GE Credit Customer Analysis

June 22,2012

2

GE Card Customers’ Spend vs. Full File

3

Methodology

Objective of Analysis: To understand the differences in spending by segment between all customers, open account holders and closed account holders.Methodology: MBS segmented the customer file by lifetime:

– Recency– Frequency– Monetary – lifetime gross sales

These customers were then classified into one of the following groups:– Open GE Card Holders– Closed GE Card Holders

4

Among active customers, open account avg. spend is almost 60% higher than total file

Of the 1,217,245 active 12M customers:– 4% (50,262) have an open PMC account– 10% (122,074) have an open PLCC account

Customers with open accounts have higher average lifetime spend versus total file:– 58% higher for PMC ($3,126 vs. $1.319)– 59% higher for PLCC ($3,187 vs. $1,319)

70% of lifetime dollars among open accounts are spent on the cards

Customers with active accounts have higher average lifetime spend on the card versus total file average:– 41% higher for PMC ($2,237 vs. $1,319)– 43% higher for PLCC ($2,300 vs. $1,319)

Customers with closed accounts also have higher spend than the full file:– 49% higher for PMC ($2,526 vs. $1,319)– 43% higher for PLCC ($2,637 vs. $1,319)

5

Customer Performance Pre/Post Card Sign-Up

6

Methodology

Objective of Analysis: To understand the pre/post performance differences of customers that enrolled and purchased utilizing their GE credit card to those BB customers that do not have a GE credit card. Methodology: MBS isolated customers into (2) groups: 442,554

– GE Card Holders: customers that enrolled & purchased utilizing their GE card between 01/01/2010 - 12/31/2010

– Non Card Holders: non GE card enrollees & purchased between 01/01/2010 - 12/31/2010 These customers were then classified into one of the following 12M periods: GE Card Holders:

– Pre Period: transactions that occurred prior to their first purchase utilizing their GE card during 01/01/2010 - 12/31/210

– Post Period: transactions that occurred after their first purchase utilizing their GE card during 01/01/2010 - 12/31/210

Non Card Holders: – Pre Period: transactions that occurred prior to their first purchase during 01/01/2010 - 12/31/210– Post Period: transactions that occurred after their first purchase during 01/01/2010 - 12/31/210

Please note that each customer will have its own unique 12M pre/post time periods. Excluded from the analysis

– Employees– All customers with a closed GE card status on file– All customers with a first purchase that occurred after 01/01/2010 (these customers would not

have 12 full months of pre data).

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Customer avg. spend increased by 70% post card sign-up

Of the 442,554 customers that made a purchase in 2010:– 4% (16,124) enrolled and purchased on their GE card, while– the remaining 96% (426,430) customers are non card holders.

12M prior to enrollment, the card holder population performed much better than the BB general population evident by having: – a higher shop rate (65.4% vs. 47.3%), – higher spend ($646 vs. $487), and – slightly higher frequency(3.1 vs. 2.4).

Customer average spend increased post credit card enrollment by 70% ($1,100 vs. $646). – card holders increased spend in retail (63% to 67%) and decreased spend in direct

(14% to 8%).

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Appendix

9

Open Cardholders’ Detail

##

GRO

UP

Combined Scored

ELITE* 157,834 625,827,257$ 3,965$ 16,807 11% 87,720,645$ 5,219$ 1,254$ 24% 16,651 99% 61,743,688$ 70% 3,708$ (257)$ -7%TOTAL ACTIVES 1,217,245 1,605,523,229$ 1,319$ 50,626 4% 158,231,620$ 3,126$ 1,807$ 58% 49,506 98% 110,736,579$ 70% 2,237$ 918$ 41%TOTAL LAPSED 1,925,461 920,083,774$ 478$ 29,146 2% 32,780,444$ 1,125$ 647$ 58% 27,727 95% 24,849,389$ 76% 896$ 418$ 47%COMBINED TOTAL 3,142,706 2,525,607,002$ 804$ 79,772 3% 191,012,064$ 2,394$ 1,591$ 66% 77,233 97% 135,585,968$ 71% 1,756$ 952$ 54%

ELITE* 157,834 625,827,257$ 3,965$ 40,099 25% 208,897,352$ 5,210$ 1,244$ 24% 39,933 100% 148,818,624$ 71% 3,727$ (238)$ -6%TOTAL ACTIVES 1,217,245 1,605,523,229$ 1,319$ 122,074 10% 389,086,625$ 3,187$ 1,868$ 59% 120,913 99% 278,137,365$ 71% 2,300$ 981$ 43%TOTAL LAPSED 1,925,461 920,083,774$ 478$ 68,639 4% 85,066,535$ 1,239$ 761$ 61% 67,389 98% 67,510,699$ 79% 1,002$ 524$ 52%COMBINED TOTAL 3,142,706 2,525,607,002$ 804$ 190,713 6% 474,153,160$ 2,486$ 1,683$ 68% 188,302 99% 345,648,064$ 73% 1,836$ 1,032$ 56%

