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Welcome Alside Rewards Program Management and Rewards Solutions

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Presentation on theme: "Welcome Alside Rewards Program Management and Rewards Solutions"— Presentation transcript:

1 Welcome Alside Rewards Program Management and Rewards Solutions
Presented by: July 20th, 2006

2 Today’s Agenda Introduction to HG Worldwide HG Client Solutions
Case Studies HG Awards AMI Program Overview Alside Rewards Travel Alside Rewards Awards Partnership Pricing Summary

3 Who We Are HG Worldwide is a full service performance resource company, established 1986 Client-focused 6-8 core clients Average partnership = 12 years 98% client retention In business 20 years Our philosophy: The success of your business is our business

4 Where We Are Going Building upon our experience and success
Continuing our “client comes first” philosophy Clients who recently partnered with HG Merrill Lynch Roche Diagnostics Citizens Bank Adding new services Awardzilla (virtual debit and points) Click it, Learn it Holiday Gift program

5 How We Work We help our clients succeed by positioning the right people and providing the right service at the right time We manage resources to provide the “best fit” for achieving your goals We adapt to changing market conditions, add services and talent as each client solution demands We manage today’s technology to provide the security, efficiencies and data management support you need when you need it We believe that the partnerships with our clients are dynamic and we want to continue to be flexible, and always find a way to add value to the relationship Your needs come first! Only by meeting your needs will HG Worldwide succeed and together form a successful partnership

6 Who We Work With

7 HG Worldwide Client Solutions

8 Client Solutions Channel Performance Incentive Applications
Performance Management Travel Reward Solution Data Management Creative Services Learning and Training

9 Client Solutions Performance Management
Design, develop, and implement performance solutions Employee, sales, channel, consumer based programs Incentives, recognition, safety, suggestion, years of service, kudos, rebate

10 Client Solutions Travel
Research, negotiate, communicate, coordinate and operate world-class programs Creativity, solid management, operational efficiencies – Deliver Dreams!

11 Client Solutions Travel Group Travel Business Meetings
Incentive programs Recognition programs Advisory groups Business Meetings National sales meeting New product launch Regional meetings Individual Incentive Travel

12 Client Solutions HG Worldwide is “Award Neutral”
Most incentive and performance management companies derive their revenue from one or two of the awards they fulfill, usually merchandise. HG Worldwide, is “Award Neutral”. We will work with you to identify award selections uniquely suited to your target audience and your organization, awards that provide the motivation needed to achieve your performance objectives not meet HG Worldwide revenue goal. Changing retail market, sensitivity to incentive rewards, HG is committed to research and identify reward solutions that can our clients: More choice Better access Greater value

13 Client Solutions Reward Solutions Visa Gift Cards Retailer Gift Cards
Shopping Portals Awardzilla (points) Awardzilla (dollars) Merchandise Catalogs Online Paper Visa Gift Cards Single/multiple load Virtual/plastic Retailer Gift Cards

14 Client Solutions Data Management
HG Worldwide supports total web-based performance management systems including: Comprehensive, integrated web-base performance tracking and reporting Detailed program information and communication Online personal bank account systems management Total award fulfilment from reward presentation to online ordering and order tracking Client administrative access Program set-up Data entry/management Reporting Kudos/recognition program planning

15 Client Solutions Data Management
HG Worldwide software is easy to integrate into Server environments. And best of all is that the platform is Windows- based. The following are features of our integrated Performance Management web technology: Performance Management Web Portal Total integrated system Enrollment/registration Secure participant access Access/link to all award options Online customer performance tracking and reporting Integrated online point bank account system Online data capture abilities Online ordering, award fulfillment and tracking Management Reporting Standard performance and redemption reporting Custom reporting based on client need

16 Client Solutions Creative Services
The creative design and strategic delivery of performance program communications including: Website Printed materials Electronic media and Visual presentations are as important to the overall success of a program as are the rewards structure and award selections. Creative, concise, consistent and inspirational program communications make the difference between the ordinary and the Extraordinary. HG provides the edge and excellence to communicate, promote, inspire, inform and motivate program participants to achieve their performance objectives.

