card commerce - gift cards for cycle shops
DESCRIPTION
Tony Brennan, Director at Card Commerce recently teamed up with partner, ActSmart in October 2010 to deliver a gift card presentation to cycle retailers at the Cycle Show in Earls Court, London. In it, he outlined the background to gift card, the benefits of gift cards to retailer and customer; and what to look out for when choosing a gift card partner.TRANSCRIPT
Date:
A presentation to:Cycle Show 2010
7th October 2010
Topics to be covered
What’s all the fuss about?
Why do your customers want them?
The business case for the retailer
Running a successful Prepaid Programme – Top tips
Think beyond gift cards
Points to consider when selecting a Gift Card Partner
Questions & Answers
What is all the fuss about?
Its a significant part of the market:‐ UK Gift card and voucher marketplace worth £4bn in 2009‐ There were 500 programmes in place‐ Accounts for 1.5% of all retail spend
Practically all Tier 1 retailers now operate gift card programmesGift Cards now represent 55% of all Gift Value soldExpected to peak at 90%Card and voucher sales in Q2 2010 have shown their sharpest growth ever recorded ‐ B2B sales up by 20%‐ Consumer sales up by 24%‐ Leisure category up by 11%‐ Retailers category up by 20% ‐ Gift card malls up by 70%
Why do customers want them?
77% of recipients expressed a positive or better experience with gift cards (only 3% expressed dissatisfaction)
43% preferred cards compared to 27% the previous year (just 12% of consumers now prefer paper vouchers)90% approve of getting gift cards from their employer (was 70%)50% increase in the number of people preferring card rewards to cash rewards81% of recipients spend more than face value on card49% of gift card recipients make more visits to the store/retailer afterwards
The Business Case for the Retailer
Top UK Gift Card Schemes
Running a successful Prepaid Programme – Top Tips
1. Make it all about the customer – understand what they want and give it to them
2. Talk about the recipient and not about convenience
3. Draw customers’ attention to your gift card offer – satisfy planned and impulse purchases
4. Your brand is key – present a pretty picture
5. Make it Christmas all year round
6. Keep up to speed with industry prepaid trends and ideas – the US is 10 years ahead
7. Broaden your horizon in terms of distribution and non-gift usage of cards
Think beyond Gift Cards
Gift Card
Gift Card
PurchaseCard
Trade-InCard
LoyaltyCard
SavingsCard
RefundCard
ChristmasClub
HolidayClub
PromotionsCard
Gift CardRewards
Card
Points to consider when selecting a Gift Card Partner
Scalability of solution on offerSimple Point of Sales interfaceQuality of card and carriersSales and service channels supportedFunctionality beyond Gift – personalisation, rewards, multi-walletsUser configuration and managementProgramme reporting‐ Time / location analysis‐ Transaction analysis‐ Reconciliation process and accounting support‐ Fraud & Risk reporting
Expiry date managementBulk load activity supportCustomer self service supportSupport for programme marketing and enhancement
