The Impact of

Incentives on

Loyalty and

Measurement

ACT International Conference

Indian Wells, CA

Sep 1, 2010

Rick Steele

NuRide, Inc.

Incentives Are Often Used for Direct Acquisition

But How Does this Make Existing Customers Feel?

Sometimes an Indirect Approach Works Better

So be sure to give yourself a good name …

because people spread the word

FAST

How fast?

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“Do what you do so

well that they will

… bring their

friends.”

- WALT DISNEY

So how can you

delight your current

customers?

… with

loyalty-based

incentives

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Loyalty Marketing is Not New

• 1.8 billion people are enrolled in loyalty programs

• Average U.S. household is enrolled in 14.1 loyalty/rewards programs

• Top U.S. loyalty programs by industry– Financial Services 422 million

– Airline 277.4 million

– Specialty Retail 191.3 million

– Hotel 161.8 million

– Grocery 153.3 million

– Mass Merchants 124.8 million

– Casino/Gaming 106 million

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Benefits of Loyalty Marketing for TDM

• Delight your current customers

• Attract new customers with referrals

• Collect valuable data for measurement and reporting

• Grow your database, resulting in more matches

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Found one Thanks for match, bye!

Rewards! I’ll stick around

Constantly grow your database

Need match

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NuRide Demonstration

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58% joined because of rewards

48% previously drove to work alone

Attracted SOV Commuters

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83% share rides “more” or “much more”

56% of active members have been active > 1 yr

Retained Active Commuters

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30% of new members in 2009

came from referral links and they were …

45% more active than non-referrals

And They Recruited Their Friends

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Loyalty-Based Incentives Work

• Reward and delight your current customers

• Measure results by making rewards contingent upon reporting

• Grow your database by …

1. retaining current customers and

2. acquiring new ones via referrals at no cost to you!

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