The document discusses opportunities for growth in the US and Asia Pacific loyalty markets. It notes that while the US economy remains challenged, most loyalty program marketers expect to maintain or grow budgets. The Asia Pacific region is also growing, with strong population and wealth increases. Aimia is well positioned in both regions, with a unique proprietary loyalty model in the US and presence in mature and emerging Asia Pacific markets. The company aims to strengthen its Asia Pacific position by acquiring the remaining stake in Interact, its partner in Indonesia. Overall, the loyalty landscape presents tremendous opportunities for Aimia.
Investor Day 2013: Overview and Strategic Aspirations
Investor Day 2012: US & Asia Pacific
1.
2. US AND ASIA PACIFIC: POSITIONED FOR
PROFITABILITY &GROWTH
Liz Graham
President & CEO US and Asia Pacific
EVP & Chief Operating Officer Aimia
3. THE US LOYALTY OPPORTUNITY
The US economy remains challenged at a However, 83% of loyalty program
modest pace of recovery... marketers expect to maintain or grow
their budgets in 2012:
• Real (inflation-adjusted) GDP will grow at an
annual rate of 2¼ percent
• Unemployment rate will stay above 8% for
remainder of 2012
• Rate of inflation in consumer prices will remain
low
81
loyalty
program
marketers
Source: CBO (Congressional Budget Office) Aug. 2012 Source: Forrester Research/Q3 2011 Global Loyalty Benchmark Online Survey
4. THE US PROPRIETARY LOYALTY MODEL AND AIMIA’S
UNIQUE POSITION IN THE MARKETPLACE
We have a unique model
We reach and engage the end customer DIRECT $$
through B2B, B2E2C and B2B2C loyalty
approaches . )))
COMPANY
RETAIL
Creating a 360 degree aligned customer
d
experience as a binding framework EMPLOYEE
Allowing us the ability to service many client
business models DISTRIBUTOR
e
5. ASIA PACIFIC LOYALTY OPPORTUNITY
The Asia Pacific region is growing, with Expansion of loyalty in APAC will track
population and overall wealth very strong. the maturation of consumer buying power
Aimia Presence
• Region is growing as markets come to
maturity Mature/Affluent Emerging
•Japan •India
• Demographics are aligning very well to our •Australia •China
industry •Hong Kong •South Korea
•New Zealand Malaysia
• Asia is 65% of the global population
•Singapore Indonesia
• Total Asia GDP expected to reach 28 to 33% •Taiwan
of Global GDP by 2012
6. STRENGTHENING OUR POSITION IN ASIA THROUGH
FULL ACQUISITION OF INTERACT IN INDONESIA
Interact has leadership position in
Indonesia's loyalty sector
•Indonesia is one of Asia’s fastest growing
emerging economies Aimia will take full ownership position
•Interact has a solid portfolio of blue chip in Interact
clients. Recent wins include: Binding LOI signed to acquire balance
– Nestle of equity by year end
– Mazda
7. US AND ASIA PACIFIC
TREMENDOUS OPPORTUNITIES FOR GROWTH
US Asia Pacific
Continue investments in capabilities and Leverage our local presence in the
talent to differentiate our proprietary loyalty mature markets.
business
Provide end-to-end, integrated loyalty Set strategies for growth aligned to Asia’s
services, continuing acquisitions where demographics which are moving well in line
appropriate with loyalty growth and buying power
Continue to explore the build of a US-based Adopt a full-suite business development
coalition strategy to capture the large affluent markets
8. GROWING LOYALTY WITH PROVEN LEADERSHIP
Jay Lee
Chief Strategy Officer
As head of Strategy for the US Region,
Jay Lee brings together the latest loyalty
thinking from Aimia’s global products,
services and expertise to help companies
build better relationships with their
customers.
