welcome alside rewards program management and rewards solutions presented by: july 20 th, 2006

Welcome

Alside Rewards

Program Management and

Rewards Solutions

Presented by:

July 20th, 2006

Today’s Agenda

• Introduction to HG Worldwide• HG Client Solutions

– Case Studies

• HG Awards• AMI Program Overview

– Alside Rewards Travel– Alside Rewards Awards

• Partnership Pricing• Summary

Who We Are

• HG Worldwide is a full service performance resource company, established 1986

• Client-focused– 6-8 core clients– Average partnership = 12 years– 98% client retention

• In business 20 years• Our philosophy: The success of your

business is our business

Where We Are Going

• Building upon our experience and success• Continuing our “client comes first” philosophy• Clients who recently partnered with HG

– Merrill Lynch– Roche Diagnostics– Citizens Bank

• Adding new services– Awardzilla (virtual debit and points)– Click it, Learn it – Holiday Gift program

How We Work

• We help our clients succeed by positioning the right people and providing the right service at the right time – We manage resources to provide the “best fit” for achieving

your goals– We adapt to changing market conditions, add services and

talent as each client solution demands

• We manage today’s technology to provide the security, efficiencies and data management support you need when you need it

• We believe that the partnerships with our clients are dynamic and we want to continue to be flexible, and always find a way to add value to the relationship

• Your needs come first! Only by meeting your needs will HG Worldwide succeed and together form a successful partnership

Who We Work With

http://www.citizensbank.com/home/

HG Worldwide Client

Solutions

• Performance Management

• Travel

• Reward Solution

• Data Management

• Creative Services

• Learning and Training

Channel Performance Incentive Applications

Client Solutions

• Design, develop, and implement performance solutions

• Employee, sales, channel, consumer based programs

• Incentives, recognition, safety, suggestion, years of service, kudos, rebate

Performance Management

Client Solutions

• Research, negotiate, communicate, coordinate and operate world-class programs

• Creativity, solid management, operational efficiencies – Deliver Dreams!

Travel

Client Solutions

• Group Travel– Incentive programs– Recognition programs– Advisory groups

• Business Meetings– National sales meeting– New product launch– Regional meetings

• Individual Incentive Travel

Travel

Client Solutions

Client SolutionsHG Worldwide is “Award Neutral”

• Most incentive and performance management companies derive their revenue from one or two of the awards they fulfill, usually merchandise.

• HG Worldwide, is “Award Neutral”. We will work with you to identify award selections uniquely suited to your target audience and your organization, awards that provide the motivation needed to achieve your performance objectives not meet HG Worldwide revenue goal.

• Changing retail market, sensitivity to incentive rewards, HG is committed to research and identify reward solutions that can our clients:

– More choice

– Better access

– Greater value

• Shopping Portals– Awardzilla (points)– Awardzilla (dollars)

• Merchandise Catalogs– Online– Paper

• Visa Gift Cards– Single/multiple load– Virtual/plastic

• Retailer Gift Cards

Reward Solutions

Client Solutions

Data Management

Client Solutions

• HG Worldwide supports total web-based performance management systems including:– Comprehensive, integrated web-base

performance tracking and reporting– Detailed program information and

communication– Online personal bank account systems

management• Total award fulfilment from reward

presentation to online ordering and order tracking

• Client administrative access– Program set-up– Data entry/management– Reporting– Kudos/recognition program

planning

Data Management

Client Solutions

HG Worldwide software is easy to integrate into Server environments. And best of all is that the platform is Windows-based. The following are features of our integrated Performance Management web technology:

Performance Management Web Portal• Total integrated system• Enrollment/registration • Secure participant access • Access/link to all award options• Online customer performance tracking and reporting• Integrated online point bank account system • Online data capture abilities • Online ordering, award fulfillment and tracking• Management Reporting

– Standard performance and redemption reporting

– Custom reporting based on client need

Creative Services

Client Solutions

• The creative design and strategic delivery of performance program communications including:

– Website

– Printed materials

– Electronic media and • Visual presentations are as important to the overall

success of a program as are the rewards structure and award selections.

• Creative, concise, consistent and inspirational program communications make the difference between the ordinary and the Extraordinary.

• HG provides the edge and excellence to communicate, promote, inspire, inform and motivate program participants to achieve their performance objectives.

