How do you make an encoder circuit?

[Carthaginian]

I'm trying to read a simple signal from an encoder. I've been having terrible luck, and I just want to make sure I'm using a proper circuit. I'm using this encoder http://www.alps.com/products/WebObje...0E1220501.html (which I'm interpreting as having only two ouput pins).

I won't bother posting my code, since it's the same as the example file "TwoKnobs".

I apologize for asking such a trivial question, but I have no deep understanding of electronics, and the encoder library tutorial http://www.pjrc.com/teensy/td_libs_Encoder.html doesn't provide a schematic. Thank you for the support.

[PaulStoffregen]

Connect the A and B pins to and 2 digital pins on Teensy 3.1. Connect C to GND.

[Carthaginian]

Thank you. It worked.