B y R c h M a b o – M a b o P e o e u m T e a m R o s s M a b o – M a b o P e o e u m VeriFone and ValueCentric Marketing Group Integrated Loyalty Solution Do you want to increase your profitability, visitor frequency and customer spending? Introducing VeriFone and VCMG Integrated Loyalty Solution Overview         VeriFone and VCMG Loyalty Program Drivers Benefits of using a Loyalty Solution VCMG Loyalty Solution • Program Elements • Marketing Elements Sapphire and ValueSYS Framework Benefits of an Integrated Loyalty Solution VCMG Loyalty Solution Set-up Screen VCMG Loyalty Reports • Detailed Customer Transaction Query • Top 100 Customer Analysis Reports • Food Club Analysis Report • Loyalty vs. Non-Loyalty Bucket Analysis VeriFone and VCMG  VeriFone and VCMG partnered to integrate VCMG’s loyalty functionality with VeriFone’s Sapphire  The combination of VCMG’s unique ValueSYS™ loyalty application and the VeriFone Sapphire site controller, gives customers the ability to instantly access and view their loyalty account status, immediately redeem rewards, and receive discounts at the POS that are specific to them  The ValueSYS™-Sapphire Loyalty Solution makes it easy to reward your most loyal customers in a variety of ways, at the pump and in the store Loyalty Program Drivers     Increasing needs to drive in-store traffic Dwindling margins Price fixation by customers - especially at pumps Rapid advances by retail superstores and grocery stores into industry  Fiercely competitive industry  Do not know customer buying patterns Benefits of Using a Loyalty Solution      Increased brand awareness Shifts customer focus away from pump prices Increased sales of higher margin item purchases Builds long term relationships with customers Increased visitor frequency, spending, and profitability – driving customer purchases  Increased customer retention – building in-store opportunities, preventing loss of valuable customers  Capturing Data – identifying customers and analyzing their purchasing behavior  Rewarding Customers – rewarding profitable behavior and measuring the ROI of each reward Program Elements  Free membership • Membership is offered to customers at the store level by having them fill out an application form. • Application includes questionnaire to better understand customer wants and needs. • Members immediately receive an activated key chain and membership card. Program Elements  Point-based program • Customers earn one point for each dollar spent on lower-margin gas purchases and two points per dollar spent for in-store purchases. • Customers are encouraged to purchase higher profit margin items by awarding bonus points. – The point-based program helps to motivate customer spending behavior, while decreasing the fixation on price alone. – Awarding points encourages shopping frequency, and in-store purchases while increasing profit margins. Program Elements  “Show Your Card and Save” rewards • Immediate discounts are given to members at the point of purchase simply by showing their card. Promotional items are determined through vendor support. • Savings are in the form of an amount-off regular price. This promotion encourages frequent shopping, and increased customer spending. – New customer acquisition is also enhanced through elevated interest in the immediate savings. Program Elements  Point redemption for rewards • Members redeem accumulated points for certificates via a toll free number or online. • Points can be redeemed for $5.00 certificates that can be used for gas and merchandise, or on specific high margin products, such as coffee, pizza or fountain drinks. – These rewards encourage repeat visits, and increased spending. The focus on high pump prices is reduced because certificates can be used for gasoline purchases. Program Elements  Merchant Partner Rewards • “Show Your Card and Save” – Members receive immediate rewards by showing their card at participating merchants. • Point redemption rewards for certificates – Accumulated points can be redeemed for certificates good for dollar-off discounts at merchants. – Merchants are signed to a yearly contract and enjoy the exposure the program offers to a loyal customer base. – The merchant element adds excitement and additional real value to the program. Program Elements  Frequent Buyer Rewards - Food Club • Members are encouraged to visit repeatedly by utilizing a series of higher-margin food and drink products. • The Food Club includes a coffee, pizza, fountain drink, milk, sub, and soup club. • Unlike most frequent buyer clubs which usually require the customer to carry a “punch card” to track purchases, Rewards Plus tracks each member and automatically prints out a coupon at the time of purchase when the reward threshold is reached. • This element motivates high margin purchases, rewards the customer for shopping, and offers an advantage over the competition. – Verifies secured transaction and measures breakage and cost of program. It also encourages peripheral sales. Program Elements  Exciting Sweepstakes • Includes a variety of sweepstakes • Vendor supported with prizes, point-of-purchase displays and other promotional pieces - very little, or no out-of-pocket expenses • Although all sweepstakes are offered to nonmembers, Rewards Plus members receive an automatic entry and an additional entry each time they make a purchase during the sweepstakes period. All electronic