Basic Statements of this Loyalty Programme

Any company participating in the programme (Banking, Oil Companies, Phone Companies, Distributors, etc.) will send to its customers (either to all of them or to a selected group) the Shop2Win card, a brochure explaining how the programme works and a leaflet with the rules of the Shop2Win game.

The Shop2Win card is LINKED to the Operator´s corporate card (credit/debit card in banking and oil companies) and receives the amount of points gained through its use. In other usages such as Cash Machines and Phone Companies, the points are also obtained by means of using the Operator´s card itself.  It is important to bear in mind that points are obtained whilst the specific launched promotion lasts and that the Shop2win card COEXISTS with the operator´s one (they are both the same) and with any other promotions the company may be running then (thus, it is not exclusive).

The programme is based on customers sharing a personal and permanent number of free bets from Lotto, Lotto Extra and/or EuroMillions (from The National Lottery) printed on his or herShop2Win ® card. (Some examples provided below).

It is very easy for the Marketing and Loyalty departments to work out the total COST of the whole loyalty campaign. It will vary depending on their objectives: either to sign up new clients or retain the ones they already have. They will simply have to choose the number and kind of bets they want to offer to their customers for that specific promotion.

The club or group of card holders

Any group of permanent bets in a card (Lotto, Lotto Extra and EuroMillions) will be shared by a limited and fixed number of people (the “club” or group of cardholders). The limitation of participants for a set of bets may vary depending on the nature of the different promotions. In order to provide an example, we could say that the same bets can be shared among 100 card holders for the EuroMillions draw and only among 50 people for the Lotto and Lotto Extra draws (if the company decides to offer the three draws). The company does not need to include the three different draws and can choose to make any combinations when it comes to sharing the prizes.

The balanced prize-giving of Lotto, Lotto Extra and EuroMillions draws depending on the usage of the card holders is what makes the Shop2Win programme really special:

Cash prizes will be ENTIRELY distributed among the limited and fixed number of card holders depending on the proportion of their usage and loyalty, i.e, depending on the amount of points they have obtained in the stipulated period of time prior to the draws (between 7 and 15 days).

The immediate results for this golden rule will be:

	Since it will be proportionally shared, those card holders who obtain the most points will get the largest share of the prize, therefore: HE WHO BUYS MORE, GETS THE BIGGEST PRIZE!
	The points obtained during the last X days before the draw will be the only valid ones for deciding the shares. Therefore, the programme is a tempting tool to achieve REGULARITY in consumers. Thus, perseverance will be a reward since the less the people in a group use their cards, the more a loyal card holder can win.
	REGULARITY can also be exclusive. Each promotion can have specific rules explaining that if at any given draw no points have been obtained by a certain card holder, he or she can be excluded from the sharing of that particular prize. Therefore, the rest of the people in that “club” will get the chance to get bigger prizes. The right to participate will automatically be the user´s choice again, once he or she has obtained any amount of points for the forthcoming draws. This rule can be modified by the Operator depending on his or her goals for that particular campaign.

Thus, another golden rule of the programme is:

The card holder participation in any  Lotto, Lotto Extra and EuroMillions cash prizes is proportional to the level of use of the corporate card and/or the operator´s services. In other words, the share in the prize is proportional to the amount of points he or she may have gained over the last X days (from 7 to 15 depending on the sector) in comparison to the amount of points the rest of the people in the “club” have for that same period of time. Having no points over the last X days temporarily excludes the user from the likely prize-giving for the forthcoming draw and entitles the rest of the card holders to get bigger prizes. Once new points are obtained, the card holder will automatically gain access to his or her share in the next draw. The ENTIRE prize will be proportionally divided between the number of card holders, depending on the amount of points they have. The share will be, therefore, proportional to the amount of points, so the more loyal customers are, the bigger prizes they may get!

Example: Cascade diagram of points obtained in 7 days

One of the basic principles for Shop2win is REGULARITY: loyalty is extremely important since it entitles the user to get as many points as possible in a maximum number of days before the actual draw. The accumulation of those points will be the basis for working out the proportional prize-giving share among the card holders belonging to the same “club” or group. The following diagram is a 7 days example, though, other periods can be applied for different sectors: 1 day in phone companies, 15 days for oil companies, etc. In the following examples, the points obtained between the 10/09/2004 and the 16/09/2004 (20,25,45,55,120,183 and 20 points respectively) are accumulated to a total of 468. These points will be the participation of the card holder for the draw taking place on the 17/09/2004, always shared proportionally by the group depending on how many points each entrant has. The colours indicate the days in which the points are valid.

