RewardsNOW Loyalty Programs. Heidi Young, Director of Sales Ph x 251

Transcription

1 RewardsNOW Loyalty Programs Heidi Young, Director of Sales Ph x 251

2 RewardsNOW About Us Premiere, independent provider of turnkey loyalty programs. Named to the Inc past five consecutive years as one of the most rapidly growing privately-held companies in U.S. Our core philosophy is a belief in built-for-purpose loyalty programs, creating a unique solution for each client, one that promotes the individual success of each program Ongoing innovation of new products: My Value Center (merchant-funded incentives); Sweepstakes; Unique Rewards. New products supported by robust IT infrastructure and support, plug-and-play marketing toolkits, 24/7/365 customer service and more Expertise and vast experience in broad-based tailored programs

3 Overall Challenges for Credit Unions Revenue needs to increase replace lost revenue sources Cost needs to decrease Checking accounts in particular are undergoing repositioning in the market more financial institutions are charging fees for basic, formerly free, checking bundling services as an offset to free checking member segmentation is being more closely evaluated Members are looking for more value from the relationship ever increasing expectations for value

4 Update on the Impact of Durbin One year into the regulatory changes of Durbin Studies are showing revenue remains intact for exempt issuers* Exempt Issuers have experienced little, if any, compression in signature debit interchange rates** Debit card usage continues to rise** Annual spend up from $7,781 to $8,326 Average transactions increased from 16.3 to 18.3 Transactions are expected to grow at 13% for signature & 14% for PIN The bottom line for 2013 is that exempt issuers should continue to incentivize penetration, activation and usage of their debit cards by way of issuer-sponsored and merchant-funded rewards, both of which are now turbocharged by the convenience of geo-located, real-time offers on mobile devices. American Banker, Durbin Exemption Proves a Real Edge for Small Banks, January 13, 2013 *Source: American Banker, Durbin Exemption Proves a Real Edge for Small Banks, January 13, 2013 ** Source: Pulse 2012 Debit Issuers Study

5 Implications for Loyalty Going Forward Traditional loyalty programs were focused on a card-based loyalty program Cardholders who use rewards contribute 62% more in revenue to their financial institution Awarding for all purchases credit and /or debit has been successful in driving growth in general Cardholders who redeem for rewards have 15% higher retention and 28% more transactions Typical traditional programs might also throw in an occasional bonus for direct deposit, e- statement sign up, etc. RewardsNOW Case Study Results: After just six months with the new loyalty program, the credit union experienced: 33% increase in transactions per active account 29% increase in monthly spend per active account 20% active account growth

6 Member Expectations The Age of Offers For Consumers A Deluge of Offers Plus Changes in Behavior Changing expectations from your members They expect great deals, and they want them NOW They want more rewards and incentives, not less! They want more choices, not fewer! I want offers that are relevant and close to me! 6 in 10 consumers report they expect their financial institution to find and offer them new and different ways to help them save money 63 percent of Americans state they are at least somewhat likely to switch banks if another financial institution provided valuable, no-strings-attached offers and theirs did not This number is even greater among the younger generations (76% among 18 to 34 year olds) Source: Harris Interactive Study

7 Changes to Loyalty Programs Putting It All Together Loyalty Programs are more about rewarding across a broad range of behaviors and products, not just cards anymore Unified Points Program To meet member needs credit unions will have to bring more value to the table and in ways members prefer Cost control Credit unions can leverage merchantfunded rewards and financial controls to further enhance the program. Discounts & Deals Members Local Merchant Program Leveraging your own local/featured merchants and member base creates a unique opportunity In the end, you are creating more engagement with your members for the purpose of deepening your relationships Merchant Funded Program

8 Relationship Rewards Program Create a Larger Impact Incent your members for their entire relationship with the Credit Union Loyalty program vs rewards Targeted behavior revenue generating! Create unique rewards for those sought after and profitable behaviors Increase in purchase volume New accounts deposit and loan accounts E-statements Direct deposits Anniversary of membership Provide your members with a set of reward options that are specific to your credit union Financial institutions are more interested in rewards tied to activity to create a sticky relationship one that is not so easily changed. We are seeing an evolution from account-based rewards to relationship rewards. - Patricia Hewitt, Director of Debit Advisory Service, Mercator Source: Digital Transactions

