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Vince TimpanoPresident and Chief Executive Officer, Canada
FULL SUITE OPPORTUNITY
LEVERAGING A STRONG FOUNDATION TO ACTIVELY BUILD OUR FULL-SUITE OF PRODUCTS & SERVICES
• 4.6M members• >75 partners,150 brands• 5,000 retail locations• 1.5M travel redemptions
• 1 grocery anchor client
• 10 CPGs signed
• >65 clients• 23 programs• > 14M members
LOYALTYANALYTICS
Collects, analyzes and derives actionable insight from customer
data to deliver measurable marketing
ROI for our clients and partners
COALITION LOYALTY
Manages Canada’s flagship premium
multi-partner loyalty program
PROPRIETARYLOYALTY
Designs, builds and manages customer and
employee loyalty programs for
individual clients
Intelligent Shopper Solutions
Canada Overview (FY 2011)
Total Gross Billings $1.3B
AEBITDA $373M
Margin 1 29%
Employees 1,895
1 AEBITDA / Total Gross Billings
419
+20%
2011
604
2010
498
2009
277
+16%
2011
373
2010
338
2009
1,047
2010
1,249 1,299
2009
+11%
2011
DELIVERING SUSTAINED HEALTHYFINANCIAL PERFORMANCE
Gross Billings (Millions)
AEBITDA (Millions)
Gross Margin 1 (Millions)Consistent delivery of leveraged growth
Healthy and growing margins
Driving productivity to enable investment
Important contributor to Aimia globally
1 Before depreciation and amortization
Proprietary Loyalty
Aeroplan
A STRONG HISTORY OF IMPORTANT INDUSTRY AND COMMUNITY RECOGNITION AND SUPPORT
Commercial CommunityEmployees
Best Airline Credit Card (2009,2010,2011,2012)
Airline Program of the Year (2010, 2011)Best Airline Promotion for Earning (2010, 2011)Best Airline Redemption Ability (2010, 2011)Best Customer Service (2011)
4 years running
BUILDING ON RECENT ACCOMPLISHMENTS AND CONTINUING TO INVEST FOR FUTURE GROWTH
2010 2011 2012
Distinctive Capabilities
• Innovation• Business Intelligence
• Data & Analytics
Proprietary Rewards PlatformsSignificant savings in productivity
New Aeroplan brand launch supported by 25% increase in
marketing
Enhanced Flight Search Tool
Air redemption volumes up 12%
Investments in new ventures Digital enhancementsLaunch of Destination Miles
3.01.3
1.8
WHILE LOYALTY IS WELL DEVELOPED IN CANADA, SIGNIFICANT POTENTIAL FOR GROWTH REMAINS
World’s most sophisticated and developedloyalty market
Consumers- 9 / 10 Canadians belong to at least
1 loyalty program- 6.5 programs per household- Over 90 million loyalty program memberships
Business- Domestic and global loyalty services leaders- Emerging and new payment technologies / players
Market Characteristics Growth Potential ($Billions)
$6B
Significant further growth available in Canadian Market• Deeper loyalty penetration of consumer spending• Evolution of loyalty value chain brings new opportunity
Current Aimia
PenetrationMarket
Opportunity
Other
Loyalty currently capturing only 50% of total household expenditures
Source: PMB, Aimia proprietary research
3.01.8
1.3
WE SEE SIGNIFICANT ROOM TO GROW BEYONDOUR CURRENT FOOTPRINT
800
650600
400
300250
Telco and Media
CPGRetailGrocery and Pharmacy
Financial Institutions
Other
Deeper Penetration of existing clients / partnersDeeper Penetration of existing clients / partners
New clients in already active sectors / verticalsNew clients in already active sectors / verticals
Underpenetrated and / or new sectorsUnderpenetrated and / or new sectors
Sources of Growth Addressable loyalty market size by 2015 ($ Millions)
$3B
THE TRADITIONAL LOYALTY VALUE CHAIN ISBEING TRANSFORMED, CREATING OPPORTUNITIES
Who I talk to
What I do What I aspire to
What I’ll do next
WHAT I BUY
What I think
Where I am
What I’m interested in
What I watch
SEARCH
QUOTE
REVIEW
RECOMMEND
MOBILE DEVICE & PAYMENTS
SOCIAL NETWORKS
ALWAYS ‘‘‘‘ON’’’’CONSUMERS
