The document discusses leveraging partnerships and cost optimization in loyalty programs. It provides examples of successful loyalty programs and models, and discusses how cooperation with partners can help finance loyalty programs while promoting each other's brands. Specific strategies discussed include using points programs, mobile marketing promotions with partners, and self-service parcel pickup machines that also collect customer data.

1. Levering on partnerships and cost optimisation in loyalty programmes …& not only Direct Marketing Days 2011

4. Less mail is being sent Social mail Transactional mail Direct Mail Parcels

5. To deliver the revenue we all need to optimise loyalty programs’ concepts + 100 000 - 75 000 A cquisition C hurn Fill holes – remove reasons for leaving CLM - life time value Build loyalty – provide Incentives for staying Rationalise costs of retention Optimise payback on existing tools Source: Mobile Operator from EU, 2010 Involve partners to finance your efforts

7. P oints scheme: cost-efficient reward Leverage of Points Example: Customer perceives 5% discount through the program, while actual cost of the discount is not even 25% of that! 1000 Euro Real cost of award is 1.2% Points programs are cost-effective customer incentives through the leverage that they offer. In many cases, cost of the incentive is only 25% of the Perceived Value of Discount (PVD). PVD = 5%

8. WIN ON SOMEONES ELSE FIGHT

9. Let others pay for building loyalty to your brand

10. Tesco financies the program through its partners

12. How much you need to spend to invite the customer to dance with you? Customer Profile Status: Registered with T op U p D irect Segment: High value Gold & Platinum customers Tested: Va rying am oun ts to increase TUD usage the use of emotional bonding messages Top up by 20 € Top up by 20 € Top up by 10 € and get: Source: test campaign resutls executed in Western European mobile operator in 2009 Thank You Message Included response 10% back 31% 20% back 35% 50% back 39% 41% 52% 65% NO Thank You Message response 10% back 30% 20% back 49% 50% back 33% 60% 63% 60% Top up by 20 € and get: 10 20

18. 30% of revenues to come from non-mail Hybrid Mail E-invoicing and Mobile Payments MVNO – free access to internet via phone easyPack 24/7 E-shops on Facebook

22. „ Parcel-rooming” – engaging partners

25. Reference LIVE – use business partners to promote your service

26. EasyPack for AVON – 3 months after roll out statistics

27. We are the only operator in the world that offers that service! View2surf technology We can push away cost of building loyalty from your company!

29. Ads co-financed by the suppliers Full-screen ads

33. Benefits of Better Customer Management Target Market Segmentation Mass Market Mass Customize Micro-Marketing Channel Optimized 51% 76% 49% 36% 60% 45% 39% 45% 37% Return on Marketing Investment Customer Retention Rate Customer Acqusition Rate Multi Channel Optimized Rules-based Campaign Execution Spread-sheet Data-marts CRM/SFA Front/Back Integration Business Intelligence Real-time Integration Percent Co’s Reporting > 15% Performance by Benchmark Grouping Technology Enablers Lagging Norm Best in Class Source: Aberdeen Group, US Market 2009

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37. Rewards and benefits in Loyalty Program Bulid based on the best practices RATIONAL SURFACE (customer) EMOTIONAL SURFACE (customer) TA C T IC GOALS STRATEGIC GOALS

38. Rewards and benefits sheme First parcel sent bonus Early pick up bonus (>6h) Birthday sms greetings Member-gets-member bonus Birthday email bonus Suprise&delight competitions 5th order bonus Welcome bonus for joining RATIONAL SURFACE (customer) EMOTIONAL SURFACE (customer) TA C T IC GOALS STRATEGIC GOALS 2