1

HI. WE’RE PUNCHTAB.

ANGELA SANFILIPPO, CMO@ANGELA_SANFILIP | @PUNCHTAB

Today’s Speaker:

2

number of touchpoints

(and will stay loyal basically forever)

We learned that a consumer is 2.5x more likely to convert when engaged on multiple channels.

THE YOUSENDIT STORY

2

3

POWERING OMNI-CHANNEL LOYALTY PROGRAMS FOR TODAY’S LEADING BRANDS

2011PUNCHTAB IS BORN

5.2MTOTAL FUNDING

17,000LOYALTY PROGRAMS

22SUPPORTED LANGUAGES

30+ PARTNERS & INTEGRATIONS

40+# OF ACTIONS WE CAN TRACK & REWARD

4

5

we help brands* build relationships with their customers

6

Increase frequency, online engagement,

UGC & content consumption

Increase subscribers & engagement. Track

& reward opens, clicks & forwarding to

friends.

Drive fans, followers and reward social sharing, check-ins, pins & Instagram

uploads

Increase app downloads & usage;

engagement on m-site & mobile activities.

Integrated geo-targeting.

Increase purchase frequency, spend &

overall customer value in-store, via 3rd party retailers and online.

EmailWeb Social Mobile Commerce

OMNI-CHANNEL LOYALTY & ENGAGEMENT PLATFORM

Our omni-channel loyalty platform allows you to track & reward key behaviors & deliver consistent & personalized experience across digital, CRM, social, mobile and in-store.

7

7

STRATEGIC PARTNERS AND INTEGRATIONS

8

REWARD USERS TO DRIVE THE RIGHT BEHAVIORS

CONFIDENTIAL

CONNECTING• Becoming a Fan• Following You• Subscribing to email updates• Signing up for SMS Alerts• Downloading mobile app• Signing-up for something (creating an account)• Syncing social accounts

ENGAGING• Opening, clicking, forwarding email• Visiting your site every day• Viewing a page• Searching your site • Downloading a file/document• Uploading or submitting something• Commenting, answering, replying• Voting, Completing Polls and Surveys• Watching and Sharing Videos• Tweeting and RT from Twitter• Foursquare or Facebook Check-ins• Uploading Photos to Instagram• Clicking or viewing something (such as

visiting your YouTube channel)• Mobile app usage (reward specific actions,

logging in, referrals, etc.)

DRIVING TRAFFIC• Share pages/content on Facebook or

LinkedIn, Twitter, Pinterest, Google+• Add to Facebook Timeline

REFERRING FRIENDS• Friends who click (drives traffic) • Friends who join (drives sign-ups)• Friends who buy (convert)

PURCHASING• Receipt scanning (online or via mobile)• UPC or special promotion codes• QR codes • eCommerce and POS integration• Referred purchases

CUSTOM ACTIONS• Reward “on_click” (clicking on

something), • Reward “on_load” actions (ability to

reward variety of actions when the page loads - such as confirmation page)

• Reward “on_submit”(rewards submission of any type of form)

9

Source: RIS News

Value Conscious Mindset

Connected Consumers

Local & Global Competition

Perceived Differentiation

Direct to Consumer

10

CONSUMERS WANT REWARDS PROGRAMS

38% percent of the Hispanic Market credit loyalty programs as the reason they choose one brand or company over another.4

51% of Men indicated they would actively* engage in a loyalty program. 3

78% of Millennials are more likely to choose a brand that offers a loyalty or rewards program over a brand that doesn’t offer one.1

81% of Mom’s Indicated they are likely to buy and engage more if rewarded as part of a loyalty program. 2

*Active engagement includes things like writing reviews, sharing your experience with a store or product, or choosing to purchase from one retailer/brand over another because of point earning opportunities.

1 “Born This Way: The US Millennial Loyalty Survey,” Aimia, November 2011.2 “Scoring Points With Mom: The Secret To Engaging Moms to Try, Buy and Share,” PunchTab,

April 2013.3 PunchTab Survey of 604 Men Ages 18-60, July 2013,4 Colloquy, “The New Champion Customers: Measuring Word-of-Mouth Activity Among Reward Program

Members.” 2009.

