LoyaltyOne, Epsilon Targeting Joint Survey Provides Snapshot of 2010 Holiday Season Buying Behavior of U.S. Customer Reward Prog

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Over 7 Out of 10 Holiday Shoppers Say They Participate in Customer Reward
Programs

11% Will Stretch Budgets by Using Points on Holiday Purchases, with 70% of
Redeemers Buying Gifts for Others Rather than Treat Themselves

Reward Redeemers Poised for Thanksgiving Day Shopping, Free Shipping

TORONTO and DALLAS (November 22, 2010) – More than seven out of 10 U.S.
consumers eyeing the holiday shopping season said they are occasional (28%)
or frequent (43%) users of customer rewards programs, according to a joint
survey from LoyaltyOne and Epsilon Targeting.

LoyaltyOne is a global loyalty marketing company. Epsilon Targeting, a
division of Epsilon, is a leading provider of consumer information for
targeted marketing solutions.

The companies concluded their online consumer research on Nov. 1, 2010,
obtaining a total of 709 completed responses to a 9-question survey sent to
U.S. households nationwide.

According to the research, 11% of the survey takers who identified
themselves as reward program members said they plan to augment their
spending power by using reward points or miles for their holiday purchases
this year.

When that 11% (reward program members who plan to use points or miles on
holiday purchases) was asked if they’ll redeem for family and friends, or
treat themselves, 70% demonstrated the spirit of the season by responding
that they’ll redeem for others.

The survey results indicate U.S. consumers welcome any budget-stretching
help they can get this year. Just 6.6% of overall respondents said they plan
to spend more on holiday purchases in 2010 compared with 2009. Among those
who identified themselves as reward program participants, however, 8.1% said
they plan to spend more this year – a 23% increase.

The good news is help is on the way in triplicate this year. Shoppers
looking to make points or miles part of their gift-giving game plan are well
positioned to take advantage of two of the major developments of the 2010
holiday season, Thanksgiving Day shopping and free shipping.

Toys R Us, Old Navy and Sears are leading the major retailers who have
announced that this year they’ll be open on Thanksgiving. Best Buy, J.C.
Penny and Target Corp. are offering free shipping. What do these retailers
have in common — they all offer customer reward programs.

“The savviest of holiday shoppers can maximize cost-savings and convenience
this year by taking advantage of their reward program memberships at
retailers who offer the option of shopping on Thanksgiving, or save them
time and money on shipping,” said LoyaltyOne Consulting Managing Partner
Dennis Armbruster. “Factor in savings from the use of points or miles and
it’s a triple win,” he said.

“Retailers who use data from their reward programs to respond to customers’
most pressing concerns at critical times like the holiday gift giving season
can enhance the shopper experience and leverage relationships in a way that
deepens loyalty to their store or their brand,” said Epsilon Loyalty
Solutions Vice President John Bartold.

Armbruster and Bartold offered the following three tips for consumers
interested in stretching their budgets by cashing in their points and miles
on holiday purchases:
1. Double Dip – Use a rewards credit card at merchants that also have their
own customer loyalty programs.
2. Use Your Secret Stash — Don’t forget those unused points in accounts
that are ready to be redeemed. Turn the points into great stocking
stuffers.
3. Open a Store Card – Store credit cards often have a great rewards program
that will provide instant savings and extra perks.
The U.S. holiday shopping survey has a margin of error of plus or minus 4%.

About Epsilon
Epsilon is the industry’s leading marketing services firm, with a broad
array of data-driven, multichannel marketing solutions that leverage
consumer insight to help brands deepen their relationships with customers.
Services include strategic consulting, acquisition and customer database
technologies, loyalty management, proprietary data, predictive modeling and
a full range of direct and digital agency services, including creative,
interactive web design, email deployment, search engine optimization and
direct mail production. In addition, Epsilon is the world’s largest
permission-based email marketer. Epsilon is an Alliance Data company. For
more information, visit www.epsilon.com or call 1.800.309.0505.

About LoyaltyOne
LoyaltyOne is a global provider of loyalty strategy and programs, customer
analytics and relationship marketing services. Its roster of clients
includes leading businesses and brands in multiple sectors such as retail,
banking, manufacturing, government, natural resources and utilities.
LoyaltyOne businesses include Canada’s AIR MILES Reward Program – North
America’s premiere coalition loyalty program, COLLOQUY, Precima, LoyaltyOne
Consulting and Direct Antidote. LoyaltyOne’s industry-leading Associates,
practical experience and proven capabilities set the benchmark of thought
leadership in the loyalty marketplace. Toronto-based LoyaltyOne is an
Alliance Data company. For more than 30 years, Alliance Data has helped its
clients build more profitable, more loyal relationships with their
customers. For more information, visit www.loyalty.com.

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