Profile: Alliance Data Systems Corp (ADS)
23 May 2017
Alliance Data Systems Corporation, incorporated on February 23, 1995, is a provider of data-driven marketing and loyalty solutions serving consumer-based businesses in a range of industries. The Company offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, end-to-end marketing services, analytics and creative services, direct marketing services, and private label and co-brand retail credit card programs. The Company operates through three segments: LoyaltyOne, which provides coalition and short-term loyalty programs through the Company's Canadian AIR MILES Reward Program and BrandLoyalty Group B.V. (BrandLoyalty); Epsilon, which provides end-to-end, integrated direct marketing solutions, and Card Services, which provides risk management solutions, account origination, funding, transaction processing, customer care, collections and marketing services for the Company's private label and co-brand retail credit card programs. Its client base is diversified across a range of end-markets, including financial services, specialty retail, grocery and drugstore chains, petroleum retail, automotive, hospitality and travel, telecommunications, insurance and healthcare.
The Company's LoyaltyOne clients are focused on acquiring and retaining customers. The Company uses the information gathered through its loyalty programs to help its clients design and implement marketing programs. Its clients within the LoyaltyOne segment include financial services providers, grocers, drug stores, petroleum retailers and specialty retailers. LoyaltyOne operates the AIR MILES Reward Program and BrandLoyalty. The AIR MILES Reward Program is a full service outsourced loyalty program for its sponsors. The AIR MILES Reward Program enables consumers, referred to as collectors, to earn AIR MILES reward miles as they shop across a range of retailers and other sponsors participating in the AIR MILES Reward Program. These AIR MILES reward miles can be redeemed by its collectors for travel or other rewards. Through its AIR MILES Cash program option, collectors can also redeem their AIR MILES reward miles collected in the AIR MILES Cash program option toward in-store purchases at participating sponsors.
The three primary parties involved in the Company's AIR MILES Reward Program are sponsors, collectors and suppliers. Collectors earn AIR MILES reward miles at various retail and service locations, including any online presence the sponsor may have. Collectors can also earn AIR MILES reward miles at various locations where collectors can use certain credit cards issued by Bank of Montreal and Amex Bank of Canada. The Company enters into agreements with airlines, manufacturers of consumer electronics and other providers to supply rewards for the AIR MILES Reward Program. BrandLoyalty designs, organizes, implements and evaluates tailor-made loyalty programs for grocers across the world.
Epsilon is a marketing services firm providing end-to-end, integrated marketing solutions. Its services include strategic consulting, customer database technologies, omnichannel marketing, loyalty management, proprietary data, predictive modeling, permission-based e-mail marketing, personalized digital marketing and a range of direct and digital agency services. On behalf of its clients, the Company develops marketing programs for individual consumers with targeted offers and personalized communications through its digital media practice, Conversant. It distributes marketing campaigns and communications through all marketing channels based on the consumer's preference, including direct mail and digital platforms, such as e-mail, mobile, display and social media. As of December 31, 2016, Epsilon had over 1,400 clients, operating primarily in the financial services, insurance, media and entertainment, automotive, consumer packaged goods, retail, travel and hospitality, pharmaceutical/healthcare and telecommunications industries.
Through its consulting services, the Company analyzes its clients' business, brand and/or product strategy to create customer acquisition and retention strategies and tactics designed to further optimize its clients' customer relationships and marketing return on investment. It offers return on investment (ROI)-based targeted marketing services through data-driven creative, digital user experience design technology, customer relationship marketing, consumer promotions marketing, direct and digital shopper marketing, distributed and local area marketing, and services that include brand planning and consumer insights. For consumer-facing brands, the Company designs, builds and operates complex consumer marketing databases, including loyalty program management, such as Hilton HHonors, Walgreens Balance Rewards and the Citi Thank You programs. The Company provides behavior-based, demographic and attitudinal customer segmentation, purchase analysis, Web analytics, marketing mix modeling, program optimization, predictive modeling, and program measurement and analysis. It provides communication solutions and its end-to-end suite of products and services includes strategic consulting, creative services, campaign management and delivery optimization.
The Company's Card Services segment assists various retailers in extending their brand with a private label and/or co-brand credit card account that can be used by their customers in the store, or through online or catalog purchases. Its Card Services segment provides risk management solutions, account origination and funding services for over 160 private label and co-brand credit card programs. It processes credit card applications using automated scoring technology and verification procedures to make risk-based origination decisions when approving new credit card accountholders and establishing their credit limits. The Company's accountholder base consists primarily of middle- to upper-income individuals, in particular women using its credit cards primarily as brand affinity tools. It uses a securitization program as its primary funding vehicle for its credit card receivables.
The Company performs processing services, and provides service and maintenance for private label and co-brand credit card programs. The Company uses automated technology for bill preparation, printing and mailing, and also offers consumers the ability to view, print and pay their bills online. It also provides collection activities on delinquent accounts to support its private label and co-brand credit card programs. Its private label and co-branded credit card programs are designed specifically for retailers and have the flexibility to be customized to accommodate its clients' specific needs. Through its integrated marketing services, the Company designs and implements strategies that assist its clients in acquiring, retaining and managing repeat customers. It uses multi-channel marketing communication tools, including in-store, Web, permission-based e-mail, mobile messaging and direct mail to reach its clients' customers.
Alliance Data Systems Corp
7500 Dallas Pkwy Ste 700
PLANO TX 75024-4006
Company Web Links
- BRIEF-Epsilon signs relationship expansion agreement with AT&T
- BRIEF-Alliance Data says April delinquency rate 4.7 percent
- BRIEF-Alliance Data Systems CEO's 2016 compensation was $7.8 mln
- BRIEF-Alliance Data Systems Q1 earnings per share $2.58
- BRIEF-Alliance Data Systems sets quarterly cash dividend of $0.52per share