Creative Services

Client Solutions

Learning and Training

Client Solutions

• With Click It Learn it, HG Worldwide can easily set up a series of online Performance Excellence Learning Suites for employees, supervisors and managers.

• Other HG World clients have discovered that online Performance Excellence Learning Systems is a "Click and Easy" solution to:– Improve job performance– Increase job satisfaction– Improve employee retention – Increase productivity– Improve safety/reduce accidents– Improve job attendance/punctuality– Increase job knowledge

• Click It Learn it Online Performance Excellence Learning can be customized for each client's application using a proven formula that ensures participation and most important, retention.

Case Study

BellSouth Telecommunications

• Top Sales Incentive Program - 5 groups back-to-back

• 600 participants per program

• 12 year relationship

• 4 Year History:

– 2006 – San Diego, Manchester Grand Hyatt

– 2005 – Radisson Seven Seas Caribbean Cruise – Charter(s)

– 2004 – Lake Las Vegas, Hyatt

– 2003 – Tucson, Westin La Paloma

• Recently awarded the 2007

• Total Program Management – Overall program coordination, Budget management, Program invitation, Web registration, Program administration/Customer service, Air, On-site Trip Directors, Billing reconciliation

Case Study

The Berry Company Telecommunications

• Top Sales Incentive Program - Annual

• 600 participants


• 4 Year History

– 2006 – Phoenix, JW Marriott Desert Ridge

– 2005 – Cancun, JW Marriott

– 2004 – Paradise Island, The Atlantis

– 2003 – San Juan, The Wyndham El Conquistador


Case Study

Valvoline Petroleum Industry

• Top Sales Incentive Program - Annual

• 100 participants


• 4 Year History

– 2006 –Cabos San Lucas


– 2004 – Germany/Austria, Munich, Salzburg, Vienna

– 2003 – Charleston, Charleston Place – Diverted because of Gulf War


Case Study

GlaxoSmithKline Pharmaceutical

• Top Sales Incentive/New product launch/National Sales Meeting

• 80 - 400 participants per program


• 4 Year History (Incentives)

– 2006 – St. Thomas

– 2005 – Jackson Hole Wyoming


– 2003 – Lake Tahoe


Case Study

WS Lee Food Manufacturer/Distributor

• Major East coast producer of specialty deli meats• Sell/distributes to food service operators, retailers and

direct to consumer • 4 year relationship• HG supports purchase loyalty incentive program

through channel• Program used to launch new products, feature

products and reduce inventories

• Customers earn dollars on a Visa debit card based on purchases– Dollars deposited monthly– Program entering 4th year– Program highly successful, popular with WS Lee

customers and is growing

Case Study

Merrill Lynch Financial Industry

• Client Conference• 600 participants• 6 year relationship with John Manos• 2 Year History

– 2006 – New York, Sheraton– 2005 – San Antonio, Hyatt Hill Country

• Recently awarded the 2007 program• Total Program Management – Overall program coordination,

Budget management, On-site Trip Directors, Billing reconciliation – Client handles invitation, web registration and air support

Case Study

MTL Surge Technologies Electronics Industry

• Sales Incentive– 300 participants– Re-loadable Debit card application

• 3 year relationship• Direct Mail Marketing

– Targeted at channel customers worldwide– Combination direct mail, html e-mail campaign, website with

online contest– Developed online web-based sweepstakes to “pull” customers

into site, present message and contact MTL for more information

• Learning and Training– Developed CD-Rom sales presentation– Produced and distributed series of 6 AV training modules

• Meeting Management– Fall 2007—San Antonio

Case Study

Roche Diagnostics Health Services Industry

• Advisory Board Meeting, Customer Events, Major Tradeshow Support

• 90-350 participants per program

• 12 year relationship with John Manos

• Previous 4 Year History (Advisory Board Meeting)

– 2006 – New Jersey, New Jersey City Hyatt Regency

– 2005 – Coconut Grove, Ritz Carlton & Orlando

– 2004 – Coconut Grove, Ritz Carlton & Los Angeles

– 2003 – Tucson, Loews Ventana

• Total Program Management – Overall program coordination, Budget management, Web registration, Program administration, On-site Trip Directors, Billing reconciliation – Client handles air support

