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
