1. Transforming the Industry: Status of Non Cash Award Use in the U.S. October 2011

2. Agenda TimeTopic 2. The WHAT: What vehicles are used? 3. The WHY: Why these vehicles are used 3. The WHO: Who is most often rewarded with these types 4. The HOW MUCH: Thresholds

3. TRANSFORMATION #1 Must first know where we’ve been. #2 How to best serve clients 3

4. This Study Completed with Help of IFI All Star Incentive Marketing Hall Erickson Inc O.C. Tanner A.T. Cross Co. EGR International Maritz MotivAction Rideu Recognition Ryman Marketing Services 4 Samsonite Corp. Top Brand Inc. Tumi Inc. Incentive Marketing Assoc. IRF PPAI RPI SITE

5. On the Agenda The Study The WHAT The WHY The WHO The HOW MUCH 5

6. The Study End Users/Buyers Sample Inventory Target Audience Program Rules: Award Type Used Award Value 6

7. 7 Company Size Information

8. WHAT AWARD VEHICLES ARE USED? THE WHAT 8

9. 9 CashTravelMerchCard 1. Employee37%27%48%67% 2. Channel17%33%56%67% 3.Both25%57%65%61% 4.All Respondents31%37%54%65%

10. Number of Award Types Used 10

11. Use Only “this” Award Type 11

12. WHY ARE SPECIFIC AWARDS SELECTED ? THE WHY 12

13. PRE-PAID CARD TRAVEL Ease of use Flexibility Ease of Administration Provide Unique Experiences Build loyalty to Brand Emotional Connection Primary Reasons 13

14. MERCHANDISE CASH Tangible Reminder Trophy Value Employee Preference Primary Reasons 14

15. AWARD USAGE BY AUDIENCE THE WHO 15

16. Usage By Audience 16

17. Use By Employee Level LevelCashTravelMerchCards Individuals72%68%70%65% Supervisors55%37%58%56% Managers: Front-Line53%44%55%53% Middle45%42%51%46% Senior36% 28% 17

18. Use By Employee Level 18

19. Use By Employee Function CashTravelMerchCard Sales66%77%65%61% Operations/Mfg.53%24%53%47% Customer Service53%29%59%47% Marketing45%29%50%46% Technology/IT45%26%44%39% Human Resources40%21%45%41% Finance/Accounting42%26%40%41% 19

20. Use By Employee Function 20

21. 21 Use By Employee Function

22. 22 Use By Employee Function

23. 23 Use By Employee Function

24. Travel Specific 24

25. Travel Specific In the past one to two years, what has happened to your Travel budget? 25

26. Average Award Value By Firm Size 26 # of EmployeesCashTravelMerchandiseCards < 100 $760.71$2,007.14$148.35$94.48 101 to 1,000 $536.43$2,672.73$113.09$103.68 1,001 to 5,000 $306.25$2,542.86$184.80$107.22 5,001 to 10,000 $1,920.67$2,933.33$236.50$95.83 > 10,000 $1,212.50$5,946.78$650.63$431.33 ALL $732.54$3,115.34$206.27$133.30

27. HOW MUCH 27

28. Average Award Value By Firm Size 28 $5,946 $2,007 $2,933

29. Optimum Award Value By Type ValueCashTravel Merchandi se Card No Response 7.5%14.5%15.2%12.6% < $100 26.4%3.2%35.9%49.5% $101 - $500 32.1%8.1%34.8%34.2% $501 - $1000 18.9%8.1%9.8%0.9% $1000 - $5000 13.2%46.8%2.2%0.9% > $5000 1.9%19.4%2.2%1.8% 29

30. Optimum Award Value By Type 30 49.5% 46.8%

31. Most Common Per Award Amt Most Common AverageMedian Cash$732$250 Travel$3,115$2,500 Merchandis e $206$100 Cards$240$50 31

32. Most Common Per Award Amt

33. Award as % of Salary AverageMedian Cash7.8%3% Travel6.0%4.5% Merchandi se 7.2%2% Cards7.9%2% 33

34. 34 Award as % of Salary (TippingPoint)

35. Value Determination 35 CashTravelMerchCards Intuition19%16%22%31% Experience36%37%41%30% Observation17%32%33%20% Data19%18%10%8% Experiment13%10%9%7%

36. Value Determination 36

37. What Results Are You Experiencing? 37

38. 38 Give us “The One Big Thing”