EVERYCONSUMER ACTION CREATES DATA
What I read
Bas
ic
WE ARE UNIQUELY POSITIONED TO TAKE ADVANTAGE OF THESE NEW OPPORTUNITIES
Customer Loyalty Needs are becoming more sophisticated
Deliver customer value to fuel increased sales
Optimize contribution of core customer segments, with focus on key profitability drivers
Optimize marketing ROI, and commercializeloyalty investment
Com
plex LOYALTY
ANALYTICS
COALITION LOYALTY
PROPRIETARYLOYALTY
Our expanding portfolio of businesses covers the entire loyalty spectrum
Intelligent Shopper Solutions
LOOKING FORWARD: OUR VISION AND OBJECTIVES
Canada's recognized
leader in loyalty
Strengthen and grow our core1
Accelerate the development of our full suite2
Build a world class operating system3
Drive Aimia brand awareness and reputation4
Create an inspiring and highly engaged work environ ment (best people, best culture)5
Vision Objectives
A FEW ADDITIONAL THOUGHTS
COMPETITION TRIBUNAL
RULING
KEY PARTNER
RENEWALS
2013 MILEAGE EXPIRY
Kevin O’BrienChief Commercial Officer, Aeroplan
STRENGTHEN ANDGROW OUR CORE
AEROPLAN: CANADA’S FLAGSHIP PREMIUM COALITION
Canada’s Most Affluent Member Base
4.6MActives
34M Canadians
Leveraging the power of our brand and member base on
behalf of our partners…
…with our members as our partners’ best customers
EXCLUSIVE
CO-EXISTENCE
CONVERSION
PROMOTIONAL & OTHER
Unique and Flexible set of Partnership Models
Strengthen and grow our core1
READY TO EMBARK ON THE NEXT ERA OF LEADERSHIP
Travel – World Class FFP
• Air Canada’s Frequent Flyer Program
Travel + Financial
• Added more than 60 travel partners
• Canada’s first mass market, travel-rewards financial card –CIBC Aerogold Visa
Travel + Financial + Retail
• Expanded the financial offering with American Express
• Established a foundation in everyday retail
• Extend partner relationships grounded in data and value
• Innovate to address evolving competitive landscape and consumer expectations
• Address key program priorities:
- Burn : Earn
- Renewals of key partners
- Competition tribunal ruling
19841990’s
2004 +
Looking Forward
Strengthen and grow our core1
UNIQUELY POSITIONNED FOR PREMIUM MARKET OWNERSHIP
Strong Premium Loyalty Brand
Most Attractive Membership
Base
Premium Consumer Data Asset & Insight
Industry Leading Travel Rewards
Powerful Partner Network
World Class Marketing
Capabilities
A position of strength Based on, and building from, six value levers
• $1.1B1 and growing top-line
• Strong bottom line delivering leveraged growth
• Supporting core partner market leadership
1 FY 2011
Strengthen and grow our core1
OUR MEMBERSHIP BASE IS THE MOST AFFLUENT IN CANADA, AND STILL GROWING
Premium Consumers
30%
50%
70%
Passionate and Engaged Driving Spend and Profit
88% of our most premium cardholders prefer to collect Aeroplan miles over any other program’s currency
85% of our most premium cardholders collect more miles with Aeroplan than in any other program
81% of our most premium cardholders engage with Aeroplan communications at least once a month
Strong Premium
Loyalty BrandMost Attractive Membership
Base
Premium Consumer
Data Asset & Insight
Industry Leading Travel
Rewards
Powerful Partner Network
World Class Marketing
Capabilities
Canadian Population
Aeroplan
1.0
1.5
Source: Aimia proprietary research
Strengthen and grow our core1
LEVERAGING DEEP INSIGHT INTO PREMIUM CANADIAN CONSUMERS
Premium Canadian consumers are motivated by seven drivers of satisfaction
Availability
Flexibility
Value
Simplicity
Exclusivity/VIP privileges
Engagement
Customization
Next Generation Aeroplan
• Build on the outstanding value of ourtravel rewards product
• Deliver an unparalleled member experience, with a focus on next generation loyalty and the member journey
