REWARDING: INTERACTIONS

Are You Ready for Customer Intimacy?

September , 2013

2Proprietary & Confidential. © 2013 Aimia. All Rights Reserved.

• 4000 people, 20 countries, publicly listed company

• 75 years experience, with specialism in retail, CPG, travel, banking

• We run programs for ourselves as well as some of the world’s biggest brands.

• Our Aeroplan and Nectar coalition programs are benchmarks for loyalty programs worldwide

AIMIA GLOBALLY THE LARGEST PURE PLAY LOYALTY COMPANY

Our Programs:

Our Key Clients:

3

21.9 MEMBERSHIPS IN THE US MARKET IS COUNTERED BY A

DROP IN ACTIVE MEMBERS IN THOSE

PROGRAMS

Source: 2013 Loyalty Census Report

“What you measure is what you get”

“What you

measure is

what you get”

Source: Quote – H. Thomas Johnson; Example: Aimia Nectar Coalition

5

The Loyalty model has an expanded

ecosystem of brand interactions across traditional and new

platforms and channels – all shared

socially

Customers are motivated to provide

data, link data sources and identify

themselves on interactions Linking foursquare

provides insight into view vs buy both inside and

outside the programme

Linking facebook provides friend and

preference information

Linking search provides ability to

target more relevant offers

Customer purchase

information is tracked with loyalty

token

CONNECTING DOTS INTERACTIONS AND TRANSACTIONS THROUGHOUT JOURNEY

What she

measured you

don’t get

Source: Mashable, BBC, Time,

What she

measured you

don’t get

Source: Mashable, BBC, Time,

8

IF WE REWARD INTERACTIONS IN

LOYALTY PROGRAMS…...

SOCIAL MEDIA USAGE IS HERE TODAY

9

41%Doesn’t participate in any social media

Age: 65Income: $30k

15%Belongs to one

network / rarely posts

Age: 39Income: $75k

16%Consumes daily via multiple networks / rarely contributes

Age: 36Income: $85k

6%Actively engages on

one network with friends

Age: 47Income: $95k

19%Actively engages

multiple networks with diverse group

Age: 39Income: $75k

3%Heavy daily usage &

creation across multiple networks

Age: 24Income: $80k

Based on Aimia study across US consumers

REWARDING INTERACTIONS – THE RISK

10Proprietary & confidential. © 2013 Aimia. All rights reserved.

REWARDING INTERACTIONS WITH POINTS

Proprietary & confidential. © 2013 Aimia. All rights reserved.

REWARDING INTERACTIONS - SUSTAINABLY

12Proprietary & confidential. © 2013 Aimia. All rights reserved.

Costs 3 years

Year 1 Earning

Year 2 Earning

Year 3 Earning

Costs 3 years

Year 1 EarningYear 2

Earning

Year 3 Earning

4017

9

4023

8

4029

9

4036

0

4042

2

4048

3

4054

4

4060

3

4066

4

4072

5

4078

7

4084

8

4090

9

4096

9

4103

0

4109

1

4115

3

4121

4

4127

5

4133

4

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

10000000

11000000

12000000

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

110000

120000

130000

140000

150000

160000

170000

180000

Traditional loyalty programs are one

dimensional

Transactions = Rewards as a mechanic

13

Source: Bone 2009, …….

Proprietary & Confidential. © 2013 Aimia. All Rights Reserved.

RELEVANT CUSTOMER EXPERIENCEIt’s about every touch point being relevant to the customer.

14

Loyalty is changing as it now means Pre Purchase, Purchase and Usage.

Proprietary & Confidential. © 2013 Aimia. All Rights Reserved.

USEFUL CUSTOMER EXPERIENCEIt’s about every touch point being frictionless to the customer.

15

Loyalty is changing as it now means being where the customer is on a Journey.

16

Wait!

It’s my data

Source: Aimia Four Futures

17

Wait!

It’s my data

Source: Aimia Four Futures

INTERACTING SOCIALLY IS BASED ON TRUST

Control TrustAdded Value

Customers have information on what is collected, from where and for what purpose

Customers understand there is a value

exchange through recognition, rewards

and offers

Comes from confidence that data is held

securely and used in mutually agreed way

Transparency

Customers have control over what they provide, how it is used and how

it is shared

18

Put TACT at the heart of your Program

Source: UK House of Commons http://www.publications.parliament.uk/pa/cm201213/cmselect/cmjust/572/572vw35.htmSource: Aimia Website http://www.aimia.com/files/socialpurpose2012/in_our_business.html

Utility, Relevance and TACT enables us to see more

interactions but

To recognize every check-in, product review, “like” or social

interaction, we need a different way to reward people.

HELP ME BELONG

SOCIAL CURRENCY

MAKE ME FEEL SPECIAL

ESTABLISHING RELATIONSHIPS IS INCREASINGLY ABOUT CREATING SOCIAL CURRENCY

20

RECOGNITION REWARDS CHANGE THE RELATIONSHIP WITH MEMBERS

FRIENDS

RELATIONSHIP

COMPANY

TRANSACTION

MONEY

PIZZA

21

Proprietary & Confidential. © 2013 Aimia. All Rights Reserved.

USING GAME MECHANICS TO REDEFINE LOYALTY

Challenge

Progression

Achievement

On-time payment

Purchased tickets 3

times

Purchased travel 5 times

SIMPLE EXAMPLE FROM STARBUCKS

Gift Economy

Relevant.

Useful?

Social Currency

A JOURNEY - BEING A MOMMY

24Proprietary & confidential. © 2013 Aimia. All rights reserved.

Promote & Offer

Sharing & Rewarding

via Facebook

Members Engage Others via Twitter

Enroll & Welcome

Capture Purchases

Targeted Offers

Partners & Progress Tracking

Rewards, Promotions & Charities

I create MY Experience!

Loyalty programs look to deliver a rounded, three-dimensional experience

Harnessing social currency through a gamified, useful

& relevant experience

27

28

THANK YOU