Date Points               Total     10/09/2004 20 20                   11/09/2004 25 20 25                 12/09/2004 45 20 25 45               13/09/2004 55 20 25 45 55             14/09/2004 120 20 25 45 55 120           15/09/2004 183 20 25 45 55 120 183         16/09/2004 20 20 25 45 55 120 183 20 468 Today 17/09/2004 ? ? 25 45 55 120 183 20               45 55 120 183 20                 55 120 183 20                   120 183 20                     183 20                       20

	The internet: www.shop2win.com\operador. Any relevant information for the card holder will be published online. The card holders will be granted access through their personal password. It will include: any transactions qualifying for the next draw, points obtained by the other people in his or her “club” and the forecast of prizes for every category in the following draws. See “11.- Demonstration of the Programme for end users”.
	Telephone helpline for FAQs or any other queries, as printed on the card.
	In the BANKING sector it will also be possible to check the best forecasts of prizes for the nearest draw while using a cash machine.
	We also provide the option to send an automatic weekly or even daily report on forecasts and prizes via e-mail to those card holders who request it.
	Optionally, together with the phone companies entering the programme, we will provide the service of sending an SMS to card holders when the forecast of prizes exceeds a certain amount of money, for instance: £ 200,000 Pounds. See "COMPETITIVE ADVANTAGES OF THE USE OF SHOP2win in PHONE COMPANIES ” Register n. XXIV

The communication and distribution of prizes will take place as stated in the Rules of the Programme. These will be presented before a notary for each promotion and deposited into the card holder´s bank account.

 
The entire cash prize of the Lotto, Lotto Extra and EuroMillions draws will be divided among the card holders whose cards contain the winning combination (those having at least 1 point in the X previous days before the current National Lottery draw). However, since the prizes for the lowest categories of the draw are not substantial, they might not be claimed by players. In that case, those prizes which have not been claimed will entirely make up a special Shop2win JACKPOT. This will also be shared among cardholders in the following situations:  

 

a) The Shop2Win jackpot will be added to the first prize of the 1st, 2nd or 3rd categories on the next draw and, again, shared among the lucky winners.
b) In the event of having a JACKPOT left at the end of the promotion, on the one hand, the Operator may wish (as stated in the rules of that particular promotion) to propose a final draw for those cardholders who meet the requirements stipulated in the rules of the promotion, always before a notary(*).  On the other hand, the entire JACKPOT can be added to the next Shop2win promotion and be shared among the prize winners in that case.
	(*)In the event of  having a JACKPOT, the draw will always meet the legal requirements in the UK regarding draws, as well as tax obligations deducted from the JACKPOT itself.

As one can see, Shop2Win distributes the ENTIRE prize among the winning cardholders.

The Shop2win programme provides a thorough analysis of all these financial transactions: free lottery bets, prize-giving, JACKPOT draws, etc. in  “12.- Tax management in Shop2win economic transactions”.

Rules for the cardholder in any promotion

In the previous sections we have presented the most important characteristics of the programme Shop2Win. Now, according to the flexibility of the programme, we have designed the following outline of the cardholder´s  participation rules.  We have to bear in mind that these may change according to specific commercial sectors and/or the objectives of each promotion.

The RULES must contain all relevant information for the cardholder in order for him or her to have a clear view on how to take part and what to expect in a given promotion:

·         How to take part: requirements, etc.

·         How to get and accumulate the points (shopping, use of services etc.): they provide the right to share the cash prizes.

·         Period of time in which they can obtain points (regularity).

·         Duration of the promotion.

·         How to receive the payment for the prizes.

·         Procedures in the event of a JACKPOT at the end of the Shop2Win promotion.

·         Call centre: in case they have any queries or questions.

·         All sources of information in order to check their prize forecasts: Internet, mobile phone, cash machines, etc.

Click on the right button on your mouse and select SAVE AS in order to download the PDF format of the set of rules.

In this site presents the main defining features of the loyalty programme Shop2Win.

Shop2Win is highly flexible, it allows the Operator to decide on a different strategy for a specific promotion or different commercial sectors. There are a huge number of possibilities (different number of cardholders in a group, number and nature of the free bets, etc) which can be combined in different ways depending on the specific objectives of the campaign (either to keep customers or attract new ones). The combinations range from Single Bets Cards (Gold Shop2win card, only one card holder with his or her bets) to those cards containing the same bets which are to be shared by the “club” or groups of 25, 50, 100, 150… cardholders (the standard Shop2win model which rewards customers´ loyalty). Through all this, we achieve the MOST EFFICIENT COST FOR YOUR LOYALTY PROGRAMME!