Engaging connected shoppers armed with virtually unlimited technology requires updated loyalty practices that reflect individual preferences, affinities, and interactions. This presentation discusses the state of loyalty today as well as tips for developing programs that lead to loyalty-building engagement.

1. Crack the Code for Optimizing
Promotions and Loyalty ©2011 RedPrairie Corporation. All rights reserved.

2. 2.1B
loyalty members1 “Loyalty” Today
18 17%
accts/household 2
8.4 81%
know “nothing” 3
“very influential” 2
active accounts2
$48B
2011 rewards2
36% 25%
reward worked 2 85%
hear “nothing” 3
“very loyal” 2
1 – Customer Research Center
2 – Colloquy
3 – ACI Worldwide Study
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3. Why the Disconnect?
Traditional Loyalty Programs Leave Much to be Desired
• Impersonal
Select rewards from lists of things they don’t want
• Imperfect
Consumers feel like they are jumping through hoops
• Ineffective
Consumers work hard to find the loop holes instead of
the things you care about – namely being a more
engaged and loyal customer
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4. Audience Poll: Where Do You Stand?
• How would you describe the state of your loyalty
programs today?
a. Engaging and personalized across channels
b. Primarily discount-driven with little personalization
c. No loyalty program in place
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5. Loyalty 3.0
The Road to Customer Engagement 5

6. Potential Loyalty Benefits Abound…
RETAIN
CUSTOMERS
GAIN MORE
CUSTOMER TARGETED
INSIGHT MARKETING
NEW INCREASE
CUSTOMER INCREASE SPEND &
ACQUISITION
REVENUE FREQUENCY
BUILD
DIFFERENTIATE BRAND
LOYALTY
ENHANCE
CUSTOMER
RELATIONSHIPS
-- First Data
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7. Realizing benefits requires
more than a plastic card,
blanket discounts, and
aggregate analytics
“Loyalty is no longer about points and discounts…it is now about how
processes, tech, ideas, & interactions engage individuals with the brand.”
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-- Loyalty360 the Loyalty Marketer’s Association
©2011 RedPrairie Corporation. All rights reserved.

8. Building Blocks to Meaningful Loyalty
• Focus on the Experience
• Engage and delight
customers in unexpected
and personalized ways
• All-Channels, All the Time
• No Exceptions
• No “Bolt Ons”
• Part & parcel of experience
design
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9. Audience Poll: Consistent Experiences?
• How would your customers describe the state of your
loyalty programs today?
a. Very consistent programs and experiences across
all selling channels and touch points
b. Somewhat consistent programs and experiences across
channels with just an occasional disconnect
c. Separate and distinct programs across channels with little
or no connection between the channels and programs
d. No loyalty program in place
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10. Experience Matters…
In-Store Concerts, Trunk Shows, Private Parties, etc.
80%
of shoppers who participated in an
experiential marketing event told
others about their experience
--Jack Morton
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11. All Channels, All the Time
Connecting the Dots Between Channels is Critical
66%
of Leaders identify attractive loyalty
offers as the top component of their
all-channel strategy
--Aberdeen Group
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12. No “Bolt Ons”
Connecting the Dots Between ALL Channels is Critical
78%
believe a great customer experience
across channels makes them loyal
--Loyalty360
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13. Better Experiences Motivate Desirable
Shopping Behaviors
• More visits per customer in more channels
• Greater spend per visit
• More purchases
• More frequent – and influential – social sharing
• Access from different channels/touch points
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14. 5 Tips to Developing Programs that Work
1. All-Channel Engagement
• Single data source, single customer record
2. Delight & Surprise
• Superior experiences at an individual level
3. Go Beyond Revenue-Based Rewards
• Reward engagement with your brand
4. Reduce the Burden on the Consumer
• Make it easy to join, use and participate
5. Entice Customers to Return and
Bring a Friend
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15. “HT +1” Engages One on One
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16. Fully Baked Loyalty 3.0 at Panera
©2011 RedPrairie Corporation. All rights reserved. 16

17. Fully Baked Loyalty 3.0 at Panera
©2011 RedPrairie Corporation. All rights reserved. 17

18. Audience Poll: Your Best Practices?
• Which of the following “best practices: do you employ
in your loyalty programs today?
Check all that Apply
1. All-Channel Engagement
2. Surprise & Delight programs
3. Reward for Engagement (beyond purchases)
4. Personalized Rewards
5. In-Store Events
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19. RedPrairie is
Commerce in
Motion
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20. Red Prairie
Customer Engagement Management
Seamless Interaction Across Channels & Touch Points
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21. Learn More
RedPrairie.com/All-Channel-Commerce
Clienteling Test Drive
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