Loyalty 360 Webinar March 2010

1. Driving C-Store eLoyalty Offering the Convenience Store retail channel a mobile and robust loyalty program

2. Webinar Topic Driving C-Store eLoyalty with the Mobile Consumer Using Digital Media and Rewards Build eLoyalty with your mobile consumer by connecting with them on social networks and mobile devices—anywhere and everywhere.Bring consumers into your store, boosting in-store sales of merchandise and prepared foods by building your brand through targeted electronic promotions, coupons, rewards and through constant consumer contact. 2

3. About the Speaker MetroSplash System Group, Inc Founded in 2003, MetroSplash Systems Group, Inc. provides a technology platform that enables businesses of all types to implement a supplier-integrated fuel-based consumer reward program (FuelLinks) or to monetize an existing affinity program toward the purchase of fuel. The company offers the financial settlement and Loyalty as a Service (LaaS) infrastructure to bridge between merchants (reward issuance) and fuel retailers (redemption). MetroSplash is a Dallas based firm 3

4. Agenda 1. C-Store Industry Primer 2. C-Store Loyalty History 3. The New C-Store e-Loyalty 4. Mobile rewards for the motoring public 4

6. Comparison 144,875 c-stores in the US 1 for every 2,100 people Competing channels have far fewer stores Supermarkets (35,394) Drug Stores ( 37,700) Mass Dollar stores (19,974) Mass Merchandise (6,594) Wholesale Clubs (1,184) Convenience stores sell approximately 80 percent of the gasoline purchased in the US each year. Who sells the other 20%? 7

7. Blurring of the Channels A Convenience Truth by Pat Pape NACS Magazine Convenience Retailing – a way of connecting with today’s ever challenged customer Convenience is Time vs. Money convenient locations, extended hours of operation, one-stop shopping, grab-and-go foodservice, variety of merchandise and fast transactions. Giant Foods Stores – “Giant to Go” in PA 4,400 sq feet vs. 70,000 sq feet Quick serve meals in c-stores vs. fast food Self service beverage bars in Drug Stores now (Café’W) Drug Stores selling beer and wine 8

8. Leading the Retail Industry Beer Sales Nearly 80 percent of convenience stores sell beer, Candy Sales Coffee Sales Speed of Transaction - Convenience stores have an unmatched speed of transaction: The average time it takes a customer to walk in, purchase an item and depart is between 3 to 4 minutes. . Retailing to the UnBanked Employee Turnover 9

9. Punch Cards Coffee Club Hot Dog Club Slurpee Club Open to slippage Open to fraud 4/16/2010 10 C-Store Loyalty History

10. 4/16/2010 11 C-Store Loyalty History

11. Not your father’s gas station 12 Of the 144,875 C-Stores over 90,000 are run by single store operators The average C-Store sees 1200 plus consumers per day

13. C-Store’s know their demographics The industry's stereotypical customer profile Bubba Age: 18‐55 years old Cultural influences: Beer, NASCAR, pick up trucks, cigarettes, beer, baseball, beef jerky, football, beer, dip, mom, hunting dogs… Brand loyalty measured in: a lifetime Drop‐In Daily customer, or the familiar "Bubba" who drops in daily as a break from work The Loyalist Local, who thinks of the stores as the center of the neighborhood The Over‐Stretched Mom, who shops on the way home from work to fill in the gaps The Mobile Professional, who stops in during the commute for coffee and competitively priced gasoline; The Highly Hesitant, who visits for snacks, but otherwise avoids c‐stores The Long‐Distance Driver, who drives for a living and wants familiar brands of gasoline and clean bathrooms 14

14. Skipped a generation – but caught up QUICKLY Online retailing passed c-store by but MOBILE did NOT Gen Y & beyond: Born Between: 1977 and 2002 Age: 7‐32 years old Cultural influences: dot‐com bust, Internet, September 11, mp3, Iraqi War, Paris Hilton, Facebook, Twitter Brand loyalty measured in: Days 15

15. We trained them well 16

16. The Fuel Reward Fuel is to the C-store what the frequent flyer mile is to the Airlines – the loyalty TOKEN of choice All inclusive – appeals to EVERY demographic Instant Gratification Very Emotional Very Sticky – has equity Market basket rewards or Item level rewards Store Trends, Product Movements Provides sales growth – boost sales 9-20% Levels the playing field vs. the Mega Brands Provides rich data for analysis – supplier negotiations 17

17. Rewards and Loyalty 18

18. Top of Mind Promotions 19

19. Mobile with a Mobile Audience 20

20. Per Store/ Per Consumer Dialog 21

21. Mobile and Social 22

22. Power of Loyalty Reporting Common Language Behavior Trends Data 23

23. With Loyalty Data Comes Knowing Profit Analysis Category Analysis UPC Velocity Aggregated Views And Decision Based Operations Inventory Analysis Store Analysis 24

24. CONNECTED and REWARDED Community Supplier- Funded Rewards SKU LEVEL ISSUANCE Your C-Store FUNDING PARTNERS Creators BRANDLEVEL Critics ISSUANCE Merchant-Funded Rewards Collectors MOBILE CONSUMER Joiners Reward- Loyal Consumer

25. Host Technology Enables 26 Reward Issuance Reward Lookup Redemptions Reward Lookup C-Store Issuance C-Store 1 Redemptions Redemptions MetroSplash HOST Supermarket 1 Redemptions Reward Issuance Reward Lookup Supermarket 2 C-Store 2

26. Leaders in Loyalty Programs MetroSplash Customers – C-Store Leaders MetroSplash Grocery Loyalty Leaders

27. More Questions Nicole Nunn Walker(nnwalker@metrosplash.com) www.FuelLinks.com www.MetroSplash.com www.Ruttersrewards.com On Facebook: http://www.facebook.com/#!/pages/FuelLinks/35864613939?ref=ts 28