17 Client Solutions Creative Services

18 Client Solutions Learning and Training
With Click It Learn it, HG Worldwide can easily set up a series of online Performance Excellence Learning Suites for employees, supervisors and managers. Other HG World clients have discovered that online Performance Excellence Learning Systems is a "Click and Easy" solution to: Improve job performance Increase job satisfaction Improve employee retention Increase productivity Improve safety/reduce accidents Improve job attendance/punctuality Increase job knowledge Click It Learn it Online Performance Excellence Learning can be customized for each client's application using a proven formula that ensures participation and most important, retention.

19 Case Study BellSouth  Telecommunications
Top Sales Incentive Program - 5 groups back-to-back 600 participants per program 12 year relationship 4 Year History: 2006 – San Diego, Manchester Grand Hyatt 2005 – Radisson Seven Seas Caribbean Cruise – Charter(s) 2004 – Lake Las Vegas, Hyatt 2003 – Tucson, Westin La Paloma Recently awarded the 2007 Total Program Management – Overall program coordination, Budget management, Program invitation, Web registration, Program administration/Customer service, Air, On-site Trip Directors, Billing reconciliation

20 Case Study The Berry Company  Telecommunications
Top Sales Incentive Program - Annual 600 participants 13 year relationship 4 Year History 2006 – Phoenix, JW Marriott Desert Ridge 2005 – Cancun, JW Marriott 2004 – Paradise Island, The Atlantis 2003 – San Juan, The Wyndham El Conquistador Total Program Management – Overall program coordination, Budget management, Program invitation, Web registration, Program administration/Customer service, Air, On-site Trip Directors, Billing reconciliation

21 Case Study Valvoline  Petroleum Industry
Top Sales Incentive Program - Annual 100 participants 8 year relationship 4 Year History 2006 –Cabos San Lucas 2005 – Paradise Island, The Atlantis 2004 – Germany/Austria, Munich, Salzburg, Vienna 2003 – Charleston, Charleston Place – Diverted because of Gulf War Total Program Management – Overall program coordination, Budget management, Program invitation, Web registration, Program administration/Customer service, Air, On-site Trip Directors, Billing reconciliation

22 Case Study GlaxoSmithKline  Pharmaceutical
Top Sales Incentive/New product launch/National Sales Meeting participants per program 19 year relationship 4 Year History (Incentives) 2006 – St. Thomas 2005 – Jackson Hole Wyoming 2004 – Paradise Island, The Atlantis 2003 – Lake Tahoe Total Program Management – Overall program coordination, Budget management, Program invitation, Web registration, Program administration/Customer service, Air, On-site Trip Directors, Billing reconciliation

23 Case Study WS Lee Food Manufacturer/Distributor
Major East coast producer of specialty deli meats Sell/distributes to food service operators, retailers and direct to consumer 4 year relationship HG supports purchase loyalty incentive program through channel Program used to launch new products, feature products and reduce inventories Customers earn dollars on a Visa debit card based on purchases Dollars deposited monthly Program entering 4th year Program highly successful, popular with WS Lee customers and is growing

24 Case Study Merrill Lynch  Financial Industry
Client Conference 600 participants 6 year relationship with John Manos 2 Year History 2006 – New York, Sheraton 2005 – San Antonio, Hyatt Hill Country Recently awarded the 2007 program Total Program Management – Overall program coordination, Budget management, On-site Trip Directors, Billing reconciliation – Client handles invitation, web registration and air support

25 Case Study MTL Surge Technologies Electronics Industry
Sales Incentive 300 participants Re-loadable Debit card application 3 year relationship Direct Mail Marketing Targeted at channel customers worldwide Combination direct mail, html campaign, website with online contest Developed online web-based sweepstakes to “pull” customers into site, present message and contact MTL for more information Learning and Training Developed CD-Rom sales presentation Produced and distributed series of 6 AV training modules Meeting Management Fall 2007—San Antonio

