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September, 2011

Mobilizing Loyalty

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The Synergy of Mobile and Loyalty

For consumers, mobile is a channel that provides:− Convenience

− Consolidation

− Relevance

− Rewards

For retailers, mobile is a channel that solves for:− Ongoing data capture challenges

− Limited IT resource & bandwidth

− Driving increased share of wallet

− Creates bigger basket and incremental visits

For consumers and retailers

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CardStar Connect™ empowers merchants and brands to unite with their most valuable customers offering rewards, incentives and messages by mobilizing loyalty and membership programs.

THE LEADING MOBILE LOYALTY PLATFORM CONNECTING MERCHANTS AND CONSUMERS

89 Degrees develops marketing solutions that use advanced analytics to drive better results for data-intensive marketers.

NEXT GENERATION MARKETING SERVICE PROVIDER

Digital Consumer Loyalty Partnership

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15+ Years of Retail Loyalty Marketing

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Smartphones: Exploding Market Penetration Current Adoption:

− Nearly 40% of US mobile phone owners have a smartphone as of May 2011 (Nielsen)

Growth Projection: − Smartphone owners will the majority by the end of 2011 (Nielsen)

− U.S. sales of smartphones to grow from 67 million in 2010 to 95 million in 2011 and become the highest-selling consumer electronic device category (Gartner)

− Sales of smartphones will exceed those of PCs in 2012 (Morgan Stanley)

− Mobile Internet use via smartphones will increase 50 fold by 2015 (Coda Research Consultancy)

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Merchant Value Proposition

Easy access to your most loyal customers

ECHO

Convenience:

No buy-in or POS integration is required — and CardStar can create customized features and offerings

Relevance:

Tailor – and then push – high value content like mobile coupons and promotional messages with accuracy, timeliness and acceptance in real time via geo-targeting features — strengthening customer loyalty by guiding the shopping experience

Insight:

Use the business intelligence and analytics of CardStar to segment, target and stay connected to you most valuable customers

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Card Management

ContentServices

Publishingand Feeds Monetization Consumer

ExperienceBusiness

Intelligence

The CardStar/89Degrees Solution:

An End to End Mobile-Based Loyalty Program

Mobilizing Loyalty

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Creating mobile content has never been easier

IKEA

Coming to Centennial June 2011

Do Even More: Targeted Messaging

Developing the Program

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IKEA example Phase 1 – Pilot: What IKEA Gets

Card Design and Load Monthly Deals (up to 10) NO Card Feature on Merchant Page Store Locator Customer Service (800#) URL Links

Home

Family Portal

IKEA

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Macy’s Backstage Pass - UpdateFirst: Scan the code

Second: Get Exclusive content (videos) and as of August, get new deals and entry into Sweeps

Note: those without QR Code reader can TXT to get offers/sweeps.

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A Consumer’s Mobile Loyalty Experience

3 0 % O F F A N Y S I N G L E

I T E M

QR Code in-store, prominently displayed

Consumer scans code

CardStar Load, consumer picks Merchant Card

Consumer sign-up for deals

Deals delivered through CardStar (Weekly)

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Driving the Program: Marketing Components In-Store Signage

Staff Training and Incentives

Instant Offers/Discount to Drive Trial

Mobile Exclusive Offers to Incent Customer Adoption

Website Promotion

Viral / Social

Email, SMS promos

Direct Mail

Card Star Network

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Success Metrics Scans

How many consumers scan any QR Code

Loads/Sign-ups How many consumers load the application and STAGE loyalty cards on

their phones

How many consumers join SMS and/or Email from the unique codes

Delivery How many deals are delivered to members

Open/Views How many open/view each of the offers

Sales (TBD)

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Activity Summary Data Examples

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Deal Data Examples

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Monthly deals (# and frequency)

Basic or enhanced merchant information

Price per acquisition or monthly based on # locations

Tech integration (web services and real- time calls/enrollment) or static information

Self-service or enhanced reporting and analytics (dynamic real–time reporting, dashboards)

MarketingNeeds Budget

Service

The Sweet Spot?This is different for each client. We will

work with you to develop the blend of services and support that fits your organization best.

Program Considerations

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All of the above + Up to 15 monthly deals (dynamic, real-time upgrades/recalls/etc.) Enhanced merchant information (Customer Service Number,

additional links Geo-targeted offers Enhanced Sign-up (streamlined and optimized for CardStar)

All of the above Enhanced Reporting (deep dives, reports, dashboards, etc.) Advanced Features (declining balance card load and use, digital

receipting, product affinity analysis/compliments offers, mobile payment, first notice and access to future enhancements/features)

Card design and load 5 static monthly deals Basic Merchant Information (Store locater, URL) Basic Reporting (usage statistics)

Thought Starters: Approach Tiers

BASIC/TEST

ENHANCED

PREMIUM

Discussion