Driving Loyalty and Bottom Line Results with ScoreCard Rewards. Cassie Boutelle VP, Loyalty Products

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2 Driving Loyalty and Bottom Line Results with ScoreCard Rewards Cassie Boutelle VP, Loyalty Products

3 Loyalty Trends

4 Let s Take a Look at the Stats The average US household belongs to 22 loyalty programs. 80% of credit card spend goes to a card with rewards. 71% of loyalty members have room for more cards in their wallet. Percentage of spend w/rewards cards vs non-rewards cards 73% of Gross Profit Per Active smartphone/ Account tablet users want to access their loyalty program on their device. From 2007 to 2013, reward card programs saw increases of more than double the amount of non-reward card programs % growth in the # of transactions per active account 26.62% growth in the purchase volume Source: Raymond James, Colloquy, BusinessWeek, Maritz,Vantiv, FIS, PaymentsSource 4

5 Key Drivers of Loyalty Satisfaction Quality of awards available Process/ease/ speed with which rewards can be earned and redeemed Earning potential available to reach desired award Reachability in a timely manner Trustworthy Source: Bond

6 Loyalty Rewards It s a No Brainer Nearly 90% of Americans participate in some type of rewards program. There are more than 2.5 billion loyalty memberships in the U.S. The North American loyalty market is estimated to be $54 billion and growing at 20% per year. Source: Colloquy 6

7 Loyalty Trends 54% of consumers won t even consider a card w/o a loyalty program 500 million Financial services represent the largest segment of loyalty program memberships 43% of consumers believe their CU doesn t know them 37% Fully engaged consumers drive more annual revenue for their primary CU Source: Gallup, Colloquy, Cisco, Maritz 7

8 Rewards Drive Engagement and Create Loyalty Grow your share of wallet Build relationships Gain Insights Compete better Drive Card Spend 8

9 FIS Loyalty Solutions

10 Did You Know Our Loyalty Solutions Offer highly flexible promotional scoring capabilities? Are fully turnkey or completely custom? Allow for real-time rewards redemption? Work on any platform? Support more than 40MM account holders? Are suited for all sizes and types of FIs and Retailers?

11 Credit, Debit, Business & Prepaid Market-leading rewards program that builds relationships, increases revenue and improves the ability to acquire, activate and retain accounts. Available in multiple currencies to include Bonus Points, CashBack, or Hybrid option. Flexible Scoring Platform & Administrative Tools Comprehensive Reporting & Marketing Materials Client Support Services & Training Marketing Promotions, Sweepstakes & Reward Catalogs Cardholder Website & 24x7 Customer Support External Interfacing Capabilities Full Customization Opportunities

12 Merchandise Redemption Thousands of Merchandise Items Available Electronics, Home Goods, Recreation, Personal Gift Cards, Cash Options, Charitable Awards, Custom Awards Brand Name Manufacturers Achievable Award Levels Awards are 100% Guaranteed Award Costs Include Freight And Handling Hot Deals & Special Values Monthly promotions and specials International Fulfillment Capabilities

13 Travel Redemptions Full Service Booking Air, Hotel, Car, Cruise, Experiential No Maximum Ticket Amount, Advance Notice, or Saturday Stay Required. Fuel/Security fees included in reward cost and can be paid for using points vs. out of pocket You choose the value proposition (cost per point). The cost will dynamically convert to points. Cardholder can pay with all points or points plus cash. 13

14 Additional Catalog Customization Options Custom Award Redemption Remove Brand/Award(s) Add/Source additional Brand/product(s) Gift Card Options Base None (default) Assortment None Basic 25 merchant gift cards included in catalog; $50 and $100 value denominations Enhanced 50 merchant gift cards included in catalog; $50 and $100 value denominations

15 Cash Redemption Options Traditional Cash Back Program Annual Payouts Statement Credit Check Combination of credits and checks Set a minimum amount for a check. All cash rebates less than the specified amount will be credited to the statement. Cash Back Plus New Breakage Options Monthly, Quarterly, Semi-Annually Payouts ACH Statement Credits Checks Gift Cards Consumer-Facing Website & Redemption Options Traditional Bonus Points with Cash Award Options Add cash award options into bonus points award assortment Set your own cash award amounts and point requirements FIS or Self-fulfillment options available ACH Statement Credits Checks Gift Cards

16 Product/Sub-product Processing Cardholder Segmentation Leverage existing consumer segments or create new ones, as ScoreCard will allow for you to cater to your unique customer positioning strategy. Multiple earnings and redemption value options Distinguish earnings opportunities and award options amongst your cardholders. For example: Reward high spenders more with higher recurring base and promotional earnings Offer your lower spend consumers more incentive to use their cards with a onetime high-value promotional earnings offer. Pick and choose from a combination of options to maximize portfolio performance Scoring and award options Each program in ScoreCard is assigned the following scoring and award options. Programs defined using Product/Subproduct Processing allow for each Prefix/Plan and Product/Subproduct combination to be defined individually. Merchandise Option, Travel Option, Base Earning Rate, Signature/PIN or Both, Promotions requested via the Promotion Request Form

17 Householding and Relationship Rewards Householding Enables cardholders to combine their reward points from multiple card accounts (debit and credit; consumer and commercial) into one earnings pool. Credit Debit Multiple Accnts 1 product 2 products 3 products One Earning Pool Relationship Rewards Reward your cardholders for the strategic and aggregate value of each of their relationships. This program enhancement allows for breakage and float. 17

18 Merchant Funded Analytics Driven Offers Restaurants Fine Dining, Casual, Fast Food, Coffee, etc. Local and National Partners Major Retail Top Brands Across Verticals Online and In Store Flexibility Service & Entertainment Mix of Special Discounts and Rewards

19 Fuel Redemption Options Cardholders are auto-enrolled Cardholder inserts payment card (with rewards) at the POS (at the gas pump) Gas price rolls back immediately at the pump and prints rewards/savings info on the receipt Cardholder is prompted with an option to redeem points for a gas discount via realtime call to rewards platform, while payment pre-auth is happening 1. Spend with your payment card for everyday purchases 2. Swipe your card at the pump to see your reward 3. Save at the participating retailer instantly 19

20 Marketing Drives Success Full suite of marketing materials available Contests & Sweepstakes for cardholders & employees All marketing completely customizable or fully turn-key Personalized one-on-one marketing consultations

21 Flexible Score and Promotional Opportunities Activation Retention Account Opening First Log-In Acquisition First Use Minimum Spend Merchant Category Codes Merchant IDs Usage Anniversary & Birthdays Balance Transfers 21

22 Card Programs with FIS Rewards product, ScoreCard, consistently outperform non-reward card programs!

23 ScoreCard Portfolios Higher Transactions ScoreCard Programs see an average of over 31% higher transactions per active account per month vs. Non-ScoreCard Programs. 23

24 ScoreCard Portfolios Higher Volume ScoreCard Programs see an additional 44% in volume per active account per month. 24

25 Thank You! Cassie Boutelle VP, Loyalty Products