10. LOYALTY PROGRAMS ARE MORE IMPORTANT THAN EVER AND
THE US IS THE LARGEST LOYALTY MARKET
Global Addressable Loyalty Spend
• US Loyalty program membership is increasing
and has exceeded 2B in 2010
• Number of loyalty memberships in the US has
more than doubled since 2000
• And the number of programs per household
rose from 12 to 18, growing by more than 50%
since 2006
~$10Bn US Addressable Loyalty Spend
Sources McKinsey, internal Aimia analysis
10
11. LOYALTY PROGRAMS ARE BEING AUGMENTED BY
DIGITAL AND MOBILE COMMERCE INNOVATIONS
Competition for Innovations in Millennial
mobile wallets mobile payments mobile preference
12. LOYALTY HAS BECOME A NATURAL HUB OF VAST AMOUNTS
OF PERSONAL AND TRANSACTIONAL INFORMATION
The individual is at the center of Consumer acceptance of the corporate
diverse types of personal data use of personal data
SEARCHES
SOCIAL CALENDARS
GRAPH
THE
INDIVIDUAL
INTERESTS LOCATION
PURCHASES
World Economic Forum, June 2010 Aimia Digital Consumer Research , Aug, 2012 unpublished
13. LOYALTY PROGRAMS ARE A TRUSTED COMMUNICATIONS
CHANNEL THAT CREATES A COMPETITIVE ADVANTAGE
% who always read email or text communications from this source
Aimia Digital Consumer Research , Aug, 2012 unpublished
14. THESE CHANGES IN THE MARKETPLACE HAVE
CREATED SIGNIFICANT COMPLEXITY FOR BUSINESSES
Greater need to Greater need for
incorporate new Greater need for
trusted and relevant
payment customer insights
communications
technologies from data
Rate of innovation in the Data is overflowing from Customers are
industry around payments many different sources and overloaded with
and the digital experience channels marketing messages
continues to shift How do we manage this data How do companies get
How do we stay on top of and create action which their key messages
new capabilities being produce results? though?
created for customers?
15. WE’RE POSITIONING OUR BUSINESS TO ADDRESS THE
LARGE-SCALE NEEDS OF THE US MARKET
LOYALTY • Significant activity in helping companies reimagine their loyalty strategy
LOYALTY
STRATEGY • Raising the bar in modeling the economic impacts of loyalty program designs
STRAEGY
LOYALTY
LOYALTY • Deploying analytics capabilities across disparate client data sources
ANALYTICS
ANALYTICS • Integrating analytics deeper into vertical-specific strategies
LOYALTY • Leveraging patented intellectual property for Code on Pack
OPERATIONS • Investing in scalable loyalty and rewards platforms
16. PROCTER & GAMBLE USES LOYALTY TO AFFECT
PURCHASE DECISIONS AT EACH STAGE IN THE CUSTOMER
LIFECYCLE
• Leverages proprietary Code on
Pack intellectual property
• Delivers personalized offers at
key points in the purchase
lifecycle
• Scales loyalty currency spend to
match the behavior and desired
outcome of each consumer
~125,000 codes are entered each day for Pampers Gifts to Grow
17. DELIVERING MEASURABLE RESULTS USING DEEP
LOYALTY ANALYTICS
• Vertical-specific predictive
model delivers 34% increase in
ROI
• Leveraging multiple data
sources enabled better
discriminate between pet
owners
• Reached 6.7 million households
with an 82% higher response
ROI in 2011 was 122%, highest in program’s 13 year history rate
18. KELLOGG’S FAMILY REWARDS USE LOYALTY MARKETING TO
UNIFY CUSTOMER DATA ACROSS THEIR BRANDS
• Hundreds of brands and SKUs
using the same Code on Pack
business process
• Goal is to cross-sell and up-sell
consumers within the Kellogg’s
Morning Foods Frozen Foods Snacks & Cookies
family of products
• Common platform and currency
unifying previously disparate
Promotions brand promotional activities
Over 800 products within Kellogg’s family of brands
19. POSITIONING THE
US CUSTOMER BUSINESS
FOR GROWTH
We’re investing in technology, leveraging
intellectual property and delivering
high value analytics
20. GROWING LOYALTY WITH PROVEN LEADERSHIP
Fay Beauchine
President,
US Business Loyalty
A proven leader in Aimia US Business Loyalty
since 2007, Fay brings a variety of expertise in
cross-enterprise marketing and sales strategy,
and has held executive positions in the travel
sector. She leads the team that helps
corporations gain and retain enthusiastic
employees, committed and aligned business
partners and loyal customers.