*Anomolies have not yet been removed

Customers with

Spend % to Open

Accounts

PLCC

PMC

Avg. Total Spend per Customer

TOTAL GROSS LIFETIME $$

Incremental Open

Account vs. Total Lifetime

Incremental %

Incremental Spend on

Card vs. Total Lifetime

Incremental %

Customers with

Spend % to Open

Accounts

## OPEN ACCOUNT TOTAL GROSS LIFETIME $$ SPENT ON CARD ## OPEN ACCOUNT TOTAL GROSS LIFETIME $$

Customer % to Total Mailable

File

Gross Lifetime Dollars spend

on card

# of Customers

with an open account, have

spent on a card

Total Mailable Customers

Total Gross Lifetime

# of Customers

have an open Account

Gross Lifetime Dollars of

Customers with Open Accounts

TOTAL MAILABLE FILE OPEN PMC ACCOUNTS OPEN PMC ACCOUNTS WITH SPEND

Avg. Spend per Account

on Card

Avg. Total Spend per

Open Account

TOTAL MAILABLE FILE OPEN PLCC ACCOUNTS OPEN PLCC ACCOUNTS WITH SPEND

10

Closed Cardholders’ DetailGR

OU

P

Combined Scored

ELITE* 7,012 31,598,172$ 4,506$ 541$ 12% 4,287 4,635,935$ 1,081$ (2,884)$ -267%TOTAL ACTIVES 28,052 71,868,264$ 2,562$ 1,243$ 49% 16,902 13,333,757$ 789$ (530)$ -67%TOTAL LAPSED 70,737 52,362,678$ 740$ 262$ 35% 56,911 29,754,245$ 523$ 45$ 9%COMBINED TOTAL 98,789 124,230,942$ 1,258$ 454$ 36% 73,813 43,088,003$ 584$ (220)$ -38%

ELITE* 13,511 64,291,796$ 4,758$ 793$ 17% 9,030 9,904,532$ 1,097$ (2,868)$ -261%TOTAL ACTIVES 54,465 143,642,442$ 2,637$ 1,318$ 50% 34,527 28,747,563$ 833$ (486)$ -58%TOTAL LAPSED 139,878 108,057,046$ 773$ 295$ 38% 113,690 64,753,389$ 570$ 92$ 16%COMBINED TOTAL 194,343 251,699,488$ 1,295$ 491$ 38% 148,217 93,500,952$ 631$ (173)$ C

*Anomolies have not yet been removed

Incremental Closed

Account vs. Total Lifetime

Incremental %

Avg. Total Spend per

Closed Account

PLCC

PMC

# of Customers

have a closed Account

# of Customers

with an closed account, have

spent on a card

Gross Lifetime Dollars spend

on card before closing

Incremental Closed Account

vs. Total Lifetime

## CLOSED ACCOUNT TOTAL GROSS LIFETIME $$ ON CARD

Incremental %

##

Gross Lifetime Dollars of Customers with Closed Accounts

CLOSED ACCOUNT TOTAL GROSS LIFETIME $$

Avg. Total Spend per

Closed Account

CLOSED PLCC ACCOUNTS CLOSED PLCC ACCOUNTS WITH SPEND

CLOSED PMC ACCOUNTS CLOSED PMC ACCOUNTS WITH SPEND

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Pre/Post Card Sign-Up Detail

GE Credit Card Status

# Custs

% Custs # Custs

Shop Rate

Avg Dol / Custs

Avg Visits / Custs

Avg Units / Visit

% Ret $

% Dir $

% Fac $

Avg Dol / Custs

Avg Visits / Custs

Avg Units / Visit

% Ret $

% Dir $

% Fac $

Avg Dol / Custs

Avg Visits / Custs

Avg Units / Visit % Ret $ % Dir $ % Fac $

Card Holders 16,124 4% 10,551 65.4% $646 3.1 3.1 63% 14% 23% $1,100 4.0 3.8 67% 8% 25% $454 0.9 0.6 4% -6% 2%

Non Card Holders 426,430 96% 201,706 47.3% $487 2.4 3.1 60% 19% 21% $534 2.7 3.1 59% 20% 21% $47 0.3 -0.1 -1% 1% 0%

- 18.1% $159 0.7 0.0 3% -5% 2% $566 1.3 0.7 8% -12% 4%

12M Pre Period 12M Post Period Variance

Variance