What is Paycloud?

1. Selling Loyalty, Gift Card & Reward Programs

2. What Are We Talking About Today? Gift Cards Loyalty / Rewards Programs Marketing Programs (Couponing & Mobile Marketing)

3. WHY WOULD A MERCHANT WANT A LOYALTY, REWARD OR GIFT CARD PROGRAM?

4. Compete With Big Box Retailers

5. Competitive Pressures

6. Keep Up With The Competition Kohl’s Cash Expiring future cash rewards based on current purchase amount Dunkin Donuts Buy 9 cups of coffee, get one free Best Buy RewardZone Earn points based on purchases toward gift certificates Famous Footwear Birthday coupons

7. How Does This Benefit The Merchant Increases Revenue Increases Retention Rate Easy To Use Cost Effective

8. Loyalty Statistics Increase same store sale – 4.5% Increase retention – 14% Increase average purchase and visits – 24%

9. Gift Card Statistics Average gift card load - $28.54 75% of gift card shoppers spend 60% more than the value of the gift card Breakage – 18%

10. Five most popular programs

11. Club Programs A lemonade stand offers 5 glasses of lemonade for a pre-purchase price of $2 versus individual glasses for 50 cents each (Savings of 50 cents)

12. Discount Program A promotion states if you spend $500 you get $150 off, $250 you get $75 off, and $100 get $25 off

13. Punch Card When you buy 10 ice cream cones at an ice cream parlor your 11th is free

14. Cash Back When you spend $75 you get $10 loaded back on your loyalty card

15. Custom Programs When you spend $100 on merchandise you receive a free karate lesson

16. Additional Features

18. Send broadcast message or single message at the point of sale

21. Cardholder Portal www.getyourbalance.com

22. Custom Artwork Before After

23. Small Business Sole proprietor

24. What’s On A Merchant’s Mind Growth! Keep current customers coming back Acquire new customers Persuade them to come back Persuade them to spend more Persuade them to be an advocate Costs! Limited time Limited expertise Limited money

25. Marketing Email Marketing (Constant Contact) $ 15/month Text Messaging (Street Savings) $ 40/month Coupon Circulars (¼ page ad) $300/month ValPak (10,000 homes) $350/mailing Postcard Mailing (1,000 pieces) $500/mailing Local Newspaper (¼ page ad) $200/week

26. Present Your Case – Loyalty Increase same store sale – 4.5%; If your business has an average annual revenue of $360,000, you should be able to increase sales by $16,200 Customers that carry a loyalty card will spend 24% more per visit i.e. if your average purchase per visit is $50 today, You should be able to increase this to $62 Most merchants use ValPak as a marketing vehicle - $350/mailing for 10,000 homes. With a 2% response rate = $1.75 per responding household; Using text message you should have a 95% read rate and >35% response rate = $0.29 per responding household

27. Present Your Case – Gift Card Average gift card load - $28.54 75% of gift card shoppers spend 60% more than the value of the gift card; Cardholders will spend 60% ($17.13) greater than the value on their gift card Breakage – 18%; Cardholders will not spend 18% ($5.14) of the value on their gift card

28. Increase Marketing Effectiveness Save time and money by consolidating email, text messaging and gift card programs Capture customer information at the point of sale to build a database Reward customers at point-of-sale rather than at another time, avoiding fulfillment costs Instantly trigger messages/offers to individuals based on activity Target selected customers rather than everyone