KickBack Rewards & CMA Presents

Liberty Petroleum

Loyalty &

Buying, Promotions, & Customer Engagement System

April 22, 2015

Convenience Marketers Association (CMA)

• Overview of CMA

• Convenience Segment Observations

• Move to Convenience

• CMA/KickBack Alliance

• How it Works

• Next Steps

2

About Us • Originating from Vending

• National Not-for-Profit Group Purchasing Organization

• 40+ Years of Negotiating & Administering Collective Supplier Programs

• Thousands of Independent Constituent Co’s

• Programs worth $5 Billion in Annual Sales

• 200+ Annual Supplier Contracts & Programs in Numerous Categories:

– Food − Foodservice − Edible Grocery

– Snack − Candy − Packaged Beverage

– Bulk Beverage − Coffee − Dairy & Ice Cream

− Disposables − Supplies & Equipment − Business Services

• Sophisticated System to Present, Track, and Report Programs from a User-Friendly

Interface

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AK

AL

AR AZ

CA CO

CT

DC

DE

FL

GA

HI

IA

ID

IL IN

KS KY

LA

MA

MD

ME

MI

MN

MO

MS

MT

NC

ND

NE

NH

NJ

NM

NV

NY

OH

OK

OR

PA RI

SC

SD

TN

TX

UT

VA

VT

WA

WI

WV

WY

PR VI

GU

Portland, OR

USG HQ

Arlington Hts., IL

Delaware, OH

Greensburg, PA Louisville, KY

Research Project

Convenience Observations

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Location

Ownership

Store

Count Allocation

A (1-10 Stores) 100,006 67%

B (11-50 Stores) 11,795 7.9%

C (51-200 Stores) 7,599 5.1%

D (201-500 Stores) 8,082 5.4%

E (501 + Stores) 21,738 14.6%

Total Stores 149,220 100% 0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

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Chain Stores Single Store

Source: Nielsen TDLinx

Population of U.S. Convenience Stores

Observation #1 - Largest % Stores - Single Store / 1-10 Locations.

Observation #2 - No In-House Buyer/Buying Team to Negotiate Programs.

Research Project

Convenience Observations Cont.

Source: Nielsen TDLinx

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Observation #3 - Infrequent Manufacturer, Broker, & Distributor Visits.

Observation #4 - Limited Promotional Content/Resources for Signage,

Marketing Stores, Building Customer Loyalty.

FREQUENCY SUPPLIER SALES REP VISITS 8 WEEK CYCLE

SUPPLIER 0 1-2 3-4 5+

PepsiCo Foods/Frito 25.0% 2.0% 14.0% 55.0%

Imperial Tobacco 44.0% 8.0% 18.0% 30.0%

RBH 26.0% 13.0% 1.0% 60.0%

JTI 23.0% 66.0% 7.0% 4.0%

Coca-Cola 40.0% 56.0% 3.0% 1.0%

PepsiCo Beverage 34.0% 21.0% 17.0% 28.0%

Nat’l Smokeless Tobacco 33.0% 21.0% 21.0% 26.0%

Kraft/Cadburry 28.0% 72.0% 0.0% 0.0%

Mars 52.0% 45.0% 1.0% 1.0%

Wrigley's 62.0% 37.0% 1.0% 1.0%

Nestle 52.0% 36.0% 1.0% 0.0%

Hershey's 62.0% 43.0% 4.0% 1.0%

Source: iCN - Independent Retailer Report

FREQUENCY DISTRIBUTOR SALES REP VISITS - % LOCATIONS

Weekly 27

Bi-Weekly 13

Monthly 17

Bi-Monthly 3

Quarterly 11

Less Often 16

Never 13

Source: iCN Independent Retailer Report

Conclusions

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• Shared Suppliers /Products

• Like Demographic - Independent Owner/Small Chain/Jobber Dealer Locations

• Limitations – Existing Sales/Distribution Model

For Suppliers Prohibitive cost to reach 1-10 location operators & substantiate sales lift Limited distributor attention 1-10 location sites Speed to market for signage, promotions , new product introductions Outdated promotional system

For 1-10 Location Independent/Small Chain/Jobber Dealer Lack of distributor attention Limited promotional content, couponing, POP sales & marketing materials available Limited support for marketing stores, creating sales lift, & building customer loyalty

For Consumers of 1-10 Location Independent/Small Chain/Jobber Dealers Absence of mobile engagement Limited draw with promotions to create customer loyalty with retailer & fuel brand

=

Need

Convenience Marketers Association - CMA Dedicated Convenience Programs

• Incremental Manufacturer Rebates

• Consumer Promotions

• Promos2Go Consumer Marketing Toolkit

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= Lower cost of goods

Promotions to engage customers

Tools to market stores

KickBack / CMA Alliance

• Continual engagement at the Point-of-Sale

• Ongoing promotional offers

• Promo & Retailer Search via Web

• Mobile engagement & Couponing (Coming Soon)

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For Consumers

For Owned Locations & Dealers

• Incremental rebates for manufacturers you/your dealers already

purchase from

• Perpetual customer engagement at the Point-of-Sale

• Ongoing consumer promotion/loyalty content for marketing

• CMA programs via web access

No enrollment, annual, monthly fees

No contract or obligation to use programs

No merchandising requirements

Mobile

Coming

Soon!

