Alliance Card Inc

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WELCOME
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Alliance Card, Inc.

• ? MN owned operated since 2003
• ? Smart card technology company
• ? Utilizes existing magnetic stripe (vs. chip)
• ? Established proprietary systems platform
• ? Significant partnerships
• - National Bankcard Services - US Bank
  - 1-2-1 Marketing Services - Stargazer Foundation

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Alliance Card, Inc

• ? Over 20 years experience in stored value
• - Prepaid phone card - Cause related marketing
  (CRM)
• ? Community Hero Card program
• - Two year pilot in south Minneapolis- Stored
  value and CRM combination- Genesis of Alliance
  Card
• ? Direct market experience
• - Bankcard negotiations - Smart Town in New Ulm

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Alliance Card, Inc

• ? Contracted with Aurora for marketing/sales
• - Focused strategy - Branded products and
  programs- Multiple sales channels e.g.VIP
  International for urban markets
• ? State of the art technologies
• - Stay ahead of stored value markets- Co-exist
  with larger competitors
• ? Ethical corporate culture
• - Compete fairly - Maintain code of conduct

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Program Overview
Age 10and above
Any form of payment
Cash rewardfrom business
Cardholderdirected donation
Aggregation
Integration
Leverage
Support forcommunity causes
Informationdatabase
Stored cash value on card
Loyalty benefitsto business
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CARD PRODUCTS

• - Cash reward with standard 35/35/30
  split- Accepted by every CVC business
• PRIVATE LABEL COALTION CARD
• - Split determined by business sponsoring
  coalition
• - Accepted by businesses within defined
  coalition
• - NOT a Cash Value Card
• PRIVATE LABEL CLOSED LOOP CARD
• - Split determined by business owner
• - Accepted only within one business
• - NOT a Cash Value Card

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CASH REWARD OPTIONS

• 1. ONE PERCENTAGE RATE
• - One reward percentage across the
  board- Double digits do it
• 2. PERCENTAGE TO A CAP
• - One percentage capped at a maximum amount
• 3. 100 PERCENT
• - Amount of reward in applied at POS
• 4. TIME OF DAY/DAY OF WEEK
• - Percentage applied to stimulate business at
  certain times, on certain days
• 5. PERCENTAGE RATE PER SKU (with POS Conversion)
• - Product-specific reward

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Marketing Communications
ACI will develop extensive marketing
communications designs and materials All
marketing materials must be developed and
presented consistent with ACI standards
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PRIVATE BRAND CARD OPTIONS

• PRIVATE LABEL COALTION CARD
• - Split determined by business sponsoring
  coalition
• - Accepted by businesses within defined
  coalition
• - NOT a Cash Value Card
• PRIVATE LABEL CLOSED LOOP CARD
• - Split determined by business owner
• - Accepted only within one business
• - NOT a Cash Value Card

