Stored Value Cards
What is a Stored Value Card?
Unlike a Gift Card that have a reducing value and no ability to add value, Stored Value cards allow consumers to consistently add and reduce value on a card.
Stored value cards provide an excellent way to build customer loyalty. Customers collect a card, add value to it and over time use the card instead of using bank cards to process payments.
Dynamic Rewards provides both open and closed loop programs. Open programs are those where a group of retailers participate together in a program, consumers add value in one store and reduce value in another store.
Closed programs are where the system is operational in just one business.
Examples of both are
Open Loop Programs
Subway New Zealand for example is an open loop program. You can add and redeem value on the SubCard in any Subway store in New Zealand.
Open loop programs are especially helpful to franchise groups
Chains with multiple outlets benefit greatly from a stored Value card program.
Multiple stores, 250 in total all serving coffee, cakes and meals. On average 200,000 customer transactions a year. That's 50 million transactions a year. They had a buy Ten get One free card but never required any data from the customer. They've been looking for a way to market to their customers but haven't found a program that was acceptable to all franchises.
Now they introduce the Coffee Card. All customers spending more than $10 get one for free and when they add $20 get a bonus $5 added. The customer is as happy as Mo and is advised to go online at www.coffeecard.com, the standalone web address for the coffeecard program.
The Coffee Stop is ecstatic. Customers are registering online at the rate of up to 1000 a day to enter the grand prize associated with the launch of the program. At the end of Month One Coffee Stop had 25,000 customers on their database who had all received a card and put money on it towards future purchases. Coffee Stop was building a database of customers, finding out what coffee's and food their customers liked and they'd locked in 25,000 future customers. What better than that.
If you want to know the next steps in how this program was rolled out you need to contact us to see how well it went. Click here to make an enquiry.
Closed Loop Programs
The Depot in Brisbane operates a closed program where customers are restricted in that they can only add and reduce value in The Depot.
This helps keep revenue within the business, customers are invited to register the cards to secure their funds and receive special advance notice to events.
The merchant uses the card to reduce relaince on running customer accounts, now customers pay in advance and get a add on bonus. The business is happy, it has an electronic card system for clients accounts, no more paperwork, and it gets its clients funds up front, not in arrears.
The card holder is happy because they can have just one statement for petty cash expences, and they get bonus value by buying up front.
So depending upon your situation, we've a Stored Value Card solution for you.