Rewards

• Transit

Businesses have long been pulled in opposite directions. On one side, shrinking budgets demand that they

enhance their cost-efficiency. On the other, 21st century customers – with millennials being the largest

group blazing this trail – prefer an experience more customized and individualized than ever. While this

trend has been driven by consumers’ embrace of mobile and digital platforms, the expectation is for 1-to-1

communications to be ubiquitous, extending back into traditional physical channels and shaping the holistic

customer experience. Evidence for personalized messaging becoming the new norm is growing – in 2015,

Forrester researchers found that 77 percent of consumers recommended or paid more for a brand providing

personalized experiences or chose a company for those specific services1.

Businesses can’t afford to overlook distinct and personalized offers and communications any longer. This

means creating a unique experience for customers, from card production and design to communications and

collateral. But this also leaves them in a conundrum: being pressured to be more meticulous in the customer

experience they deliver to customers, while having to do so with fewer resources, regulatory changes and

other market-driven factors. Fortunately, innovations in on-demand card and collateral production and

fulfillment can facilitate improved customer experiences and greater efficiencies.

Through partners like CPI Card Group and its CPI On-Demand™ solution, companies across a number of

industries can leverage these benefits via best-in-class print quality and capabilities, and dynamic, next

generation digital interfaces enabling digital portfolio updates and management in real-time from start

to finish. The time for businesses to utilize such solutions is now, as market demands and competition

increasingly shift into the customer experience arena.

Copyright 2017 CPI Card Group

Background

1“Digital Experiences Drive Customer Expectations,” Rich Langan, Customer Communications, 2016 (http://customercommunications.com/digital-experiences-drive-customer-expectations/)

Copyright 2017 CPI Card Group

A New Standardization of Personalization

2 “Gartner Predicts a Customer Experience Battlefield,” Tom McCall, Gartner, February 18, 2015. (http://www.gartner.com/smarterwithgartner/test/)

In 2015, a Gartner survey found that 89 percent of

companies believed customer experience would be

the primary basis for competition by 20162. Today,

it’s clear that these sentiments weren’t predictions

so much as foresight – with personalized offerings

being a key route for businesses to competitively

differentiate the customer experiences they provide.

Similar to how variable data printing works for

marketers, companies can use POD to seamlessly

design and tailor personalized payment or other

cards for customers; customizing names, offers,

messaging, imagery and more. For example, if

a customer has purchased a specific product,

an incentive card and communications for a

complimentary product or service could be sent

within days. This dynamic, on-demand technology

revolutionizes card personalization and fulfillment by

combining imagery, card and carrier data – all in one

pass. Advanced POD solutions offer the ability to

develop, update and maintain a full library of designs

for cards, whether it’s a gallery of provided generic

images, a library of photos and imagery they create

themselves, or both. Companies can also deliver

high-quality cards leveraging state-of-the-art, 1200

DPI print technologies, further enhancing the ‘wow’

factor from a visual standpoint.

The customization benefits of POD extend beyond

the card as well. Components of the packaging can

be designed with an advanced level of specificity –

including the messaging, number of cards, collateral

pieces, and envelope in addition to both the size and

look of the card carrier and package. For companies

managing loyalty and redemption programs –

whether it’s frequent flyer programs, car rentals,

hotels and hospitality or credit card rewards – the

ability to issue individualized cards in a timely fashion

can make for an impressive, differentiated touch. This

next-level customization allows companies to expand

their reach not only by providing unique collateral

and messaging, but by also offering the ability to

include several personalized cards on a single carrier.

Customization with POD does not have to be all-

inclusive, but may also be considered for a hybrid

solution. For example, an issuer can print their

cards in bulk using traditional print methods, and

utilize POD to customize the carriers based on state

regulations, or customer data. As consumer demand

ushers in a future where personalized offers become

the standard – as opposed to a product perk – the

end-to-end customization possible via POD can play

a significant role in elevating the customer experience

and building brand engagement and loyalty.

This dynamic, on-demand technology revolutionizes card personalization and fulfillment by combining imagery, card and carrier data – all in one pass.

Additional InformationFees:

Annual fee: Charged on most secured and certain unsecured credit cards. For unsecured cards, annual fees are often charged on high-value rewards cards. You can avoid them by getting a card without an annual fee, but if your spending is high enough, a fee card may net you higher rewards.

