December 14, 2016

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 2

About BES Instant Reward Options Instant Examples In-Market Q&A

Agenda

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 3

Your Presenters

THERESA McENDREE

VP, Marketing

Blackhawk overviewScience & adoption

Use cases

JENNIFER WORLEY

VP, Product Rewards

Instant rewards overview

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 4

A leading prepaid and payments global company

Hawk CommerceGenerate revenue with smart commerce

platforms Proven global incentive programs for consumers, sales and employees

A global branded value network of over 600+ rewards and content

We are a Blackhawk Network Business

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 5

Blackhawk Engagement Difference

Committed Program ManagementEasy-to-Use Platforms Compelling Global Rewards

We power proven incentive programs for the world’s leading brands

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 6

Full Suite of Instant Reward Solutions

HREmployee Rewards

Sales Incentives Call Center Incentives

MarketingRebate Promotions

Loyalty IncentivesWin-Back Promotions

Subscription Incentives

SalesChannel Incentives

Sales Incentives Training Incentives

Behavior-based Incentives

Finance/OpsAppeasements

Claims

Blackhawk offers 600+ reward choices to maximize performance and budget

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 7

Rewards Are Critical

Reward-based promotions have been shown to outperform discount-based promotions

BY OVER 42%

Source: ifeelgoods, Reward-Based Promotions vs Discount –Based Promotions, September 2015

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 8

Virtual (Open Loop)

Network branded (MC, Discover)

Instant Load

Allows for action-based loading and activation of cards for immediate use

eGift(Closed Loop)

Content partner branded

What are Instant Rewards Solutions?

INSTANT REWARDSprovide immediate delivery of reward or reward value.

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 9

Why Instant Rewards?

Source: Journal of the Experimental Analysis of Behavior, January 2015

Rewards are highly effective when received instantly.

Benefits of instant rewards• Stand out with your reward experience

Don’t spend more, spend better

• Immediate reinforcement of messaging

• Increased recipient satisfaction by eliminating delay in receipt of reward

• Positive association of reward and brand

Today’s Instant Rewards

Jennifer WorleyVP, Product Rewards

Virtual Rewards

Rewards delivered via email, text or mobile

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 12

The Growing Popularity of Virtual Cards

0 5 10 15 20 25 30 35 40 45 50

2013

2014

2015

Percentage of Respondents

Source: Mercator Advisory Group, Customer Monitor Survey Series, Payments 2013, 2014, 2015, Question 4

More than 2 in 5 US adults bought virtual cards in 2015.

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 13

Virtual Card Acceptance is Increasing

0 5 10 15 20 25 30 35

2013

2014

2015

Percentage of Respondents

More consumers buy virtual cards for themselves than as gifts.

Virtual card purchased as a gift

Virtual card purchased for self

Source: Mercator Advisory Group, Customer Monitor Survey Series, Payments 2013, 2014, 2015, Question 4

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 14

Virtual Card Appeal is Diverse

Source: Mercator Advisory Group, Customer Monitor Survey Series, Payments 2013, 2014, 2015, Question 4

61% of people between the ages of 18–34

43% of people between the ages of 35–64

60% of people who earn

$75K–$100K

56% of people who earn

$100K+

Virtual card buyers tend to be young, affluent and racially diverse.

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 15

• Open-loop prepaid card delivered via email

• Activate and use immediately online!

• Good at all MasterCard acceptance online retailers

• Option to request a physical card

Virtual MasterCard® Prepaid Card

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 16

• Universal online spend

• Immediate delivery

• 5% back provides added value

• Cost effective (no plastic or postage)• Greener option

• Ease of delivery and use

• Customizable emails supports your brand and program

• Secure

Benefits of Virtual Prepaid

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 17

• Electronic gift card

• 200+ brands available

• Email or text delivery

• Spend immediately online or in-store

eGift

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 18

Add to wallet, use on phone, tablet, online or in-hand!

Consistent Experience Across Platforms

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 19

Unmatched Catalog of Popular Merchants

…and many more

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 20

• Create retailer or channel specific campaign

• Immediate delivery

• Redeemable online and in-store

• Cost effective (no plastic or postage)• Greener option

• Device responsive — mobile/tablet/PC/Mac friendly

• Customizable emails supports your brand and program

• Secure

Benefits of eGift

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 21

Have you ever purchased or received a virtual reward?

