Information in this document is confidential and proprietary. © Excentus 2015.
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Information in this document is confidential and proprietary. © Excentus 2015.
Card Linking – The New Digital Age of Loyalty
April 28, 2015
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1 How we see current CLO landscape
2 Emerging Opportunity for CLO
3 In-Market Application
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Current CLO Landscape
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Current CLO
Development of Current CLO
3rd Party Providers enable early Bank
Issuers Examples:
Truaxis, Cardlytics, Edo
Publishers emerge with discount/
coupon content Example:
coupons.com
Focus is on single-use
coupons/discounts Examples:
Spend $50 to get 5% off; buy product A, save
$0.50
Most commonly used currency is
cash-back or % of sale
Example: Most all current CLO’s
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Category Year Established
Bank Intermediary/Enabler 2008
Bank Intermediary/Enabler 2007
Bank Intermediary/Enabler 2007
Digital Coupon Publisher 1998
Promotional Offers Tweeted by Merchants 2006
Item-based Card-Linked Marketing 2011
Summary Programs/Providers
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Best-in-Class CLO
BankAmeriDeals continues to lead the market based on sheer offer volume, market awareness and consumer scale
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Emerging Opportunity for CLO
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Day 1 Accepts offer
Day 5 Transaction posts
Sports Authority Checkcard Transaction Amount $72.50
Day 3 Makes purchase
Day 9 Rewards pending
Day 12+ (~45 days) Cash back credited
Today’s CLO Currency: Cash Back
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Historical Loyalty in US
The average consumer is part of 29 loyalty programs and active in 12,
leading to a packed keychain
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CLO within the Loyalty Construct
Consumers receive offers through multi-channel communications Channels include web, email, mobile app, push, SMS, etc.
Consumers have MasterCard, Visa or AMEX cards already
This reduces consumer friction. Already having these cards eliminates the need for a custom loyalty card.
Consumers participate in the offer at participating locations
Merchants already accept these major credit cards, which eliminates merchant friction.
ACCEPTED HERE
Consumers earn valuable loyalty rewards outside of cash back/couponing Other rewards include points, miles, fuel savings, etc.
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In-Market CLO Loyalty Application
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I saved $260 at Shell since joining Fuel Rewards®!
“ ” –Tiffany, New Orleans
Join
Link
Earn
Save
1
2
3
4
+
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How Fuel Rewards Performs
Coalition models have been successful in most mature economies, yet elusive to achieve in the U.S. Fuel Rewards, however, demonstrates traction and momentum.
Fuel Rewards Success to Date (33 months)
Members 5.2 MM
Reward TXNs 800 MM
Gallons PTD 2 B
Dollars Saved PTD $ 540 MM
Monthly Savings Run-Rate $ 20 MM
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Top Global Coalition Programs Year
Established Number of
Households Household Penetration
Travel Club, Spain 1996 18.2M 70%
AIR MILES, Canada 1992 12.4M 70%
Nectar, UK 2002 26.4M 68%
Payback, Germany 2000 39.9M 60%
Fly Buys, Australia 1994 7.8M 60%
AIR MILES, Netherlands 1995 7.4M 60%
Dotz, Brazil 2000 57.3M 46%
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The Power of Cents-per-Gallon
• Cents-per-Gallon Fuel Rewards® is a SUPERIOR consumer rewards currency and our POINT OF DIFFERENTIATION
• High-perception of value
• Irrational consumer behavior
• Instant gratification
• Social/viral/emotional nature
• Unmatched recency and frequency
• Recession proof
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Common Earnings Bucket
Earn 10¢/gal
Earn 5¢/gal for every combined $50 spent at participating retailers
Spent $15.33 Spent $31.72 Spent $24.22 Spent $46.20
Total Spent $117.47
$17.47 toward next reward
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Fuel Rewards Personalized CRM
Mobile App SMS Alerts
Mobile Optimized Web
Ongoing Member Emails
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Shell BTL Touchpoints
• 10+ million dollar impression value per quarter
• Viewed by hundreds of millions of consumers
• 5 minute average captive rate at the pump
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Card-Linked Offers Elimination of merchant/
consumer friction
Coalition Loyalty Business Model
Defensible; High exit barriers
Mobile/Social/Local Revolutionizing choice/
consumption
Cents-per-Gallon Currency
Emotional/Irrational; High value perception
SUCCESS
Fuel Rewards Differentiation
Defensible Business Model
• Patented technology
• Exclusive provider of cents-per-gallon rollback at the pump
• Shell as national redemption partner
• Grocers as a program cornerstone
• Omni-channel CRM
• Merchant funded offers – several exclusive to Fuel Rewards
Information in this document is confidential and proprietary. © Excentus 2015.
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Summary
• We believe CLO is the new frontier of loyalty
• It’s the natural evolution between traditional card-based loyalty to integration with smartphones and mobile wallets
• We are excited about CardLinx™ and the general momentum in the space
• We’re eager to see multiple CLO models get greater scale and adoption. We believe this is a “rising tides will raise all ships” market opportunity