AIR MILES Reward Program

AIR MILES Reward Program

Quick Facts The AIR MILES Reward Program is a unique shopping rewards program that enables Canadians to earn AIR MILES reward miles by making everyday purchases at a variety of participating Sponsors. Over 10 million active AIR MILES Collector accounts, representing two-thirds of Canadian households Over 200 brand-name Sponsors at thousands of retail and service locations Over 1,200 Reward options from hundreds of Rewards Suppliers Over 34.0 billion AIR MILES reward miles issued to date (as at 12/31/08) Over 7.0 million AIR MILES reward redemptions to date There are 1,000 AIR MILES Cards swiped a minute every minute of every day, seven days a week!

Household Penetration More than 10 million active AIR MILES Collector accounts, representing two-thirds of Canadian households

Competitive Awareness (Top) Q1. Which one name comes to mind when you think of programs where you collect points or miles for purchases you make and the points can be redeemed for free rewards? (Share) Q1 + Q2. What other collection programs for free rewards can you name? What others? Scale: Open ended question (one answer accepted for Top of mind; multiple answers accepted for Share of mind) Base: random sample of 2,005 Canadian households

Proven Results: Long Term Sustainable Impact Immediate impact at launch, where spend per AIR MILES Collector is substantially more significant. Sustained increase in spend by AIR MILES Collectors over time, as demonstrated by the maintained gap in spend between the two groups, and the steady increase in average spend by Collectors.

Proven Results: AIR MILES Draws a Crowd A major city uses the AIR MILES Bonus Card to boost participation at an environmental event 35% increase in traffic YOY Attendance 168% above average Adding AIR MILES to the event sparked very positive response from participants and successfully drove increased participation. ~

Proven Results: AIR MILES is the Preferred Choice A Sponsor offered new customers a reward choice of: cash back, a gift certificate, or AIR MILES Not only was AIR MILES the preferred reward choice, but it also delivered stronger results at a lower cost. Source: AIR MILES Sponsor Data

AIR MILES Issuance Options AIR MILES Bonus Card Physical Card Generate Results Quickly & Easily New AIR MILES Bonus Cards are: Flexible you choose the denomination Customizable add your company logo and/or card holder Turnkey simply hand them out to your customers or employees, no IT programming or requirements necessary Easy customers go on line to deposit the reward miles into their accounts Simplify your incentive rewards - give your customers choice on what they want from the rewards catalogue QUICK FACTS: AIR MILES Bonus Card: Customizable options include branding, card carriers, card expiry date, active/ inactive cards, card denominations, card bundles Clients have control over their program, how you choose to reward your customers is entirely up to you.

Bonus Cards Bonus Card - AIR MILES Bonus Cards are pre-loaded with a denomination of AIR MILES. The two codes found on the back of the card are used to deposit the AIR MILES directly into the customers account. - This option is only available for the purchase of services, not on products. Carriers are also available: 70 word copy available on carrier Cards printed on recycled paper Ability to use the AIR MILES logo with approval Cost - Cost per mile $0.30 - $0.13 per card for production fees - Carrier $0.28 to $0.33 - Example: 20 AIR MILES = $6.13 50 AIR MILES = $15.13 Your logo here

Proven Results: Coalition Delivers ROI Market Leaders (#1 Share) Program ROI* West Non-Market Leaders (#2 or #3 Share) Program ROI* Ontario Coalition generates significant ROI for market leaders as well as non-leaders *Source: AIR MILES Database - arrangement of Sponsor logos does not coincide with order of ROI s

Coalition Partners Proven Results: Coalition Delivers ROI Lift in Spend of Existing Customers* Shift in New & Reactivated Customers* % of Affected Sales* Program ROI* Coalition generates significant ROI for High Frequency Retailers *Source: AIR MILES Database - arrangement of Sponsor logos does not coincide with order of ROI metrics Lift in Spend = % lift in monthly spend due to Coalition Shift in New & Reactivated = % of non-shoppers that begin to shop at partner due to coalition

Program Design Suggestion Customer Spend Mile Suggestion Cost per Reward Under $500 25 $7.63 $501 to $1500 50 $15.13 $1501 to $3000 $3001 to $5000 $5001 to $7500 $7501 to $10,000 100 $30.13 200 $60.13 300 $90.13 450 $135.13 Program Design will be customized per SGI Member based on customer spend and program objective. This program design reflects that of approximately 1 AIR MILE per $20 spend.

How to get started! Please email or call us for more details. Kate will introduce you to your territory representative Kate Booth Senior Manager, Corporate Sales & Operations kbooth@rmgloyalty.ca 647-968-4592