2

Loyalty and incentive coming of age

Lee Griffin - Head of Publisher Services, TradeDoubler

Duncan Jennings - Managing Director, eConversions

Richard Yendall - Chairman, The Loyalty Association

Paul Nikkel - Co-Founder, Quidco

3

Users drive the marketTough times, savvy users & partnerships

We’ve come a long wayDevelopment, best practice &the future

Cashback PartnershipsCommunity, technology &promotions

Questions for the panel

4

Growth & Trends

Sales (£ m) Growth

2007 £300 122%

2008 £720 140%

2009 £1,440 100%

5

£135m£300m

£720m

£1.4bn

£0

£200

£400

£600

£800

£1,000

£1,200

£1,400

£1,600

2006 2007 2008 2009

£135m£300m

£720m

£1.4bn

£0

£200

£400

£600

£800

£1,000

£1,200

£1,400

£1,600

2006 2007 2008 2009

Going mainstream?

7

Who Said This?

“We see cashback as an important opportunity to deliver additional value”

“Loyalty schemes, vouchers and cashback have become very important. It's an issue that has to be addressed.“

Bruce Fair, Kelkoo UK MD

Bill Gates, Microsoft

• October 2007 purchase Jellyfish (comparison/loyatly)• May 2008 launches Live Search Cashback in the USA• 10 million product offers, 700 merchants

“Cashback has done very well in the US and we will be looking to roll it out in other markets; the UK will be next”

Chris Dobson, Microsoft VP of global sales

10

Who’s next?

11

Myth-Busting... Loyalty is not the villain

Overwriting – Loyalty <1%, less than other categories

Starting point of the majority of attributed sales

Return visits are frequent - key to the impulse/browser?

Last click or contribution? Not an easy call...

Retail sales slump surpasses 1990s recession28th August 2008

Boom is now bust after 16 yrs23 August 2008

Inflation doubles in just six months as millions of families face soaring food bills13th August 2008

Economy at 60-year low, says Darling. And it will get worse28th August 2008

Everyone is becoming more cautious with their money

The web has always been known as the place to save money

Press, credit crunch, inflation & recession are taking this to the next level

In tough times people still spend but they need a nudge / elbow

With the economy slowing and prices rising, everyone is on the lookout for a bargain. Vouchers have become a popular way of promoting discounts, particularly around Christmas time. In fact, they have become so popular that price sensitive shoppers are looking for them in increasing numbers.

Robin Goad – Research Director Hitwise

Flexible – Advertisers can restrict codes by time, product, category etc

Ramp up sales – “40% off!”

Increase basket values – “Save £5 when you spend over £75”

Clear distressed stock – “Get Water World for only £1”

Push higher margin products “10% off Caribbean All Inclusive Holidays”

Voucher Codes satisfy the deal hunting desire without killing your margin

VoucherCodes.co.uk launched in “BETA” August 2008

We’re building long term relationships with advertisers to promote only valid, working codes

Advertiser / Network login allowing instant code suspension and flagging

Working with networks and merchants on technology for real exclusive codes, customer targeting and more

If you’ve got a voucher code or deal you’d like us to promote or if you’d like to find out more about how voucher codes could help grow your sales

contact me:

duncan@vouchercodes.co.ukTel: 020 7566 9849

21

“We’ve come a long way”

Richard Yendall

Chairman, The Loyalty AssociationCEO Rpoints & Cashback Kings

Development of Loyalty

“A new way to make money”

Growth

Publicity

Innovation

Diversity

Doing it well

The Loyalty Association

Network and merchant buy-in

Standards and best practice

Make loyalty model work

Combo sites Mobile

Diversification

Consolidation

Bigger brands Offline

Where are we heading?

25

“Cashback Partnerships”

Paul Nikkel

Co-Founder, Quidco

Cashback Community

• Cashback has come of age and is now recognised as a unique channel. The opportunities for merchants to engage with members and attract them into their "community" (as customers) is huge.

• Cashback is not monolithic Many sites with their own branding, model and demographic. Effectively managed relationships capitilize on community brand equity but do not bleed equity.

• Cashback members have brand loyalty to their community. Learn it to leverage it.

• Find and use the promotional tools available in the community. Email shots on Greasypalm, forums on Rpoints, Savvy Tips and blog on Quidco. Talk to us and your account managers!

• Good communities are viral–good cashback is viral. The big cashback communities today have grown almost entirely from WoM. Highly connected, highly influential consumers.

Technical Enhancements

• Manual validation put in place for increased merchant security and ability of validate off-line information

• Cookie checkers to ensure that cookies are being accepted by the member’s browser at point of purchase, resulting in fewer untracked sales and less work for merchants

• Enquiries XML data exchange, click-tracking and approval process implemented to improve data integrity. Fast, accurate resolution results in decreased manual resources needed from merchants, decreased call-centre contact, increased purchase confidence and satisfaction.

Promotional Activities

• Leveraging exposure for different needs ie. Increase sales during seasonal peak or increase traffic volume and brand/site awareness

• Case Study #1: HMV Goal: Expose traffic to a newly branded site

Placements: Savvy Tips and Blog

Case Study #2: Merchant “X”

Case Study #3: TalkTalk

Case Study #4: Merchant “V”

Case Study #5: Hotels.com

37

Questions for the panel

Duncan Jennings - Managing Director, eConversions

Richard Yendall - Chairman, The Loyalty Association

Paul Nikkel - Co-Founder, Quidco

Lee Griffin - Head of Publisher Services, TradeDoubler