22. MARKETERS KNOW WHAT THEY NEED
Global CMOs share the perspective that
data across all channels is critical
to interpreting and solving their
business challenges.
deliver value capture value,
foster lasting
Areas for Improvement to empowered
connections measure results
customers
Source: IBM Oct. 2011 Global CMO Study
23. BUT RECOGNIZE THAT THEY ARE UNDERPREPARED
AND NEED HELP
Areas where CMOs feel most underprepared
Data explosion
Implications of social media 66%
of respondents said
Growth of channel and device choices
improving quality of leads,
Shifting consumer demographics and maximizing
selling time
are most
important
68%
of best-in-class
companies have sales
intelligence that’s
Sources: IBM Oct. 2011 Global CMO Study
enhanced by data Aberdeen Group Study
24. AIMIA’S ANALYTICS PROVIDE CRITICAL INFORMATION
TO TARGET AND CONVERT SALES OPPORTUNITIES
42% of organizations have
Hi Tech insufficient knowledge of needs of
prospective buyers for user conferences
Automotive
40% are unable to identify the
most likely buyer of their
warranty service
Source: Aimia Decision Sciences
25. INVESTING IN HUMAN CAPITAL AND
CUSTOMER RELATIONSHIPS WILL BRIDGE THE GAP
GLOBAL LEADERS RECOGNIZE THE POWER INHERENT IN THEIR EMPLOYEES AND CHANNELS TO INFLUENCE
RELATIONSHIPS WITH CUSTOMERS
Source: IBM 2012 Global CEO Study
26. OUR INSIGHTS AND STRATEGIC DESIGN CONNECT B2B
AND B2C INITIATIVES
B2B: B2C:
COMPANY-TO-DEALER & COMPANY-TO-EMPLOYEE COMPANY-TO-CUSTOMER
• Insight & Strategy
• Data Management
• Product & Skills Training • New Customer Acquisition Programs
• Recognition & Reward Programs • CRM & B2C Communications
• Business Meetings & New Product Launches • Event Marketing
• Employee & Channel Communications • Repurchase & Service Programs
• Flexible Employee Engagement Platforms
All supported by in-house centers of excellence: Creative, Media, IT, Analytics, Research, Travel & Awards
27. DRIVING DEEPER ENGAGEMENT USING GAME
MECHANICS IN EMPLOYEE CHANNEL
Innovating
through new channels
27 (gamification)
Centurylink
28. ENGAGING THE SALES CHANNEL THROUGH
EDUCATION AND COMMUNICATION
Aimia’s Positive Engagement methodology applied to
Subaru dealership employees drives increased sales DRIVERS OF
and customer satisfaction scores POSITIVE
ENGAGEMENT
Certified salespeople sell 2X more vehicles
than non-certified Innovating
Salespeople using portal sell more vehicles through
than non-users
employees
Four position increase in J.D. Powers Sales Satisfaction
Index ACHIEVEMENT
APPRECIATION
Only automaker in 2011 to post US sales increases over INNOVATION SUBARU
four consecutive years MASTERY
CONNECTION
Program won 2011 Brandon Hall Excellence Award for best WELL-BEING
Sales Training and Performance program
29. WE HAVE ACQUIRED EIM, SOLIDIFYING OUR POSITION
IN BUSINESS LOYALTY
• Leader in business loyalty management
• Our combined company has a significant market footprint
–11 of Fortune 20
–24 of Fortune 100
–7 of top 10 auto manufacturers
–4 of top US telecom providers
–3 of top 5 pharmaceutical companies
30. EIM STRENGTHENS AIMIA’S VALUE PROPOSITION
The combination reinforces Aimia as a
world-class loyalty management company enhanced
with global execution abilities, strong employee and EIM adds industry expertise and
leadership, talent and capabilities channel capabilities that enhance Aimia’s
engagement employee and channel offerings
suite
best in class
EIM’s technology platform technology
enhances Aimia’s on-demand platform
employee and sales incentives
technology platform expanded
Clients will benefit from a full-suite
loyalty loyalty management portfolio which
management now includes data analytics,
portfolio customer experience and customer
learning systems
31. EXCELLENT
CUSTOMER EXPERIENCE
DRIVES PERFORMANCE
81%
of companies with strong capabilities
for delivering an excellent customer
experience outperform their
competition
31
Source: Peppers and Rogers Group
33. GROWING ASIA WITH PROVEN LEADERSHIP
Karl Schuster
President, Asia Pacific
• 12 year Asia Pacific Aimia veteran
• Previous experience includes
executive roles at Bates, Rapier and
Ogilvy across three continents.