Case StudyCanyon State—Oil and Petroleum Distributor

• Employee Performance Program– Program designed to focus on employee retention, safety,

productivity, cost-saving suggestions and improving employee morale

• 200+ participants• 2nd year of program operation• Solution Overview:

– Combine the motivational value of performance incentives reinforced with Online Employee Performance Learning

– Employees earn awards based on safety, punctuality, attendance and for submitting cost-reduction suggestions

– Employees also earn points for participating in online learning programs

– Employees also earn points based on their years of service • Results: In 12 months accidents have been reduced by

over 25%, retention is improved and learning module test scores continue to rise

AMI ProgramSolutions Overview

AMI Program Overview• Comprehensive rewards program

– Web based support– Tracks Customer’s purchases– Purchase dollars converted to points– Points accrued as customers reach to achieve

annual purchase goal

• Rewards top performers

• Goal achievers use accumulated points for group travel, merchandise and IIT

• Group Travel programs– Multiple travel options based on customer

location– 7 Group travel programs in 2006

• Merchandise Awards program– All selections presented online– 2500 + popular brand name selection

AMI Program Overview

• The Alside rewards:– Industry standard for decades – Important part of AMI sales/marketing strategy for AMI.

• HG Worldwide recommendations designed to: – Enhance your customer’s program experiences– Streamlines program processes and procedures– Delivers cost savings to Alside

• Evolution of the current Alside Rewards the following:– Improved web interface – Improved technology– Enhanced award offering– Simplified cost structure– Efficient award delivery solutions– Deliver better value

Alside Rewards Travel

Alside Rewards TravelAlside Rewards Travel Program History Large Program(s)

Target Audience: AMI Top Customers• Dates: January 2008 and 2009 • Length: 6 night/7 day with exception of Hawaii which would be

8 day/7 night

Program History:• 2002 Wyndham St. Thomas • 2003 Westin Grand Cayman • 2003 Celebrity Cruise port out

of Puerto Rico • 2003 Hyatt Maui • 2004-5 Marquis Los Cabos • 2004-5 Westin Rio Mar • 2006-7 Grand Velas Puerto

Vallarta • 2006-7 Hyatt Aruba

Program Inclusions:• Ground transfers• Baggage transfers• Hotel gratuities• Welcome cocktail reception

and buffet dinner• Farewell cocktail reception

and dinner• Breakfast at resort each day• Cash allowance for dinner

each evening – ($50-$60 pp depending on destination)

• Beverage Packages where applicable

Alside Rewards Travel Alside Rewards TravelProgram History

Small Program

• Target Audience: AMI Customers

• Group sizes: 700

• Singles/Doubles: All Doubles

• Dates: January 2008 and 2009

• Length: 4 day/3 nights

• Destination: Las Vegas

Program Destination History—Always Las Vegas: • Alladin• Caesars• MGM• Bellagio• Mirage• Paris

Las Vegas trip includes:

• Welcome cocktail reception and buffet dinner

• Hotel transfers

• Baggage transfers

• Hotel gratuities

• Breakfast each morning

• Cash allowance for dinner one evening-$40


Program Administrator

Agent Agent

Director, National Accounts

Air Support Customer Service

800#/Email Support

Account Manager

Support Team

Web Registration/Reporting

Trip Directors

Account Manager

Program SupportDirector, National Accounts• Manage overall client relationship• Identify Client Goals & Objectives• Work with and support Account Manager• Develop a creative and exciting program• Evaluate and manage internal support• Oversee and manage program budget• Manage On-site Operations• Keep team focused on exceeding client goals & objectives

Account Manager• Assigned to support program from start to finish• Manage all requests for space, activities and destination resources• Negotiations conducted throughout the entire planning process• Coordinate Site Inspection• Total supplier contract management• Utilization• Attrition dates• Deposit schedules• Minimum contractual obligations• Food and beverage requirements• Dedicated to adding value at all phases of the planning and operation• Managed onsite program/revision• Final billing review

Program Support

Air Support• Agents• (add)

Program Administrator• (add)

Customer Service• Manages all inbound/outbound program inquiries including,

email, fax and phone)• Manages all orders services and customer service

functions regarding travel program inquiries• Supports program administrator as required

Trip Directors• (add)

