THETHEPREFERREDPREFERREDCUSTOMER CUSTOMER PROGRAMPROGRAM

What is it?

• Market America’s Preferred Customer Program (PCP) is our principal One-to-One (1:1) Marketing vehicle.

• Our strategy for its implementation will revolve around three (3) simple core principles.

THREE CORE THREE CORE PRINCIPLESPRINCIPLES

THREE CORE THREE CORE PRINCIPLESPRINCIPLES

1.Selling more products to fewer people is more efficient and more profitable than the time-honored mass marketing rules of pitching products to the greatest number of people.

2.Concentrating on building unique relationships with individual customers on a One-to-One basis.

3.Establishing, sustaining, and maintaining dialogue and obtaining feedback with and from these customers.

• Principle #1: Selling more products to fewer people is easier

Within the Product Line

Within the Store Within the Mall

• Customer of Customer

THREE CORE THREE CORE PRINCIPLESPRINCIPLES

• Principle #2: Building unique relationships with these customers

Demonstrate an active interest in customers as individuals

Communicate on a periodic and frequent basis – Not Just The Sale

Utilize mail, faxes, telephone, voicemail, email, e-flyers, electronic alerts, and website

THREE CORE THREE CORE PRINCIPLESPRINCIPLES

• Principle #3: Sustain dialogue and obtain feedback

What do your customers really want?

What does this individual customer really want?

What would they purchase from you, if you had it?

THREE CORE THREE CORE PRINCIPLESPRINCIPLES

Goals and ObjectivesGoals and Objectives• Survey, collect, warehouse,

mine, and analyze information to identify products goods and services Preferred Customers would purchase, if it were made available!

• Find those products, goods, and services and bring them to the customer…instead of the customer to the product!

Who Are Preferred Who Are Preferred Customers?Customers?

• Preferred Customers are people who purchase and consume/use Market America products, goods, and services on a regular basis!

You Your Customers

• Qualified Preferred Customers

Initially: Minimum of two separate orders in a quarter

Subsequently: Multiple orders or an order of multiple products quarterly

Where Are We?Where Are We?• Developed and programmed a

Preferred Customer management software package

www.unfranchise.com, and/or

Distributor’s Market America Custom Website

• It is your Customer Relations Management Tool

Where Are We? Where Are We? (Cont’d)(Cont’d)

• Developed Emerald Award Certificate (EAC) Program

• Developed Loyalty Rewards Program

• Enhanced our Preferred Customer Program Registration Brochure

• Enhanced our Preferred Customer Program software applications

Where Are We? Where Are We? (Cont’d)(Cont’d)

• Emerald Awards Certificate Program (EAC)

Upgrades Preferred Customer to Emerald Status

10% discount on all purchases for one year

Provides added benefits in the Loyalty Rewards Program

Costs $50 and creates 50 BV

Where Are We? Where Are We? (Cont’d)(Cont’d)

• Loyalty Rewards Program

Preferred Customers can win fabulous gifts

Incentives for feedback and continued patronage

Where Are We? Where Are We? (Cont’d)(Cont’d)

• Loyalty Rewards Program IncentivesQualified PCs:

(5% discount; 1 entry/survey; 0 entry/order)

Ruby PCs: (10% discount; 2 entries/survey; 0 entry/order)

Emerald PCs: (10% discount; 3 entries/survey; 1 entry/order)

Diamond PCs:(15% discount; 4 entries/survey; 2 entry/order)

Where Are We? Where Are We? (Cont’d)(Cont’d)

• Preferred Customer Program Brochure Enhancements

Revised to reflect current processes Added on-line registration instructions for Customer Managers

• How to use…

• Support Materials Transfer Buy Form (monthly, every other month, quarterly)

Market America Direct Catalog Audio “A Message To Our Most Valued Customer”

Where Are We? Where Are We? (Cont’d)(Cont’d)

• Preferred Customer Program software applications enhancements include, but are not limited to:

PC Registration PC Information/Profile Update PC Registration and Subscriptions PC Achieved and Current Status PC Order/Survey Completion History

PC Personal Alert

Where Are We? Where Are We? (Cont’d)(Cont’d)

• HELP MENUS have been developed to assist in screen navigation and completing whatever task currently available.