9 Robust & Unique Redemption Options Redemption catalog tailored to your member demographics. A wide variety of choices provides options for all members! Examples include: Gift cards & e-gift Cards (Offer them 100s to choose from) Charitable contributions Travel Merchandise Downloadable Coupon Subscription Cash can be in form of credit or your CU gift card Instant downloadables, such as ringtones, tunes Your own products & services (ex: fee wavier) Local gift cards or charities You can tailor a program specifically for your members to provide incentives for the behaviors that are profitable to your credit union

10 Offer Your Members Extra Value Adding extra value to your loyalty program that is easy-to-access, easy-to-use, and in a central location through your existing loyalty portal My Value Center an example of what can be included: A merchant mall with both online and in-store retailers deals are funded by the merchants Downloadable coupons, provided via subscription A robust redemption catalog offering gift cards, travel options, merchandise, digital content, cash (optional), and more Daily deals and special coupon offers featured on the front page Featured Merchants includes both local merchants and your exclusive arrangements Mobile application/access to your loyalty program

11 Program Website Created as a central destination, the website allows members to access all areas of the loyalty program. Single signon allows members to go directly to My Value Center from your website Tailored to your credit union and program selections Allows marketing space for you to promote or cross-sell other product + services at the credit union.

12 Merchant Funded Rewards: A Key Feature Enables your members to earn bonus points for shopping with in-network retailers Retailers reimburse you for points awarded, resulting in an additional revenue stream Members earn bonus points for: Shopping at participating online merchants via the website Shopping at local/brick & mortar merchant locations featured on the program website Bonus points awarded vary by merchant

13 Merchant Funded Rewards: Depth & Breadth of Retailers Types of Retailers Hundreds of network retailers Online retailers National, in-store offers Types of Offers Bonus points Special offers, such as free shipping & additional discounts Seasonal & holiday specials

14 Merchant Funded Website Display

15 Local Merchant Programs Brings additional benefits to your members Allows them to earn additional points for shopping at retailers in their community Credit Union can include any of their business members into the program, and enhances relationships within your community/region Includes local retailer as a redemption choice

16 Local Merchant Programs Member s Experience Easy to use website makes it easy for members to find the benefits YOUR LOGO Allows the member to: Search for offers based on location or type of retailer Share offers on Facebook or Twitter, and publish reviews View featured offers that are relevant to them

17 Local Merchant Programs Merchant s Experience Web platform makes it easy for merchants to identify and select offers that meet specific marketing objectives. Marketing templates allow retailers to: Create and publish offers that accurately describe eligibility rules Share offers on Facebook or Twitter Shape offers to attract new members, or reward returning members

18 Discounts & Deals Program How it works: Consumer registers card online, subscribes Can use at POS via mobile device Can download and print coupons Can use online Over 300,000 coupons accessed via robust search capabilities Benefits the consumer choice, access, discounts + rewards! Coupons are part of daily routine for: 45% of moms aged % of moms aged Source: Forbes

19 Bring Value to Your Community Example of offers in Ontario, CA 5,800+ Local Offers 300,000+Nationwide Bringing value close to home for your members!

20 Marketing is Critical to Success REWARDS PROGRAM WEBSITE BANNERS

21 Our Recommendations for Loyalty Program Design A tailored solution for your credit union is key. It must be designed around your specific goals. Flexibility should be available so you can adjust the program over it s lifecycle Consider a true loyalty program through relationship rewards, vs a single card rewards program. Merchant funded programs and discount programs should be key components Brings benefits to your members through discounts & extra points Brings additional revenue to the credit union through merchant funding Builds the sense of community through local offers In the end, the bottom-line is to generate MORE loyal and satisfied members who exhibit MORE desired behaviors, LONGER tenures and MORE profitability for you!

22 Interested in Learning More? Enterprise-wide loyalty programs that promote: Increased profitability of member relationships Broader relationships Complete branding for your credit union Loyalty products include: End-to-end point-based loyalty programs Merchant discount loyalty network Local Merchant Program Deals and Discounts Program Lifecycle loyalty program support: Implementation, account management, analytics Web development, full marketing support Hands-on consulting, profitability analysis Innovative product development: Leader in loyalty program development, implementation Our mission: continual innovation to create products that drive consumer behavior to the benefit of our clients; be nimble and flexible enough to shape products that are reflective of market trends and demands Reinventing how rewards are delivered in the changing loyalty landscape

23 Thank You! RewardsNOW Everyday Business. Extraordinary Results. Questions? Thank You!