Loyalty 2.0 New Ways to Engage and Reward Your Cardholders Dan Caggiano April 2017
Loyalty Landscape 2
Loyalty landscape fast facts What s in their wallets? Redemption is key to experience >1/5 2.3X More than 1/5 of members have never made a redemption Non-redeemers are 2.3X more likely to defect than those who did in last 12 mo More opportunity with mobile Of the 13.4 memberships per person, only active in 6.7 this year 57% of members would like to engage with loyalty programs via a mobile device 49% of members don t even know if there is an app for their program 3
Knowing what consumers want, means we can solve the toughest challenges Drivers of consumer satisfaction Ease of redeeming rewards 55% 60% 80% of credit card spend goes on a card with rewards Monetary rewards Ease of earning points 51% 51% of all payment cards have a rewards component 80% Access to exclusive deals and coupons Easy enrollment options 36% 64% of all credit card spend goes on a card with rewards 22% 0% 30% 60% Source: Gallup, Colloquy, Cisco, Maritz of consumers won t even consider applying for a card without rewards 4 4
Key themes rewards & loyalty Retailers, T&E providers and issuers are investing in their rewards programs to drive long-term customer engagement and value. Value proposition enhancement Program providers have sought to make their value propositions richer in order to effectively compete in what can be categorized as a rewards arms race. Engagement across channels A handful of providers have made strides in deploying a truly multichannel experience for customers, though many have prioritized such efforts in the near term. Data monetization Several financial companies (e.g., Chase and Barclay s) are using rich data repositories to either guide internal strategy ( big data ) or, more recently, sell externally as a product (e.g. data monetization). Partnerships & coalitions In an effort to increase the relevancy of loyalty programs, providers are seeking to expand their reach with partnerships and coalitions. Source: First Annapolis 5
Constructing the best offering. Influencing choice Digitization of everything 63% of Consumers are influenced by rewards offered when choosing a new bank and credit card 63% 78% 78% of consumers would like better access/ability to redeem their rewards Ease of use 94% of consumers who have a low effort service experience will engage again w/in 12 months 94% Confluence of forces 69% Driving desired behaviors 69% of consumers will break habit to earn more rewards Expectations are increasing 93% of U.S. consumers say type of reward offered is important factor in decision to join and engage with a loyalty program or brand 93% Sources: Collinson Latitude, Points.com, CEB, Colloquy 6
FIS Loyalty Overview 7
Serving the unique needs of our clients in the U.S. and internationally Solution breadth +400 solutions Market reach 848M cards processed Industry expertise +40 years FinTech experience Client relationships +20,000 clients $300M invested annually in nextgeneration advancements BPO, consulting and transformational services 10B financial trade records processed per hour $9T moved globally every year +3,000 consultants +55,000 employees worldwide 210 operational facilities (81 in the U.S.) 9/10 ~75% 20/25 top global banks U.S. credit unions top U.S. retailers Federal government and 40 state governments Dedicated market practices 8
FIS has quietly established a leadership position in customer loyalty Industry expertise 25 years operating card marketing and loyalty rewards programs 3,100+ loyalty specific clients 6,800+ individual programs Solution breadth Proven partnerships Scalable solutions Full service support Solid infrastructure Custom design and options Consulting services 9
Industry recognized solutions Fuel Redemption Best POS Innovation Premium Payback Best POS Innovation 10
Loyalty solution set Marketing and promotions Turn key solutions Program services Campaign mgt tools Analytics & reporting Platform and point banks Scoring engine Complex settlement Aggregate & exchange Integration hub Point of sale integrations SKU level information Real-time earn/burn Vertical expansion Manufacture offers Redemption & fulfillment Traditional online Mobile wallets Pointopia Point of sale 11
Credit, debit, business & prepaid rewards A 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 options 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 14
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 15
Product/sub-product processing Cardholder segmentation Leverage existing consumer segments or create new ones 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 your high spenders more with higher base and promotional earnings Offer lower spend consumers more incentive to use their cards with onetime high-value promo earnings offer Scoring and award options Each program in ScoreCard is assigned scoring and award options Programs defined using Product/subproduct Processing allow for each prefix/plan and product/subproduct combination to be defined individually 16
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 Accounts 1 product 2 products 3 products One earning pool Relationship rewards Reward your cardholders for their aggregate account value of each of their relationships. This program enhancement allows for breakage and float. 17
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 and entertainment Mix of special discounts and rewards 18
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
Marketing drives success Full suite of marketing materials available All marketing completely customizable or fully turn-key Contests & Sweepstakes for cardholders & employees Personalized one-on-one marketing consultations 20
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
Recent Enhancements 22
Fuel Redemption Network value proposition Allows for rewards currency to be expanded outside of the traditional rewards redemption website and used as a payment tender at the point-of-sale (POS), specifically the gas pump. Loyalty Services Fuel Redemption Network Financial institution New lower cost rewards offering (point burner strategy) Allows for higher interchange Promotes top-of-wallet status Cardholder/consumer Increased buying power Higher brand affinity Access to specialized offers/deals High value, innovative real-time rewards offering Enables enterprise rewards approach Ease of redemption High perceived value 23
Fuel discount redemption award How it works Redemption is about CHOICE for the consumer: Everyone wants something different. 24
Sweepstakes point burners and gamification Engagement for low points Low CPPR Point burner strategy 25
Redemptions for stocks 26
Future state low cost redemption options 27
Mobile Responsive Site 28
New login page New login page redesigned for optimal layout across all devices. Also features increased security features throughout the site. 29
New home page New home page improves the user experience with friendlier, softer messaging and display. Also, new design results in fewer clicks to complete actions and users are presented with tooltips to guide them through the entire process. 30
New merchandise page New merchandise page features a graphic focused display to help users quickly identify items of interest. Site also features an improved search functionality to easily get users to their desired sections and items. 31
New product page New product page features a cleaner layout as well as improved product imagery so users can inspect items fully before redeeming. 32
What s Coming 33
Loyalty product strategy: Premium Payback FIS solution breadth, market reach, client relationships and industry expertise enables us to create a redemption network of micro and macro coalitions that will transform the market. Merchandise Large financial institutions and other loyalty providers Point banks LOYALTY SERVICES Online redemptions Travel Sweepstakes & Games Stocks Other fuels Mobile wallets Premium Payback Convert Aggregate Redeem POS redemptions Coalitions Big Box QSRs Other micro and macro coalitions Exchange POS integrations Settle Mobile wallets 34
Campaign management 35
Loyalty dashboard reporting 36
Pointopia rewards as a currency Key Features Cardholders see their rewards balances Choose where they want to shop Use any value from any or all of your programs Combine with offers, coupons, gifts and other tenders Present at POS for real-time redemption or gift to anyone via text message 37
Questions? 38
Dan Caggiano Daniel.caggiano@fisglobal.com
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