The Most Desirable Card

Alliances Strategy 2018

Alliances Program’s Strategic Intent

New
Portfolio
Customer Most Desirable Card
Deepening
Acquisition

• Grow Transactions, Balances

Stronger appeal for Active engagement of & Revenue
potential customers existing customers • Strong Customer Loyalty
• Enforce Market Leadership

2
 2017 Alliances Highlights
1 Number of Alliance Partners 2 Expense at Alliance Partners (Mn) 1 Expanded & diversified
250
16
80
70
72
Alliances program
200
60
58
through additional
103 45 46
50
150
40
Marketing investment.
4
100 30
9
20
2 ‘Dining’ continued to be
50 115
9
77 10 5
0.7 0.3
0
2016 2017
0
Dining Lifestyle Travel & Lodging Total
the major card spend &
Dining Lifestyle Travel & Lodging 2016 2017 funded Alliances
category.
Customer 2 Customers' Spend at Alliance Partners (Mn)
Customer Funding % of
3 Spend per 900
Spend (Mn) Spend 832
Alliance (Mn) 800 ‘Lifestyle’ alliances
700
Dining 481 4 12% 600 mostly merchant funded.
481
500
Lifestyle 219 2 4% 415
400 338
Travel & Lodging 132 8 4% 300 219 3 ‘Travel & Lodging’
200 132
Funded 550 8 13% 100
72
5
category yielded best
Non Funded 282 2 - 0
Dining Lifestyle Travel & Lodging Total ROI.
Total 832 4 9% 2016 2017

Program Success Indicators: Funded Alliances drive

- 47% of spend active cards availed Alliances & contributed 60% of overall spend more customer spend.
- Rs. 832 Mn (spend at Alliance partners) generated Rs.100Mn Income (> Affinity Cost)
3
2018 Action Plan

• Alliances Budget revised from Rs. 70M in

2017 2018 +/(-)
2017 to Rs. 50M in 2018.
Alliances Budget 70Mn 50Mn (29%)
• Spend growth requiring another Rs. 40M Alliances Expense (PKR) 72Mn 90Mn 25%
investment in Alliances to be funded by
Premier Alliances Expense (PKR) 3Mn 8Mn 167%
Visa’s business support fund.
Participating Customers 59K 75K 27%
• Objective criteria based & data driven Spend at Alliance Partners 832Mn 1.2 Bn 44%
partner selection to enhance customer
Funding % of Alliances Spend 9% 4% (56%)
engagement by another 27%.

4
Diversify Alliance Program

Allocate additional funds for Lifestyle and Supermarket categories.

2017 Budget Allocation 2018 Budget Allocation

Supermarkets,
1% Supermarkets,
Lifestyle, 19% 20%

Dining, 40%

Dining, 80% Lifestyle, 40%

5
Create Product Differentiation

CLASSIC GOLD PLATINUM

NON – FUNDED
a a a

All year w/
Special Boost on
Tied to Seasons /
FUNDED Tied to Spending Occasions /
Occasions
Seasons /
Merchants

6
Data Driven Merchant Selection

Where are
Where are Bank Alfalah
competition’s customers
Top 200 card holders currently
currently shopping,
Acquiring Top 200 Issuance shopping, dining, having
dining, having fun?
Merchants Merchants fun?

50+
Business &
Customers
Recommen
dations

372 Potential Merchants to forge Alliance

- 125 Dining - 39 Supermarkets - 208 Lifestyle
7
Scoring Methodology

Median Scores were calculated by

category
Spend Data
(OnUs/OffUs)
Weightage: 50%
Top Cut on Merchants scoring above
Google Search Customer 40 (overall Median)
Trends Perception
Weightage: 25%
(Social Media)
Weightage: 25%

Business & Customer recommended

cases reviewed on case to case basis
Aggregate
Score

143 shortlisted merchants

8
 Shortlisted Merchants – Phase 1

Supermarkets (5) Lifestyle (22) Dining (46)

