1. Webinar The Forrester Wave™: Loyalty Program Service Providers, Q1 2012
Emily Murphy, Researcher Suresh Vittal, Vice President and Practice Leader
February 29, Call in at 12:55 p.m. Eastern time

2. Agenda The customer loyalty landscape Introducing the Forrester Wave™
Vendor snapshots
What’s next?

3. Two approaches to loyalty strategy
Big “L” loyalty = implicit
Little “l” loyalty = explicit

4. Vendors of all kinds crowd the loyalty ecosystem
Source: April 18, 2011, “The Customer Loyalty Ecosystem” Forrester report

5. Four explicit loyalty vendor categories
Full-service loyalty marketing providers
Loyalty technology platforms
Merchant networks
Niche loyalty players

6. Loyalty programs service providers
Build and manage loyalty programs.
Loyalty program service providers offer a range of strategy, technology, and program management services.
Program management services include but are not limited to campaign management, creative, fulfillment, and liability management.

7. Service providers support the entire loyalty value chain
BRAND
Strategy
Program management
Database management
Creative
Analytics
Campaign management
Points liability
Customer service
Fulfillment

8. Marketers have high expectations for loyalty service providers
Technology and technical capabilities, strategic expertise, and customer insights are key requirements from a loyalty program service provider.
Differing opinions about:
Reputation, cultural fit, digital capabilities, and multichannel needs.
Less tangible requirements are also expected.
Integrated delivery, industry expertise, flexibility, proactive service, and project management

9. Marketers rely on multiple providers to support loyalty
Source: Q Global Loyalty Program Service Providers Forrester Wave™ Customer Online Survey

10. Most relationships last more than three years
“How long have you been with your current loyalty program service provider?”
Base: 94 vendor reference clients
Source: Q Global Loyalty Program Service Providers Forrester Wave™ Customer Online Survey

11. Driven by deep integrations
Source: Q Global Loyalty Program Service Providers Forrester Wave™ Customer Online Survey

12. Technical capabilities are key to selection
Source: Q Global Loyalty Program Service Providers Forrester Wave™ Customer Online Survey

13. Users are most satisfied with reputation and business understanding
Base: Vendor reference clients
Source: Q Global Loyalty Program Service Providers Forrester Wave™ Customer Online Survey
*Note: Because respondents were given the option of choosing “not applicable,” the number of respondents who selected
each reply is shown.

14. Capabilities, strategy, and execution fall lower on the list
Base: Vendor reference clients
Source: Q Global Loyalty Program Service Providers Forrester Wave™ Customer Online Survey
*Note: Because respondents were given the option of choosing “not applicable,” the number of respondents who selected
each reply is shown.

15. Vendors are flexible and reliable, but they don’t go above the call of duty
Base: Vendor reference clients
Source: Q Global Loyalty Program Service Providers Forrester Wave™ Customer Online Survey
*Note: Because respondents were given the option of choosing “not applicable,” the number of respondents who selected
each reply is shown.

16. Seventeen percent of buyers are net promoters
Source: Q Global Loyalty Program Service Providers Forrester Wave™ Customer Online Survey

17. Agenda The customer loyalty landscape Introducing the Forrester Wave™
Vendor snapshots
What’s next?

18. Product information and selection criteria
Source: February 16, 2012, “The Forrester Wave™: Loyalty Program Service Providers, Q1 2012” Forrester report

19. How the Forrester Wave™ graphic works
Risky
Bets
Contenders
Leaders
Strong
Performers
Current
offering
Weak
Strong
Market presence
Full vendor participation
Incomplete vendor participation
Strategy
Weak
Strong

20. Forrester Wave™ evaluation methodology
Vendor surveys
Screener to qualify
Forrester Wave questionnaire
Vendor strategy day
Executive meeting
Technology platform overview and demo
Customer reference calls
Customer reference online survey

21. Criteria and scores
Source: February 16, 2012, “The Forrester Wave™: Loyalty Program Service Providers, Q1 2012” Forrester report

22. Refer to the Forrester Wave™ model in MS Excel for details
Source: February 16, 2012, “The Forrester Wave™: Loyalty Program Service Providers, Q1 2012” Forrester report

23. “The Forrester Wave™: Loyalty Program Service Providers, Q1 2012”
Source: February 16, 2012, “The Forrester Wave™: Loyalty Program Service Providers, Q1 2012” Forrester report

24. Leverage the power of custom weightings
Customize the weightings
according to your
individual needs.
Source: February 16, 2012, “The Forrester Wave™: Loyalty Program Service Providers, Q1 2012” Forrester report

