1. Loyalty Essentials
NACS Las Vegas Oct 2015

2. Loyalty Journey 6 5 4 3 2 1 Advocate Activists Customer POV
Customer Centric Organization
Dialogue 6
“Own” SOW 5
Optimize Product & Pricing
Activists 4
Relevant
Optimize Marketing
Customer POV 3
Engage
Develop communications to optimize Marketing spend
The next degree 2
Participants
Utilize insights to deliver by customer strategies and actions
Educate 1
Deliver customer insights & personas through customer analysis
Shopper
Loyalty Program 2
Time

3. Types of Loyalty Programs
Spend this, Get that….
Punch card programs
Points programs
Discount programs
Information
Based
programs
CRM/Communications
Offer Management
Emotional
Based
Community
Exclusivity clubs
Association/Non-profits 3

4. 5 C’s of Loyalty That Drive Consumers Wild
Communication
Convenient
“Make it easy for a member to do business with you”
“Two-way, relevant and personalized”
Successful
Loyalty
Comfort
Choice
“Build trust & make customer comfortable in participating”
“Provide choice in earning, rewards and how they ineteract”
Cost
“Provide a fair return on spend”

5. Benefits of a Loyalty Program
Customer data becomes usable customer information
Motivational tool to change behaviors = $ GROWTH!
Customers invested in your company = RETENTION!
Measurable….8-10:1 ROI is typical!
Helps move away from uncontrolled discounting

6. Must Have’s to Help you Decide
ROI – financial understanding
Communication plan
Promo/behavior change plan
Employee training & engagement
The RIGHT Loyalty Partner

7. Who Does it Well……Best Buy
Lifestyle and Lifecycle
Pre, during & post delivery of message
Heavy employee engagement
Smart financial plan
ROI 20:1 measured 5 times!

8. Who Does it Well……JetBlue
Different for competition
First to openly embrace “community” involvement
Employees drive program improvement
Promotionally active
Program is center of customer strategy

9. Tecmark Case Study: Nittany MinitMart

10. Nittany MinitMart Convenience Stores
Client:
Largest heating and oil distributors in central Pennsylvania
Family-owned, 24-location c-store in high growth mode
Situation:
Needed automated process to decrease losses associated with drive-offs
Wanted direct access to customer information to better personal marketing
Desire to increase retention and sales due to high growth plans
Needed to compete with competitors - I have competition and I need to exceed,not match it
Goal:
Enhance outstanding customer service capabilities through new automated program
Create easy and flexible program for both staff and customers
Flexible promotional capabilities
Significantly reduce drive-offs by implementing an automated at pump process
Best customer recognition through exclusive offers and communications
Low-cost, flexible, easy to use administrative tool supported by a third party partner
Endured loss of profit caused by external contributing factors, mainly caused by fuel theft. To counterbalance such losses, Nittany MinitMart rendered it necessary to seek solutions that geared business strategies towards increasing the sales and retention of loyal paying customers. Nittany MinitMart, proved itself a viable competitor within the convenience store market, and with such merit influenced and motivated Nittany MinitMart to steadily increase business development in congruence with the growing market. Considering areas of opportunity to develop, Nittany MinitMart identified driving customer traffic into the stores through customer effective engagement.

11. Nittany MinitMart Convenience Stores
Solution:
Tecmark created a highly competitive suite of full service offerings and support to launch MinitRe:wards on time and on budget
Customized marketing and promotions plan through various clubs
Administrative tools allowing MinitMart’s staff to run promotions, communications, and reports
Create drive-off suspension process at the POS system
Provided experienced marketing staff to grow program and customer revenues
Nittany MinitMart devised to establish a foundational goal based on internal controllable factors. Rooted in providing excellent customer service, Nittany MinitMart wanted capitalize on this strength and use the customer knowledge as an influencing marketing concept. By implementing a relevant marketing goal, Nittany MinitMart could now was looking to produce quantifiable results. In order to bring this goal to fruition, Nittany MinitMart needed a solution that was cost effective, simple, flexible, and customizable solution. Not only would this powerful solution level the playing field, but it would increase profits, drive customer retention, and improve the customer experience overall.
developed a marketing solution designed to provide Nittany MinitMart with a complementary loyalty recognition program called Minit Re:ward. This program was designed exclusively for registered Nittany MinitMart customers. Customers are effectively and efficiently enrolled with a swipe of a valid license and a second swipe of the Minit Re:wards loyalty card. After this pr validates loyalty member purchases at every location.
repeat business among customer by allowing them a fast and efficient way to enroll using a valid driver’s license. Once the information is captured, the loyalty program allows Nittany MinitMart to access and manage loyalty program promotions integrated through the Gilbarco POS system. This technology provides information that reveals key performance indicators to better target the existing customer base. Analyzing Results, Prioritizing, Effective Targeting, Simpli

12. Nittany MinitMart Convenience Stores
Results:
52,831 engaged loyalty members
+2 million loyalty member transactions
Over $63 million in loyalty member spend
2%-3% average member transaction growth YOY
79% participation rate on promotions
Up to 11% enrollment increase within a 6 month span
2%-3% of the total dollars spent by loyal members is made up of additional dollars spent with promotions
Nittany MinitMart devised to establish a foundational goal based on internal controllable factors. Rooted in providing excellent customer service, Nittany MinitMart wanted capitalize on this strength and use the customer knowledge as an influencing marketing concept. By implementing a relevant marketing goal, Nittany MinitMart could now was looking to produce quantifiable results. In order to bring this goal to fruition, Nittany MinitMart needed a solution that was cost effective, simple, flexible, and customizable solution. Not only would this powerful solution level the playing field, but it would increase profits, drive customer retention, and improve the customer experience overall.
developed a marketing solution designed to provide Nittany MinitMart with a complementary loyalty recognition program called Minit Re:ward. This program was designed exclusively for registered Nittany MinitMart customers. Customers are effectively and efficiently enrolled with a swipe of a valid license and a second swipe of the Minit Re:wards loyalty card. After this pr validates loyalty member purchases at every location.
repeat business among customer by allowing them a fast and efficient way to enroll using a valid driver’s license. Once the information is captured, the loyalty program allows Nittany MinitMart to access and manage loyalty program promotions integrated through the Gilbarco POS system. This technology provides information that reveals key performance indicators to better target the existing customer base. Analyzing Results, Prioritizing, Effective Targeting, Simpli

13. Nittany MinitMart Convenience Stores Technical Services
Diverse Resources
Technical Services
Program Development
Implementation
Management
POS Integration
Easy & Accurate Enrollment
Data Reporting
Monitoring Member Activity & Frequency
Provides Historical & Comparative Data
Analytics
Communication Reach
Customized Channel Selection
Loyalty Expertise
Brand Development
Catapults existing branding strategies
Identifies current customer
Provides a channel to customize
Integrated Execution
SMS Messages
Messages
Social Media
Management
Ad Development
Interactive Training
Live Customer Support
CRM

14. Thank You. Let Tecmark help you with your customer Loyalty program
Thank You! Let Tecmark help you with your customer Loyalty program! Rick Boubelik VP Loyalty Strategy & Business Development (w) (c)