1. THE DIGITAL DISCONNECT An Assessment of Where We Are and Where We Need to go in “Digital Coupons”

2. Your moderator: Mark heckman, principal of mhc…. Over 25 years of supermarket retailing experience as VP of Marketing at Marsh, Randalls-Tom Thumb and Food Industry Service Providers such as VRMS, Sorensen Research, and MARC Advertising

4. Barriers to Digital Couponing Lack of Technology Integration (In-store) –Load to Account –QR Codes –Locational Targeting Competing Value Propositions –Brands and Retailer still Vested in Paper Coupons and Traditional Promotions Dearth of Digital Content –Too few Digital Offers –Low Household Penetration Categories

5. Recent Developments More Retailers Adopting Digital Load to Account Technology More and Better Offers Populate Offer Banks Retailers Beginning to Integrate Digital Promotions into the Mainstream of their Marketing Mix

6. Let’s Define Some Terms Print at Home (PAH), Digital FSI, NET: – Coupons delivered digitally to the consumer on website for selection, but are printed on home printers to bring to store. Load to Card, Save2Card, Load to Account, Direct to Card, eWallet, eCoupon: –Coupons that are delivered digitally to the consumer on website or mobile device that are either selected or directly placed in the shopper’s account. These digital coupons are activated when shopper purchases the associated item and identifies themselves as the account holder at the point of sale. Clips: A digital coupon that is either loaded to card or printed at home

7. Where We Are Today* Approximately 1.35 billion PAH offers were printed in 2012 with 137 million redemptions Average redemption rates for PAH campaigns ranged broadly dependent upon category, trade activity, and face- value, but the average redemption rate was over 17%. *Inmar Shopper Behavior Study, April 2013

8. Where We Are Today* Approximately 27.5 million eCoupons redeemed through “open” digital media from 250 million digital “clips” Average redemption rate of eCoupons was 11.20% with an average face value of $1.23 Both PAH and eCoupons are increasing their presence at very strong rate year over year. *Inmar Shopper Behavior Study, April 2013

9. Retailer Support Active vs. Passive

10. Daytona Themed Event with Digital Coupons

11. Kroger Cart Buster – Select a Digital Coupon Just for You

12. ShopRite Targeted Clipped Digital Coupons

13. Commissary’s Provided In-store Support

14. INTRODUCTION TO THE PANEL

15. Today’s Panel Cheryl Black, COO, YOU Technology

16. Today’s Panel Brian Brinkley, CTO

17. John Caron, VP Marketing

18. Today’s Panel Bill Catania, VP Digital Solutions

19. Today’s Panel Henri Lellouche: GM Smartsource iGroup

20. Our Discussion Are We Truly Entering the Age of Dominant Digital Content? What Remain the Biggest Inhibitors to Digital Couponing Growth? Going Forward, How Do Our Panelist See the Future of the Coexistence of Paper and Digital? As Coupon Professionals, How Will our Skill Sets and Professional Activities Change with the Emergence of Digital?