Retail CRM Email Solution Overview

1. Retail CRM Email Solution Overview 2013

2. Impact of Email on Today’s Marketplace • 2012 NRF/KPMG Retail Horizons Benchmark Report found retailer’s online channels eclipsed physical stores as the top channel for marketers • 85% of retail executives say they will invest in programs that increase online sales. • “Compared to the past few years, retailers have turned their attention to growth acceleration with an emphasis on improved customer engagement strategies and tactics”, said Mark Larson, KPMG’s global head of retail. • MarketingSherpa’s2012 Benchmark Report found 85% of all CMO’s listed the use of email marketing to increase sales as the primary focus in 2012. Top initiatives listed by CMO’s include: • Driving website traffic • Increasing lead generation • Improving customer retention • Studies demonstrate loyalty program members that are opted-in to receive email communication are more profitable than those that have not opted-in. • Email is the backbone of the marketing to sales funnel for most brands.

3. Reliance Upon Email Is Not Without Issues • Companies have high percentages of their loyalty program that have not opted-in to receive email communication. In some cases, as high as 60%. • Companies have a large number of opt-in customers that stopped engaging with the emails sent to them, which drag engagement metrics and adversely impact deliverability. Net result is removal from sending cadence. • In our experience, loyalty programs cannot be emailed for four primary reasons that break-out as follows: • Opt-out: 15% • No customer engagement with email in past year: 30 - 40% • Data related issues such as hard bounces or split records made email addresses unverifiable or un-deployable : 30% • No email address: 15 - 25% • ESP’s are no longer willing to deploy appended email unless it comes through an opt-in path, which is not economically feasible in most cases. • MarketingSherpa2012 Benchmark Report found 64% of CMO’s stated they had a great need to grow/retain subscribers and 71% pegged this as their top objectives for the year.

4. How We Help Address This Issue • Our platform provides the capabilities/experience needed to address the issue: • Large, opt-in email file for communication with records that match customer files • Substantial commercial email deployment capability • Ability to establish dedicated sending infrastructure per client/brand to protect their CRM domain score and sending reputation • Strict adherence to email marketing best practices • Secure data management environment • Ability to integrate with campaign management and web analytics packages for comprehensive data capture and exchange • Provide flexible usage options including: • Re-activation campaigns to re-engage customers, or specific segments, who cannot be emailed at present • Trigger based re-targeting campaigns to customers we mail to that initiate and abandon shopping cart sessions • Adhoc email campaigns according to client’s marketing calendar • License of all match records for specified use or unlimited use (up to 1x per week)

5. Our Process • Data Matching • Data append/reverse append to expand marketable customer universe • Email Verification and Hygiene • Dedicated infrastructure set-up • System interoperability/integration (Campaign management, web analytics) • Enhance client file with relevant attributes to improve analytical impact of data and understanding of the customer beyond myopic internal view • Creative best practice guidance • Email deliverability testing • Data exchange for suppression • Campaign testing • Deployment • Reporting • Analysis

6. Sectors • Collections • Gaming • Retail • Travel & Hospitality

7. Results The outcome of our fully transparent process has been the successful attainment of the key performance indicators used by clients: • Substantial growth in customer base available for email communication • Reactivation of un-engaged customers has exceeded expectations • Revenue per email (RPE) has been cost neutral to positive for most campaigns • Strong ROI performance: 390% - 1400%