Mobile Payment Ecosystem Views The Effective Use of Prepaid Wallet & Digital Discount Gifting in Card Loyalty Programs

Neissan Monadjem C.E.O. E-Safetransfer S.A

Population: 19 million 5,800 Pizzarias 2nd largest market worldwide, after New York Largest single outlet sales of 11,200 Pizza Hut restaurants

Loyalty Program in São Paulo:

Loyalty Program at Pizza Hut: Safe Loyalty: Loyalty Concept, System Management, Program Customization and Card Supply Pizza Hut (IRB/São Paulo): Campaign Strategy, Marketing, Card activation (Loyalty enrollment)

Program History at Pizza Hut: Concept: 2003 Phase I: 2006 Phase II: 2007 Phase III: 2014

Subject of this presentation: loyalty through digital gift and discount units

Loyalty Program at Pizza Hut: Phase I: prepaid+bonus: 2006 - 2007 Phase II: 1 free pizza +12 (1/week) 40% discount units Phase III: 1 free pizza +90 x 50% discount units

Only one in 12 clients is offered a card Enrollment cost: $ 22, so client must decide: Am I planning to return? Do I like it here? Is it worth it? 1/6 of invited become a loyalty “Clube” member

Loyalty in Casual Dining:

Loyalty Campaign Strategy:

System Management:

On-line & Off-line capture:

Program / client usage:

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Program / client redeeming:

Reload / Sales (2010/2012):

Sold & Reloaded

Sold

Loyalty / User Data:

Loyalty / Pizza-Hut 2014: Launch of a New “Gold” generation card

2012: 100,000 cards

Revenue Model:

Card Activation

Transaction Fee: $ 0,44 X 21 (3 reloads)

$ 1,70 A: B: Client, first time card load: $22,00

+D: $ 22,00 +C: $ 22,00

1,2,3,4,5,6, 7 1,2,3,4,5,6,7

1,2,3,4,5,6,7 returns per load

Future Steps:

Gift Card Internet sales:

Gift Card + Loyalty:

1st Cycle:

Gift Card

2nd Cycle: Loyalty

Sal

es I:

Inte

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etai

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Sal

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: in

franc

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1

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eloa

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Mobile 1 MOBILE 2

2014 A+B: C: 2016 / NFC Android

Franchise Point Equalization:

Loyalty Program Results: +100,000 clients enrolled exclusively at points of sale Most successful card based digital discount gifting in Brazil Average expense per visit in loyalty enrolled clients is 23% higher then regular customers Clube card holders generate 10% of revenue with only 3.5% of the transactions

Other Loyalty Programs:

1 Fast food 2 Fast casual 3 Casual dining 4 Fine dining

Thank you!

Neissan Monadjem

neissanm@esafetransfer.com