Kunal Mohiuddin presents an elegant three-step approach for building a future-ready loyalty program capability. Kunal has more than fifteen years in design and execution of loyalty programs and solutions. Based in India, he has been the architect of numerous enterprise-scale programs, located in over 85 countries and powering over 65 brands. Lassu (lassuloyalty.com) is the ASEAN distributor and reseller of Loyalty Prime – a complete enterprise-class loyalty platform that offers full CRM and loyalty management, and excellent integration to backend systems, like POS, reservations, and ERP. With the Loyalty Prime platform, marketers can easily segment their customers, and then build engagement using social, mobile, website, email, SMS and marketing campaign automation.

1. 18 Sep, 2014 -Confidential
Unleashing the Power of Loyalty to Drive Engagement and Sales
CUSTOMER LOYALTY 2014: ASEAN CONFERENCE
Presented by

2. 2
confidential
2
-confidential -
Overview
1.What can Loyalty Programs do?
2.How to get the best out of your Loyalty Program?
•Case 1: Hospitality Industry
•Case 2: Specialty Retail
•Case 3: Consumer Electronics
3.Summary

3. 3
confidential
3
-confidential -
Overview
1.What can Loyalty Programs do?
2.How to get the best out of your Loyalty Program?
•Case 1: Hospitality Industry
•Case 2: Specialty Retail
•Case 3: Consumer Electronics
3.Summary

4. 4
confidential
-confidential -
4
Leveraging the data that really matters
They know what you like:
They know what you look for:
They know what you really buy:
Loyalty Programs collect the most valuable data on your customers

5. 5
confidential
5
-confidential -
Member Master Data
•address / contacts
•socio demographics
•household income
•age, sex, profession, children, pets, etc.
360°Customer Data Base
Behavioral Data
•shopping schedules and habits
•cross-usage
•redemption choices
Survey Data
•response to member surveys
Customer Contact Center Data
•contact history and topics
•complaint reasons
•suggestions
External Data Sources
•(micro) geographic
•lifestyle
•Financial indicators
•regional socio demographics
Online / Mobile Data
•web usage
•key words
•click rates
•geo-data
Direct Marketing Data
•response to communication and campaigns
•coupon activation and usage
Transaction Data
•data from many different sectors
•category / SKU level
•PoSselection
•cross-usage (across partners)
Loyalty helps create rich data
Loyalty Programs are a REAL basis to collect a full 360°customer data.

6. confidential 6
- confidential - 6
The Power of Loyalty Programs
Today businesses across sectors understand the value of data to optimize their business.
Product /
Category Mgmt.
higher sales by optimized
categories
Pricing
higher prices for less price
sensitive segments
 Who bought product A and B at the same time?
 Who shops frequently, who doesn’t?
 What do my price sensitive clients buy?
 Who values quality over price?
 Who responds well to campaigns?
Promotions
higher transaction rates by
personalized offers
Store Layout
category sales increase by
optimized placement
Customer Service
recognition of valuable
customers; cross- & up-selling;
churn reduction
Personal Marketing
Behavioral
Transaction
External Sources
Survey
Service
Online / Mobile / Social
360° CUSTOMER DATA
CUSTOMER INSIGHT
BUSINESS OPTIMIZATION EXAMPLES

7. 7
confidential
7
-confidential -
1.What can Loyalty Programs do?
2.How to get the best out of your Loyalty Program?
•Case 1: Hospitality Industry
•Case 2: Specialty Retail
•Case 3: Consumer Electronics
3.Summary
Overview

8. confidential 8
- confidential - 8
Our 3 Step Approach
Step 1: The Loyalty Platform
A flexible and dynamic loyalty platform that provides end-to-end loyalty services
Robust loyalty
platform with a
flexible end-to-end
IT solution
Points / Miles / Customer Score
1

9. 11
confidential
11
-confidential -
Case Study 1: Hospitality Industry
Impact of A Powerful Technology Platform%26
60% of these memberswere International Guests contributing 18% of Total Revenues
of total revenues
were from members
Leading 5 star hotel chain in India, severed it’s collaboration with a Global Hotel Group and it’s frequent guest program
3 months at hand to replace the program

10. 12
confidential
12
-confidential -
The Solution
A loyalty platform which met 90% of the requirements out of the box
Solution:
•A central loyalty system enabling de-centralised management for individual Hotels, Customer Care and Loyalty managers
•Offered equivalent or higher status levels to existing program members
•Offered an array of redemption offers including attractive exchange of currency in to FFPs, International retail programs and others
•Targeted offers basis profile & usage to deliver higher returns
Minimize the impactof the severance andretain frequent guests

11. 13
confidential
13
-confidential -
The Results
New Program successfully launched in 3months (on the very next day of the old program closing down)
Business Impact
•Close to 60% of revenues is now contributed by members
•Managed to run over 50 different campaigns in the first 18 months, resulting in 15% increase in occupancy levels year on year
•For every point redeemed at the Hotel members spent > 3X as cash at the hotel
•Voted amongst the leading Hotel Loyalty Programs (3 times in a row)
Retainedover 70% of members

12. 9
confidential
9
-confidential -
Step 2: Customer Insight
Understanding your customer and what drives their behavior
Generate customer insight through business intelligence to enableone-to-one communication
2
AchievementStrategicgoals
Transaction Data
Customer data
Service Data
Campaign Data
External Data
MarketResearch
Segmentation
(customer
value,
customer lifecycle, potentials)
CustomerStrategy
Increased
Profitability
Customer-centricofferings & services
Revenue
Optimization
Customer
Retention
Increased Market
Share
Understandingof
customersneeds
("CustomerInsight")
Our 3 Step Approach
Robust loyalty platform with a flexible end-to- end IT solution
1