Alside Rewards Travel • St. Maarten

– Westin at Dawn Beach

• Cruise– Royal Caribbean

Cruise Lines• Serenade of the

Seas

• Maui– Hyatt Regency– Fairmont Kea Lani

• Kauai– Grand Hyatt Kauai

• Turks & Caicos– Beaches

• Grand Cayman– Westin Casuarina

• Cancun/Riviera– Paridisus– J.W. Marriott

• Las Vegas– Bellagio– MGM Grand– Caesar’s – Red Rock Canyon


Destination/Resort Proposed Land

ProposedAir

Total

St. MaartenWestin at Dawn BeachWith Drink Package

$2,143.58$2,472.86

$718.00$718.00

$2,861.58(w/o drink)$3,207.86(w/drink)

Caribbean CruiseRCl—Serenade of the Seas $2,322.25 $498.00 $2,820.25

MauiFairmont Kea Lani Hyatt Regency

$2,983.10$2,750.50

$843.00$843.00

$3,826.10$3,593.50

KauaiGrand Hyatt $2,813.12 $882.00 $3,695.12

Turks & CaicosBeaches $2,056.68 $724.00 $2,780.68

Grand CaymanWestin Casuarina Drink Package

$2,105.34$2,434.62

$655.00$655.00

$2,760.34(w/o drink)$3,089.62(w/drink)

CancúnParadisusJW Marriott

$2,092.78$2,467.64

$474.00$474.00

$2,566.78$2,941.64

Las VegasBellagioMGM GrandCaesar’s PalaceRed Rock Casino

$1,287.84$958.35

$1,027.57$1,006.73

$352.00$352.00$352.00$352.00

$1,639.84$1,310.35$1,379.57$1,358.73

2008 Destination/Resort Comparison Grid (per person)


Destination/Resort ProposedLand

ProposedAir

Total

St. MaartenWestin at Dawn BeachWith Drink Package

$2,149.15$2,478.43

$718.00$718.00

$2,867.15(w/o drink)$3,196.43(w/drink)

Caribbean CruiseRCl—Serenade of the Seas $2.367.99 $498.00 $2,865.99

MauiFairmont Kea LaniHyatt Regency

$2,987.78$2,763.37

$843.00$843.00

$3,830.78$3,606.37

KauaiGrand Hyatt $2,868.70 $882.00 $3,750.70

Turks & CaicosBeaches $2,178.29 $724.00 $2,902.29

Grand CaymanWestin CasuarinaWith Drink Package

$2,125.50$2,454.78

$655.00$655.00

$2,780.50(w/o drink)$3,109.78(w/drink)

CancúnParadisusJW Marriott

$2,098.86$2,637.25

$474.00$474.00

$2,572.86$3,111.25

2009 Destination/Resort Comparison Grid (per person)

AMI ProgramSolutions –Awards

Current Program Overview

Alside Rewards Program Evolution

• Tracks Customer’s purchases – NO CHANGE– Purchase dollars converted to points– Customers must attain a $10,000 purchase benchmark to begin

qualifying for rewards

• Rewards purchase loyalty – NO CHANGE– Customers earn 1,000 points upon achieving benchmark– Customers continue to earn 1000 points for every $10,000 in

purchases

• Awards – ENHANCED!– Awardzilla-Points Redeemed Through Amazon/travel/event ticketing

portal – NEW OPTION– “Alside” Gift Card – NEW OPTION– Total Online Award shopping– Comprehensive Reporting (Excel-based Reports) – NEW OPTION

Alside Rewards-Awards

Awards Program Support Team

Director, National Accounts


Graphic Designer

WebDesigner

Administration Coordinator

Manager IT/Web Solutions

Account Manager

Customer Service

IT/Tech Support

Account Representative

Order Services

Program SupportDirector, National Accounts• Manages relationship between HG Worldwide and AMI• Provide leadership and support for AMI and all of its initiatives• Provides input/feedback and interfaces with HG Worldwide home office

Account Manager• Works closely with Dir. Nat. Accts and AMI to manage program• Manages/oversees the HG support team• Manages all program communications/promotion materials and

fulfilment• Continually evaluates Alside Rewards program


• Oversees all data management, processing and reporting• Manage all file/data transfers between HG and AMI• Manages all program reporting• Manages all card account balances and earnings deposits


