Introduction to Inte Q

1
Optimizing Brand Loyalty
Making Smart Marketers Smarter.
November 25, 2014
2
We are A leading data and analytics driven
full service provider of strategic and profit
producing customer engagement and brand loyalty
solutions. Our Client Mission Drive
measurably increased customer frequency and
spend resulting in greater overall revenue and
profitability for your brand.
3
Boutique Attention. Vast Capability.
4
Great Clients!

• Great Clients!

5

• We will help you

• Leverage internal and external data to develop
  insights into your customers needs, attitudes,
  and behaviors
• Build actionable insightbased strategies that
  will acquire new customers, increase customer
  frequency and spend and lengthen the customer
  lifecycle
• Provide an integrated set of multi-channel tools
  and expertise supported by professional program
  management to ensure timely and proficient
  execution
• Measure success of the every component of the
  engagement
• in support of continuous program
  improvement

6
Inte Q Capabilities
Real World Program Management Expertise
Robust Technology Infrastructure
Real Time Program Data Client Access
Comprehensive Data Warehouse
DATA DRIVEN MARKETING
Program Marketing and Communications Support
Decision Support Analytics Strategy Expertise
Ongoing Performance ROI Measurement
Data Guided CRM / Loyalty Program Design
7
Let Your Data Be Your Guide

• Analytics Based Strategy
• Loyalty Program Development, Measurement, and
  Optimization
• Customer Segmentation and Profiling
• Seasonal Analysis
• Predictive Modeling
• Campaign Design Measurement

7
8
Highly Competitive Space
9
Data-Driven Loyalty Strategy Design and
Measurement
The Inte Q Loyalty Strategy ApproachData
Insight Experience Design
10
The Inte Q Loyalty Strategy ApproachData
Insight Experience Design

• Start With Data Understand Customer Behavior
• Build an understanding of how customers use the
  site
• Create distributions to understand segmentation
  and sweet spots
• Assess the Environment/Organization
• Customer interaction, touch points, online/social
  interaction, competition
• Develop customer journey map
• Identify opportunities and barriers that need to
  be accounted for in the design
• Model Structures
• For a defined reward structure, build variations
  of balance and transaction thresholds, earning
  periods, reward values and evaluate cost/expense
  
• Prepare the Financials
• Make assumptions based on attainable lift vs.
  incremental program costs (expected redemption)
• Work with Finance (CFO) to confirm ROI modeling
• Present the Recommendation
• Show the recommended structure, present the
  analytics that drove the design and walk through
  the ROI model
• Gain executive buy-in, then move into
  implementation planning (soft benefits,
  communications, etc.)

11
Inte Q Approach

•  
•  
• Conduct a data audit so we know what you have,
  where it sits and how to get it all in one master
  database
• Create and maintain a master database as the
  basis of how we will leverage data to make
  smarter decisions
• Determine what data needs to be purchased to
  become smarter about customers
• Conduct an Insights survey to gain the
  interest/passion data from customers so we can
  develop a more complete picture of their
  customers
• Create a dashboard that allows for easy
  information access and the ability to use data on
  a a day to day basis to improve decision making
• Leverage analytics to create a segmentation
  strategy as well as to be smarter and more
  proactive regarding the opportunities to drive
  more deposits, loans and customer acquisition

12
Program Life CycleCustomer Capture to Customer
Engagement
IntegrityIQ Data Management
Data Capture
Performance Marketing Communications Engine
Communications Delivery
InsightsIQ Data Warehouse and Access Tools

The ability to leverage transaction and consumer
information to develop meaningful messaging to
the preferred media
The ability to convert data into meaningful
information via reports, trend lines, and KPIs
The ability to execute communication through
direct, email, mobile and social medias
Integrating data sources to create a single
customer view
The ability to transmit (real time or batch) and
transform data
13
Channel Capabilities

• Email and Print
• Inte Q will provide and manage the overall
  communications management involving print and
  electronic delivery.
• For email campaigns, Inte Q will
• Create and submit designs and copy for approval
• Load HTML into email system
• Identify, receive and pull selected segments
• Set campaign rules
• Complete internal testing
• Complete external testing and gain approval from
  TIAA direct and supporting vendors (if
  applicable)
• Pull campaign performance data and load for
  analysis
• Provide all email metric reporting
• For print campaigns, Inte Q will
• Create and submit designs and copy for approval
• Solicit bids from three printers for production
  and fulfillment
• Identify, receive and pull selected segments
• Data hygiene and postal optimization
• Internal routing and proofing
• External routing and approval by TIAA direct and
  supporting vendors

• Mobile Campaign Execution
• Inte Q will develop, manage and execute mobile
  campaigns on behalf of TIAA direct. The campaigns
  can include
• auto-responder
• push
• data collection
• For mobile campaigns, Inte Q will
• Integrate data-based triggers
• Welcome SMS
• Review campaign architecture/messaging
• Set-Up Campaign
• Choose segment
• Load message
• Unique Key Word
• Schedule for deployment
• Provide campaign reporting
• Mobile Campaign Performance Reporting
• Inte Q will provide real-time and summarized
  campaign performance metrics.