78%81%

51%

Millennials

Moms

Men

38%Hispanics

11

WOMEN 18-29

WOMEN 30-44

WOMEN 45-60

WOMEN > 60

MEN 18-29

MEN 30-44

MEN 45-60

MEN > 60

Groceries/Household Products

Wine/Beer/Spirits

Home Improvement

Consumer Electronics

Personal Care/OTC Healthcare Products

Health and Fitness

Cosmetics/Beauty Products

Clothing/Accessories

Travel

Financial Services

Entertainment

Outdoor Recreation

Casual Dining

62%

57%

49%

40%

68%

62%

65%

54%

16%

20%

33%

30%

17%

20%

23%

26%

25% 29% 16% 15% 55% 12% 21% 12% 38%

31% 41% 22% 26% 54% 25% 15% 21% 44%

26% 40% 18% 29% 40% 28% 16% 24% 43%

16% 46% 19% 36% 33% 30% 20% 22% 39%

30% 20% 38% 24% 33% 43% 50% 10% 28% 4% 46%

28% 20% 37% 18% 33% 42% 48% 6% 34% 9% 46%

23% 21% 40% 26% 43% 49% 53% 12% 43% 12% 46%

13% 24% 35% 33% 42% 55% 43% 11% 44% 12% 43%

WHAT TYPES OF LOYALTY PROGRAMS ARE YOU INTERESTED IN?

Source: PunchTab; 2013 n=1599

12

TRADITIONAL LOYALTY PROGRAMS FALL SHORTReward top spenders not loyal customers

Optimized to increase purchase frequency

Don’t reward behaviors that lead to purchase

Haven’t caught up to digital, social & mobile

The number of active loyalty members declined 4.3% between 2010 and 2012. #OmniChannelLoyaltySource: Bulking Up: The 2013 COLLOQUY Loyalty Census, COLLOQUY. June 2013.

NEXT GENERATION LOYALTY PROGRAMS

• Reward behaviors - That lead to purchase in addition to purchasing

• Designed to increase frequency… - …of engagement, WOM AND purchase

• Designed to drive retention - By rewarding continued brand engagement that keeps

the brand top-of-mind and drives brand affinity

• Moving towards omni-channel experience- Acquire, engage, activate and reward online, on social,

on mobile, in-store, across communication channels

IT’S TIME TO EVOLVE

13

4 REASONS WHY OMNI-CHANNEL WORKS

1 2It’s a mechanism for identifying &

tracking consumer engagement.

• Collect contact and profile data.

• Merge social profiles & behaviors with purchase behaviors & preferences

It allows you to identify the “why behind the buy”.

• Identify attributes of most valuable consumers and use to find lookalikes.

• Identify profile & engagement triggers

• Focus on what matters: Optimize messaging & marketing based on channels, engagement methods that drive sales.

It’s a practical framework for

sustaining a personal relationship.

• Ongoing reason to communicate and keep brand top of mind.

• Data & insights provide for more personalized experiences.

• Give consumers more chances and choices for brand engagement by extending to additional channels/touchpoints.

It’s an opportunity to create a fair

“value exchange”.

• Get out of the “coupon” loop and identify ways to reward consumers for meaningful engagement.

• Focus rewards program on rewarding the right behaviors with the right incentives that deliver value to both consumer and brand.

3 4

14

IT’S A MECHANISM FOR IDENTIFYING & TRACKING CONSUMER ENGAGEMENT.

1

15

WEBSITE FACEBOOK MOBILE OFFLINE IN-STORE

DUCK TAPE DUCK CLUB

16

IDENTIFY CONSUMERS* CAPTURE EXPLICIT DATA*

17

TRACK IMPLICIT BEHAVIORS*Brands don’t have to reward all behaviors in order to track them.

18

IT’S A PRACTICAL FRAMEWORK FOR BUILDING PERSONAL RELATIONSHIPS 2

19

2013 Financial Performance Report - Growth Strategies: Unlocking the power of the consumer,” PWC. 2013.

Fully engaged consumers are 23% more profitable than average customers, while actively disengaged consumers cost 13%.”

20 BUILD ONGOING DIALOGUE*

3X increase in member satisfaction when loyalty programs offer relevant, tailored and timely communication.1 85% of loyalty members have not received any communication since they signed up.2

94% of loyalty members want communication from their loyalty program.1

1 “The 2013 Maritz Loyalty Report,” US Edition, Maritz, May 20132 ACI Worldwide Study, Wakefield Research, March 2011

MEMBERS WANT TO HEAR FROM YOU

21

PERSONALIZEDEMAIL

COMMUNICATIONREDEMPTION

CONFIRMATION(Highlight opportunities to engages)

BONUS EARNING

SURPRISE & DELIGHT(Special offers, member only benefits )

MONTHLY STATEMENT

(Embed specific calls to action)

ACTIVITY BASED(Proximity to next reward,

recency, ,incomplete actions) GETTING STARTED

(Onboarding cadence)

BIRTHDAYEXPIRY REMINDER

TRANSACTIONAL PROMOTIONAL

WELCOME(Define interests, benchmark behaviors)

SPECIAL PROMOTIONS

Target by location, purchase behavior, frequency, activity, other custom attributes.