Business Location Score Business Location Score Business Location Score Business Location Score
Naheed Super Market KHI 84 Aga Khan Hospital KHI 98 MCDONALDS Nationwide 91 BUNDU KHAN Nationwide 62
IMTIAZ SUPER MARKET KHI 80 Booking.com Nationwide 96 CAFE AYLANTO KHI, LHR 90 VERANDA BISTRO LHR 61
HYPER STAR KHI, LHR 66 Adidas Nationwide 93 Andaaz LHR 88 Shangrilla BBQ LHR 61
AL FATAH Nationwide 46 Nirvana Nationwide 86 Xanders KHI 80 Funky Bake ISB 61
AGHA S SUPER MARKET KHI 45 Charles & Keith Nationwide 85 HARDEES Nationwide 79 Tiramisu KHI 60
Golf Club KHI , LHR 85 Burning Brownie 79 Sweet Affair LHR 60
Agoda Nationwide 82 Ridan House Mandi KHI 78 Table Talk ISB 60
Scentsation Nationwide 79 Qabail LHR 76 ESPRESSO Nationwide 57
KHAADI Nationwide 77 Ambrosia KHI 75 CHAAYE KHANA Nationwide 56
HUB Nationwide 75 KABABJEES KHI,LHR 72 GINSOY KHI, LHR 51
Gerry’s Nationwide 63 Forks n Knives 70 N’eco’s Natural Store & Café KHI 51
Nabila LHR 58 The Deli KHI 68 Okra KHI 51
SHAPES KHI, LHR 55 MARRIOTT HOTEL Nationwide 67 Rina's kitchenette LHR 51
CAREEM Nationwide 52 KITCHEN CUISINE LHR,ISB 66 Café Flo KHI 51
Uptown Bowling LHR 51 Mandarin Kitchen LHR 65 AVARI HOTELS LTD Nationwide 50
GUL AHMED FABRIC Nationwide 45 X2 LHR 65 FUCHSIA KHI,LHR 49
MOTHERCARE KHI, LHR 45 Tuscany Courtyard LHR, ISB 65 COSA NOSTRA LHR 49
Debenhams KHI 43 Pizza Originale ISB 64 ENGLISH TEA HOUSE LHR 48
CIP LOUNGE Nationwide 43 HOWDY LHR, ISB 64 PIZZA HUT Nationwide 47
LEVIS Nationwide 43 Sattar Buksh ISB 64 THE PANTRY BY POLO KHI,LHR 47
CINEPAX Nationwide 41 PC HOTEL Nationwide 63 PIE IN THE SKY+ Chatter box KHI 45
Nuplex KHI BAR B Q TONIGHT Nationwide 63 Sajjad Restaurant KHI 44
Cannoli ISB 63 Baan Thai KHI 41