14
Inte Q Ready to Execute!

• Data driven Loyalty Strategy
• A Full Suite of Decision Support Analytics
• Ongoing program management and execution
• Creative Services / Targeted, personalized
  communications
• Direct mail and digital channel delivery

15
Client Examples
The Inte Q Loyalty Strategy ApproachData
Insight Experience Increased Sales
16
Stein Mart Rewards

• Stein Mart Overview
• 260-store national discount retailer, up to 60
  off brand name and specialty merchandise
• Upscale in-store experience, brand name fashion
  for women and men, plus accessories, linens and
  shoes
• Loyalty Program Objectives
• Replace card-based CRM program, which had a
  limited value proposition, an Elite segment with
  a costly benefit (coupon-less shopping featuring
  richest offer available), and eroding margin due
  to heavy coupon use
• Inte Q tasked with proposing a loyalty/reward
  program to replace dependence on coupons
• Introduce reward structure to mitigate the
  negative impact (behavior/perception) of reduced
  couponing
• Seamlessly integrate the loyalty structure with
  the private label and co-brand credit cards
• Improve marketing campaign ROI through better
  data collection and insight
• Reverse customer attrition trends

• 2 years customer history
• Modeled spend, frequency, and discount metrics by
  customer segment

• Existing card program
• Discount expectations
• Elite customer tier, most valuable and highest
  discount cost

• 3 year ROI model built with Mktg Finance
• Included all costs (collateral, resource, rewards)

• Complete executive team to secure buy-in and
  address questions

• Earnings Cap
• Quarterly vs Annual
• Reward Value
• Spend Threshold

16
17
Stein Mart RewardsStructure Recommendation
Results

• Implementation
• Piloted in test markets
• 10 reward for every 300 points
• Integrated with Credit Card (2x accelerator)
• SM Credit 2pts/ 10 for 150
• Base 1pt/ 10 for 300
• Quarterly reset, to drive incremental purchase
  within quarter and limit expense from top
  customers
• Registration bonus to incent profile completion
• Bonus point events to drive traffic and higher
  ticket
• Monthly statement email reward card mailings

• Results
• Program demonstrating positive incremental lift
  in pilot markets, as measured against control
  markets
• Higher per customer sales and repeat rate
• Reward redemption transactions with 85-90
  overspend
• Lower time between visits for repeat
• Greater activation and usage of credit cards
• Pilot being expanded to additional markets for
  final testing/learning prior to national rollout

17
18
VF Outlet

• VFO Overview
• Operates 89 VF Outlet stores nationwide plus an
  ecommerce site featuring VF Corporation brands,
  including Lee, Wrangler, Nautica, Majestic,
  Jansport, Timberland and Reef
•  
• Loyalty Program Objectives
• During the infancy of a CRM development effort,
  featuring phone number collection and a goal of
  learning more about their customers, a change in
  VF Corporate direction dictated a need to offer a
  defined value proposition in exchange for
  collecting customer data
• Objectives were to design a reward structure to
  incent data capture, incremental spend and
  incremental visits, with a measurable ROI to
  offset the program expense

• Average transaction and frequency history for CRM
  customers

• Defined value required
• POS limitations
• customer experience considerations

• C-Level audience from VF Corporation (parent
  company)

• Incremental visit
• Qualifying spend

• Multi-year ROI
• Point expiration to manage liability

18
19
VF OutletStructure Recommendation Results

• Implementation
• VIP Rewards launched in September of 2011
• customers earn 10 points per spend, with a 10
  reward issued for every 1250 points earned
• Rewards issued monthly as a coupon delivered via
  direct mail if an address is available, and email
  if not (valid 90 days)
• Points expire after 6 months of inactivity to
  control liability
• Inte Q provides loyalty, marketing and program
  strategy

• Results
• customers who joined reward program after prior
  participation in CRM program showed
• 82 increase in 12-month spend
• 32 increase in average ticket
• 1.7 more transactions per year

19
20
Pep Boys RewardsOverview

• Pep Boys Overview
• Leading retailer of brand name and private label
  auto parts and services through 800 stores and
  7,300 service bays in the U.S. and Puerto Rico
• Loyalty Program Objectives
• Introduce an easy to implement/understand loyalty
  structure to reward customers for Retail and
  Service transactions
• Must be compelling enough for Retail (lower
  transaction values) to join/participate, without
  creating too rich of a program for the
  higher-spend Service customers

• Spend distributions for Retail and Service (two
  very different transaction types)
• Repeat and frequency

• Unique benefit opportunities
• Competitor programs
• Service vs. retail customer experience

• CMO championed
• Pilot market recommendations

• Spend thresholds
• Earnings caps
• Minimum reward value
• Reward expiration

• ROI models built with Finance
• Point liability considerations

20
21
Pep Boys RewardsStructure Recommendation
Results

• Implementation
• Earn 1 point per 1 spent
• Receive 10 reward when 200 points hit, 5 per
  100 points thereafter (10 minimum introduced
  after pilot)
• Rewards mailed monthly emailed if address
  available
• Tested in pilot market to validate, with per
  transaction earnings cap
• No reset (12 month activity required)
• Exclusive customer benefits
• Free brake check
• Free tire rotation
• Free flat repair
• Discounted towing

• Results
• Working with ROI models approved by Finance
  (CFO), the program shows a profitable ROI
• Incremental lift on Service alone exceeds the
  cost of operating the program (including rewards)
  
• 3x lift (overspend) on reward redemption
  transactions
• Up to 70 sales penetration
• 56 of customers with multiple visits
• Highly profitable Direct Mail campaigns, modeled
  by Inte Q

21