CASE STUDY Optimizing loyalty rewards pricing to drive customer satisfaction and profitability

2 We helped a online retailer optimize their pricing strategy Satov approachWe helped the clientPricing strategy How competitive is current pricing? Does that vary by category? How can we improve pricing perception without hurting margins? How should we implement pricing changes? Analyzed transaction data to identify behavioral trends Conducted in-depth consumer research Modeled impact of pricing changes Facilitated pricing philosophy workshops Transition to a new pricing model Develop a category management framework Roll-out new approach to customers Does this sound interesting? us to get more details.

3 We looked at pricing holistically Pricing strategy What is your competitive pricing position? Category strategy What products drive traffic? Which drive profit? How should pricing vary across categories to optimize demand and profitability? Product approach What tools/algorithms do you use to execute pricing tactics? Pricing approach caused inconsistent positioning No category framework to drive strategic pricing No process for continuous optimization Pricing strategy framework Client issues

For Satov Consultants Inc. (Satov) clients only; No portion of this presentation is to be distributed to other parties without prior express written consent from Satov 4 We developed a strategic pricing framework Value Image Builders (Highlight) Lower volume, but critical to creating image of value Traffic Generators (Compete) High price sensitivity High impact on value perceptions Key category Growth opportunities (Promote) Low price sensitivity Low volume Profit Engines (Expand) Low price sensitivity/high margin High volume Category volume High Low High Importance of value

For Satov Consultants Inc. (Satov) clients only; No portion of this presentation is to be distributed to other parties without prior express written consent from Satov 5 We mapped product categories to our framework Category volume Importance of value Product category mapping

6 We helped improve client satisfaction while maintaining margins Recommendations Transitioned client to value based pricing framework Categorized products and determined strategic pricing approach Developed annual process to ensure continued testing and optimization Request more detail Results Anything from client? Could just speak to improved satisfaction, margins maintained We will talk this through yes there is something