26 Case Study Roche Diagnostics  Health Services Industry
Advisory Board Meeting, Customer Events, Major Tradeshow Support participants per program 12 year relationship with John Manos Previous 4 Year History (Advisory Board Meeting) 2006 – New Jersey, New Jersey City Hyatt Regency 2005 – Coconut Grove, Ritz Carlton & Orlando 2004 – Coconut Grove, Ritz Carlton & Los Angeles 2003 – Tucson, Loews Ventana Total Program Management – Overall program coordination, Budget management, Web registration, Program administration, On-site Trip Directors, Billing reconciliation – Client handles air support

27 Case Study Canyon State—Oil and Petroleum Distributor
Employee Performance Program Program designed to focus on employee retention, safety, productivity, cost-saving suggestions and improving employee morale 200+ participants 2nd year of program operation Solution Overview: Combine the motivational value of performance incentives reinforced with Online Employee Performance Learning Employees earn awards based on safety, punctuality, attendance and for submitting cost-reduction suggestions Employees also earn points for participating in online learning programs Employees also earn points based on their years of service Results: In 12 months accidents have been reduced by over 25%, retention is improved and learning module test scores continue to rise

28 AMI Program Solutions Overview

29 AMI Program Overview Comprehensive rewards program Web based support
Tracks Customer’s purchases Purchase dollars converted to points Points accrued as customers reach to achieve annual purchase goal Rewards top performers Goal achievers use accumulated points for group travel, merchandise and IIT Group Travel programs Multiple travel options based on customer location 7 Group travel programs in 2006 Merchandise Awards program All selections presented online popular brand name selection

30 AMI Program Overview The Alside rewards:
Industry standard for decades Important part of AMI sales/marketing strategy for AMI. HG Worldwide recommendations designed to: Enhance your customer’s program experiences Streamlines program processes and procedures Delivers cost savings to Alside Evolution of the current Alside Rewards the following: Improved web interface Improved technology Enhanced award offering Simplified cost structure Efficient award delivery solutions Deliver better value

31 Alside Rewards Travel

32 Alside Rewards Travel Alside Rewards Travel Program History
Large Program(s) Target Audience: AMI Top Customers Dates: January 2008 and 2009  Length: 6 night/7 day with exception of Hawaii which would be 8 day/7 night Program Inclusions: Ground transfers Baggage transfers Hotel gratuities Welcome cocktail reception and buffet dinner Farewell cocktail reception and dinner Breakfast at resort each day Cash allowance for dinner each evening – ($50-$60 pp depending on destination) Beverage Packages where applicable Program History: 2002 Wyndham St. Thomas 2003 Westin Grand Cayman 2003 Celebrity Cruise port out of Puerto Rico 2003 Hyatt Maui Marquis Los Cabos Westin Rio Mar Grand Velas Puerto Vallarta Hyatt Aruba

33 Alside Rewards Travel Program Destination Alside Rewards Travel
History—Always Las Vegas: Alladin Caesars MGM Bellagio Mirage Paris Las Vegas trip includes: Welcome cocktail reception and buffet dinner Hotel transfers Baggage transfers Hotel gratuities Breakfast each morning Cash allowance for dinner one evening-$40 Alside Rewards Travel Program History Small Program Target Audience: AMI Customers Group sizes: 700 Singles/Doubles: All Doubles Dates: January 2008 and 2009  Length: 4 day/3 nights Destination: Las Vegas

34 Director, National Accounts
Alside Rewards Travel Support Team Director, National Accounts Account Manager Account Manager Program Administrator Air Support Customer Service Web Registration/ Reporting 800#/ Support Agent Agent Trip Directors

35 Program Support Director, National Accounts Account Manager
Manage overall client relationship Identify Client Goals & Objectives Work with and support Account Manager Develop a creative and exciting program Evaluate and manage internal support Oversee and manage program budget Manage On-site Operations Keep team focused on exceeding client goals & objectives Account Manager Assigned to support program from start to finish Manage all requests for space, activities and destination resources Negotiations conducted throughout the entire planning process Coordinate Site Inspection Total supplier contract management Utilization Attrition dates Deposit schedules Minimum contractual obligations Food and beverage requirements Dedicated to adding value at all phases of the planning and operation Managed onsite program/revision Final billing review

36 Program Support Air Support Program Administrator Customer Service
Agents (add) Program Administrator Customer Service Manages all inbound/outbound program inquiries including, , fax and phone) Manages all orders services and customer service functions regarding travel program inquiries Supports program administrator as required Trip Directors

