Loyalty Lab April 2009 Google Doc

Next Generation Loyalty & Marketing PlatformNext Generation Loyalty & Marketing Platform

Loyalty Lab, Inc.

April 2009

Loyalty Lab, Inc.

April 2009

2Proprietary and Confidential © 2008 Loyalty Lab Inc. All Rights Reserved

Today’s Loyalty ImperativeToday’s Loyalty Imperative

Marketers will survive the recession and emerge ready to resume their growth by investing in loyal customers

Even loyal customers are making tough choices of where and how much they spend

Brands that identify, listen to and engage more broadly, more creatively and with more relevance will best retain and grow their best customers

Simply, loyalty is about creating and executing programs that drive more frequent, higher margin sales


Loyalty Lab Powers Return on Marketers’ InnovationLoyalty Lab Powers Return on Marketers’ Innovation

That is where Loyalty Lab comes in

By simplifying traditional loyalty practices by applying the best of today’s technologies

And pioneering the design and implementation of the next generation of loyalty concepts

Loyalty Lab has set a new level of expectations for innovative consumer brands.


A Growing Number of Successful ClientsA Growing Number of Successful Clients


Loyalty Metrics: Results Speak For Themselves Loyalty Metrics: Results Speak For Themselves

Impact on Frequency: 80% lift in overall frequency 250% increase in repeat purchase rate

among new program members

Impact on Retention: 22% increase in retention rate among elite

tier

Impact on Overall Revenues: 90% lift in overall revenue among members 67% lift in overall revenue among members 40% lift in overall revenue among members

Other Impacts: 4X Click-Thru rates Reallocation of advertising spend Adjustment of assortments to favor repeat

customers


Introducing Loyalty LabIntroducing Loyalty Lab

A game changer We challenged the status quo by bringing elite-tier capabilities to every tier of

market…

A market leader … allowing us to become the fastest-growing provider of loyalty program

technologies and solutions for consumer brands.

A thought leader Technology is speeding up. Consumers and marketers expect more. We

continue to innovate. It’s part of our DNA.

A partner Our greatest inspiration for success comes directly from our clients ...

An agile organization … keeping us focused delivering against their insights, inspirations and real-

life operational needs


SaaS-Based Approach Initially Changed the Equation…SaaS-Based Approach Initially Changed the Equation…

In 2003, Loyalty Lab introduced a completely new approach to powering consumer loyalty…

SaaS-Based Architecture | Dramatic Drop in Cost & Time | Deep Domain Expertise

Core systems are built from the ground up to handle large scale data volumes.

Enabling rapid feature development and empowering flexible programs

Quarterly releases built on our core API’s deliver best in class feature sets

Innovative Features

Flexible Processes+ Open APIs

Scalable Foundation


Our TechnologiesOur Technologies

Visible Point programs Invisible Point programs Progressive member tiers Integration of disparate data

feeds Targeted promotions and

campaigns Reward triggers and catalogs Code-based product registration Standard and ad hoc reporting


Powerful Customer Retention & Development ProductsPowerful Customer Retention & Development Products

Loyalty Lab RewardTM

Our market leading loyalty, rewards and best customer management platform

Out-of-the-box and ready to implement

“Generic” point accruals Brand-focused clubs Flexible reward and

benefit options

Loyalty Lab LinkTM

Integrated code creation and management for CPG, media and pharmaceutical marketers.

Direct consumer input of “proof of purchase

Scalable, tamper-proof unique codes

Identify consumers and transaction at channel and product level

Loyalty Lab InsightTM

Rapid solution for rich customer insights through reporting and analysis.