• Build out the premium coalition to provide additional relevant accumulation opportunities
Strong Premium
Loyalty BrandMost Attractive Membership
Base
Premium Consumer
Data Asset & Insight
Industry Leading Travel
Rewards
Powerful Partner Network
World Class Marketing
Capabilities
Competitive landscape is intense and reframed
customer expectations
Value
Sim
plic
ity /
Cer
tain
ty
Strengthen and grow our core1
WE CONTINUE TO INNOVATE THE MEMBER EXPERIENCE: DESTINATION MILES
A valuable and compelling offer
• One stop shop simplicity to complement air rewards redemptions
• Unrivalled accumulation opportunity for leisure travel bookings
• Multiple touch-point opportunities to drive member engagement
• Extends our data asset on premium Canadian consumers
• Broadens the trusted advisor / travel service provided by Aeroplan
• Leverages multiple direct channels to drive new sources of revenue by addressing member needs
Strong Premium
Loyalty BrandMost Attractive Membership
Base
Premium Consumer
Data Asset & Insight
Industry Leading Travel
Rewards
Powerful Partner Network
World Class Marketing
Capabilities
Strengthen and grow our core1
Source: Credit Suisse: Aeroplan Analysis
AeroplanRBC Avion
TD Plat Travel
BMOWorld Elite
RBCWestJet
1.5¢ 1.9¢ 1.5¢2.0¢
Cap OneWorld Elite
2.2¢
2.1 ¢ = at maximum ticket price1.4 ¢ = based on average fare
6.6¢
AmexGold
1.0¢1.0¢
2.1¢
1.4¢
Classic Flight Rewards ExecutiveClassic Flight Rewards Economy
Strong Premium
Loyalty BrandMost Attractive Membership
Base
Premium Consumer
Data Asset & Insight
Industry Leading Travel
Rewards
Powerful Partner Network
World Class Marketing
Capabilities
OUR AIR TRAVEL REWARDS VALUE IS UNPARALLED
• Industry leadership in rewards value; unrivalled in business class
• Classic Flight Rewards guarantee 8% of Air Canada capacity on every route
• Star Alliance provides access to 1,356airports through 27 member airlines globally
• 1.5 M Air redemptions in 2011 (+8% YOY), more than any other loyalty program in Canada
We have performed our own study using a proxy for C anadian travelers and taking into account fuel & other surcharges, wi th similar results
Strengthen and grow our core1
WE CONTINUE TO BUILD UPON OUTSTANDING VALUE OF OUR TRAVEL REWARDS PRODUCT
Enhanced Flight Shopping Tool Last Minute Travel
Address member appetite for certainty to complement our industry leading value
Next Area of Focus
186K Last Minute Travel redemptions in 2012506K Star Alliance redemptions in 2011
• +42% YOY growth
Strong Premium
Loyalty BrandMost Attractive Membership
Base
Premium Consumer
Data Asset & Insight
Industry Leading Travel
Rewards
Powerful Partner Network
World Class Marketing
Capabilities
Strengthen and grow our core1
WELCOME TO THE CLUB BRAND RESONATING WITH PREMIUM CANADIAN CONSUMERS
Strong Premium
Loyalty BrandMost Attractive Membership
Base
Premium Consumer
Data Asset & Insight
Industry Leading Travel
Rewards
Powerful Partner Network
World Class Marketing
Capabilities
Strengthen and grow our core1
DELIVERING PARTNER VALUE: ROI THROUGH DATA AND ANALYTICSDrive enhanced value delivery to move relationships along the Strategic Partnership Spectrum
Strong Premium
Loyalty BrandMost Attractive Membership
Base
Premium Consumer
Data Asset & Insight
Industry Leading Travel
Rewards
Powerful Partner Network
World Class Marketing
Capabilities
Strategically Integrated and Inter-
Dependent
Strengthen and grow our core1
Low
Low
High
HighData sharing & interdependency
Partner relationship & strategic collaboration
Transactional
Customer Strategy
Life Cycle ROI
Corporate Strategy
Loyalty Strategy
Targeting
DELIVERING PARTNER VALUE: DIRECT ENERGY CASE STUDY
Strong Premium
Loyalty BrandMost Attractive Membership