Administration Coordinator• Supports Program Administrator• Manages all data entry and reconciliation functions• Support HG Alside Rewards Program Team

Customer Service• Manages all inbound/outbound program inquiries including, email, fax

and phone)• Manages all orders services and customer service functions regarding

award redemption, fulfilment and order tracking• Supports program administrator as required

Manager IT/Web• Architect for program systems • Manages and maintains Alside web portal• Maintains online admin systems • Monitors and maintains software and systems


What we are proposing . . .


http://achieva3.pmxdemo.com/


AWARD TYPE OVERVIEW COST

AwardzillaPoints

Amazon-based Shopping Portal Online point shopping portal Amazon. Com is primary

shopping site Enhanced point purchase power Amazon Outlet section

(discounted merchandise) Powerful travel award site Event tickets available on line Limited Sales Tax obligation

$.075 cents/point 10% Service fee Includes shipping No Sales tax

Alside Gift Card(Point Purchase Option)

Visa Single Load Card $75.00 Denomination per Card (can be

set at any denomination) Replaces Gift Certificates Can be used everywhere Visa is

Accepted Sent directly to customers

$.075 cents/point $3.00/card Includes shipping 6.5% card load

fee on deposit

IIT Certificates Individual travel Available to select audience $2,200 initial buy-in $80 additional add-ons

$.075 cents/point 10% Service fee Delivered cost Sales tax

additional

Alside Rewards-AwardsAward Item Award Value Current Value @ $075/point

Portable DVD Player $294.00 3,920 Points

Award Value includes Merchandise mark up Shipping to participant Applicable TaxesIndustry Un-Loaded Point

Award ItemAward Cost 25% avg.

Mark upShipping @ est. 8%

SalesTax 7%

Award Value

Portable DVD Player

$210.00 $52.50 16.80 14.70 $ 294.00

Amazon Shopping Portal Value

HG Un-Loaded Point

Award Item Award Cost

TBD% Service Fee

Shipping Included

SalesN/A

Award Value

AMI Savings

Portable DVD Player

TBD TBD $0 $0 TBD

Awardzilla Points:• Customer receives better value• Customer receives lower taxes• Sponsoring company pays service fee separate from award cost


AMI Value Impact• Low start up costs

– Offered at discounted rates • Competitive HG Service Fees

– Awardzilla-points TBD% vs. industry avg. of 20%- 30% for traditional merchandise

• No shipping cost on Awardzilla– 8% industry avg. savings

• No sales tax on Awardzilla or single load Visa Card– 7% - 8% savings

• Significant cost savings by eliminating online catalog– Award cost savings– No online PDF version of catalog– No online PDF forms

• Single load Alside Rewards Gift Card replaces Gift Certificates and saves AMI through:– Reduced shipping and handling costs– Reduced Service Fees (currently applied to select Gift

Certificate offerings)


Customer Savings and Benefits• Significant increase in spending power of their points

• Access to lowest cost retail merchandise online

• Awardzilla shopping portal offers millions of merchandise and service award selections, comprehensive travel offers and special event tickets

• Single load Alside Rewards Gift Card is the “Ultimate” Gift Certificate and provides AMI customers with the “Ultimate” in retail selection and spending options

Additional Benefits• Alside Rewards Single Load Gift can be purchased with

cash and used by AMI and AMI Customers for recognizing and rewarding sales personnel and internal employees. – AMI Customers will be provide link on Alside Rewards

Website for purchasing single load cards

Value Proposition

• Travel Value Proposition– Things To Consider

• Awards Program Value Proposition– Things To consider

Value Proposition-Travel

Concessions for the Group Travel Programs

2008/2009:• HG Worldwide has lowered our fees

to support the programs lowering Land costs by $17 per person

• The above mentioned concessions will create the following savings for

• AMI» $17 per person x 2116 Travelers =

$35,972 per yearn in 2008/2009


Concessions for the Group Travel Programs2008/2009:• HG Worldwide will also offer AMI a 1%

Volume Rebate based on achieving $5,000,000 in Group Travel billing within a calendar year

• This will create the following savings for AMI

– $5,000,000 x 1% = $50,000 per year

• AMI will now save $74,072 per year in 2008/2009 by partnering with HG Worldwide

• Combined with the cost savings offer on the previous page for the Non-travel program, AMI could save as much as $87,072 in 2008/2009 by partnering with HG Worldwide!!