Poll Question

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 22

Connect to Our Solutions • Sales and Channel Incentive Platform

• Consumer Promotions

• Employee Rewards

Or Yours• API

Direct connect your platform, CRM or POS to our ordering system

• FTP Ordering Automated scripts upload and download files and data for products

Or Order Direct • Ordering Portal (MyInteliSpend)

Ideal for self-service, online ordering of prepaid products

Multiple Virtual Reward Ordering Options

Instant Load

Reward in-hand, instant funding on behavior

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 24

Physical Prepaid Card Distribution ($0 value card)• Mailed • Handed out • In-pack or on-product

Funded upon behavior • By agent/rep• On validation• On customer submission• By API

Instantly loaded & ready to usePerfect marriage of tangible reward and instant appeal

Instantly Loaded Prepaid Card

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 25

• Fully customizable to your program and brand

• No funds loaded until behavior confirmed

• Highly attractive CTA (3–4X response rates)

Instantly Loaded Prepaid Card

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 26

• Automatically load and activate cards from a secure portal, our platform or yours

• Strong customer activation tool

• Full program branding and customization• Limit exposure with $0 value cards

• Immediate, universal use

Benefits of Instant Loading

In-Market Examples

Theresa McEndreeVP, Marketing

Virtual Rewards

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 29

Use Case: Call Center Sales Incentive eGift

Immediately Reinforce the Right Sales Behavior

1 2 3 4

Call center agent engages customer

Agent reviews programs and

discusses upgrade opportunity

Consumer signs up for program and

agrees to upgrade

Salesperson instantly issued egift

upon program registration

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 30

Use Case: Call Center Sales Incentive eGift

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 31

Use Case: Real-time Customer Rebates

Differentiate Your Promotion with a Better Experience

1 2 3 4

Customer makes purchase and

receives unique code (on receipt or

in-pack)

Customer submits on website, enters

Serial # and demographic information

Site makes a series of API calls,

rebate validated

eGift instantly issued to customer

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 32

Use Case: Real-time Customer Rebates Instant Code Redemption and Reward

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 33

Use Case: B2B Webinar Attendees, eGift

1

Company sponsors educational webinar, promotes event with promise of a reward

2

Email collected at registration

3

eGift emailed to attendees

during webinar

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 34

Use Case: B2B Webinar Attendees, eGift

Instant Load

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 36

Use Case: Instant Load, Customer Activation

1

New product or service

advertised with “dead” $0 card

2

Consumer takes required action

(e.g., gets quote, takes tour) to activate card

3

Card instantly loaded by

agent or API

$0 $$$

Standout with High Value Direct Mail

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 37

Why Instant? • High promotion response rate

• Strong customer engagement

• Cards funded instantly upon action

Use Case: Instantly Loaded

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 38

Use Case: Instant Load Customer Rebates

Differentiate Your Promotion with a Better Experience

1 2 3 4

Customer makes purchase and receives card

(in-pack or in-store)

Customer submits on website, enters serial #

and demographic information

Site makes a series of API calls,

rebate validated

Card in-hand instantly funded for valid customers or

egift delivered

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 39

Leverage Smart Home activation to drive rewards• Activate or load customer prepaid card with connection

• Incent dealer or installer with connection

Use Case: Unique Smart Home Rewards

1 2 3 4

Consumer purchases smart home device (i.e.

Nest, Smart HVAC, etc. )

Consumer receives unloaded prepaid card (via direct mail or

sales associate)

Consumer registers card online to their product serial ID

When consumer connects smart device to

WiFi, BES activates & loads card instantly

In Conclusion

©2016 Blackhawk Engagement Solutions, Inc. Confidential and not for replication or distribution. 41

Today’s consumers judge brands by how they engage. Your reward experience is no different.

• Engage instantly

• With the most desirable rewards • Provide choice

• Recognize the results

Why Instant?

The right reward strategy allows you to achieve more, without spending more.

Questions?

Contact us @Theresa: 972.538.3902, theresa.mcendree@bhengagement.com

Jennifer: 636.226.2181, jennifer.worley@bhnetwork.com

Thank You

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