BoomRewards: Building a B2B incentives program Welcome! Building a successful B2B incentives program: BoomRewards Marc Roth Marketing Manager, Boomerang Tracking Inc. March 12, 2008

BoomRewards: Building a B2B incentives program Agenda Introduction and Boomerang sales model The need for an incentive program Program design and rollout Success and Sales Impact Questions and discussion

BoomRewards: Building a B2B incentives program Background In the B2B arena, incentive programs are typically focused on the sales force, and are used to: Achieve specific sales goals Encourage top performers to improve their results Stimulate lower performers to move up the ladder

BoomRewards: Building a B2B incentives program Your starting point: Reflection What is my company’s long-term vision? What are our business goals and objectives? How do we conduct business (operationally) and how do we generate profits? How do we capture customer data, and what data do we currently capture? What are the market conditions that could affect my loyalty program, including industry and competitor-related issues? How much brand recognition do we have in the market, and what type of brand positioning do we promote? How many lines of businesses do I have, and how do they vary in regards to business model, offerings, programs, and target customers? Source: Maritz Loyalty Marketing

BoomRewards: Building a B2B incentives program Boomerang business model Branded stolen vehicle tracking system Sell through the new car dealer channel as an accessory F&I department 2 units, 5 service terms

BoomRewards: Building a B2B incentives program BoomRewards: Program Need Competition in dealer sales market Need to get noticed Compensation and margin of F&I staff The more the merrier Communication and staying top of mind Complimentary communication channel

BoomRewards: Building a B2B incentives program BoomRewards: Program Need Openness to and effectiveness of incentives Does an incentive attached to aftermarket items influence selling approach? 77% Yes Are you more likely to sell an aftermarket product that offers an incentive? 94% Yes

BoomRewards: Building a B2B incentives program BoomRewards: Program Need

BoomRewards: Building a B2B incentives program Key Learning #1 Know your market and Know what elements drive a sale and Know the role an incentive will play

BoomRewards: Building a B2B incentives program Program Design: What to Reward Sale of unit? Sale of service term? Both? Model structure on: Margin flexibility Sales drivers Behavior outcomes

BoomRewards: Building a B2B incentives program Program Design: What to Reward BoomBoom2 1 year year year year year

BoomRewards: Building a B2B incentives program Key Learning #2 Link incentives structure to your business model and desired outcomes from participants

BoomRewards: Building a B2B incentives program Program Design: Choosing a Reward We know how much…but how much of what? Perceived Value Choice Brand Touch points Cash Gift Certificates -- + Points/Catalog ++ ++

BoomRewards: Building a B2B incentives program Program Design - Implementation Phased approach More manual  more automated Balance expectations with capability and cost Online vs. offline Cost/benefit and expected volume Internal resource load

BoomRewards: Building a B2B incentives program Key Learning #3 Keep it simple and align your promise with delivery (minimize the engagement gap)

BoomRewards: Building a B2B incentives program Program Design - Choosing a Provider Choice Something for everyone, you hope! Simplicity A pleasure, not a chore Cost Who pays for what parts Service Any provider is a direct extension of you!

BoomRewards: Building a B2B incentives program Key Learning #4 Service is everything Your incentives program is a big part of your brand experience

BoomRewards: Building a B2B incentives program Program Design - Launch Multi-faceted Offline and online Clear, consistent, communication “Effortlessly Rewarding” Alignment and consistency Sales Rep visits Incentives Program Managers Written collateral

BoomRewards: Building a B2B incentives program Key Learning #5 Education + regular follow-up = Buy-in + sales

BoomRewards: Building a B2B incentives program Roll-out Stages Phase 1: Paper Points Paper heavy, manual Claim time 7.4 days Claim rate 32% Phase 2: Online with y’all All transactions on the web Claim time 4.8 days Claim rate to 54% Phase 3: Cash (with branding) Cash card: wallet collateral + brand 5%-10% take rate

BoomRewards: Building a B2B incentives program Key Learning #6 Keep current and Keep your ear to the ground!

BoomRewards: Building a B2B incentives program Highlights and success Motivation to sell Boomerang 91% motivated to sell Motivated to upsell 78% motivated to upsell the unit or the service term 45% of those likely to upsell both Pleased with claim time 92% are satisfied with claim time, 54% describe it as ‘fast/very fast’ Comparatively better 30% find BoomRewards more motivating than other programs 60% find the program as motivating

BoomRewards: Building a B2B incentives program In the words of our users “The points per unit/contract sold is an excellent programme. Very motivating to sell the next client regardless of targets or how the market overall is performing.” “Great, keep it up...always nice watching my 50 inch television and knowing boom points paid for the entire tv.” “I think the Boom rewards program is fantastic. My sales have increased since I signed up.”

BoomRewards: Building a B2B incentives program Bottom line: Impact on Sales Habit Changer Penetration/sell through rate Pre-Program: 8-12% Non-BoomRewards dealers: ~18% BoomRewards dealers: ~38% Sales Driver Average unit sales per F&I per month Non-BoomRewards dealers: 4.7 units BoomRewards dealers: 12.3 units

BoomRewards: Building a B2B incentives program Thank You! Building a successful B2B incentives program: BoomRewards Questions, comments and feedback March 12, 2008