Simple, educational & keeps program top of mind. Ability to embed personalized offers & recommendations.

22

CREATE PERSONALIZED EXPERIENCES*

Deliver geo-targeted messages based on retailer, proximity to retail location and consumer preferences via push notification or SMS.

DELIVER TIMELY MOBILE NOTIFICATIONS*

23

RECEIPT SCANNING: THE NEW FRONTIER*

1. REWARD PURCHASES: Drive traffic and volume life without POS or retail integration.

2. IDENTIFY SHOPPER BEHAVIORS: Identify where they shop, purchase patterns by retailer (buy diapers at WalMart but baby food from Krogers) and spend by category.

3. IDENTIFY CROSS PORTFOLIO OPPORTUNITIES: Identify competitive products in their basket and offer relevant information and offers.

24

OMNI-CHANNEL LOYALTY PROGRAMS ALLOW YOU TO IDENTIFY THE “WHY” BEHIND THE BUY

3

25GET TO KNOW YOUR CUSTOMERS*

26

Drill into key attributes for specific segments and compare against all loyalty members to identify specific characteristics unique to that segment including:• Demographics• Purchase Behavior• Engagement Types• Top Brands & Interests• Channel & Device Usage

MEMBER SEGMENTS*

27

1. MOST ACTIVE/LEAST ACTIVE: Know who your most active users are and leverage engagement strategies to activate inactive members.

2. MOST REACH: Understand the size of your member’s social networks. Leverage engagement strategies to activate members who haven’t shared on social.

3. MOST TRAFFIC: Understand which members are driving the most reach and resulting inbound traffic.

4. MOST INFLUENTIAL: Identify members whose engagement is driving new members and new purchases.

IDENTIFY AND ACTIVATE YOUR AUDIENCE

Segment your audience for different engagement & activation strategies

27

28

29

IT’S AN OPPORTUNITY TO CREATE A “FAIR VALUE EXCHANGE”4

30

30

1. STATUS: Offer consumers an opportunity to increase their member status for additional perks.

2. ACCESS: Early access to new products, opportunity to provide direct feedback or influence future products.

3. RECOGNITION: Publicly recognize members for their contributions.

3. EXPERIENCES: Give members opportunities to participate in unique experiences that increase brand affinity.

4. MONETARY: Leverage partner offers, provide special offers or promotions that drive trial and increase share of wallet/basket, or provide rewards your audience would be attracted to.

31

THE CMO IMPERATIVE: UMBRELLA LOYALTY PROGRAMS & HOUSEHOLD LOYALTY

86% of millennial women and 71% of millennial men indicated that they are more likely to purchase more clothing items or other types of items (e.g., bedding or home furnishings) from fashion brands; or switch from a competitor’s products in order to earn rewards in a fashion brand’s loyalty program. (Source: PunchTab, October 2013)

32

CAPTURE CONSUMER INSIGHTSTrack consumer behavior and build consumer profiles & gain strategic insights.

04

DRIVE ENGAGEMENTIncrease consumer engagement across channels and consumer segments.

INCREASE FREQUENCY/SPENDIncrease share of wallet.

DELIVER CONSISTENT EXPERIENCE Leverage loyalty program as the “glue” that delivers relevance across all customer touch-points.

DELIVER VALUE, NOT JUST OFFERSReward behaviors that drive business value with rewards that consumers value.

TEST, LEARN & EXPANDStart with loyalty campaign or ongoing “activations”, start with single product, brand or channel. Learn, iterate and extend where it matters.

33

[RESEARCH] The Hispanic Market and the new Loyalty Program Journey.

[WHITEPAPER] The Top 5 Online Mommy Personas.

Visit http://punchtab.com/

For the latest tips, tricks and trends in engagement marketing, visit www.getmoreengagement.com

Follow us @MoreEngagement and @PunchTab

ADDITIONAL RESOURCESBEST PRACTICES

THANKS!

[RESEARCH] Digitally Engaged Moms. The secret to getting moms to try, buy and share.