1. Mobile Marketing Will Shuckburgh, Business Development Director, Nectar 3rd March 2011

2. Private and confidential Agenda Nectar Why mobile, why now? Customer Insight The Nectar App Results Some things we have learned

3. Private and confidential Groupe Aeroplan is the global leader in loyalty management Miles-based coalition in Canada 5 million members 75 earn partners and 188 burn partners Points-based coalition in UK and Italy 12m 12-week active UK households 14 earn partners and 30 burn partners Nectar Italia launched March 2010 Nectar Chile launched August 2010 Customer-centric retailing business Tools and SKU analytics platform 100+ Consumer Packaged Goods partners Present in 7 markets in the Middle East 130 partners HSBC principal partner and 40% shareholder Loyalty Marketing Services Provider Presence in North America, EMEA and Asia Pacific Global leader in loyalty C$2bn turnover Over 3,000 employees Presence in over 16 countries in North America, Europe, Middle East and Asia

4. Private and confidential Nectar is the UK’s largest loyalty programme with over 50% of UK households Points Issuing PartnersRewards PartnersCollectors 15.1M Households active in the last 12 months Database Nectar Business Plus over 450 online retailers on eStores including: Source: Nectar Stats, January 2011

5. Private and confidential Agenda Nectar Why mobile, why now? Customer Insight The Nectar App Results Some things we have learned

6. Private and confidential In the beginning there was paper… Very, very personalised paper 5m+ unique offer combinations in a Points Update Mailing Award winning trigger campaigns: Home Mover’s Kit etc

7. Private and confidential And then there was digital... www.nectar.com receives circa 2m unique visitors per month Most visited areas: eStores, offers, account management, rewards C. 1million collectors have transacted through Nectar eStores across Nectar and Nectar Business 45% of registrations are online

8. Private and confidential We developed a paper-less offer engine

9. Private and confidential Mobile – Why now? Mobile phone internet access developments: Screen size and clarity Flat rate monthly data charge Mobile network speed Demise of walled gardens By 2013, more people will access the web from a mobile than a PC (Gartner) Member appetite – Facebook comments + collector survey Critical mass of smartphones

10. Private and confidential “Nectar Everywhere” - Customer Value Proposition Value ₤ ConvenienceInspiration ♥ Nectar Everywhere Data will drive relevance in all three areas

11. Private and confidential Agenda Nectar Why mobile, why now? Customer Insight The Nectar App Results Some things we have learned

12. Private and confidential Key Market Research findings Nectar smartphone survey, June 2010, 201,258 respondents 36% own smartphone 58% have had a smartphone for less than 1 year 59% find out about new apps via App store or friends Distribution of the best known types 1.iPhone 2.Blackberry 3.Android Android is expected to overtake iPhone in 2011

13. Private and confidential Over 40% of all smartphone users download an app at least once a month n=73,897 How often, on average, do you download apps to your phone? All smartphone users. 40%

14. Private and confidential n=20,005 iPhone users download apps more often than other smartphone users How often, on average, do you download apps to your phone? iPhone users 80%

15. Private and confidential Customers told us that they want… Convenience and value Access to Nectar point offers on the go and in their own time To see their points balance and manage their account 24/7 Store finders to easily locate where they can collect and spend points To receive communications when new offers are available through the app (70% are happy to receive alerts from Nectar) Attainable and worthwhile offers that are updated frequently (weekly or monthly) Nectar iPhone App survey, June 2010, 201,258 accounts participated in the survey

16. Private and confidential Agenda Nectar Why mobile, why now? Customer Insight The Nectar App Results Some things we have learned

17. Private and confidential Nectar app functionality Points balanceOne-to-one bonus points offers Store locatorProgramme information

18. Private and confidential The business model Mobile Offers One-to-one offers wherever members go No paper or point of sale interaction Very cost efficient channel Combines our Insight and Currency Clear monetisation model App is free for customers CPG’s and partners charged for offers Bonus Points revenue

19. Private and confidential Opting in

20. Private and confidential We’ve also built Sainsbury’s iPhone app Sainsbury’s newsStore locatorIn store offers One-to-one bonus points offers

21. Private and confidential With a distinctive Sainsbury’s look and feel

22. Private and confidential Agenda Nectar Why mobile, why now? Customer Insight The Nectar App Results Some things we have learned

23. Private and confidential iPhone app launch results Nectar and Sainsbury’s apps launched on 16 th August 2010 0.5M downloads of the Nectar app so far Over half a million user sessions Nectar app #3 in the UK free app chart within four days

24. Private and confidential Collectors love our new app

25. Private and confidential App reaction – our partners “The Sainsbury’s App is more than meeting expectations in terms of customer demand and we are excited that, working together with Groupe Aeroplan, our app will evolve through a solid development pipeline” “I really like the site locator and the personalised offers. So much easier, friendly and accessible than to have to use a website when you are ‘on the go’ as our customers are!”

26. Private and confidential Initial results for partners have been outstanding Results to date of targeted offers for Nectar’s 3 biggest retail partners: 23%-57% offer opt-in 4% -48% of targeted customers completing the right purchase £Multi-million incremental spend High ROI, which will guide channel pricing Collectors responding to the offers have benefitted from hundreds of thousands of pounds worth of rewards

27. Private and confidential Very good CPG results as well

28. Private and confidential Mobile – where next? “Nectar Everywhere” strategy: right offer, right people, right place, right time Mobile website Roadmap of new functionality for the apps Further platforms Integration of website and mobile data into our warehouse

29. Private and confidential Agenda Nectar Why mobile, why now? Customer Insight The Nectar App Results Some things we have learned

30. Private and confidential Key Considerations Prioritise your app platforms by download volumes & demographic fit Engage staff and customers early in the design cycle, limited ability to trial How to drive repeat usage? Does your web analytics tool allow you to track the interactions through your app? Customers expect new releases and features – set out a roadmap Feedback is instant through the app store and other social media – be ready to respond You have to ask for good reviews - in app prompting Many retail environments have limited or no mobile coverage – make it work off line Many retail scanners won’t scan a barcode image on a mobile phone – remember that a bad customer experience can damage overall brand perception Strike up a relationship with Apple – proves very handy at times

31. Private and confidential Thank you