1. Overview SmartphoneLoyalty Mobile Loyalty

2. The Smartphone  We love our smartphones!

3. The Smartphone – Cont.  We’re essentially married to it …

4. The Smartphone – Cont. Adoption rate 10x that of 80’s PC revolution. Double rate of Internet boom of 90’s.

5. The Smartphone – Cont. Mini Summary  We’re attached  Most of your customers have one, or soon will.

6. Loyalty

7. Loyalty Business Model  “The loyalty business model is a business model … in which company resources are employed so as to increase the loyalty of customers … in the expectation that corporate objectives will be met or surpassed. A typical example of this type of model is: quality of product or service leads to customer satisfaction, which leads to customer loyalty, which leads to profitability.” You are in the loyalty business.

8. Loyalty Initiative  Maximizing your loyalty business requires a focused effort, ergo Loyalty Initiative.  “Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior – behavior which is potentially beneficial to the firm.”  “Loyalty Initiatives are structured efforts that encourage loyal buying behavior – behavior which is potentially beneficial to the firm.”

9. Loyalty Initiatives – Cont.  Come in all shapes and sizes  Develop for unique needs and challenges of your chain.  Consider POS integration + Benefits of matching scan data w/customer - Larger investment in resources - Easy to lose focus

10. Loyalty Inititatives – Harris Teeter Pt. 1 Customer Perspective: - Why do I have to have a card for every grocery store? - What does the swipe accomplish? Retailer should consider: - How is this effort building loyalty? - Does customer see benefits?

11. Loyalty Initiatives – Harris Teeter Pt. 2 What drives Carson’s loyalty to Harris Teeter:

12. Loyalty Initiatives Mini Summary  Is an action plan to create better customers  Can be as simple as having clean bathrooms  If requiring customer action, should offer a clear/obvious non-arbitrary value  Ultimately improve your bottom line directly or indirectly

13. Taking Loyalty Mobile 3G/4GGPS StaminaNFC BluetoothCompass HD ScreenCamera Customer’s have smartphones, what can we do with this?  Barcode scanning  QR Code reading  Instant distribution  Location tagging  Geofenced events  Mobile payments  Proximity Awareness

14. Taking Loyalty Mobile – Cont.  Can be POS integrated or stand alone  Enhances existing initiatives  Puts customer in greater control of their loyalty experience  Allows interaction to continue beyond walls of store

15. Mobile Loyalty – Harris Teeter Pt. 3 + Greatly enhances existing initiative + Greater access to brand - Not focused - Hard to see the loyalty piece

16. Mobile Loyalty – Cont.

17. Summary  Your customers have smartphones  Their smartphone is their life  Your brand can be part of customer’s life  Loyalty is about making better customers  Mobile can be a massive boost to loyalty

18. Take Away 1.Focus on being a loyalty business 2.Develop to your chain’s unique needs 3.Decide what initiatives can be enhanced with mobile 4.Don’t try to do everything at first (or ever) 5.Start today (there is a learning curve)