• Resides in Singapore to stay close to
the big opportunities in the emerging
and mature markets
35. ASIA:
No
rth
Am
e ric
a
We
ste
r nE
ur
op
e
Af
f lu
en
tA
s ia
So
u th
Am
e ric
a
Ea
s ter
nE
ur
N op
Af e
ri ca
/M
Ea
s t
PERCENTAGE SHARE OF GLOBAL TOTAL GDP
Ch
in a
De
v.
As
ia
In d
ia
36. AIMIA IN ASIA – MARKET TYPES
Mature Frontier
•Japan •Cambodia
•Australia •Philippines
•Hong Kong •Laos
•New Zealand •PNG
•Singapore •Burma
•Mongolia
•North Korea
Emerging •Bangladesh
•India •Vietnam
•China
•South Korea
•Malaysia
•Indonesia
•Taiwan
•Thailand
37. AIMIA IN ASIA – GEOGRAPHIC FOOTPRINT
Mature Frontier
Japan •Cambodia
Australia •Philippines
Hong Kong •Laos
New Zealand •PNG
Singapore •Burma
•Mongolia
•North Korea
Emerging •Bangladesh
India •Vietnam
•China
•South Korea
Malaysia
Indonesia
•Taiwan
•Thailand
38. THE CONSUMER IN ASIA
The main story for the next decade is a lifecycle wave that brings together rapid growth in
the 40+ age bracket with a sharp rise in their spending power.
Smartphone Owners in Select Countries
Likelihood that Internet Users and Regions Who Access Mobile Internet
Worldwide Will Buy Groceries Daily, Q2 2011
Online, by Region, Q1 2011 % of Respondents
ASIA
JAPAN
PACIFIC
LATIN CHINA
AMERICA
INDIA
MIDDLE EAST/
AFRICA US
EUROPE BRAZIL
EUROPE
NORTH
AMERICA AUSTRALIA
Source: Nielsen, “Global Online Shopping and Savings Strategies Survey.” Note: ages 15+
Oct. 10, 2011 Source: InSites Consulting, “Social media Around the World 2011,”
Sep. 14, 2011
39. THE CONSUMER IN ASIA
MIDDLE EAST &
The main story for the next decade is a AFRICA
lifecycle wave that brings together rapid LATIN AMERICA
growth in the 40+ age bracket with a sharp NORTH AMERICA
rise in their spending power.
EUROPE
ASIA-PACIFIC
Broadband Household Share Worldwide,
by Region
2009-2015
% of total
Note: includes connections with permanent access to the internet via cable
modem, DSL, fiber and wireless/satellite technologies; excludes mobile
Source: eMarketer, March 2011
40. THE LOYALTY LANDSCAPE IN ASIA
Key Trends Business Opportunity
South East Asia • Fast-growing smaller economies • Proprietary loyalty a big opportunity
• Largely immature from a loyalty standpoint • Limited medium term coalition plays
• Low client sophistication • Limited medium term ISS opportunities
Australasia • Mature loyalty markets • Large scale proprietary opportunities
• Experienced clients • Mature coalition markets
• Significant penetration of both proprietary and • New wins will be driven through innovation (eg
coalition loyalty Cardlytics).