37 Alside Rewards Travel Turks & Caicos St. Maarten Grand Cayman Cruise
Beaches Grand Cayman Westin Casuarina Cancun/Riviera Paridisus J.W. Marriott Las Vegas Bellagio MGM Grand Caesar’s Red Rock Canyon St. Maarten Westin at Dawn Beach Cruise Royal Caribbean Cruise Lines Serenade of the Seas Maui Hyatt Regency Fairmont Kea Lani Kauai Grand Hyatt Kauai

38 Alside Rewards Travel 2008 Destination/Resort Comparison Grid (per person) Destination/Resort Proposed Land Air Total St. Maarten Westin at Dawn Beach With Drink Package $2,143.58 $2,472.86 $718.00 $2,861.58(w/o drink) $3,207.86(w/drink) Caribbean Cruise RCl—Serenade of the Seas $2,322.25 $498.00 $2,820.25 Maui Fairmont Kea Lani Hyatt Regency $2,983.10 $2,750.50 $843.00 $3,826.10 $3,593.50 Kauai Grand Hyatt $2,813.12 $882.00 $3,695.12 Turks & Caicos Beaches $2,056.68 $724.00 $2,780.68 Grand Cayman Westin Casuarina Drink Package $2,105.34 $2,434.62 $655.00 $2,760.34(w/o drink) $3,089.62(w/drink) Cancún Paradisus JW Marriott $2,092.78 $2,467.64 $474.00 $2,566.78 $2,941.64 Las Vegas Bellagio MGM Grand Caesar’s Palace Red Rock Casino $1,287.84 $958.35 $1,027.57 $1,006.73 $352.00 $1,639.84 $1,310.35 $1,379.57 $1,358.73

39 Alside Rewards Travel 2009 Destination/Resort Comparison Grid (per person) Destination/Resort Proposed Land Air Total St. Maarten Westin at Dawn Beach With Drink Package $2,149.15 $2,478.43 $718.00 $2,867.15(w/o drink) $3,196.43(w/drink) Caribbean Cruise RCl—Serenade of the Seas $ $498.00 $2,865.99 Maui Fairmont Kea Lani Hyatt Regency $2,987.78 $2,763.37 $843.00 $3,830.78 $3,606.37 Kauai Grand Hyatt $2,868.70 $882.00 $3,750.70 Turks & Caicos Beaches $2,178.29 $724.00 $2,902.29 Grand Cayman Westin Casuarina $2,125.50 $2,454.78 $655.00 $2,780.50(w/o drink) $3,109.78(w/drink) Cancún Paradisus JW Marriott $2,098.86 $2,637.25 $474.00 $2,572.86 $3,111.25

40 AMI Program Solutions – Awards

41 Current Program Overview
Alside Rewards Program Evolution Tracks Customer’s purchases – NO CHANGE Purchase dollars converted to points Customers must attain a $10,000 purchase benchmark to begin qualifying for rewards Rewards purchase loyalty – NO CHANGE Customers earn 1,000 points upon achieving benchmark Customers continue to earn 1000 points for every $10,000 in purchases Awards – ENHANCED! Awardzilla-Points Redeemed Through Amazon/travel/event ticketing portal – NEW OPTION “Alside” Gift Card – NEW OPTION Total Online Award shopping Comprehensive Reporting (Excel-based Reports) – NEW OPTION

42 Alside Rewards-Awards
Awards Program Support Team Director, National Accounts Program Administrator Graphic Designer Web Designer Administration Coordinator Manager IT/Web Solutions Account Manager Customer Service IT/Tech Support Account Representative Order Services

43 Program Support Director, National Accounts Account Manager
Manages relationship between HG Worldwide and AMI Provide leadership and support for AMI and all of its initiatives Provides input/feedback and interfaces with HG Worldwide home office Account Manager Works closely with Dir. Nat. Accts and AMI to manage program Manages/oversees the HG support team Manages all program communications/promotion materials and fulfilment Continually evaluates Alside Rewards program Program Administrator Oversees all data management, processing and reporting Manage all file/data transfers between HG and AMI Manages all program reporting Manages all card account balances and earnings deposits

