Distributors Wholesaler

Why Use the Reward Program?

Highly effective performance-based marketing tactic

• Miles/Points are earned only when your prospects or customersrespond to your offers

Program branding can be used to attract program members as new customers

• 76% of program members will switch/choose vendors in orderto earn Miles/Points

• 70% will tell others about your offer – act as brand advocates;free word of mouth advertising

Capture more existing customer category spend

• Use base offers to reward loyal customers and enhance your relationship

• Offer bonuses when customers increase purchases from one period to another

• Offer bonus Miles/Points when a customer adds a new brand or product line

• Offer bonus Miles/Points to increase sign-ups for booking programs

• Use vendor co-op $ to fund bonus offers on select SKUs

• Use bonus offers to clear older or slow moving product or product lines

Distributor/Wholesaler Benefi t Summary

• Full use of program logos in your marketing/sales materialsto attract new customers from program memberships

• Ease of execution – participating programs are established brands; easy for your sales/CSR staff to understand, promote and use

• Quick & easy staff training – we show you how to use theprogram to effectively maximize profi ts – benefi tting youand your employees

• Flexible offers to refl ect margins as required

• Web-based Miles/Points crediting system; fast, easy to use;allows you to quickly deposit any participating Rewardcurrency into customer account using one screen

• Ongoing support – dedicated account representative

• No need to pre-buy, inventory and fulfi ll MIles/Points or gift cards

Member Profi le• Over 150 million adults actively participate

• Tens of millions of people use these programsevery day

• Many retail business owners and executivesare also members and accumulate Miles/Pointsfor business or personal use

• 45% of people participate in 4 or more programs

• The average program membership grows at a rate of 11% per year

• The average program member is42 years old

• Program members tend to do morepurchasing from vendors who providethem with reward incentives

Source: www.frequentfl yerservices.com

This program is designed to be very fl exible – allowing you to build incremental sales & profi t in any or all of the following ways:

• Secure new account openings

• Introduce new products/product lines

• Introduce seasonal booking programs, secure better response

• Clear out aged/slow moving inventory

• Increase annual spending totals by accounts, capturing moremarket share

• Develop special account-specifi c programs

• Develop vendor programs, with Mile/Point costs funded or sharedby select vendors

Sales, Marketing & Loyalty Programfor Wholesalers/Distributors

Presented by

Lift & Shift Inc. enables wholesalers/distributors to build sales using a terrifi c assortment of popular reward currencies including:

...and more

Because this marketing program is performance-based, there are no sign-up or monthly admin fees; you pay only for Miles/Points you use insecuring sales from your accounts*. All reward currencies cost $0.05 each and Lift & Shift provides you with suggested “base” and “bonus”offers you can use to generate increased sales with your accounts. You have a lot of fl exibility with regard to how you can customize the programfor your specifi c needs or even your individual customer accounts’ needs.

*Vendors wishing to include United MileagePlus in their currency offering must commit to pre-buy a minimum of 200,000 United Miles and have 3 years to use their United Miles.

Program Cost & Offer Structure

Frequently Asked Questions, Concerns, Comments

“How will this reward program make my operation more profi table?”

The program is designed to encourage your customers to direct morecategory spending to you in exchange for a “reward” – in this case,popular Miles/Points currencies.

Established reward programs can also help attract new customers to your business, drawing on their membership bases in your trade area(s). These members are more likely to begin dealing with your business in order to earn the reward currency they already accumulate.

Reward programs are “performance-based”, meaning you only incur the reward cost when someone opens a new account, increases spending or buys products you place offers on.

As customers increase the amount of category spending they direct toyou, the number of rewards they accumulate increases and they become increasingly loyal, increasing your average retention rate and averagelifetime value of each participating customer.

“Is the program hard to execute? Does it require a lot of time?Will my staff be confused?”

One of the key benefi ts of using established reward programs is how easy they are to implement and promote; because this program incorporates top reward programs, your staff and customers will immediately understand what is being communicated.

Effective use of the program requires very little time on anyone’s partwhen the program availability is effectively promoted using your existingsales and marketing mix.

Follow these 3 easy steps below to ensure success using the Program:

1. Be sure everyone knows you are now a reward-issuing vendor Incorporate program brands into your website, sales materials, email

blasts, onto delivery vehicles, customer invoices, etc. to ensure that everyone (customers & staff ) knows you now offer Miles/Points.

2. Ask all customers if they are program members and get theirmembership # (which is not the same as a credit card #)

There are millions of active program Members who are ready to earn Miles/Points wherever they spend; this is your chance to attract,up-sell and retain them as customers using reward currencies they already collect and value.

By obtaining your customers’ membership #, you will ensure that yourcustomers are being rewarded for purchasing from you rather than thecompetition; 76% of reward program users are likely to switch vendors on this basis; they also spend about 40% more than average when they do.

Also important, 70% of program Members will tell others where they earned their Miles/Points. It’s free word-of-mouth advertising from trusted sources, directing their peers to you.

3. Issue Miles/Points using our free web-based portal Our simple web interface lets you issue Miles/Points during a sales call,

or at the end of the day, month or quarter.

“Why would I give my existing customers a reward – after all, they are already my customers; isn’t this just another expense?”

The reality is most customers purchase from multiple distributors/wholesalers; Reward programs are all about tapping into customer spending you aren’t already getting – and then ensuring you continue to get it.

76% of Members will choose vendors to earn Miles/Points and the averagecustomer will also spend about 40% more with a vendor who offers aloyalty currency they collect – versus a vendor who does not; this helpsyou cost-effectively capture more of your customers’ category spending.

When you consider the lifetime spending of each customer and your current/future share of it, you really can’t afford not to give your existing customers a reason to become/remain more loyal to your business.

“I don’t personally participate in loyalty/reward programs or understand their value; why should I offer one to my customers?”

You may not use these programs but your customers certainly do.

• Over 150 million adults actively participate

• Tens of millions of people use these programs every day

• Many retail business owners and executives are also members andaccumulate Miles/Points for business or personal use

• The average person participates in 4 or more reward programs

• The average program membership grows at a rate of 11% per year

Most people base an increasingly large majority of their purchase decisions on the availability of reward programs.

By not offering a loyalty/rewards program, distributors/wholesalers missout on the opportunity to capture a greater share of their customers’spending as those same customers spend more with competitors whodo offer a rewards program.

For more information or to schedule a program introduction presentation, please contact:

Graham Farrell, President Mobile: 1.416.427.0578 Email: [email protected] Toll-Free: 1.866.488.8177

Peter Coffey, Vice President, Sales Mobile: 1.416.319.3177 Email: [email protected] Web: www.lift-and-shift.com

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