North Asia • Japan a large stable, mature markets. • Large scale coalition markets in Japan and Korea
• Korea a rapidly emerging economy
• China a large, complex emerging market
41. UNMATCHED PROFILE IN ASIA
Singapore Headquarters Cross-region and local delivery capability
Experienced in region Leadership Team • 500 people across eight markets
• Management • Multi-market solutions
• Operations Enviable portfolio of leading global, regional
and local brands
• Finance
• IT
• Legal
• People and Culture
42. STRENGTH IN RELATIONSHIPS
TENURE MARKET SERVED SERVICES
Australia’s
11 years Australia Proprietary
No 1 Bank
Singapore
World’s largest oil
9 years Malaysia Proprietary
company
Hong Kong
Pamper’s: $10bn
2 years Japan Proprietary
global brand
Australia’s Australia
7 years Proprietary
No 2 airline New Zealand
New Zealand’s
15 years New Zealand Proprietary
No 2 Bank
43. BENEFITING FROM THE AIMIA FULL SUITE
MARKET SERVED SERVICES
Australia’s
Australia ISS
No 2 supermarket chain
Asia’s fastest growing 15 markets across
Proprietary
bank Middle East and Asia
India’s leading private
India Proprietary
bank
JV partnership with
India’s leading Coalition
India
industrial/consumer Development
conglomorate
44. KEY FACTS
86,865 employees
Operations in 71 markets
Operating income $17.6bn
PBT $6.7bn
Focus on Asia, Africa and Middle East
6 million credit card customers in
scope for Aimia
45. OUR SOLUTION SET
5 Languages Reporting 15 Markets
and
Analytics
Catalogue
Bank Systems Data AIMIA Travel
Rewards
Integration
Payment Gateway
Loyalty eVouchers
Platform
Third Parties Affiliate Mall
Fulfillment
Member
Rewards Support
Portfolio >5M Members
Website Contact Centre Mobile
46. DEVELOPING IN INDONESIA
• Aimia takes full ownership position in key strategic Asian markets
• Long term relationship with Jakarta based on integrated agency
– 40% shareholding in Interact
• Binding LOI signed to acquire balance of equity by year end
• Indonesia is one of Asia’s fastest growing emerging economies
• Interact has leadership position in emerging loyalty sector
• Solid portfolio of blue chip clients
• Multiple large scale proprietary loyalty opportunities recent wins include:
– Nestle
– Mazda
47. THE OPPORTUNITY AND CHALLENGE IN ASIA
The opportunity The challenges
• Buoyant economic environment • Many early stage opportunities: sorting the
• Expertise gap in emerging markets presents potential winners from losers
proprietary opportunities • Adapting the business model to local
• Large affluent markets maturing, presenting conditions
coalition and analytics opportunities • Affluent market maturity: managing the cost
• First mover advantage to establish key of entry
strategic alliances • Geographic diversity and cultural differences
• Aimia a desirable partner for its expertise,
scale, reach, resources, clout, technology,
insights and financial stability and strength.
48. AIMIA’S ASIA ADVANTAGE
As a region, Asia Pacific is and Aimia is the largest player in the Significant business
will continue to be in positive region and has a solid platform development activity and
growth territory for business development success
We are in the best place We have the best footprint We will be the number one loyalty
player in all major Asian markets
49. RECAP – ASIA PACIFIC
• Partnering with leading brands
• Evaluating opportunities to expand full suite
• We are aggressively exploiting a first mover advantage
• Expanding footprint
50. RECAP – US
• Investing in:
Acquisitions to expand market share and footprint
Standardizing and enhancing our global technology platforms
Analytics to add scale and broader range of vertical specific capabilities
• Leveraging Aimia generated IP
• Good progress on a next generation coalition loyalty program