Benchmarking Your Card Program for Success

Laima KardokasSenior Business LeaderVisa Inc.

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Note:

This presentation, the Industry Benchmark Analysis and reports are intended for informational purposes only and should not be relied upon for marketing, technology, legal, regulatory, tax, financial or other advice. The information is not intended to advise you of strategies applicable to your specific situation, but rather to highlight issues for your consideration. Therefore, you should consult your own advisors. Visa is not responsible for your use of the tool, studies, reports and information, including errors of assumptions or conclusions of any kind that you might draw from its use.

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Agenda

•Why Benchmark?•Why Benchmark Your Card Program?•Visa PerformSource Industry Benchmarking•Sample Report Selections•Next Steps

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Why Benchmark?

• Understanding organizational performance is essential to survival in competitive marketplace

• Benchmarking creates a baseline from which to measure success

• Provides comparisons against peers

• Identifies “best in class” performance

• Reveals enablers of improved performance

• Stimulates action to improve

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Why Benchmark Your Card Program?

• Evaluate the progress of the program

• Determine if improvements should be considered

• Set target improvement goals

• Motivate senior management to empower staff to make changes

• Engage business unit managers in supporting changes

• Quantify financial benefits of improvements

Commercial Card Programs are important parts of the Procure to Pay process

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Visa PerformSource Industry Benchmarking *

• Quantitative benchmarking for Purchasing, Corporate, and One Card Programs

• Data derived from RPMG Research specifically for Visa

• Peer Group Comparison• Industries• Revenue Sizes

*Patent Pending

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• Fortune 500: >$2B

• Large Market: $500MM - $2B

• Middle Market: $25MM- $500MM

• Federal and State Agencies

• City and County

• Universities

• School Districts

Benchmarking Metrics

Benchmarks are specific to Industries within Revenue & Public Sector Groups

Industry Groups Revenue & Public Sector Groups

• Manufacturing• Finance, insurance, banking, and real

estate services• Wholesale and retail trade• Software and IT• Transportation, warehousing and delivery

services• Telecommunications, media and

entertainment• Agricultural, mining and construction• Professional, scientific and technical

services• Utilities• Energy• Healthcare

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Benchmark Metrics

•Monthly card spend•Monthly spend per card•Monthly transactions per card•Total spend per $1MM in revenue•Average transaction size•Cardholder-to-employee ratio•Percent of active cards in a typical month•Travel card spend as a % of total travel spend (Corporate and One Card Benchmark only)•Percent of transactions under $2,500 paid by card (Purchasing and One Card Benchmark only)•Percent of transactions between $2,500 and $10,000 paid by card (Purchasing and One Card Benchmark only)

Sample Report Selections

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Case Study Example: Purchasing Card Benchmark Large Market Energy

Case Study Example: Purchasing Card Benchmark Large Market Energy

Note: Benchmark data are for illustrative purposes only and do not represent actual figures from the data set.

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Case Study Example: Purchasing Card Benchmark Large Market Energy

Case Study Example: Purchasing Card Benchmark Large Market Energy

Note: Benchmark data are for illustrative purposes only and do not represent actual figures from the data set.

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Case Study Example: Purchasing Card Benchmark Large Market Energy

Case Study Example: Purchasing Card Benchmark Large Market Energy

Note: Benchmark data are for illustrative purposes only and do not represent actual figures from the data set.

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Case Study Example: Purchasing Card Benchmark Large Market Energy

Case Study Example: Purchasing Card Benchmark Large Market Energy

Note: Benchmark data are for illustrative purposes only and do not represent actual figures from the data set.

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* Results are for illustrative purposes,

Case Study Example: Corporate Card Benchmark Middle Market Transportation

Note: Benchmark data are for illustrative purposes only and do not represent actual figures from the data set.

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Case Study Example: One Card Benchmark Middle Market Software & IT

Note: Benchmark data are for illustrative purposes only and do not represent actual figures from the data set.

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Case Study Example: One Card Benchmark Middle Market Manufacturing

Case Study Example: One Card Benchmark Middle Market Manufacturing

Note: Benchmark data are for illustrative purposes only and do not represent actual figures from the data set.

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Case Study Example: Corporate Card Benchmark Large Market Agriculture

Case Study Example: Corporate Card Benchmark Large Market Agriculture

Note: Benchmark data are for illustrative purposes only and do not represent actual figures from the data set.

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Case Study Example: Purchasing Card Benchmark Large Market Finance & Insurance

Case Study Example: Purchasing Card Benchmark Large Market Finance & Insurance

Note: Benchmark data are for illustrative purposes only and do not represent actual figures from the data set.

Next Steps

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Next Steps to Optimize Your Card Program with Your Scotia Banker

Conduct a Best Practices Diagnostic• Questionnaire to evaluate card

program policies/procedures/parameters

• Identifies opportunities to change to best practices

Conduct a Spend Analysis• Target Visa accepting suppliers• Develop a plan for conversion:

$volume, #transactions, spend categories, meetings, payables, central travel, etc.

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Next Steps to Optimize Your Card Program with Your Scotia Banker

Develop an improvement plan • Roles, responsibilities and target dates

Establish financial improvement targets• Monthly card volume, distribution of cards,

activation of cards, penetration of spend categories, average transaction sizes, revenue sharing

Periodically report to senior and business managers• Quarterly scorecard• Milestones

Assess and reassess progress• Annual or semi-annual reviews with your

banker