Innovation Case Study: Vicinity by Rogers Communications. Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.

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1 Innovation Case Study: Vicinity by Rogers Communications 1 Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc.

2 Innovation Service Provider "Vicinity" is a new loyalty and automation platform for SMEs launched by Rogers Communications in Canada. It is a turnkey loyalty program that enables SMEs to easily and cost-effectively recognize, communicate with and reward their consumers and grow their business. Using Vicinity, SMEs can give consumers access to a single loyalty card that can be used to redeem offers and collect rewards across the entire network of participating small business locations. Consumers can track their points through their online rewards profile or on the Vicinity mobile app available on Android and iphone smartphones. SMEs pay a low monthly fee (approximately $3 or less per day) to use the service. Success Matrix In 2014, Vicinity has been voted (by consumers) as the Product of the Year, Canada in Rewards/ Financial Services Programs category. Vicinity is still in its early stages; as of April 2014, around 550 local businesses in 74 cities across Canada have adopted Vicinity. 2

3 Differentiation A single card for a wide range of merchants. Easy to implement and customizable loyalty program. Integrates into most existing point-of-sales systems. Convenient registration process that only requires consumer s phone number. Reward points can be recorded without the card through the consumer s phone number. Integration with Facebook - automatic check-in every time Vicinity card is used by a consumer. Value Generation According to Aimia s (a global leader in loyalty management) 2011 survey, more than 80% of Canadian s are savvy about reward programs and demanding. Maritz Canada revealed that on an average Canadian consumers hold 6.4 loyalty cards and 92% of consumers belong to at least one loyalty program. It is therefore important for SMEs to have a loyalty program in place to attract and retain consumers and grow business. The value generation for Vicinity lies in helping SMEs boost traffic and consumer engagement with their own customizable loyalty program. It also rewards consumers for shopping locally without forcing them to carry a wallet full of loyalty cards. 3

4 Technical Overview Vicinity enables SMEs to build a customized loyalty program that is optimized for their business. SMEs have the freedom to customise a reward structure that make more sense to their business. The platform allows SMEs to build cloud-based consumer databases, and generate automated targeted offers and consumer communications. It also allows SMEs to access professional reporting tools and dashboards to track offers, points and return on investment. It allows SMEs to measure their customers purchase behaviour and identify their most loyal consumers at the cash register. Consumers can register for a Vicinity rewards loyalty card at any participating local business and search for nearby businesses, and track their rewards through their online account or by downloading the mobile app (available for Android and ios). Vicinity also provides automatic social media integration that connects Vicinity card to consumer s Facebook account (at consumer s prior discretion for bonus points); this means that every time consumers use their Vicinity card at any business it drives an automatic check-in in their (consumer) Facebook page, helping to drive more likes, posts, sales and referrals. 4

5 Innovation: Uniqueness and Significance Consumer loyalty program is an evolving market place. Vicinity is unique in the sense that it specifically addresses the need of the SME segment. It can also can be integrated with most existing point-of-sales systems and a single loyalty card can be used to a wide range of businesses across the country. Uniqueness Reasonable mass market significance as this is a growth initiative by Rogers Communications to tap into SME opportunities in Canadian market. Vicinity provides a cost-effective and easy-to-manage loyalty platform that is of demand in Canadian SME market place (around 1.2 million SMEs). It is still in its early stage but SMEs are showing strong intent to use the service and there is significant potential for more growth. Significance 5

6 Service Provider Rogers is a diversified public Canadian communications and media company with a customer base of 9.4 million. They are Canada's largest provider of wireless voice and data communications services and one of Canada's leading providers of cable television (2.11 million subscribers), high speed internet (1.98 million subscribers) and telephony services (1.16 million subscribers). Through Rogers Media they are engaged in radio and television broadcasting, televised shopping, magazines and trade publications, and sports entertainment. (All subscriber numbers are as of 31 March 2014). Partners The platform was developed by American company FiveStars, with whom Rogers has an exclusive agreement which allows Rogers to use FiveStars technology under the Rogers banner branded as Vicinity for Canadian SMEs. FiveStars provides the most widely used loyalty automation platform for SMEs, making it easy for them to acquire, retain, and grow consumer relationships. FiveStars loyalty automation platform can integrate with most existing merchant Point-of-Sale (POS) systems, enabling businesses to improve their consumer service and automatically reward and engage consumers after the sale based on their spend. FiveStars also gives consumers the freedom of a single card to earn store-specific rewards across thousands of businesses. 6

7 Further Information 7

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