9
 Shortlisted Merchants – Phase 2
Supermarkets (3) Lifestyle (49) Dining (18)
Business Location Score Business Location Score Business Location Score Business Location Score
HKB LHR 57 Motion Ride 60 READINGS LHR 45 GLORIA JEANS COFFEES Nationwide 59
JALAL SONS LHR 44 Atlantis 58 IDEAS BY GUL AHMED Nationwide 44 Arbor Café KHI 58
METRO Nationwide 42 F1 Traxx ISB 58 Puma Nationwide 44 NANDOS Nationwide 55
Sastatickets.pk Nationwide 58 D WATSON ISB 44 CAFE ZOUK KHI, LHR 55
Alma’s Collection LHR 58 LIBERTY BOOKS Nationwide 44 Atrio Café ISB 53
Madeeha’s LHR 58 DIESEL Nationwide 44 Lal I Rumi KHI 51
A MOOSAJEE SONS 58 Accessorize Nationwide 43 Braggs Kids 50
CLINIX 54 HOTEL ONE Nationwide 43 LAL QILA KHI 49
NISHAT LINEN Nationwide 53 SANA SAFINAZ Nationwide 43 LAL QILA KHI 49
Jovago Nationwide 53 MANGO Nationwide 43 ROASTERS COFFEE HOUSE Nationwide 46
MINNIE MINORS Nationwide 52 SOUTH CITY HOSPITAL KHI 43 SUBWAY Nationwide 46
Mega Zone 52 Sobias ISB 43 GOURMET (Plat & Premier same)
LHR 45
KAYSERIA Nationwide 51 INGLOT Nationwide 42 MOVENPICK HOTEL Nationwide 44
Brands Highway 51 BEST WESTERN Nationwide 42 Dominos Nationwide 44
NEXT KHI, LHR 49 THE BODY SHOP Nationwide 42 HAROONS ISB 41
CHINYERE Nationwide 49 Monsoon Nationwide 42 KAYBEES KHI 41
SAPPHIRE Nationwide 47 SHAHEEN CHEMIST ISB 42 COFFEE PLANET ISB,LHR 40
TONI AND GUY Nationwide 46 AMIR ADNAN Nationwide 42 china town LHR, ISB 40
BAREEZE Nationwide 46 Labels 41
DHL Nationwide 46 LEISURE CLUB Nationwide 41
GENERATION Nationwide 46 SALEEM FABRICS LHR 41
SHIRT & TIE Nationwide 46 EDENROBE Nationwide 41
Crocs Nationwide 45 COUGAR Nationwide 41
ENGINE Nationwide 45 KENWOOD Nationwide 40
Makeup City Nationwide 40 10
Ramadan Deals (Tentative)
Business Score Tentative offer Offer type Classic Gold Platinum Premier
Al fatah 46 10% off Tactical y y y
Hyperstar 66 10% off Tactical y y y
Agha's Supermarket 45 10% off Tactical y y
Imtiaz Super Market 80 10% off Tactical y y y
Naheed Super Market
Sajjad Restaurant
84
44
10% off
30% off
Tactical
Tactical y
y
y
y
y
• Minimum Spend Requirement: Rs.
Ayalnto 90 40% off Tactical y y 10K on supermarkets with
Pie in the Sky 45 40% off Tactical y y y y
Pizza hut 47 50% off Tactical y y y y maximum discount cap of Rs. 2K
KFC 50 % off Tactical y y y y
Del frio 30% off Tactical y y y
Lahore Social
Bellavita
30% off
30% off
Tactical
Tactical
y
y
y
y
y
y
• Discount Caps up to Rs. 4,000
N’eco’s Natural Store & Café 51 40% off Tactical y y y
Kababjees 72 40% off Tactical y y y
PC hotel (Sakura , Marcopolo , Taipan) 63 30% off Tactical y y • Estimated Budget: Rs. 7.5 Mn
Xanders 80 40% off Tactical y y
The Deli 68 40% off Tactical y y
Ginsoy 51 30% off Tactical y y y
Charcoal Grill 30% off Tactical y y y
fuschia 49 40% off Tactical y y
Tuscany Courtyard 65 30% off Tactical y y
The Pantry by Polo 47 40% off Tactical y y
BBQ Tonight 63 30% off Tactical y y y
Viarnda Bistro 61 40% off Tactical y y
Lal Qila 49 30% off Tactical y y y
Howdy 64 30% off Tactical y y y
Texas Steak House 30% off Tactical y y y
Okra 40% off Tactical y y
11
Alliance Onboarding Criteria

FOC PAID

Popular, Small Business, New to market,

Trendy, Well established Business, Popular
Local/Regional Player that currently has low
amongst Social Movers, Youth and High Spenders.
visibility and customer base.
Fits the persona of a HNW Individual having a
Fits the persona of a Low or Medium Income
Platinum or Premier Card
Debit/Classic Customer

OUR POS, OUR CARD, OUR MERCHANT

12
Value to Merchants

FOC PAID

Increased Visibility &

Footfall a r
Prompt Payment r a
Regular Marketing &
Communication a a
Merchant Relationship
Management a a
13
Merchant Onboarding Process

