MoneyGram 2007 Annual Report Download - page 10

Table of Contents
During 2007, we continued to focus on our brand positioning and customer loyalty programs. MoneyGram made a significant investment
in 2007 to establish a new brand positioning strategy which was released in the first quarter of 2008 and will impact our marketing
activities, as well as our overall product development strategies, for the coming years. Working with an outside research firm, we spent
more than two years developing a new global brand position and message that differentiates MoneyGram from other payment services
providers. Additionally, our new customer loyalty program entitled "MoneyGram Rewards" was developed to build loyalty and repeat
usage with consumers around the world. The new loyalty program is part of a broader initiative at MoneyGram to build global brand
awareness. The program includes features such as a new discount structure based on a customer's use of MoneyGram's services,
notifications to the sender when the funds are picked up and less paperwork with an easier process. Consumers can enroll for the program
through our call center or at www.mymoneygram.com
A variety of traditional media methods have been used in the past to reach our consumers, such as television, radio, print and event
marketing. We will focus more heavily on national television ads during 2008 in conjunction with a new media campaign, and will also
rely on radio and print advertising. Additionally, MoneyGram has initiated several research projects that are designed to measure the
effectiveness of the new campaign and its impact on image, awareness and volume.
Product and Infrastructure Development and Enhancements
Our product development activities have focused on new ways to transfer money and pay bills through enhancements to our current
services and the development of new products and services. Recent enhancements and new products supplement our Global Funds
Transfer segment. We have also invested in new infrastructure to increase efficiencies and support our strategic initiatives. We believe
new features, products and infrastructure will provide customers with added flexibility and convenience to help meet their financial
services needs.
New Product and Product Enhancements: We successfully transitioned our MoneyGram Prepaid MasterCard card program to a new
processor during 2007, and are positioned to take advantage of the anticipated growth in the debit card arena. The cards are available for
purchase and reload at designated MoneyGram agent locations throughout the United States. Throughout 2006 and 2007, we continued to
implement a full suite of ACH and electronic bill payment services that provide consumers with pay-by-telephone, pay-by-IVR and
pay-by-web options. Our new utility bill payment services were implemented across the United States in 2007. Furthermore, our internet-
based money transfer service, eMoneyTransfer, grew rapidly during 2007 and significant enhancements of the eMoneyTransfer service
are planned for release in 2008. The enhancements will provide better usability and efficiency in completing a transaction for our online
customers, as well as more cost effective transaction processing.
Infrastructure Development: In early 2007, we launched a new general ledger and accounts payable system. We continue to invest in
improving our infrastructure, including settlement and commission processing, agent and customer data management and set-up and other
important financial systems. The new system and associated processes are intended to increase the flexibility of our back office, thereby
improving operating efficiencies and communications between our agents and our marketing, sales, customer service and accounting
functions. This significant investment in technology and process re-engineering will allow us to create an infrastructure able to support
our strategic initiatives. Other benefits to be derived from this investment include increased speed to market for new products,
efficiencies in back office operations, enhancement of information repositories for regulatory and compliance reporting and better overall
consumer and agent experience.
In 2007, we began a development effort to automate our agent on-boarding process. This effort is being undertaken to improve our speed
to market with new agents, to improve departmental tracking and to increase accountability throughout the process. The primary
component of this development effort is the implementation of a business process management tool, which allows us to automate a paper
intensive process with strong work-flow processes.
Competition
The industries in which we operate are very competitive and we face a variety of competitors across our businesses. New competitors or
alliances among established companies may emerge. Consolidation among payment services companies, and money transmitters in
particular, has occurred and may continue. We compete for agents and
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