Confidential Managing successful international incentive programmes from one location Iulia Sisova 25th February 2016

Ever wondered how to run successful international incentive programmes from one location? What to do when it feels that time zones, language barriers, exchange rates fluctuations, and your own bank are all working against you? 2

Start of the journey countries: UK & Ireland 40 brands, mostly paper certificates 3 brands delivered by

Cultural differences

Language barriers

Our approach: diverse team

Time zones Standard office hours don’t work. E.g. 11 hours difference with Australia during our winter time and 9 hours during summer time. Helped us achieve our goal: flexible hours, option to work from home, cloud computing.

Gift cards for rewards and incentives still a new concept in many countries “We do not offer gift cards.” “We have gift cards but they can only be purchased in store.” Limited developments: no standard terms, agreements, order, activation and delivery procedures.

Cross-border payments Ovation completes order form Supplier raises invoice Ovation pays invoice Supplier gets notification from their bank Supplier provides order form to the bank Bank releases funds

Exchange rates and bank fees Your bank charges £20 Intermediary bank charges £10 Supplier bank charges £10 You buy CHF 10,000 worth of gift cards Your bank charges £7,200 Retailer receives CHF 9,980

Taxation … it’s complicated Different countries, different rules, sometimes no rules. VAT included in the FV of vouchers VAT charged on top of FV of vouchers VAT does not apply VAT does not apply on gift cards but applies on cinema vouchers / experiences VAT does not apply on gift cards but applies on postage

Expiry dates Different countries, different rules, sometimes no rules. Some examples: No expiry XX months (usually between 12 and 36) XX months from the last transaction (may include balance enquiry) Expiry date on gift card purchased by consumers different to the one purchased by businesses (e.g. Brazil)

Consistency in rewards offered Participants of international incentive programmes (especially employee recognition) expect to have access to similar rewards as participants of the programme in other countries.

Gift cards delivery Costs Customs Speed Security

Our approach: digital gift cards

Physical vs digital: global redemptions 2009: 3 brands delivered digitally 2015: 405 brands delivered digitally

Physical vs Digital Physical vs digital redemptions in Ovation programmes in 2015

Recognise hard work

70 countries, 720 gift cards brands