State of Mobile Loyalty

The State of Why mobile loyalty? For small businesses, it's all about finding and connecting with their next customer. MOBILE LOYALTY If this wasn't clear prior to the launch of Apple's Passbook, it cer- tainly is now. Consumers expect to be able to access information and make decisions on the go, and they want to be rewarded for their purchases. 2 billion In 2011, the number of loyalty memberships in the U.S. reached 2.1 billion, exceeding 2 73% billion for the first time ever – more than double the total from 973 million in 2000 ** 973 million Consumers who say they have used their mobile 2000 2011 phone while shopping* CardStar is a simple solution for managing digital versions of your loyalty cards. CardStar's network of more than 2.5 million users demon- strates current trends and momentum in the mobile loyalty industry as a whole. Users of CardStar's Mobile Loyalty Application 1234 5678 Every 8 seconds a loyalty/membership card is converted to a mobile device. Three out of four Americans are members of at least one retail loyalty card program.*** More than 2.5 million 10 million loyalty and membership from 205 countries around shoppers access o cards from CardStar on their the world. mobile devices • "Commerce is not just about payments. Commerce is a chain, from the very be- ginning of thinking about something you might want to buy to choosing a particu- lar brand, to deciding where to purchase it, to getting after care. It's a rich chain. And Apple's in a position to contribute to or influence it." -Charles Golvin, Principal Analyst at Forrester Research 1O$/t people who use apps in People who use apps in stores are signifi- stores and bought something cantly more likely to have made a purchase at a physical location **** than people who don't use apps in store. "Passbook might actually represent an opportunity for everybody else. Besides the gee-whiz factor of having scannable cards organized in a pretty interface within the iPhone, the most interesting thing about Passbook is that the digital cards are able to make use of the iPhone's geolocation capabilities." -Sarah Perez, TechCrunch Here is an industry breakdown of the percentages of loyalty cards in the CardStar Network. 1% 2% 2% 5% 10% SUN MON TUE WED THU FRI SAT 19% SUN MON TUE WED THU FRI SAT The average shopper uses a loyalty/membership 25% card once every 8 days. • Here is how often consumers use CardStar by industry. 30% "Passbook will be another addition to the merchant arsenal in leveling the play- ing field against national chains. Mobile loyalty and in-store mobile purchasing are forecasted to become primary facilitators of the optimal retail experience. As Passbook evolves and small businesses take advantage, this will no longer be a luxury that only large brands can afford." -Andy Miller, Director of Mobile Products at Constant Contact CardStar from Constant Contact CardStar is an amazingly simple solution for managing digital versions of your plastic loyalty cards,reward cards, and club membership cards, including numerous national and regional merchants. http://www.cardstar.com/ References / footnotes *"Mobile Phone Shopping Diaries May 2012" Interactive Advertising Bureau, May 2012 - http://www.iab.net/media/file/Mobile_Phone_Shopping Diaries_FINAL_100512.pdf **"The Billion Member March: The 2011 COLLOQUY Loyalty Census" by Kelly Hlavinka & Jim Sullivan, COLLOQUY, April 2011 - http://www.colloquy.com/files/2011-COLLOQUY-Census-Talk-White-Paper.pdf ****ACI Worldwide Study: More Than 2 In 5 Consumers Have Had A Negative Experience With A Loyalty Program" ACI Worldwide, March 2011 - http://www.retailsolutionsonline.com/doc.mvc/ACI-Worldwide-Study-More-Than-2-In-5-0001 **** "Why use mobile for retail loyalty programs?" Wave Collapse, 2012 - http://www.moodmedia.com/2012/06/19/why-use-mobile-for-retail-loyalty-programs/ S Gas/Convenience * Beverage Service S Healthcare A Gym 2 Library HE Entertainment XE Restaurant A Association Drug Store K Travel A Grocery Retail