Value Proposition-TravelConcessions for the Group Travel Programs

2007:• If AMI would transition any of the 2007 group travel

programs to HG Worldwide (by August of 2006), HG Worldwide would “absorb” penalties that the Incumbent would access AMI

• The 1% volume rebate outlined above would apply in 2007 as well

• ALSO - HG Worldwide feels comfortable in our “lower overhead” operating efficiencies to offer you a $20 per person discount on your incumbents contracted per person cost to operate your programs in 2007. If you would travel 2,000 people you would realize a $40,000 savings to your current 2007 group travel budget - Add on the 1% rebate of $50,000 (If you bill $5,000,000), AMI would save $90,000 in 2007!!!


RESORTTOTAL PER PERSON NUMBER OF

TRAVELERSTOTAL BUDGET

Aruba $3,000.00 726 $2,178,000

Puerto Vallarta $2,700.00 690 $1,863,000

Las Vegas $1,400.00 700 $980,000

Program Total $5,021,000

$20 Per Person Discount

2,116 ($42,320.00)

REBATE @ 1% ($50,210.00)

2008

2009

2008

RESORTTOTAL PER

PERSON (Includes the $17 PP HG

Discount)

NUMBER OF TRAVELERS

TOTAL BUDGET

Cancun Paradisus $2,566.78 726 $1,863,482

Maui Hyatt $3,593.50 690 $2,479,515

Red Rock $1,358.73 700 $951,111



2116 ($35,972.00)

REBATE @ 1% ($52,941.08)

2009

Sample Scenarios 2007



2008

2009

2008 2009 RESORTTOTAL PER

PERSON (Includes the $17 PP HG

Discount)

NUMBER OF TRAVELERS

TOTAL BUDGET

Cancun Paradisus $2,572.86 690 $1,775,273

Maui Hyatt $3,728.37 726 $2,706,796

Bellagio (sample) $1,639.00 700 $1,147,300



2116 ($35,972.00)

REBATE @ 1% ($56,393.69)

2007 = $92,530 in Value/Savings2008 = $88,913 in Value/Savings2009 = $92,365 in Value/Savings

$273,808 in Total Value/Savings over 3 years!!


Value Proposition-Awards

Things to consider—Awards ProgramOption 1:Should AMI transition to HG Worldwide any of the 2007 Group Travel Programs HG Worldwide will waive the Year 1 startup “one time” costs:

Systems and Web: $10,000($20,000 - $30,000 value)

– Systems development/testing– Web customization/graphic design/development

Awardzilla: Systems and Web: $ 3,000

– Systems development/testing– Web customization/graphic design/development

Total Savings $13,000

Value Proposition-AwardsThings to consider—Awards ProgramOption 2:Should AMI award HG Worldwide the 2008-2009 Group Travel Programs, HG Worldwide will reduce the Year 1 startup “one time” costs by 50%:Systems and Web: ($20,000 - $30,000 value) $5,000

– Systems development/testing– Web customization/graphic design/

development

Awardzilla: Systems and Web: $1,500

– Systems development/testing– Web customization/graphic design/

developmentTotal Savings $6,500

Option 3:Should AMI award HG Worldwide the 2008-2009 Group Travel Programs and present or transition any new AMI opportunities in 2007 or reseller opportunities in 2007, we will consider further reducing Year 1 startup “one time” costs

Summary

Summary

• AMI will be a valued customer--one HG Worldwide’s top three clients

• HG Worldwide will support the program with a dedicated AMI Alside Rewards Team with program experience

• Evolutionary thinking…continually researching and evaluating the marketplace in search of technologies, award solutions and program operational efficiencies – Creative Award Solutions– Enhanced Award Solution– Improved Award value for AMI and its Customers

Summary • HG Worldwide is committed to helping you by…• Providing a Relationship Manager who

understands Alside’s:– Management Team– Company Culture– Customers– “Operational Style”

• Empowering the support team to manage to the client’s needs

• Enhancing the technology that supports the group travel events

• Providing better value while offering high levels of client support

• Deliver a group travel experience that meets and exceeds your customer’s expectations

• Improve your business results

welcome alside rewards program management and rewards solutions presented by: july 20 th, 2006

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