44 Alside Rewards-Awards
Administration Coordinator Supports Program Administrator Manages all data entry and reconciliation functions Support HG Alside Rewards Program Team Customer Service Manages all inbound/outbound program inquiries including, , fax and phone) Manages all orders services and customer service functions regarding award redemption, fulfilment and order tracking Supports program administrator as required Manager IT/Web Architect for program systems Manages and maintains Alside web portal Maintains online admin systems Monitors and maintains software and systems

45 Alside Rewards-Awards
What we are proposing . . .

46 Alside Rewards-Awards

47 Alside Rewards-Awards
AWARD TYPE OVERVIEW COST Awardzilla Points Amazon-based Shopping Portal Online point shopping portal Amazon. Com is primary shopping site Enhanced point purchase power Amazon Outlet section (discounted merchandise) Powerful travel award site Event tickets available on line Limited Sales Tax obligation $.075 cents/point 10% Service fee Includes shipping No Sales tax Alside Gift Card (Point Purchase Option) Visa Single Load Card $75.00 Denomination per Card (can be set at any denomination) Replaces Gift Certificates Can be used everywhere Visa is Accepted Sent directly to customers $3.00/card 6.5% card load fee on deposit IIT Certificates Individual travel Available to select audience $2,200 initial buy-in $80 additional add-ons Delivered cost Sales tax additional

48 Alside Rewards-Awards
Award Item Award Value Current $075/point Portable DVD Player $294.00 3,920 Points Award Value includes Merchandise mark up Shipping to participant Applicable Taxes Industry Un-Loaded Point Award Item Award Cost 25% avg. Mark up est. 8% Sales Tax 7% Award Value Portable DVD Player $210.00 $52.50 16.80 14.70 $ Amazon Shopping Portal Value HG Un-Loaded Point Award Item Award Cost TBD% Service Fee Shipping Included Sales N/A Award Value AMI Savings Portable DVD Player TBD $0 Awardzilla Points: Customer receives better value Customer receives lower taxes Sponsoring company pays service fee separate from award cost

49 Alside Rewards-Awards
AMI Value Impact Low start up costs Offered at discounted rates Competitive HG Service Fees Awardzilla-points TBD% vs. industry avg. of 20%- 30% for traditional merchandise No shipping cost on Awardzilla 8% industry avg. savings No sales tax on Awardzilla or single load Visa Card 7% - 8% savings Significant cost savings by eliminating online catalog Award cost savings No online PDF version of catalog No online PDF forms Single load Alside Rewards Gift Card replaces Gift Certificates and saves AMI through: Reduced shipping and handling costs Reduced Service Fees (currently applied to select Gift Certificate offerings)

50 Alside Rewards-Awards
Customer Savings and Benefits Significant increase in spending power of their points Access to lowest cost retail merchandise online Awardzilla shopping portal offers millions of merchandise and service award selections, comprehensive travel offers and special event tickets Single load Alside Rewards Gift Card is the “Ultimate” Gift Certificate and provides AMI customers with the “Ultimate” in retail selection and spending options Additional Benefits Alside Rewards Single Load Gift can be purchased with cash and used by AMI and AMI Customers for recognizing and rewarding sales personnel and internal employees. AMI Customers will be provide link on Alside Rewards Website for purchasing single load cards

51 Value Proposition Travel Value Proposition
Things To Consider Awards Program Value Proposition Things To consider

52 Value Proposition-Travel
Concessions for the Group Travel Programs 2008/2009: HG Worldwide has lowered our fees to support the programs lowering Land costs by $17 per person The above mentioned concessions will create the following savings for AMI $17 per person x 2116 Travelers = $35,972 per yearn in 2008/2009

53 Value Proposition-Travel
Concessions for the Group Travel Programs 2008/2009: HG Worldwide will also offer AMI a 1% Volume Rebate based on achieving $5,000,000 in Group Travel billing within a calendar year This will create the following savings for AMI $5,000,000 x 1% = $50,000 per year AMI will now save $74,072 per year in 2008/2009 by partnering with HG Worldwide Combined with the cost savings offer on the previous page for the Non-travel program, AMI could save as much as $87,072 in 2008/2009 by partnering with HG Worldwide!!