25. Compare custom scores to Forrester’s
Customized weightings
will yield a custom
vendor shortlist.
Source: February 16, 2012, “The Forrester Wave™: Loyalty Program Service Providers, Q1 2012” Forrester report

26. Agenda The customer loyalty landscape Introducing the Forrester Wave™
Vendor snapshots
What’s next?

27. Aimia
The largest provider we evaluated with 2,000 employees dedicated to loyalty worldwide.
In 2011, Aimia underwent an enterprisewide rebranding.
Aimia positions itself as a global provider of loyalty management services across three categories: coalition loyalty, proprietary loyalty (including both customer and business loyalty), and loyalty analytics.
Focused on enhancing its technology and global loyalty businesses
Takes a very strategic approach to loyalty program management that incorporates elements of Six Sigma
Aimia excels in loyalty strategy but its technology and integration capabilities need to improve.
Source: February 16, 2012, “The Forrester Wave™: Loyalty Program Service Providers, Q1 2012” Forrester report

28. Brierley + Partners
Brierley+Partners was a privately held CRM, loyalty technology, and loyalty services company founded in 1985.
Focused on delivering an end-to-end solution that spans strategy design, campaign management, analytics, research, financial modeling, fulfillment, creative, interactive, and eCommerce
Brings strong capabilities across all evaluated categories
Very strong company vision and road map that focus on enhancing real- time capabilities and applying customer intelligence across the enterprise
Customer feedback was generally positive and clients commended B+P’s strategic contribution to their businesses.

29. Epsilon
An Alliance Data Systems company, Epsilon provides a range of strategic consulting, marketing analytics, database, and loyalty technology, data, and marketing services.
The loyalty practice and technology are designed to draw on Epsilon’s other areas of digital and data expertise.
Offers a good balance of strategy, technology, services, and analytics
Positions itself as both data- and system-agnostic to support integration
Epsilon manages some of the largest and most complex loyalty programs of the vendors evaluated.
Client feedback was very positive and clients are particularly satisfied with Epsilon’s flexibility and strategic contribution to the business.

30. Kobie Marketing
Privately held loyalty marketing company and the smallest provider we evaluated
Offers strong strategy and analytics offerings but stands out for its technology, program management service delivery, and client feedback
Earned highest overall rating for technology
Across the board, Kobie received the highest client feedback scores.
Clients offered unsolicited praise and are very satisfied with their technology, services, and account management.
Experienced solid growth in 2011
Source: May 14, 2009, “The Forrester Wave™: UK Database Marketing Service Providers, Q2 2009” Forrester report

31. Maritz
Offers loyalty marketing services through an outsourced services model
In addition to loyalty program design and execution, Maritz offers market research and learning services through their other divisions.
In the past three years Maritz has acquired three companies, including evolve24.
The loyalty strategy and program management services are strong.
The technology, integration, and analytic capabilities need improvement.
The client feedback mirrored these strengths and limitations.
Maritz’s road map is focused on improving its technology stack and increasing client capability for integration.
Source: February 16, 2012, “The Forrester Wave™: Loyalty Program Service Providers, Q1 2012” Forrester report

32. Tibco Loyalty Lab Tibco Software acquired Loyalty Lab in 2010.
Leads with technology and offers some strategy and program management services
Offers a self-service, SaaS technology platform
None of the clients we spoke with use Tibco Loyalty Lab in a full-service capacity.
Client feedback was very positive regarding technology platform and the value it delivers.
Clients commented on less than responsive account managers.
Tibco Loyalty Lab is growing fast and has some bumps in service that it needs to iron out.
Source: February 16, 2012, “The Forrester Wave™: Loyalty Program Service Providers, Q1 2012” Forrester report

33. Agenda The customer loyalty landscape Introducing the Forrester Wave™
Vendor snapshots
What’s next?

34. What do the next 12 to 24 months look like for the industry?
Continued focus on:
Fast and flexible technology
Integration
Predictive analytics and intelligence
Planned investments in:
Self-service tools
Expanding and emerging channels like social and mobile
Real time

35. Prepare for the next leap forward
Choosing the right vendor is your responsibility.
Identify where you actually want support.
Strategy services
Flexible technology platforms
Real-time integration
Fulfillment and liability management
Take the long view and match your firm’s vision to your vendor’s.
Evaluate alignment in road maps.
Press the vendor’s technology flexibility.
Schedule an inquiry!

36. Selected Forrester research
February 16, 2012, “The Forrester Wave™: Loyalty Program Service Providers, Q1 2012”
February 21, 2012, “Loyalty Program Service Providers Struggle To Delight Their Customers”

37. Emily Murphy +1 617.613.6686 emurphy@forrester.com www.forrester.com
Thank you
Emily Murphy
Suresh Vittal