Balance transfer fee: Charged when you move a balance from one card to another, typically 3% to 4%. Balance transfers are usually made by people with credit card debt who have found a balance transfer offer with an introductory APR of 0%. You should only pay a transfer fee if the interest you would pay on your current card is greater than the balance transfer fee you’ll pay. And if you qualify, there are credit cards without balance transfer fees.

Foreign transaction fee: Charged whenever you make a purchase overseas, typically between 3% and 4% of purchase. To avoid thisfee, you can travel overseas, preferably with an EM

Late payment payment by $35. Avoid this by always making your payments on time

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An EMV chip credit cards have EMissue cards fraudulent transactions will occu

EMV chips chip-and-signature are most popular purchases. four- to six-digit PIN for verification.

Chip-enabled cards are more secure than traditional magstripe cards. Instead of processing limited data that’s easy to duplicate, EMV chips transmit dozens of pieces of data between the card, the terminal and the acquiring bank’s host. In addition to the extra security, many overseas merchants won’t accept magstripe cards, so it’s a good idea to have a credit card with an EMV chip.

Using credit cards with EMV chips is a bit different, too. Instead of swiping, you’ll insert your card into the EMV terminal chip first and leave it in until your receipt starts printing. In the meantime, you’ll follow the prompts on the terminal screen, which will include instructions to sign if necessary

Additional InformationFees:

Annual fee: Charged on most secured and certain unsecured credit cards.For unsecured cards, annual fees are often charged on high-value rewards cards. You can avoid them by getting a card without an annual fee, but ifYYyour spending is high enough, a fee card may net you higher rewards.

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While the costs associated with delivering truly

customized experiences to each and every

customer can appear daunting, this is exactly where

the operational efficiencies of POD solutions make

a difference.

POD solutions virtually eliminate the need for

inventory management. Card production and

fulfillment has traditionally required businesses

to forecast and estimate inventory, in hopes of

avoiding excessive waste or shortages at critical

times. POD solutions streamline this process –

allowing one-off, on-demand orders that provide a

level of flexibility, versatility and speed to market to

meet the needs of each campaign – while alleviating

the burden of inventory management, order

management, and associated vendor storage fees.

In the event that a forecast is off and inventory falls

short of demand, a POD solution can quickly bridge

any gaps without missing a beat. Additionally, for

businesses that roll out promotions and incentives

at a higher frequency – requiring art and collateral

to change on a continuous basis – the ability to

produce cards and associated materials as needed

and eliminate waste in inventory can be even

more valuable.

Furthermore, today’s POD solutions can bolster

onboarding efficiencies. Channeling fully digital

portfolio management capabilities of POD, including

online interfaces and tools to manage digital assets,

companies can take programs to market faster. The

onboarding process which conventionally requires

4-6 weeks for printing cards and materials can

be significantly decreased by utilizing a full POD

solution, delivering cards and communications

to customers in days, rather than weeks. With

advanced POD solutions, every element of this

function is managed digitally. Organizations can

make adjustments and changes online in an easy

to use interface – helping them to avoid having to

scrap the entire product when correcting errors

and significantly improving the efficiency of the

design process. This process also provides the

ability to quickly adapt to unexpected industry

or regulatory changes.

Additionally, such versatility can infuse inspiration

into organizations, providing marketing teams with

added flexibility to test new campaign ideas on the

fly, identify what works best and optimize campaign

results within weeks versus months. Using the

online platform, organizations can evaluate digital

proofs of components in addition to hard copy

versions. This combination of abilities can enable

companies to rethink their boundaries – and to excel

in delivering 1-to-1 customer experiences, positive

campaign results, and incremental sales growth

opportunities and value.

Copyright 2017 CPI Card Group

On-Demand Cost-Efficiency

In today’s business landscape, any new solution must generally promise

two things for an organization to consider its implementation. First,

that it will improve quality – and second, that it will lower costs. But

the most innovative partners deliver in a third area: added value. The

top solutions providers behind POD technology do exactly that for

companies, creating benefits that go beyond personalization and cost-

efficiency to far exceed expectations.

