LOYALTY ESSENTIALS NACS Las Vegas Oct 2015 Loyalty

LOYALTY ESSENTIALS NACS Las Vegas Oct 2015

Loyalty Journey Advocate Dialogue “Own” SOW Activists Customer POV Relevant Participants 2 5 4 Optimize Product & Pricing Optimize Marketing Develop communications to optimize Marketing spend Utilize insights to deliver by customer strategies and actions Educate 1 Shopper 3 Engage 6 Customer Centric Organization Loyalty Program Deliver customer insights & personas through customer analysis Time 2 2

TYPES OF LOYALTY PROGRAMS Spend this, Get that…. • • • Punch card programs Points programs Discount programs Information Based • • • Email programs CRM/Communications Offer Management Emotional Based • • • Community Exclusivity clubs Association/Non-profits 3

5 C’s of Loyalty That Drive Consumers Wild Convenient Communication “Two-way, relevant and personalized” Successful Loyalty Comfort Choice “Provide choice in earning, rewards and how they ineteract” “Make it easy for a member to do business with you” Cost “Provide a fair return on spend” “Build trust & make customer comfortable in participating” 4

BENEFITS OF A LOYALTY PROGRAM • Customer data becomes usable customer information • Motivational tool to change behaviors = $ GROWTH! • Customers invested in your company = RETENTION! • Measurable…. 8 -10: 1 ROI is typical! • Helps move away from uncontrolled discounting 5

MUST HAVE’S TO HELP YOU DECIDE • ROI – financial understanding • Communication plan • Promo/behavior change plan • Employee training & engagement • The RIGHT Loyalty Partner 6

WHO DOES IT WELL……BEST BUY • Lifestyle and Lifecycle • Pre, during & post delivery of message • Heavy employee engagement • Smart financial plan • ROI 20: 1 measured 5 times! 7

WHO DOES IT WELL……JETBLUE • Different for competition • First to openly embrace “community” involvement • Employees drive program improvement • Promotionally active • Program is center of customer strategy 8

TECMARK CASE STUDY: NITTANY MINITMART

NITTANY MINITMART CONVENIENCE STORES Client: • Largest heating and oil distributors in central Pennsylvania • Family-owned, 24 -location c-store in high growth mode Situation: • Needed automated process to decrease losses associated with drive-offs • Wanted direct access to customer information to better personal marketing • Desire to increase retention and sales due to high growth plans • Needed to compete with competitors - I have competition and I need to exceed, not match it Goal: • Enhance outstanding customer service capabilities through new automated program • Create easy and flexible program for both staff and customers • Flexible promotional capabilities • Significantly reduce drive-offs by implementing an automated at pump process • Best customer recognition through exclusive offers and communications • Low-cost, flexible, easy to use administrative tool supported by a third party partner http: //www. nittanyenergy. com/ 10

NITTANY MINITMART CONVENIENCE STORES Solution: • Tecmark created a highly competitive suite of full service offerings and support to launch Minit. Re: wards on time and on budget • Customized marketing and promotions plan through various clubs • Administrative tools allowing Minit. Mart’s staff to run promotions, communications, and reports • Create drive-off suspension process at the POS system • Provided experienced marketing staff to grow program and customer revenues 11

NITTANY MINITMART CONVENIENCE STORES Results: • 52, 831 engaged loyalty members • +2 million loyalty member transactions • Over $63 million in loyalty member spend • 2%-3% average member transaction growth YOY • 79% participation rate on promotions • Up to 11% enrollment increase within a 6 month span • 2%-3% of the total dollars spent by loyal members is made up of additional dollars spent with promotions 12

Nittany Minit. Mart Convenience Stores DIVERSE RESOURCES • Loyalty Expertise • Brand Development ● Catapults existing branding strategies ● Identifies current customer ● Provides a channel to customize • Integrated Execution ● SMS Messages ● Email Messages ● Social Media ● Management ● Ad Development • Interactive Training ● Live Customer Support ● CRM TECHNICAL SERVICES • Program Development ● Implementation ● Management ● POS Integration ● Easy & Accurate Enrollment • Data Reporting ● Monitoring Member Activity & Frequency ● Provides Historical & Comparative Data ● Analytics • Communication Reach ● Customized Channel Selection 13

Thank You! Let Tecmark help you with your customer Loyalty program! Rick Boubelik VP Loyalty Strategy & Business Development rboubelik@loyaltymarketing. com 612 -746 -5095 (w) 612 -384 -6499 (c) www. loyaltymarketing. com 14