This document discusses challenges facing retailers and how a stored value solution from Ceridian can help address them. It outlines increasing operating costs, a lack of measurable marketing tools, and decreasing customer loyalty as common retailer challenges. Ceridian's solution leverages prepaid cards to boost sales, enable accurate targeted marketing, and improve the payment experience. Case studies show the solution increasing sales by over $30 million for one retailer and driving over 30,000 return visits for another. Ceridian has over 20 years of experience in prepaid solutions, serving over 650 clients across 45 countries.

1. CERIDIAN STORED VALUE SOLUTION
Intelligent Retail Business
Tranformation
Kelvin Tai
In the world of Supply > Demand, how Retailer can drive the customer behavior

2. Chapter 1 - Mission Statement
Enable Retail Business
Transformation

3. “For Retailer Branding，product selling is equally importance with customer
shopping experience. Retailer needs to interact with their customer
intelligently and better shopping experience”
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4. Chapter 2
Today Retailer Challenges

5. Today
Section 1
Today Retailer Challenges - SUMMARY
1. Increasing Operating Cost in China
2. Lack of Measurable Marketing Tools
3. Lack of cost effective tools to increase Actual Spending
4. Decrease of Customer Loyalty to the Brand
P.S. Different Retailer would face different challenges,
I am here to list out the common challenges
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6. Interactive 2.1
Today
Operation Cost
Increase
- Stock Turnover Challenge
“Increased Competition & Economic slow down caused the
inventory pilling up”
Case Study
1 2
5

7. Interactive 2.2
Lack of Measurable Tools
Today - Unknown ROI of Marketing Campaign
“Lack of data available, It is more like relying on intuition feeling when
doing budget and plan”
Marketing Resource
Misallocation
1 2
6

8. Interactive 2.3 Interactive 2.4
Low Response rate for
Voucher
Need to Attract
Customer Traffic
Customer Revisit
Proactive Targeting
1 2 1 2
Today - Myth of drive store traffic & conversion rate & Basket Value
“ Litte empirical evidence exists on the impact of traffic on store performance and the increase of basket”.
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9. Interactive 2.5
Next Generation
Today - Myth of winning customer love
Many Retailer find their own loyalty card but
1. Hard to tell how success because lack of data tracking
and analysis
2. Simply giving rewarding points or couponing
80/20 Rules still prevail “ Without the business intelligent, you cannot shoot the
Cupid’s arrow right to the customer heart.”
1 2
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10. CREDIT CARD IS A POWERFUL TOOL
Section 2
1. Branding & Loyalty
Every Bank will issue their Credit Card
Lesson from Retail Banking 2. Profitable Product
3. Cost Effective
Cross Selling tool
Retailer might think :
We are not the bank, we
sell the product
What does this
mean to me? We
are not the bank
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11. With Prepaid Card, Retailer can do almost the same as what Retail Bank do...
Retail Gift Card Promotional Card Loyalty Card
Eye ball catching card design with Brand logo Promotional Card vs Coupon the response rate Loyalty Card is the powerful cross sale tool
attract the people to buy as gift to others is exceptional higher with business intelligence
Why Retailers are leveraging the Prepaid Card Solution to empower
Proactive and Accurate marketing with business intelligence
Measurable ROI to maximize the limited marketing budget
Lever to increase in sale and basket value
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12. Retailer Future
Not Just ERP or other
“ The financial performance of a retailer relates to its ability to
attract traffic into its stores and convert the incoming traffic into
sales profitably.”
No Customer = No Business
Interaction with you customer is the Key

13. Section 1
Chinese Customer Some Statistic from BCG report:
1. The no of Middle Income level customer in China will grow
from 50,000,000 to 140,000,000 in 2020 but will more geo-
graphically scattered.
2. 80/90 generation are the golden group, which have the great-
est potential to spend more
3. In Major City, Female shows a strong growth on spending and
Lorem Ipsum dolor amet, consectetur
expect to weight over Male in future; In Minor City, Male may
still slightly over Female in Spending
4. Retailers need to have wider city/province coverage in 2020
but their preference and needs are widely different
2011 Q4 AC Nelson reported the index of consumer sentiment in China
is rising to 108 points, 19 points higher than other countries
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14. Image 3.1 Image 3.2
In the 40/50’s, the chinese people need to fight for buying goods but it is Nowadays, Chinese people have too many choice to choose from
no long existed nowadays
What do these meant to Retailer?
• Leverage technology to understand • Improve the payment and shopping • Multi-Channel Sales and Marketing
your customer needs and proactive experience to let your customer having unity
marketing with business intelligent experience
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15. Section 2
Learnt from Retail Banking
Retailer Future Please refer to Chapter 2, Section 2
= Info Science? “ Retailer should treat their own ‘Merchant Label Card’ as one of
their core business strategy.
Image 3.3 Merchant Label Card
Different type of Prepaid card have their own purpose, but ultimately, it
is to increase the profitability.
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16. Value Proposition:
Case Study - One of the famous Fashion & Apparels retailers
• Being the Lever to
“Lift” of incremental
Gift Card is a over RMB$1,000,000,000 business
sales
• Merchant “Cash $150,000,000
Machine”
• Sales Data Tracking $100,000,000
Interactive 3.1 Lift is the lever of boosting sales $50,000,000
2009 $0
2010
Germany US
Interactive 3.2 Cash is King
Cash is King
Basket Value
LIFT AMOUNT
Interest Income
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17. Value Proposition Case Study : - One of the famous Fashion & Apparels retailers
Image 3.4 Promotion Card drive exceptional sales performance
• Proven tool for store over coupon
traffic driver and sale
conversion
• Being the Lever to
“Lift” of incremental
sales
Interactive 3.3 Driver for Grand Opening
Interactive 3.4 Driver for New Product Launch
Driver for Store Traffic
Driver for New Product
Sales
LIFT is exceptional
Exceptional Store Traffic
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18. Value
Proposition Case Study - One of Specialty Retail (e-card only)
• Enable Accurate
Target marketing Client Result
• Drive for
customer behavior
Redemption Rate 30%
• Better payment LIFT Ratio 642%
experience
Increase in Sales US$30,000,000
No of Return Visit > 30,000
Interactive 3.5 Drive for sales by proactively demand creation Interactive 3.6 Data Mining of Customer Behavior
Return Visit
Drive Customer
Behavior
Proactive Target Analysis of Customer
Marketing
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19. Chapter 4
About Ceridian Stored Value Solution

20. 20+ experience in Prepaid Solution
Section 1
World Leading Prepaid
Solution
“ We are a World Leading Prepaid solution
service company, serving different customers in
different retail industry all over the world”
ACHIEVEMENT SUMMARY
1. Global Provider: 650+ clients across 45 countries
2. 550 MM+ card production ; 1.2 Billion transaction processed
3. More Top 100 retailers than anyone else
Ceridian SVS has been the pioneer since
1992 in providing prepaid solution service
for 650+ customer worldwide in which 6 of
top 10 retailers in USA
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21. Image 4.1 SVS clients are all over the world and in different retail industry
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22. About Arthor : Kelvin Tai
“ Seasoned IT/Business consultant on Financial and Retail industry, specializing on payment solution”
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