Leverages Loyalty Lab’s data warehouse

Outstanding BI solution at reasonable price

Ad hoc tool lets you design own reports

OLAP enables deep exploration quickly


Platform Eatables Easy Data In and Communications OutPlatform Eatables Easy Data In and Communications Out

Web/CatalogTransaction

Data

Product Data

CDW Data

Community Data

ResponseTracking

ReportingAnalysis

ETLs/XSLTs

APIs

ProgramSettings

Campaign Email

Triggered Email

Widgets and Websites

Social Media

Rewards

Partner Activity Data

Social Media Data

Customer Care Data

Optimized Common Data Model

EngagementEngines

MarketerControl Panel

Store Transaction

Data

Web Analytics

Data

ProductCodes


APIs Provide Companies a Choice of How Consumers InteractAPIs Provide Companies a Choice of How Consumers Interact

Loyalty Lab’s Microsites are easy to implement and include each of the core loyalty program pages:

Registration and My Account Statement Offers Static content pages

While Loyalty Lab’s APIs allow marketers to access and utilize loyalty data, offers and functionality as they want and where they want

Full and summary statements Integrated registration Sweepstakes, auction and game

integration Promotions and offer communication


Getting to Market Quickly Getting to Market Quickly

Program Requirements and Implementation Program Launch

Launch, Test, Measure, and Refine Design & Requirements4 - 6 weeks

Implementation8 – 10 weeks

Requirements &Gap Analysis

Solution Design

Program StrategyUnderstand program plans

Data Integrations

Iterate and Improve

Program Management Measure results, test offers, optimize design

Program Configuration

Creative, Partner Integration

Stage and Test

TrainingSoftware and Program

Launch


Ensuring Successful ProgramsEnsuring Successful Programs

Focused loyalty best practices for well-scoped initiatives

Comprehensive loyalty strategies, program designs and economic modeling

Cooperative design and expertise with category experts

Loyalty Lab ensures compelling and successful programs with a flexible engagement model


Best Practices Drive Better Designs and Ongoing Performance Best Practices Drive Better Designs and Ongoing Performance

Significantly increases customer insights

Easy to understand and consistent with brand

Worth-It factor – “I can see a path…”

Speaks uniquely to the targeted consumer segment(s)

Allocates funding investment strategically

Recognizes and rewards behavior aligned to company success

Has a unique, defensible hook

Satisfies a marketer’s wish list of tools

Grows with the company, adapts with experience and remains fresh

Has visibility across the organization and is championed from the very top

++ Great

+ Good

√ Average

- Bad

-- Terrible


OnlineBrick & Mortar

Traditional Loyalty ModelsTraditional Loyalty Models

Solid ROI Proven results –

repeat and retention focus

Dependent on critical mass

Heavily aligned to transactions

Closed system

All touch-points under direct control of brands

BrandStore,

Showroom, Call Center

Direct Mail, Coupons

Web Site

Email


Social NetworksBrand Properties & Communities

The New Loyalty ModelThe New Loyalty Model

Significantly broadens how brands think about “interactions”

Structures and empowers brand advocates

Deepens customer insights

Builds over time

Influence

Reviews

Blog, Twitter

Facebook, MySpace

Photo, Video

Bookmarking

Web Site, Catalogs

Customer Service

Targeted Offers, Promos

Mobile

UGC, Forums

Stores

Customer Loyalty System


Higher Levels of ROIHigher Levels of ROI

Increased engagement really ties to increased, more frequent purchasing – more purchases from existing customers

More engagement leads to more relevant search and more informed decisions – lower acquisition costs

Loyalty tools equally capture purchase transactions and social interactions – truly holistic and actionable view of the customer

Connecting elements accelerates trial and active participation – achieve critical mass more quickly

Better differentiation of brands’ unique characters – programs that stand out from the noise


Why Choose Loyalty Lab: Your Success is Our SuccessWhy Choose Loyalty Lab: Your Success is Our Success

Substantial Domain Expertise Retail Consumer products & services Social media

Software-as-a-Service Delivery No new hardware of software Automatic upgrades Accessed via web on any computer

Fast to Market Complete program configuration in days

not weeks or months Phased implementation goals

Superior ROI Purchasing and retention lift Lower costs and resources required