• HELP MENUS will be integrated and ready for use – SOON!

• One more item… before I share with you Where We Are Going!

Where We Are Going!Where We Are Going!• Providing standard Preferred

Customer data reports for Customer Managers

• Providing tools and methods to Customer Managers for dialogue and feedback

• Developing a Preferred Customer Training Module for integration into our NMTSS

Where We Are Going! Where We Are Going! (Cont’d)(Cont’d)

• 1 to 1 Marketing from concept and vision

TO REALITY!

• But…You have got to BELIEVE IT…BEFORE YOU WILL EVER SEE IT!

THETHEPREFERREDPREFERREDCUSTOMER CUSTOMER PROGRAMPROGRAM

“Tying It All Together”

Increasing the Share of Customer

New tools for building relationships and increasing the quantity of products existing Customers are purchasing from you.

– Personal Alerts

– Preferred Customer Reports

– Surveys and Analysis

THE NEW “ALERTS”

Examples of Personal Alerts

• Follow up on new PC purchases– 1st day, 3rd day, 7th day system

• Product trial packets given to Customers

• Birthdays and Anniversaries

• New product releases

Personal Alerts

Click the “Alerts” Icon

•Click on “Add Alert” to create a new Personal Alert

Personal Alert Maintenance Screen

Create Personal Alert and Save

Alert Confirmation

New Personal Alert

Preferred Customer Reports

1. Contact List2. PC Registration Source3. Sales By Customer4. Sales By Product

Four new reports to help you measure, monitor, track, trend and manage your Customer base:

Contact List

PC Registration Source

PC Registration Source (Text)

Sales By Customer

Report Features:• Search By Time

•Sort by Column Headings

Sales By Product

Survey and Analysis

•Obtaining Feedback

• Identifying What the Customer Wants

•Supplying vs. selling your Customers

PetHealthPetHealth™ ™ OPC-3OPC-3

Pet Product Pet Product SurveySurvey• Over 37,000 responses from

both Distributors and Preferred Customers

• Produced the new PetHealth™ OPC-3

• 48% (17,760) of the respondents had either a dog, cat, or both

• Top preferences were:– Beef flavor for Dogs– Smoked Fish flavor for Cats

• 17,760 x 11 BV = 195,360 BV per month

How Does Text Survey and Analysis Work?

• Evaluates Responses in Text Format

• Processes Word Counts– Frequency of Words– Correlation of Word Groups

• Resulting in the Identification of New Products

Text AnalysisText Analysis

Market Basket AnalysisMarket Basket Analysis

• The purpose of Market Basket Analysis is to determine what products Customers purchase together.

• It identifies new product combinations that can be offered to Preferred Customers.

Market Basket AnalysisMarket Basket Analysis

Groups of productssold together well

Groups of productssold together well

Directed Association Rules

Directed Association Rules

Where do we plan to use Text Where do we plan to use Text and Market Basket Analysis?and Market Basket Analysis?

• Electronic surveys issued through:– Emails– Links on your Web Portal– Unfranchise.com– Link on Preferred Customer Mini CDs– Anywhere a PC may log onto in the

future

• From our existing Market America database

Resulting in New Product Identification and Suggesting

Additional Products for Purchase

How does this benefit you as How does this benefit you as a Distributor?a Distributor?

• You will be able to supply new products that your Customers want because they asked for them!

• Increase the quantity of products each Customer is purchasing from you.

• Customer, Distributor, and Market America collaborate in building your Mall without Walls.

THEPREFERREDCUSTOMER PROGRAM

THEPREFERREDCUSTOMER PROGRAM

Building Relationships…One Customer at a Time