Marketing & Advanced Data

Analytics + CFG - BI Branch Referrals

Social Media
Handshake Business/Product Team Referrals
Market/Industry Trends

Spend Data Executive Recommendations

Assess the Viability, POS, Merchant

Tems/Demands etc in line
w/Merchant Selection Criteria

Reimbursement

NO YES Approval From Business

Terminate
Fits
Handshake Contract

Signup & Marketing Start

14
Collaborating for Success

Business Marketing

• Budget Allocation for Alliances

Program
• Handshake & Merchant Onboarding
• Proposed Alliance List as per scoring
model
• Marketing Communication for
• Define Offers, Spend Limits/Caps
• Existing cardholders
• Track individual merchant
• New to Bank customers
performance
• Track merchant & customer data

Quarterly Review of Alliance Program

Corrective Actions as required

15
How to Market?

EXISTING TO EXISTING TO NEW TO BANK

PRODUCT BANK & PRODUCT

DIGITAL ADVERTISING a a a
SOCIAL MEDIA a a a
SMS a a
EMAIL a a
E-STATEMENT a a
ALFA(Pop up notification + splash screen) a a
GEOFENCING(subject to certain requirements) a
BLOGGERS/SOCIAL MEDIA INFLUENCERS
a a a
INNOVATIVE MERCHANT BRANDING (Designed Plaque/Sticker)
a a a
ONLINE ADS
a a a
ACTIVATION (Mall/Cinema etc)
a a a
RADIO 16
a
Tentative* Marketing Budget (8 Months)
COST
Radio Campaign FM 89 & 91
Integrate w/credit
(integrate w/credit card) card

Bank Alfalah Branch/Property Branding 1Mn

Magazines Selective gatefold advertisements 1Mn

Packages Mall in-branch activation
Retail & Commercial Activations Emporium, Dolmen, Centaurus,
Luckyone
2Mn

Merchant Giveaways & Branding Material Twice a year 2Mn

Digital / Social Media / Bloggers / Social
Influencers
Contests/ Prizes/ Post Boosting 3.5Mn

SMS 1.4m x 20 paisa x 8 months 2.24Mn

TOTAL 11.8Mn
* Allocation subject to changes in response to Market Conditions and Program Performance 17
Marketing References

HBL HBL FAYSAL BANK

First 5-10 customers Using Snapchat as a Tablets displayed in
to swipe an HBL medium to display selective branches
Credit Card get to sponsored ads to with all available
Meet and Dine with customer discounts flashing on
Ahmed Ali Butt screen

18
Ramadan Calendar (Tentative)

Naheed
May 2018 Al-fatah Agha’s Sajjad
Hyperstar Restaurant
Imtiaz

Okra Kababjees
Café Aylanto Pie in the Sky Pizza Hut KFC Del Frio Bella Vista

Café Aylanto
19
Ramadan Calendar (Tentative)

N’eco’s PC
Kababjees
Xanders

Ginsoy Charcoal Grill N’eco’s

Deli Xanders
Fuschia
Tuscany Pantry

Deli Bella Vista PC

BBQ Tonight LalQila Howdy Texas Fuschia
Tuscany
Veranda B
June 2018
Okra
Veranda B

20
Special Campaigns

EVENTS CALENDAR 2018

JAN FEB MAR

APR MAY JUN

Ramadan Eid-ul-Fitr
Travel Season
Father’s Day

JUL AUG SEP

14th August
Back to School
Eid-ul-Adha

OCT NOV DEC

Halloween Black Friday Christmas
Fall/Winter Launches New Year(cont.)

21
The Way Forward

PRIORITY FOR 2018 – DATA DRIVEN APPROACH

NEXT STEPS
• Immediate: Ramadan campaign – 30 merchants
• Explore major e-commerce websites
• Explore merchants with international HQs

22
Thank You