13. 14
confidential
14
-confidential -
Case Study 2: Retail
Customer Insight
Over 85% of their top customers felt there was not enough recognition
One of the largest jewellery retail chains in Asia, serving millions of customers on an annual basis%30
Of their customers were
repeat buyers
Below average response rates to Campaigns

14. 15
confidential
15
-confidential -
Solution:
•A loyalty program with a mix of 3 Es
•Tracking preferences and purchases
•Communication and responses closely monitored
•Member segmentation and analysis – customer lifecycle
•Outlets empowered to run personalized campaigns
Need to build a
one-on-one connectwith the customer
The Solution
Developed a 360°view of the customer

15. 16
confidential
16
-confidential -
The Results
Increase customer satisfaction and repeat purchase
Repeat Purchasers
contribute to over
55% of Revenues
Business Impact
•Customer dormancy decreased by over 15%
•Higher customer satisfaction amongst their top customers by 18%
•Personalised campaigns (at outlets) achieved response rates of over 20%
•Awarded the best retail loyalty program in it’s sector

16. confidential 10
- confidential - 10
- Preferences
- Location
- Past history
- Occasion
- Profile.......
Creation of a
personalized
rewarding
customer
experience
based upon
Loyalty program serves the member
throughout the whole experience.
Increase of program touchpoints for
members
Seamless
Personal
Step 3: Multi-channel Marketing
Engage customers with personalized offers through their preferred medium
10
3
Drive customer
behavior through
personalized offers,
rewards and
communication to
engage customers
Generate customer
insight through
business intelligence
to enable one-to-one
communication
2
Our 3 Step Approach
Robust loyalty
platform with a
flexible end-to-end
IT solution
1
Customers can
access the
program
through all
channels
Multiple
Channels
- At outlet (kiosk), portal, etc.
- Website, Facebook, twitter
- Mobile: App, Text message
- Mailings, Email
-- Call Centre, IVR
Customer-centric
multi-channel
communication
Web portal
Social
Media
Mobile
Service
Centre
Mailings
Newsletter
Outlet

17. 17
confidential
17
-confidential -
Case Study 3: Consumer Electronics
Multi-channel Marketing
Brand recall amongst the youth, their key TA had dipped by 15%
Of their market share was
wiped out by their largest
competitor
A global brand in consumer electronics, facing a tough challenge from established and new players10%
Key sponsors of a sports team and were leveraging the relationship

18. 18
confidential
18
-confidential -
Solution:
•Loyalty program built around the “sports team” using gamification
•Multiple channels used for engagement –SMS, Social media (fb, twitter, youtube), Email, website & owned retail outlets
•Drove engagement through content, participation in activities, referrals, viral messaging, etc.
Retain Market Share
& Increase Brand Recall
The Solution
Engage and connect with customers through their preferred channel

19. 19
confidential
19
-confidential -
Delivered 1.3X of the program sales target
Business Impact
•Over 1.7 million members
•30 Million SMS Interactions with 20 Million Page views
•Over 1 million shares, generatinover 500,000 referrals
•Sales increase by 5% across participating outlets visa-vis7% decline in sales at other outlets
The Results
Increased Engagement and Retained Sales

20. 22
confidential
22
-confidential -
Case Study 4: Building Materials
Business Challenge
Commoditized business wanted to create a business differentiator
Growth with a decreasing share of wallet amongst multi-brand dealers
A leading brand in Building materials, facing growth stagnation and increasing defection in it’s sales channel 0%
Ad-hoc promotions giving lesser returns as easily being duplicated by competition

21. 23
confidential
23
-confidential -
The Solution
A First of it’s kind long terms loyalty program for the Channel community
Solution:
•A rewards program aimed at rewarding “desired” behaviour from the dealer
•Achieving Sales targets
•Electronic payments
•Higher share of wallet
•Exclusive vsMulti-brand
•Higher retailer base, etc.
•Build rewards offering across the life of the dealer –Me, My family, My Business & My Community.
•Varied market conditions across regions, enabling sales team to target individual dealers with specific campaigns
Create an exit barrier by building true loyalty

22. 24
confidential
24
-confidential -
Beat Growth and Sales targets by 14%
Business Impact
•Dealers got locked into long term business objectives of the company
•E-payments increased from 20% usage to >95%
•Increased Exclusive to Multi-brand coverage from 30% to 36%
•Increased retailer penetration by extending program to retailers
The Results
Increased Engagement and Retained Sales

23. 20
confidential
20
-confidential -
Overview
1.What can Loyalty Programs do?
2.How to get the best out of your Loyalty Program?
•Case 1: Hospitality Industry
•Case 2: Specialty Retail
•Case 3: Consumer Electronics
3.Summary

24. confidential 21
- confidential - 21
Unleashing the Power of Loyalty
The 3-Step Approach
Mult i-Channel Marketing
Profiling &
Segmentation
Scoring
Targeting
 Generating customer
insight
 Create segments by
combining profile and
past transaction history
 Develop personalized
offers
• Across
• Custom Offers
• Surprise Benefits
• Rewards Shop
• Partners / External
• Personalised
 Flexibility to create and
run promotions instantly
 Give “surprise” benefits
to members who have
crossed milestones
 Collect all customer
data in to a central
database
Offline Online
Mobile
 Drive program
engagement by
deploying “preferred”
channel based
communication
 Track & manage
campaigns , report
 ROI
Earn Burn
Social

25. 25
confidential
25
-confidential -
Contact: Kunal Mohiuddin
kunal@loyaltyprime.com
Loyalty Prime Ltd.
US : +1-(347)-474-6640
UK : +44-(203)-026-6385
India : +91-(981)-026-7872
Happy to take any questions?