entries are maintained in the system software. – This added value element adds excitement, encourages multiple visits, and offers an edge on the competition. Marketing Elements  Store level promotional materials • Store level promotional materials generate program interest • Windmaster signs greet the customer at the entrance • Pump topper signs tell of special promotions at the pump • Display, bonus point and shelf talker signs announce member specials throughout the store • Information centers, strategically located near the checkout include current program brochures for membership, rewards, merchants, sweepstakes and monthly specials A. B. C. D. E. F. G. H. Windmaster sign Pump topper sign Information center with brochures Display and shelf signs Counter Sign Bonus point shelf sign Push/pull door sign Quickway radio Marketing Elements  Member communications • Program information, benefits and rewards are communicated to members. Information centers offer brochures with current program information, including specials, rewards, merchant offers, etc. • Biannually, members receive a direct mail brochure – member-specific data including number of points earned, points redeemed, and savings received as a result of using the Rewards Plus card. – New rewards announcements – Program change information • Online member information – Redeem points, get point balances, available rewards, special offers Marketing Elements  Merchant partners • Participating program merchants receive marketing collateral (point of sale signs, window decals, and register signs) to display at their businesses to heighten program awareness. • Cross marketing opportunities offer greater awareness to the program. Marketing Elements  Media advertising • Mass-media advertising – Informs members of rewards and offers – generate public interest • Media used is mainly radio and television with occasional placement of newspaper and penny saver ads. VeriFone-ValueSYS Loyalty Framework Benefits of Integrated Loyalty Sapphire – ValueSYS Integrated Loyalty Solution      Pay at the pump and earn points Use multiple forms of tender as loyalty cards Web-based portal for easy access Flexible promotion set-up with measurable results Unlimited data mining and basket analysis of customers and products  Detailed reporting for analyzing effectiveness  Easy monitoring at store level, district or region Benefits of Integrated Loyalty  No additional hardware is required • ValueSYS™ solution is fully integrated with Sapphire • There is no need to have a separate printer or kiosk to educate the consumer on the program • All transactions are processed through the current POS setup triggered by Sapphire  No additional training of CSRs is necessary • CSRs will continue to use their POS stations with no change in transaction flow  Setup provides real-time point accumulation on every transaction at any location • Customers are always current on their point accumulation after each and every transaction • Customer are able to immediately redeem points at the POS for rewards and discounts Benefits of Integrated Loyalty  Print a customer-specific discount on pump transaction receipts • The customer is made aware of the discount by the line item indicating the discounted amount of the transaction  Eliminate “Punch Cards” • Provides real-time club programs • End-user is able to track all clubs through a bar code printed on every reward that is issued to the customer  Easy access to complete profile information on your best customers • Profile reports include what they buy, how often they visit, and how much they spend, month after month and year after year Benefits of Integrated Loyalty  Defined and targeted rewards programs • For specified customer groups/site locations/district locations  No need for multiple cards • Easily link your favorite credit card to your profile, enabling your designated card to trigger reward accumulation  Reduce fraud • Save time and money with complete tracking and reconciliation of new and existing clubs and programs Loyalty Plan Set-Up Screen  Award points  Track purchases at the pump and in-store utilizing any card… national debit, credit and proprietary cards.  Easily set card criteria at the promotion level, allowing different point awards for the type of tender used. Reporting Screen  Offers easy web access to all types of standard and customized reports.  Recurring reports can be automatically generated and emailed to managers and administrators for timely program monitoring. Detailed Customer Transaction Query  Data mining of loyalty members, their habits and purchases provide vital information for management to make informed decision on products and promotions. Top 100 Customer Analysis Reports  Get to know your customers. Find out what, when, how much and where they purchase. ValueSYS makes it’s easy to determine who your most valuable customers are. Food Club Analysis Report  Tracking data by store, district, and region helps managers make smarter decisions. Loyalty vs Non-Loyalty Bucket Analysis  Easily analyze groups or buckets of customers and data to learn who is buying what, how many and when. Sapphire Cost Savings • Implementing a customer loyalty program with Sapphire is cost effective. It saves on capital investments for additional PC, database licensing fees, additional printers, serial port splitters and system administration. O u s u c c e s s u M a b o Q&A