Leading-edge solutions are not only delivering on ease-of-use but also

simplifying onboarding and implementation. POD suppliers should

accommodate a variety of data transmission methods – secure FTP,

API integrations, or other file submission methods an organization

prefers. Additionally, POD suppliers should support the integration

of secure data with the design elements behind the scenes while

providing a user-friendly online interface, delivering a seamless

experience to the customer. The integration of backend automated

data management functions with high-tech equipment accommodates

production for even the most complex programs, eliminating the

margin for human error, and incorporating quality assurance checks

through barcoding and camera verification.

Companies must also consider additional benefits possible through

the right partner. For example, if an employer has conventionally

featured magnetic stripe cards for their payroll program but must plan

to eventually migrate to EMV, the task can be best addressed by a

partner with expertise in both POD and EMV card production. It will be

important to choose a partner that can accommodate needs for both

the present and future, and ensure payment cards are not only EMV-

compliant, but also equipped for emerging trends such as contactless

payments going forward. Given the dynamic nature of the marketplace

and evolving customer expectations, consideration should be given to

selecting a well-rounded partner who is strategic, innovative and able

to deliver high-quality, next generation products and solutions.

Added Value of a Dynamic POD Partner

When Having the Right Partner Counts

Take for example, a cable provider

offering a $100 incentive gift card

to entice competitor’s customers.

With POD, the cable provider could

conduct a test campaign reaching

out to various target segments,

perfect it, and deduce that a

nationwide rollout will require a

million cards annually.

Choosing a POD provider with

multiple production sites, and

a wide geographic distribution

can provide customers peace of

mind and confidence that their

cards and communications will

successfully be produced and

fulfilled. Reputable providers

ensure that any-size orders can

be processed and fulfilled in a

timely fashion.

Copyright 2017 CPI Card Group

Tailoring Success Through the Customer Experience

For businesses in any category, getting in front

of customers and prospects with impactful

communications and products is just as important

as it always has been. However, the playing field has

transformed, driven by new technologies, crowded

marketplaces and discerning consumers, leading to

individualized customer experiences being one of most

valuable means for engaging and building rewarding

customer relationships. Companies across a number of

industries should consider POD, and with good reason

– a 2017 study found that 79 percent of companies

that exceeded their revenue goals had a documented

personalization strategy3.

POD solutions provide an easy, seamless route

to individualizing key aspects of the customer

experience, while doing so in a manner that creates

cost efficiencies and adds opportunities for more

flexible campaigns. Furthermore, the combination of

capabilities from a partner like CPI Card Group and its

CPI On-Demand (POD) solution can provide significant

added value for multiple aspects of the process, from

dynamic, digital management and intricate production

capabilities to best-in-class quality. The benefits of

this dynamic solution aren’t only reserved for those

seeking to fully replace conventional functions with

POD either – it can easily fit into and strengthen

hybrid models as well. The litany of benefits POD

can provide for companies is remarkable, with some

being competitive necessities for today, others being

competitive advantages for tomorrow. Therefore, the

question to circle back to shouldn’t be whether or not

one can afford POD – it should be whether or not one

can afford not to have it.

Learn more about CPI Card Group’s CPI On-Demand

solution here: www.cpicardgroup.com/cpi-on-demand

About CPI Card GroupCPI Card Group is a leading provider in payment card production and related services, offering a single

source for credit, debit and prepaid debit cards including EMV chip, personalization, instant issuance,

fulfillment and mobile payment services. With more than 20 years of experience in the payments market

and as a trusted partner to financial institutions, CPI’s solid reputation of product consistency, quality and

outstanding customer service supports our position as a leader in the market. Serving our customers from

ten locations throughout the United States, Canada and the United Kingdom, we have the largest network

of high security facilities in North America, each of which is certified by one or more of the payment

brands: Visa, Mastercard, American Express, Discover and Interac in Canada. Learn more at

www.cpicardgroup.com.

Copyright 2017 CPI Card Group EMV is a registered trademark or trademark of EMVCo LLC in the United States and other countries.

3“2017 Personalization Development Study,” Monetate, 2017. (http://info.monetate.com/personalization-development-study.html)

www.cpicardgroup.comU.S. 1-800-446-5036 Canada 905-761-8222 U.K. +44 (0)1206 845555

Copyright 2017 CPI Card Group