The CashValue Card
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? NOT a bank card of any kind ? NOT VISA or
Mastercard or AMEX ? NO merchant fees of any
kind ? LOW costs for cards and readers ? NO risks
to program participants
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Program Benefits
? Powerful tool to build business ? Reward for
loyal customers ? Gift card that never stops
giving ? Means to lower operating costs ? Method
to gain new customers ? Mechanism for community
giving
A billboard in every wallet
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Why All the Loyalty Programs?
? AIRLINES? RESTAURANTS? GROCERY STORES ?
NATIONAL RETAILERS? HOTELS AND CASINOS?
CONVENIENCE STORES
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Because They Work!
INCREASED CUSTOMER FREQUENCY INCREASED
AVERAGE TICKET PRICE IMPROVED CUSTOMER
RELATIONS VALUABLE CUSTOMER INFORMATION
The winners in the battle to retain customers are
those who create one or more competitive
advantages in the minds of consumers. A loyalty
program is a powerful way to provide continuous
reasons for your customers to prefer your
business over another.
Weve reduced our marketing costs and bonded our
customers to us. We wanted to make it valuable to
us, and to our customers. Our loyalty card has
helped us do that. Gertens
Greenhouse, MN
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Cash Back Marketing
? Loyalty to a discount is to the offer ? Loyalty
to cash back is to the brand ? A well run, cash
back program is the most effective way to
build loyalty
Discounts encourage customer mobility and work to
the advantage of your larger, lower cost
competitors
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Cause Related Marketing
? Customers will shop with their hearts,
not just their heads ? 76 of customers surveyed
said they would actually switch brands if a
business supports their chosen cause ?
VIP/CashValue provides a unique method for every
cardholder to pick their cause and for the
business to make a contribution on their behalf
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VIP/CashValue Program
? Customer loyalty and gift card program ?
Combines cash back and cause marketing ? Primary
features ? Accept any form of payment ? Offer
cash back as stored value for future use ? Make
contribution to cardholders designated cause ?
Available to age 10 and up ? Low upfront cost to
participate
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VIP/CashValue is a loyalty programthat unites
an area in an economic and social community of
interest
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The VIP/CashValue program isa combined loyalty
and gift cardthat INCREASES SALESby improving
customer frequencyand promoting higher ticket
prices
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Customers gain a reasonto continually buy from
youbecause when they buythey receive stored
cash valueand you make a contributionto their
chosen cause
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A smart VIP/CashValue Cardis issued to
customers age 10with debit and gift
functionscontrolled by you andyour customer.
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The VIP/CashValue Cardis a fully functioning
gift cardthat is never exhausted because of the
cash back feature The gift card that never
stops giving
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The VIP/CashValue card is swipedat time of
purchase,after acceptingany form of payment
cash, check, debit, creditor redemption of
stored cash value
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The card swipe triggersa pre-set cash
rewardfrom you to the cardholder andthe
cardholders designatednon-profit cause
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With Cash Value Card the cash reward is
split ? 35 to stored cash value? 35 to
chosen non-profit? 30 for program mgt
This is the VIP-CVC branded program. Private
label programs provide flexibility including vary
the 70 split
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The cash reward is offered in lieuof other
offers ? Shift discounts? Shift coupon
offers? Replace 2 for 1 promotions
NO incremental cost to offer rewards!

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ACI and US Bankhold cash rewards in trustand
distribute stored cash valueto cardholders
andcontributions to non-profit causes
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A loyalty and gift card programwith cash back
andindividualized charitable givingwill give
your customerspersonalized purchasing power
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and build a strong relationshipbetween you,
your customersand non-profit causes.
CASH BACK

CHOICE OF CAUSE

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Cash Reward Distribution (100 purchase with
10 cash reward)
10.00 Business reward Contribution
3.50
3.40
3.00
Beneficiary Non-Profit Causes or Schools
Program Management
Stored CashValue
3.50 Less .10 Transaction Fee
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Cardholder Benefits
? Low cost to participate ? Earn money as they
spend ? Works no matter what form of payment ?
Supports designated non-profit cause ? No debt
component ? Card can be issued to everyone, 10 ?
Activity/account reporting available 24/7
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Non-Profit Cause Benefits

• ? Unrestricted, unsolicited funds paid monthly
• Cardholder chooses beneficiary cause
• Funds are tracked by individual cardholder
• ? Opportunity to support community
• Promote usage to constituents
• Cross promotions with area businesses

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Business Benefits
? Low upfront cost to participate ? Low time
commitment required ? Collect full price (vs.
coupons/discounts) ? Flexible reward offerings ?
Reward offer can be changed on web site with 24
hour notice
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Business Benefits
? No set up or transaction fees ? Write-off 100
of reward as an operating expense ? Directly
supports local causes ? Customer recognition for
community support via increased loyalty to
participating businesses ? Easy and fast to
implement
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Business Benefits
? Increased ticket prices ? Increased frequency
of purchases ? Powerful competitive
differentiation ? Opportunities for innovative
marketing programs to build business ? Vehicle
to consolidate corporate giving ? Fully supported
by ACI and its partners ? Ground floor entry to
national alliances
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ROLE OF ACI
? Provide systems and support ? Co-branded
program offering ? Joint marketing to large
accounts ? Significant business partners
National Bankcard Services (loyalty processor)
US Bank (trust accounts and clearing bank)
1-2-1 Marketing Services (card fulfillment)

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BOTTOM LINE

• ? Combine the two CRMs
• Cause-Related Marketing
• Customer Relationship Management
• ? Gain competitive point of difference
• ? Lower Operating Expenses
• ? Increase Revenue
• 5-30 higher sales
• More frequent visits

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NEXT STEPS
? Your team works with VIP to customize cards
and plan marketing programs ? Cards are issued to
customers ? Card readers installed or POS system
modified to accept card in present terminals ?
Marketing promotion campaign ? 60-90 days, start
to finish