Base
Premium Consumer
Data Asset & Insight
Industry Leading Travel
Rewards
Powerful Partner Network
World Class Marketing
Capabilities
Global Aimia relationships and best practices
Deep customer insight to surgically target most receptive
customer segments
Supports Direct Energy’s Customer Strategy and drives
profitability
FROM TO
Acquisition
Up-sell
Retention
Cost-to-serve
Acquisition
Up-sell
Retention
Cost-to-serve
Strengthen and grow our core1
EXTENDING OUR PREMIUM COALITIONExpanded, Multi-Year Relationships
This image cann
ot
Strong Premium
Loyalty BrandMost Attractive Membership
Base
Premium Consumer
Data Asset & Insight
Industry Leading Travel
Rewards
Powerful Partner Network
World Class Marketing
Capabilities
Core Renewals
New Partners: Retail
New Partners: Manufacturers
Strengthen and grow our core1
Michael O’SullivanPresident, Proprietary Loyalty, Canada
ACCELERATE DEVELOPMENT OF OUR FULL SUITE
NEW LOYALTY REALITIES: CONSUMER PURCHASE BEHAVIOUR HAS CHANGED
Multiple Channels
Mobile Local Independent
Online
International Discount
App
Grocery/‘c’ stores
AllEvaluated
Concurrently
InfiniteInfluencers &
Triggers
Online App
News
Bloggers
Direct Mail
Personal social
networks
Infinite Product Options
Whole
Skim
Organic
Glass Bottles Chocolate
Soy
Accelerate development of our full suite2
PROPRIETARY LOYALTY: HELPING CLIENTS DRIVE ENGAGEMENT
Consumers Employees Channels
Enhancement Services
Consumer Loyalty Programs
Sales Incentives & Rewards
Employee Recognition
700+ employees
Working for 17 anchor clients,
Supporting 23 programs,
Serving over 14M members,
Generating $171M in Gross Billings
Accelerate development of our full suite2
End to end Consumer Loyalty Services - Analytics, Customer service, Web & IT Platforms and Rewards fulfillment (travel,
merchandise and gift cards)
EXAMPLES: CONSUMER LOYALTY & EMPLOYEE ENGAGEMENT PROGRAMS
BMO World Elite MasterCard Program BMO Bravo Employe e Reward and Recognition program
Employee Engagement program support -design, web/IT platform, communications, rewards fulfillment
Accelerate development of our full suite2
SIGNIFICANT GROWTH AVAILABLE BEYOND OUR CORE FINANCIAL INSTITUTIONS VERTICAL
90100180
350450
Telco & MediaCPGTravel and Hospitality
RetailFinancialInstitutions
Addressable Proprietary Loyalty Market by Vertical – 2015($ Millions)
60100
150150175225
300
CreativeCustomerExperience
StrategyContactCenter
AnalyticsMedia &Messaging
IT
Addressable Proprietary Loyalty Market Service – 2 015($ Millions)
Significant opportunity in the market in core verticals – Financial Institutions, Retail & Consumer Packaged Goods
Analytics, Strategy, Customer Experience & Digital are focus areas
$1.2B
Accelerate development of our full suite2
BUILD OUT FULL
PROPRIETARY OFFERING
1
SUPPORT AIMIA MARKET LEADERSHIP
5
INVEST IN ENHANCEMENT
SERVICES
4
EXPAND TO NEW
VERTICALS
3
MARKET LEADING
REWARDS PLATFORMS
2
POSITIONING FOR SUSTAINED PROFITABLE GROWTH
Strengthen Leadership in Core Financial Institutions Vertical
PrioritiesObjectives
Diversify Revenue Across New Verticals
Drive Growth Through Bringing Next Generation Loyalty Products To Market
Leverage Unique Capabilities For Aimia’s International Markets
Accelerate development of our full suite2
BUILD OUT FULL LOYALTY OFFERING
LOYALTYSTRAEGY
LOYALTYANALYTICS
LOYALTYSTRATEGY
LOYALTYANALYTICS
LOYALTYOPERATIONS
BUILD OUT FULL
PROPRIETARY OFFERING
SUPPORT AIMIA
MARKET LEADERSHIP
INVEST IN ENHANCEMENT
SERVICES
EXPAND TO NEW
VERTICALS
MARKET LEADING
REWARDS PLATFORMS
Accelerate development of our full suite2
Loyalty Strategy Blueprint
Customer Experience
DigitalLoyalty
LiabilityModeling &
Management
Reward & Partner Management
Engagement Revenue
