How Does A Loyalty & Gift Card Program Help Business To Grow?
Gift Card Program:
A stored value program, these cards replace paper gift certificates. First, the customer pays the merchant, who loads the collected value onto a gift card through a programmed terminal. The funds represented on the card stay in the merchant’s account. The cardholder can redeem the value on the card for goods and services at participating merchant locations. The amount of the sale is deducted from the card and the balance remaining prints on the receipt. Cards can be reloaded at any time.
Loyalty Program:
A point-based program that allows merchants to reward loyal customers. Customers accumulate points based on rules set by the merchant. These points are redeemed by the customer for tangible rewards, per the program the merchant has established. For example, a point earned for every cup of coffee purchased with a free cup after ten earned points. This program provides merchants with the flexibility to tailor a customer rewards program limited only by their creativity!
TC 365:
An annual gift card program. This program functions much the same as our standard gift card program with the exception that the merchant pays in advance for an entire years’s worth of service and transactions. Since there is a flat transaction total and no monthly fees, there is no need for a monthly statement. Within days, the merchant receives a quantity of starter cards that don’t have to be proofed beforehand and everything else they need to quickly get their program running.
TCeasy:
A monthly, flat-fee gift card program that functions much like our standard gift card program with the exception that the merchant pays equal monthly installments for hosting, transactions and cards. Program levels are based on a set number of transactions per month. The only up front cost is for shipping and handling. Within days, the merchant receives a quantity of starter cards that don’t have to be proofed beforehand and everything else they need to quickly get their program running.
You might not know…
Gift Cards; not just for the Holiday Season
- Birthdays are the #1 occasion for gift card purchase
- The “Spring Holiday Season” includes Mother’s Day, Father’s Day and Graduations
Gift cards capitalize on impulse purchases
- Switching from paper certificates to plastic cards can result in 200% growth in related sales because they are more visible and widely publicized everywhere.
You might not know…
Gift Cards; not just for the Holiday Season
| Birthdays are the #1 occasion for gift card purchase | |
| The “Spring Holiday Season” includes Mother’s Day, Father’s Day and Graduations |
Gift cards capitalize on impulse purchases
| Switching from paper certificates to plastic cards can result in 200% growth in related sales because they are more visible and widely publicized everywhere. |
Gift card facts and statistics
| TenderCard processed gift and loyalty programs for over 36,000 merchants in 2007 |
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| In 2007 TenderCard processed approximately 2,000,000 transactions representing almost $100,000,000 in issued and redeemed cards | |
| 51% of consumers who receive gift cards spend more than the card’s initial value National Retail Federation (NRF) | |
| 53% of consumers want a gift card as a holiday gift Forrester Research | |
| Gift cards make up 31.3% of graduation presents National Retail Federation (NRF) | |
| The gift card industry has grown to be a $3.5 billion industry and will surpass $5 billion by 2010 MarketResearch.com (“Packaged Facts” report 2006) |
Loyalty facts and statistics
| Consumer spending is 6% higher for companies that offer loyalty card programs (Loyalty Monitor study by Total Research Corp. and Custom Marketing Corp) | |
| Increase average purchase and visit frequency by over 25% | |
| Gift and loyalty can be on one card | |
| Track purchase behavior for marketing purposes |
Put stored value to work…
| Promotional marketing tool | |
| Ad space costs more than promotional gift cards | |
| Discount cards mailed to targeted customer group | |
| Used as a gift with purchase | |
| Corporate incentives | |
| Sell to companies to use as employee incentives/rewards | |
| Prepaid Vehicle for Recurring Sales | |
| Coffee shops, dry cleaners, auto detail, oil change programs, etc. | |
| Store credits, returns and refunds | |
| Keeps cash in the drawer | |
| Customer appreciation and retention | |
| Reward loyal customers | |
| Turn customer disputes into retention opportunities | |
| Fund Raisers | |
| Sell cards at a discount to schools & non-profits | |
| Budgeting or Limited Expense Account | |
| Use for business spending, gas allowance , etc. |
Merchant benefits
| Increased sales | |
| Retain full face value – no cash back | |
| Consumers often spend more than the card’s face value | |
| Merchant retains any unused balance (subject to state laws) | |
| Security | |
| Cards have no value until activated | |
| Plastic cards are harder to counterfeit than paper certificates | |
| Reduced costs | |
| More efficient and cost-effective than paper | |
| No “back room” accounting | |
| Reports generated electronically by TenderCard |
Why should I switch from paper certificates to plastic cards?
Electronic gift cards have become the medium of choice for retailers across the country. Reasons for this shift include: No cash back; value remaining after partial redemption stays on the card and in your register. Cards can be reloaded and reissued again and again. Plastic cards are harder to counterfeit than paper certificates.
Is theft a problem if cards are displayed at the point of sale?
No, we produce cards without value on them. Merchants assign the card’s value at the point of sale when the card is purchased.
What if a customer loses their gift card?
Cards do not have to be replaced by the merchant. However, if the cardholder has receipts and the merchant wishes to, a new card may be issued with the remaining balance from the lost card. Make sure to void the lost card after the balance is transferred.
How will my employees know how to use the program?
Every starter kit includes a terminal specific Quick Reference Guide that walks a user through every transaction type in easy to follow steps.
Will the programs work with my existing equipment?
TenderCard is certified on most major terminals in the market today. All of our programs can also be run via our online Virtual Terminal at no extra charge. This setup requires only a computer with an internet connection.
How soon can the card be used after value has been added to it?
All transactions are processed instantaneously making funds available immediately.
When are monthly statements mailed?
Merchant accounts are debited on the 10th of each month, for the previous month’s activity. Statements are then mailed on or around the eleventh day of the month. If you have questions regarding your statement, contact BPI at 1-888-274-2323
How do I change account information, such as DBA name, physical location, mailing address, or bank account?
Call Merchant Services at 888-274-2323 or fax a signed letter stating your desired changes to 866-909-7735.
What kind of support does BPI provide?
BPI offers support on many levels to our merchants:
Merchant Services answers any questions merchants may have about their statements, billing inquiries, bank changes and ownership/location changes.
Gift Card Help Desk is a traditional 24/7 tech support hotline for merchants experiencing a technical issue with their pos terminal. Our staff is trained in the functions and features of all of today’s major pos terminals.
Artwork Helpdesk assists merchants that are in the process of submitting custom artwork for their cards. These trained graphic designers field questions about the both the technical and subjective quality of the artwork; offering their assistance on both fronts
