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10 Questions

with Matt East
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April 16th, 2008 issue

VLADIMÍR WEISS/THE PRAGUE POST
GTS Alive's Matt East says people are delaying the onset of responsibility for longer and longer.
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THE EAST FILE



Job title: Managing director, GTS Alive
Age: 37
Nationality: New Zealand
Previous position: Marketing director, GTS International
Education: B.S., Uni. of Canterbury, New Zealand
For the past five years, the benefits card agency GTS Alive has been the top-ranked country affiliate of the ISTC, the worldwide organization behind the ISIC student identity card. Close to reaching saturation on the Czech market — 85 percent of public university students hold the card, which gives them benefits like cheap pizza — GTS Alive’s managing director, Matt East, talks to The Prague Post about the changing definition of youth and his company’s plans to move beyond distributing ID cards.
? Your primary business is as the Czech license holder for distributing ISIC cards. How much potential for growth is left in this sector?
We’ve reached a saturation point with ISIC, pretty much. Our business in this is tied to co-branded cards. All university students are required to have an identity card, by law, and we’ve co-branded with 21 of the 23 public universities so far, all of which have adopted the ISIC as their ID card. The cards have a microchip inside so they can be used for access systems, etc. We issue about 175,000 ISIC cards each year this way, out of 230,000 total.
Two years ago, we started a project with secondary schools in Prague. We now have some 68 secondary schools on the same system. This is a big development for us. Now we have to develop new benefits for younger students.
? The ISIC has been particularly successful in former communist states like Estonia, the Czech Republic and Romania. Why is that?
There was a real desire to embrace the novelty of benefits cards and loyalty programs in general. This desire became a catalyst that sped up the establishment of ISIC here.
? Do you have to go out on the street to get deals for ISIC cardholders?
That’s how we started. But now such a huge amount of students participate in the program, we don’t have to do that. We get contacted by potential benefit partners wanting to reach our cardholders. For example, we have had many music festivals contacting us to provide benefits to students and youth for the upcoming summer.
? There must be a lot of firms interested in the marketing data your company holds on so many young consumers. How do you restrict access to this information?
We’re registered with the Office of Data Protection. Of course, we don’t provide data to any third party unless there’s a particular action that we’ve collected data for and the cardholders agreed to be part of it. We do open up our e-mail club to partners who want to promote something connected to ISIC. The people who have signed up via our Web site have done so to receive information on a regular basis.
? Do you have any plans to expand your digital presence?
We’re planning to launch an online database for student-status verification in the beginning of July. We’ll provide this service to companies and organizations. It’s a service that isn’t even provided by the state. For example, someone goes to a bank and wants a student loan. The banker will then be able to go online and verify that the applicant is a student, rather than sending them off to get a stamp on a piece of paper and a signature from their study department. It can be done in real time.
? Are you trying to do anything beyond benefit cards?
We are trying to broaden our spectrum a little bit. For example, we’ve acquired the marketing and management rights for a new clothing brand called Extreme, which comes from Extreme TV, a cable channel. That’s starting in the autumn or winter of this year.
? Students must place a lot of trust in your company, often without realizing it. Is that a lot to live up to?
Sometimes you forget the role ISIC plays in students’ lives. Last year, I was speaking to a commercial partner. We were talking about the development of ISIC and he said, “You guys have been working so hard for the students for the last 10 years that the students would never turn around and just walk away.”
Sometimes I must admit that I don’t necessarily look at it like we’re working purely for the students. We’re a commercial entity and have bottom lines to reach. But it’s a nice feeling when others tell you that it’s obvious how hard we’re working for the students. You feel good about what you’re doing.
? Another card you hold the license to, the Alive Card, only provides benefits to those 26 and under. Do you feel that accurately reflects today’s notion of how long “youth” lasts?
Actually, no. We are currently reviewing the age-limit issue here in the Czech Republic and are considering raising the age limit by a few years.
? Why is that?
It has to do with how society used to be set up. By 25 or 26, you had finished your education, you’ve found your partner for life, you’ve gotten married, you’re having children and you’re settling down with a mortgage. Your youth lifestyle had come to an abrupt end. You had responsibilities to pay back your house, a family to look after.
The current generation has completely changed. People are getting married much older, having families when they’re much older after they’ve already established their careers. They’re studying much longer, doing a second degree. People are delaying the onset of responsibility longer and longer.
? How do you see the technology of benefit cards developing?
Even though technology is flying, I don’t think we’ll be going to embedded microchips or tattooed barcodes in the near future. Cards are going to be around for a while. I don’t think society is ready to take that next step.
Databases are becoming more complex, though. You’re going to have better access to services and products that are more suited toward you as an individual. This will develop a lot.
Want your manager to answer our 10 Questions? Contact Paul Voosen at pvoosen@praguepost.com


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