We are able to provide our loyalty and customer engagement solutions by utilizing
the brand names and customer contacts of our clients. Our diversified base of
clients includes more than 5,500 companies in a wide variety of industries, including
financial services, retail, travel, telecommunications, utilities and Internet.
Select clients include Wells Fargo, Citibank, JPMorgan Chase and Transworld Entertainment.
With respect to our loyalty and engagement solutions operations, many of our
principal partner agreements have a term of at least two years, which automatically
renew for one-year periods and may be terminated at any time upon at least 90
days’ written notice, and we typically charge a per-subscriber and/or
a per-activity administrative fee to clients for our services. Typically, our
agreements with our clients for the marketing and servicing of our retail subscriber
products are for fixed terms (typically one to three years, in the case of customer
engagement, and five years of marketing commitment plus five years of collection
tail if terminated, in the case of insurance with credit union clients), which
automatically renew for one-year periods and may be terminated at any time upon
at least 90 days’ written notice. Our clients are not subject to minimum
marketing commitments that are material, individually or in the aggregate. While
we generally do not have continued marketing rights following the termination
of any marketing agreements, the vast majority of our marketing agreements allow
us to extend or renew existing subscribers and bill and collect associated subscription
fees following any termination. While we usually do not have rights to use marketing
partner branding in new marketing following termination of a marketing agreement,
the products we provide to subscribers are either our standard products, which
do not require our marketing partner’s branding, or are co-branded products
for which we typically have the ability to continue to service as co-branded
products. Generally, our clients agree not to solicit our subscribers for substantially
similar services both during the term of our agreement and following any termination
thereof.
Global Loyalty. We had 59 clients, which include leading financial institutions,
gaming companies, brokerage houses, automotive companies, premier hotels and
travel-related companies.
Global Customer Engagement. We had approximately 850 clients in multiple industries.
Our relationships with our largest partners typically encompass multiple products
and/or types of marketing channels. In general, we have long-standing relationships
with our partners. Our international clients include some of Europe’s
most prominent retail banks and telecommunications companies.
Insurance Solutions. Our insurance clients consist of approximately 3,230 financial
institutions including national financial institutions, regional financial institutions
and credit unions. Customers of our top 10 clients generated approximately 25%
of our gross insurance revenue. In addition, we have held the endorsement of
the American Bankers Association of our AD&D product since 1989.