(Cardlytics, Daily Deals, Affinity Malls)
Social Loyalty
BUILD OUT FULL LOYALTY OFFERING –DATA DRIVEN LOYALTY STRATEGY
+200
Leveraging Aimia’s Loyalty expertise, we are buildi ng a new business to drive data driven Loyalty Strategy Every
step of the purchase journey
BUILD OUT FULL
PROPRIETARY OFFERING
SUPPORT AIMIA
MARKET LEADERSHIP
INVEST IN ENHANCEMENT
SERVICES
MARKET LEADING
REWARDS PLATFORMS
EXPAND TO NEW
VERTICALS
Digital
Social
C-suiteCustomer Loyalty Strategy
Data
Emerging business models
Customer Experience
Accelerate development of our full suite2
MARKET LEADING REWARDS PLATFORMS
• Rewards platforms updates –heavy investments paying off
• New features showing 10+% increase in conversion
• 3 year roadmap will drive core rewards fulfillment growth
• Heavy emphasis on digital
Invest to strengthen leadership in Travel Merchandise and gift card rewards business
BUILD OUT FULL
PROPRIETARY OFFERING
SUPPORT AIMIA
MARKET LEADERSHIP
INVEST IN ENHANCEMENT
SERVICES
MARKET LEADING
REWARDS PLATFORMS
EXPAND TO NEW
VERTICALS
Accelerate development of our full suite2
EXPAND TO NEW VERTICALS –HUSKY ENERGY CASE STUDY
35
Husky’s StrategicLoyalty Needs
•Deeper relationships and brand differentiation
•Compelling relevant proposition, across all audiences
•Seamless cross-channel experience
•Ongoing strategic loyalty support
Aimia’s end to endvalue proposition
•Program strategy & design
•Loyalty analytics
•Program liability management
•Multi channel communications
•Rewards fulfilment
Monetize Deliver
Measure & Analyze
Optimize
Early Results
11,000 Registered Membersper week
77% Greater Fuel Volumes
15% Greater Ancillary Sales
4.2 transactions per month
BUILD OUT FULL
PROPRIETARY OFFERING
SUPPORT AIMIA
MARKET LEADERSHIP
INVEST IN ENHANCEMENT
SERVICES
MARKET LEADING
REWARDS PLATFORMS
EXPAND TO NEW
VERTICALS
Accelerate development of our full suite2
INVEST IN ENHANCEMENT SERVICES
Strengthen leadership position in Canada through continued product innovation
Export ES to Aimia’s coalition programsaround the globe
Export credit card model to new growth / developing markets:
• Adopting an incubator approach to enter selected countries in APAC where Aimia has a footprint
• LOI signed with Thanachart Bank, Thailand to launch 3 Enhancement Services products
BUILD OUT FULL
PROPRIETARY OFFERING
SUPPORT AIMIA
MARKET LEADERSHIP
INVEST IN ENHANCEMENT
SERVICES
MARKET LEADING
REWARDS PLATFORMS
EXPAND TO NEW
VERTICALS
Accelerate development of our full suite2
SUPPORT AIMIA MARKET LEADERSHIP
Supporting Aimia’s market leadership in Canada
• Driven several millions in synergies over past 12 months
• Non Air rewards procurement
• Launch of Destination miles
• New e-catalogue in 2012 – cash + points, tickets, e-vouchers, m-certs
• Aeroplan Enhancement services trial
BUILD OUT FULL
PROPRIETARY OFFERING
SUPPORT AIMIA
MARKET LEADERSHIP
INVEST IN ENHANCEMENT
SERVICES
MARKET LEADING
REWARDS PLATFORMS
EXPAND TO NEW
VERTICALS
Accelerate development of our full suite2
Skills / Capabilities
BUILD A WORLD CLASS OPERATING SYSTEMInnovation Product Development
Productivity
LOYALTYSTRAEGY
LOYALTYANALYTICS
LOYALTYANALYTICS
LOYALTY STRATEGY
LOYALTY OPERATIONS
Grassroots Aimia Process & Culture
• Regional shared services model• Next wave of synergies e.g.
processes and systems
• Data and analytics• Strategy & account management• Business intelligence
Build a world class operating system3
MAXIMISING THE ‘FULL SUITE’OPPORTUNITY IN CANADA
One Successful
Team
Where we started Where we are today
LOYALTYANALYTICS
COALITION LOYALTY
PROPRIETARYLOYALTY
IntelligentShopperSolutions
Where we are going
LOYALTYANALYTICS
COALITION LOYALTY
PROPRIETARYLOYALTY
New ventures
New Models
IntelligentShopperSolutions
THANK YOU