Loyalty and incentive coming of age

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Loyalty and incentive coming of age

• Lee Griffin - Head of Publisher Services,
  TradeDoubler
• Duncan Jennings - Managing Director, eConversions
• Richard Yendall - Chairman, The Loyalty
  Association
• Paul Nikkel - Co-Founder, Quidco

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• Users drive the market
• Tough times, savvy users partnerships
• Weve come a long way
• Development, best practice the future
• Cashback Partnerships
• Community, technology promotions
• Questions for the panel

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Growth Trends
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Going mainstream?
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Who Said This?

• We see cashback as an important opportunity to
  deliver additional value

Bill Gates, Microsoft
Loyalty schemes, vouchers and cashback have
become very important. It's an issue that has to
be addressed.
Bruce Fair, Kelkoo UK MD
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• October 2007 purchase Jellyfish
  (comparison/loyatly)
• May 2008 launches Live Search Cashback in the USA
• 10 million product offers, 700 merchants

Cashback has done very well in the US and we
will be looking to roll it out in other markets
the UK will be next
Chris Dobson, Microsoft VP of global sales
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Whos next?
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Myth-Busting... Loyalty is not the villain

• Overwriting Loyalty lt1, less than other
  categories
• Starting point of the majority of attributed
  sales
• Return visits are frequent - key to the
  impulse/browser?
• Last click or contribution? Not an easy call...

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Economy at 60-year low, says Darling. And it
will get worse 28th August 2008
Retail sales slump surpasses 1990s recession28th
August 2008
Boom is now bust after 16 yrs23 August 2008
Inflation doubles in just six months as millions
of families face soaring food bills13th August
2008
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• Everyone is becoming more cautious with their
  money
• The web has always been known as the place to
  save money
• Press, credit crunch, inflation recession are
  taking this to the next level
• In tough times people still spend but they need
  a nudge / elbow

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• With the economy slowing and prices rising,
  everyone is on the lookout for a bargain.
  Vouchers have become a popular way of promoting
  discounts, particularly around Christmas time. In
  fact, they have become so popular that price
  sensitive shoppers are looking for them in
  increasing numbers.Robin Goad Research
  Director Hitwise

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• Flexible Advertisers can restrict codes by
  time, product, category etc
• Ramp up sales 40 off!
• Increase basket values Save 5 when you spend
  over 75
• Clear distressed stock Get Water World for
  only 1
• Push higher margin products 10 off Caribbean
  All Inclusive Holidays
• Voucher Codes satisfy the deal hunting desire
  without killing your margin

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• VoucherCodes.co.uk launched in BETA August
  2008
• Were building long term relationships with
  advertisers to promote only valid, working codes
• Advertiser / Network login allowing instant code
  suspension and flagging
• Working with networks and merchants on
  technology for real exclusive codes, customer
  targeting and more

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If youve got a voucher code or deal youd like
us to promote or if youd like to find out more
about how voucher codes could help grow your
sales contact meduncan_at_vouchercodes.co.uk Tel
020 7566 9849
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Weve come a long way

• Richard Yendall
• Chairman, The Loyalty Association
• CEO Rpoints Cashback Kings

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Development of Loyalty
Innovation
Growth
Publicity
Diversity
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Doing it well
Network and merchant buy-in
Make loyalty model work
Standards and best practice
The Loyalty Association

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Where are we heading?
Diversification
Consolidation
Bigger brands
Offline
Mobile
Combo sites
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Cashback Partnerships
Paul Nikkel Co-Founder, Quidco
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Cashback Community

• Cashback has come of age and is now recognised as
  a unique channel. The opportunities for merchants
  to engage with members and attract them into
  their "community" (as customers) is huge.
• Cashback is not monolithic
• Many sites with their own branding, model and
  demographic. Effectively managed relationships
  capitilize on community brand equity but do not
  bleed equity.
• Cashback members have brand loyalty to their
  community. Learn it to leverage it.

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• Find and use the promotional tools available in
  the community.
• Email shots on Greasypalm, forums on Rpoints,
  Savvy Tips and blog on Quidco. Talk to us and
  your account managers!
• Good communities are viralgood cashback is
  viral.
• The big cashback communities today have grown
  almost entirely from WoM. Highly connected,
  highly influential consumers.

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Technical Enhancements

• Manual validation put in place for increased
  merchant security and ability of validate
  off-line information
• Cookie checkers to ensure that cookies are being
  accepted by the members browser at point of
  purchase, resulting in fewer untracked sales and
  less work for merchants
• Enquiries XML data exchange, click-tracking and
  approval process implemented to improve data
  integrity. Fast, accurate resolution results in
  decreased manual resources needed from merchants,
  decreased call-centre contact, increased purchase
  confidence and satisfaction.

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Promotional Activities

• Leveraging exposure for different needs ie.
  Increase sales during seasonal peak or increase
  traffic volume and brand/site awareness
• Case Study 1 HMV
• Goal Expose traffic to a newly branded site
• Placements Savvy Tips and Blog

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Case Study 2 Merchant X
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Case Study 3 TalkTalk
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Case Study 4 Merchant V
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Case Study 5 Hotels.com
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Questions for the panel

• Duncan Jennings - Managing Director, eConversions
• Richard Yendall - Chairman, The Loyalty
  Association
• Paul Nikkel - Co-Founder, Quidco
• Lee Griffin - Head of Publisher Services,
  TradeDoubler