Building profitable customer loyalty

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Building profitable customer loyalty
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Agenda

• Who we are
• Loyalty Discussion
• What IQ 724 can do for You

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Who is iQ7/24?

• We are a digital agency focused on creating
  customer retention, activation, loyalty and
  acquisition programs for small and medium size
  retailers.

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Our Experience in Loyalty

• iQ has designed and implemented North Americas
  only manufacturer/car dealership loyalty program
  with Kia Canada
• 178 dealerships have their own independent
  program that also marries with Kia Canada
  National program

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Some of Our Other Clients
Automotive
Coalition Marketing (Latin America)
Recreational Vehicles
Retailers
Spa Hospitality
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Loyalty In Canada

• 94 of Canadian consumers own a loyalty card
• Average consumer carries 4 different loyalty cards

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Loyal Customers

• Loyal customers impact directly on company
  profitability
• They buy more
• Are willing to pay more
• Are more forgiving, and
• Their endorsement is highly valued

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Research Insights

• 94 of members indicated that they prefer to
  receive communication from their programs
• 77 of loyalty members say e-mail is the
  preferred method for receiving rewards
  communications.
• The relevance of communications is strongly
  linked to satisfaction

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Research Insights

• A recent Maritz survey found
• 80 of loyalty program participants agree that
  the programs are definitely worth the effort of
  participating
• 70 agree that loyalty programs are part of my
  relationship with the company
• 57 say that they modify where they buy items to
  maximize their points
• 79 indicate that programs make me more likely
  to continue to do business with certain
  companies.
• Overall, the survey found that 71 of
  respondents
• have room for more programs in their wallets.

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Research Insights

• Yet only 53 describe the communications they
  receive as relevant
• Relevance can be achieved by customizing
  communication with personalization that goes
  beyond just using the members name
• The top Cool and Exciting uses of personal
  information are

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Our Philosophy

• The purpose of any successful customer management
  program is not points or rewards, or discounts or
  plastic cards. It is, rather, the ability to
• IDENTIFY your customers
• TRACK their behaviour
• MOTIVATE and REWARD meaningful behaviours
• ENGAGE them through personalized communications,
  and
• MEASURE results

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The First Step

• Knowing your customers and their buying behaviour
  is the 1st step towards developing any long term
  relationship and profitability.
• iQ7/24 integrates with your POS system to capture
  transactional data automatically and in real time
• iQ7/24 platform gathers customer information
  about their purchase history, behaviour, trends
  and financial relevance to your business.
• iQ7/24 uses customer data to segment customers
  and prospects based on high, medium and low value.

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A Turn-key Solution

• iQ7/24 offers complete support to help you to
  operate your customer retention/loyalty program
  including
• Strategic Program Planning
• Creative Design
• Tactical Initiative Development
• Campaign Management
• Customer Intelligence Analytics
• Member Service Helpline

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The iQ7/24 Integrated Marketing Tool Box

• A relationship loyalty program and commitment to
  your customers with points, , rewards and
  sustained marketing communications.

• A tactical promotions program, targeted and
  focused, without long-term commitment

The acquisition and management of member data,
data mining, reporting, performance analysis and
marketing intelligence
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Relationship Loyalty Program

• Membership card or unique identifier
• Continuous points program, , benefits and
  rewards
• Historical profiles, transactions, online help -
  custom web portal
• Data transfer set-up and POS system integration
• Dynamic management of the database
• Periodic statements
• Creation of targeted customer engagement
  campaigns
• Performance analysis and key indicators
• A team of consulting services and experienced
  support

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Tactical Promotions Program

• Acquisition, analysis and data cleansing
• Data transfer set-up and optional POS system
  integration
• Targeting customers / prospects based on various
  criteria - dates of visits, spent, time of
  visit, day of week, items purchased, etc
• Creation of promotional customer engagement
  campaigns
• Promotional tactics free or conditional offers,
  discounts, special events, contests, etc...
• Digital or postal communication
• Communication analysis and performance
• A team of consulting services and experienced
  support

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Cutomer Intelligence Management

• Acquisition of data via transfer or in real-time
• Dynamic management of the database
• Powerful user-friendly SiSense dashboards
• Performance analysis and key indicators
• Historical reports, profiles, transactions, etc.
• Custom web portal.
• Integration with the iQ business rules engine
• Customer engagement campaign-builder interface
• A team of consulting services and experienced
  support

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The ultimate loyalty platform for flexibility
and simplicity
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Conclusions

• There is significant opportunity to promote
  consumer retention and increase purchase volume
  through a loyalty program
• A successful Loyalty Program should
• Place high value on best customers
• Motivate medium users to increase their level of
  purchase
• Provide a vehicle for Heavy Users to become brand
  advocates in order to drive referrals
• Offer relevant, attainable rewards
• Regularly communicate to members on a relevant
  and personal level using email
• Leverage brand strengths

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Questions?