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Q:
I'm losing a
lot of my customers to chain stores, which can afford to heavily
discount their prices. How can I keep shoppers from defecting to these
larger competitors without starting a bidding war?
A:
In
addition to providing superior service, you may want to consider
offering gift and loyalty cards to your customers, a strategy that has
long been used by national retailers to attract and keep good clients.
Many powerful yet affordable solutions have emerged recently to serve
companies of all sizes, enabling smaller firms like yours to downplay
pricing and compete against larger organizations.
Q:
Why electronic gift cards vs paper?
A:
The electronic gift card concept is quickly becoming the medium of
choice for retailers across the country. Among the significant reasons
are: No Cash Back (value remaining after partial redemption stays on the
card, ensuring additional opportunities to solidify the customer
relationship or retain funds) and real time Data Capture (virtually
eliminates both the losses associated with paper gift certificates and
costly tracking and accounting).
Q:
What are the benefits of this program to a merchant?
A:
Electronic gift/stored value cards are convenient (carried in wallet
with other plastics), secure (cannot be photocopied) and as a branded
“billboard in a wallet” establishes the merchant as the destination.
With this product, a merchant will gain more name recognition and
exposure in the marketplace, further widening its existing customer
base.
Q:
What is the difference between a Gift Card and a Stored Value Card?
A:
There is no difference in the functionality of the cards, both are
pre-paid value cards. With the gift card, the customer is excited about
a slick, state of the art gift-giving solution that allows the receiver
to actually choose the gift. The merchant benefits from replacing an
obsolete paper gift certificate program with today’s technology,
electronic processing. With the stored value card, an emphasis is placed
on enhancing the individual customer relationship through the use of
incentives and an optional associated rewards program.
Q:
How does the Gift/ Stored Value card work?
A:
A customer enters the merchant’s establishment and asks to purchase a
gift / stored value card. The merchant takes a card from inventory and
activates it for the dollar amount desired by swiping the card through
the POS terminal. The card is now ready to be used at any participating
store location.
Q:
Will I be able to utilize my existing equipment?
A:
In many cases, yes. The programs run on several leading credit card
terminals such as the Verifone Tranz 330, 380 and 460, Omni 3300 and
3750. If a smaller "footprint" is desired, a Verifone Tranz 380x2,
capable of housing two separate programs (ie. credit card and gift card)
is a viable solution. |
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Q:
What
type of reporting will I receive with this program?
A:
Merchants receive daily and monthly reports. The Daily Batch report
produces a chronological list of all transactions, a total count and
total dollar amounts by transaction type occurring since the terminal
was last cleared. The system generates a monthly Corporate Summary
statement which reports all transactions captured on the systems
database during that time period, as well as total fees billed. This
report aggregates transactions at the corporate level and by location.
Delivery methods include electronic transfer, facsimile or hard copy.
Q:
How
soon can the card be redeemed at a participating store location after
value has been added to the card?
A:
The
gift/stored value card may be used immediately after activation. Gift /
Stored Value card transactions are processed in real time.
Q:
When
should cards be reordered?
A:
Merchants should always be aware of their card supply so as not to
deplete their inventory during their peak season. Keep in mind that when
reordering cards, the process will take 15 days from the time of order
plus time for shipping and handling. If cards have been pre-produced and
stored, the only time involved will be the shipping of the cards.
Q:
How do I get the customer with an existing card to add more value?
A:
This is a very important revenue generator and can be very profitable
for your business. The use of incentives with the program will entice
consumers to add value to the card. For example, if a customer adds $50
to his existing card, offer to give that customer $55 worth of value or
offer discounts or additional services specific to gift card users. The
“add-value” feature of this card program offers limitless marketing
opportunities to enhance customer relationships, increase purchase
frequency, and build brand awareness.
Q:
How
do I get my employees fired up about the Gift/Stored Value Card Program?
A:
Incentives,
incentives, incentives—a concept that works with customers and employees
alike! A reward program encouraging friendly competition between
employees will build a strong, goal-oriented team while promoting your
new and dynamic gift card program.
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