54 Value Proposition-Travel
Concessions for the Group Travel Programs 2007: If AMI would transition any of the 2007 group travel programs to HG Worldwide (by August of 2006), HG Worldwide would “absorb” penalties that the Incumbent would access AMI The 1% volume rebate outlined above would apply in 2007 as well ALSO - HG Worldwide feels comfortable in our “lower overhead” operating efficiencies to offer you a $20 per person discount on your incumbents contracted per person cost to operate your programs in If you would travel 2,000 people you would realize a $40,000 savings to your current 2007 group travel budget - Add on the 1% rebate of $50,000 (If you bill $5,000,000), AMI would save $90,000 in 2007!!!

55 Value Proposition-Travel
Sample Scenarios 2007 2008 RESORT TOTAL PER PERSON NUMBER OF TRAVELERS TOTAL BUDGET Aruba $3,000.00 726 $2,178,000 Puerto Vallarta $2,700.00 690 $1,863,000 Las Vegas $1,400.00 700 $980,000 Program Total $5,021,000 $20 Per Person Discount 2,116 ($42,320.00) 1% ($50,210.00) 2008 2009 Sample Scenarios 2008 RESORT TOTAL PER PERSON (Includes the $17 PP HG Discount) NUMBER OF TRAVELERS TOTAL BUDGET Cancun Paradisus $2,566.78 726 $1,863,482 Maui Hyatt $3,593.50 690 $2,479,515 Red Rock $1,358.73 700 $951,111 Program Total $5,294,108 $17 Per Person Discount 2116 ($35,972.00) 1% ($52,941.08) 2009

56 Value Proposition-Travel
Sample Scenarios 2009 2008 RESORT TOTAL PER PERSON (Includes the $17 PP HG Discount) NUMBER OF TRAVELERS TOTAL BUDGET Cancun Paradisus $2,572.86 690 $1,775,273 Maui Hyatt $3,728.37 726 $2,706,796 Bellagio (sample) $1,639.00 700 $1,147,300 Program Total $5,629,369 $17 Per Person Discount 2116 ($35,972.00) 1% ($56,393.69) 2008 2009 2009 2007 = $92,530 in Value/Savings 2008 = $88,913 in Value/Savings 2009 = $92,365 in Value/Savings $273,808 in Total Value/Savings over 3 years!!

57 Value Proposition-Awards
Things to consider—Awards Program Option 1: Should AMI transition to HG Worldwide any of the 2007 Group Travel Programs HG Worldwide will waive the Year 1 startup “one time” costs: Systems and Web: $10,000 ($20,000 - $30,000 value) Systems development/testing Web customization/graphic design/development Awardzilla: Systems and Web: $ 3,000 Total Savings $13,000

58 Value Proposition-Awards
Things to consider—Awards Program Option 2: Should AMI award HG Worldwide the Group Travel Programs, HG Worldwide will reduce the Year 1 startup “one time” costs by 50%: Systems and Web: ($20,000 - $30,000 value) $5,000 Systems development/testing Web customization/graphic design/ development Awardzilla: Systems and Web: $1,500 Web customization/graphic design/ development Total Savings $6,500 Option 3: Should AMI award HG Worldwide the Group Travel Programs and present or transition any new AMI opportunities in 2007 or reseller opportunities in 2007, we will consider further reducing Year 1 startup “one time” costs

59 Summary

60 Summary AMI will be a valued customer--one HG Worldwide’s top three clients HG Worldwide will support the program with a dedicated AMI Alside Rewards Team with program experience Evolutionary thinking…continually researching and evaluating the marketplace in search of technologies, award solutions and program operational efficiencies Creative Award Solutions Enhanced Award Solution Improved Award value for AMI and its Customers

61 Summary HG Worldwide is committed to helping you by…
Providing a Relationship Manager who understands Alside’s: Management Team Company Culture Customers “Operational Style” Empowering the support team to manage to the client’s needs Enhancing the technology that supports the group travel events Providing better value while offering high levels of client support Deliver a group travel experience that meets and exceeds your customer’s expectations Improve your business results


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