How it Works Signing Up & Signing In

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One-Page Enrollment Form

Log in with user-name/password at

www.getcma.com

Introductory Rebate Offer

How it Works Rebates

10

Search & Select Rebates

Enter Quantity, Distributor, Delivery Day

Receive Confirmations via Email

How it Works Promotions

11 Select Promotions & Locations

Plug in Plug & Play Traffic Cop

to POS

Select Promos2Go

How it Works Promos2Go Signs & Sign Inserts

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Print, Cut, Insert

Promos2Go Promotion Signs

Place Signs Around the Store

How it Works Shopper Top Picks

13

Select Top Pick Features & Locations

Place Feature Signs

Around the Store

Wrap Up

• Lower cost of goods

• Promotional content to foster loyalty & boost sales

• Continual customer engagement

– In-store

– On-line

– In the future via mobile

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No enrollment, annual, monthly fees

No contract or obligation to use programs

No merchandising requirements

Next Steps

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• Sign Up Owned Locations Today

• Tools to introduce CMA/KickBack program to dealers

– Video www.getcma.com/video

– Email campaigns / marketing templates

– Introductory Mars Rebate

$0.50/unit up to $72

– Meetings at NACS / Other

– Conference Calls

Thank You!

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“Making Good Customers Better”

• KRS founded in 1999 • 50+ Employees • Own and operate our own chain of C-Stores and

Restaurants since 1975 • Member of NACS, PCATS, ACP, and AAF • We manage programs for over 1000 companies • Serve over 10,000,000* active cardholders nationally • Private and secure networks * Based on stats available July 31, 2013

• Brand Recognition with marginal cost • Identify customers, what they buy and when • Market to increase frequency, and profitability • Deliver the right price to right customer at right time, while

taking the emphasis off price • Make shopping fun with games and targeted giveaways • Use charity functionality to make non-profit organizations

your best promoters • Or use functionality to tie business fleet vehicles together • Increase your Retailers’ bottom-line

Cardholder

Visits

Average

Gallons

Average Ticket

In-Store

Results from sites on over a year

Improvement at the pump and in-store that boost the bottom line

10%

8% 11%

Increases are amongst those using the card

Loyalty Solutions Customized For You!

How would you identify your Loyal Customers

• Traditional Magnetic Striped Card

• Bar Coded Key FOB, same as supermarkets

• Displayed in a cell phone application

The above methods add a layer of expense

• Or, Instead of carrying a card, key FOB, or scanning a cell phone, customer just uses his or her 10 digit cell phone number. Everyone knows and remembers their cell phone number. No added cost for token, enrollment or registration is required.

• Real-time IP communications • Data Warehousing and Backup • Full POS integration

Flexible Program Options KRS Services Enterprise Core+ Core

Club Programs Unlimited Unlimited Up to 5

Traffic Cop Yes Yes Yes

Data Encryption Yes Yes Yes

Unlimited Transaction Processing Unlimited Unlimited Unlimited

Program Secure Data Storage Unlimited Unlimited Unlimited

Technical Help Desk for Retailers Yes Yes Yes

Cyber Security Insurance Yes Yes Yes

Stock Reports Yes Yes Yes

Promotional Reports (Vendor Reports) Yes Yes Yes

Custom Web Sites using Web API Yes Yes Yes

CPG Electronic Coupons Acceptance Yes Yes Yes

Native E-Coupon Processing Yes Yes $.08/trx

Market Basket Data Capture Yes Yes No

Tigger Message Offers Unlimited Up to 5/mo. No

Employee Discount Program Yes Up to 20/loc. No

Points Accumulation Yes No No

Points Redemption Yes No No

Item level discounting Yes No No

Ticket level discounting Yes No No

Card Linking (Family, Fund Raising, Fleet) Yes No No

Data Storage Yes No No

Threshold Marketing Yes No No

Call Center for Cardholders Yes No No

Data Entry Services Yes No No

Customized Reports Yes No No

CRM Services Yes No No

Drawings Yes No No

Promotional Games (Bingo Engine) Yes No No

Surveys Yes No No

Customer Specific Messaging Yes No No

Employee Incentives Yes No No

CMA Liberty Program KRS Services CMA Support

Club Programs Unlimited

Traffic Cop Yes

Data Encryption Yes

Unlimited Transaction Processing Unlimited

Program Secure Data Storage Unlimited

Technical Help Desk for Retailers Yes

Cyber Security Insurance Yes

Stock Reports Yes

Promotional Reports (Vendor Reports) Yes

Custom Web Sites using Web API Yes

CPG Electronic Coupons Acceptance Yes

Vendor Funded Discounts Yes

Native E-Coupon Processing Yes

Market Basket Data Capture Yes

Drawings Yes

• Local Level Logic

• Serial to IP Conversion

• Routing Redundancy

• Encryption

• PCATS Standard Output

• Multiple Program Capable

• Stand In/Store and Forward

• Firewall Security

• Solid State

• Remote Monitoring

• Remote Updating

• Performance Logging

• Compact Design

• Allows for multiple loyalty and

marketing programs

• Industry’s First ELS

POS

Electronic Loyalty Server

KickBack Server

POS Loyalty API Traffic Cop (Electronic Loyalty Server) Local Logic KickBack Server

Serial or TCP/IP

Communication Internet

Our systems allow you to reward your customers anyway you choose*. Points Accumulation Engine

Per Total Purchase

Per Qualifying Purchase

Per Combo

Per Gallon

Per Visit

Consumer Tier Level

Points as Currency

Points for Premiums

Customer directed Liquidation

Auto Liquidation

Club Programs (Electronic Punch)

Nth Qualifying Purchase

Combo Behavior

Qualified Discount Engine

Per Item

Per Total

Per Gallon

Combo Pricing

Threshold Gallons

Threshold Spend

Threshold Visits

Method of Payment

Consumer Tier Level

*Depending on limitations of your POS system.

Deliver relevant offers to

the right person at the

right time.

Instant Gratification

Threshold Marketing

Copyright 2010 KickBack Rewards Systems

Customer messaging

options are endless!

www.getcma.com

Enroll Today!

Sign Up at

Or grab an application