Market Overview

The loyalty and incentive industry is an estimated $85 billion industry which spends approximately 17% of this amount on rewards and fulfillment and 18% on software and services. These investments by both consumer product goods (CPG) companies and merchants to build loyalty toward their products and retail locations continue to deliver a strong return on investment. As an example, the number of Americans having loyalty cards more than doubled since 2001, with 55% of Americans owning at least one loyalty card.

The coupon and promotion industry is a target for modernization. While manufacturers have found that traditional paper coupons allow them to reach a large segment of consumers with promotional offers of all types there are significant issues including:

• While inexpensive, untargeted promotions redemption rates remain very low at less than 2%,
• On-line print at home solutions are cumbersome and not cost effective,
• distribution and processing of paper coupons is costly with the average coupon costing the CPG close to the face value of the coupon ($ .70),
• the coupon redemption process provides little marketing information for future marketing campaigns, and
• coupon processing requires extensive manual labor (over 32 steps) with little financial controls.

SoftCard's Direct-to-Checkout® technology addresses many of the industry's inefficiencies while providing an exciting new channel for reaching consumers with relevant offers. As such, management believes StoreFront® will find receptive marketing organizations, manufactures and merchants and we work hard with our business partners to create an unequalled value proposition for their customers. Here is why...

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