Prepayment & loyalty 2011


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Prepayment & loyalty 2011

  1. 1. IntroducingPrepayment Cards & Loyalty Systems
  2. 2. Your Own Pre-payment & Loyalty Card System You can design your own card with your logo pictures and images. The limit is your imagination.
  3. 3. Advantages of Gift CardsGift cards mean a better sales experiencefor both you and your customer. But mostimportantly, they provide a real return oninvestment. A popular twist on the gift cardconcept is prepaid or stored value cards.With stored value cards, your customerscan pre-pay for multiple products orservices in exchange for discounts andpoints.
  4. 4. Benefits of Gift cardsPrepayment advantage. A £100 gift cardsale means £100 cash for your businesstoday. Products or services are delivered byyou well after payment is received.Reduced administrative costs. Paper giftcertificates are difficult to handle, process,and reconcile. Gift cards are easily stored,issued, and tracked. Transaction times arefaster than any other exchange medium…just insert the card to complete thepurchase.
  5. 5. GIFT CARDS ARE SECUREReduced loss from theft and fraud. Papercertificates are easily copied or altered.They are susceptible to theft, and must bekept secured, like cash. Gift cards have novalue until they are activated, have aunique ID number, and are not susceptibleto duplication
  6. 6. UNREDEEMED REVENUEStudies show that the average customerleaves 25% of a gift card’s valueunredeemed, and gift card programs aretypically set up to leave this value on thecard. Many gift cards given to Friends andFamily are often not used or mislaid.
  7. 7. Keeping the Cash in your Business Reduced loss from returns. When a customer returns merchandise, you have the option of offering a refund in the form of a gift card, ensuring that the value of the return stays with your business. This means cash flow is maintained. Cards can be topped up with return cash at the counter.
  8. 8. Gift Card AdvertisingFree advertising. Your company’s logoand marketing message is printed onevery gift card sold. This is a form ofadvertising that your customers carry intheir wallet or purse every day. Plasticcards and associated in-storemerchandising also provide advertising atyour business.
  9. 9. Gift Card and Loyalty PointsOur system has a very unique featurewhich allows loyalty points to be added tothe card when cash is spent from the cashpurse.This will allow Customers with gift cards areason to come back to the store.
  10. 10. Loyalty Membership Card• Given to Customers as a membership/loyalty/Gift card to incentivise returning to your salon or spa.• There can be up to 3 different levels of card to allow Gold, Silver & bronze memberships.• Members can ‘log’ into the Salon and gain points each time they attend.• The times of entry can be recorded and downloaded to software to show frequency of visits.• The Card can also be used as a Gift Card given to Friends and Family which in turn can be used as a loyalty card.• Ad hoc points can be given at any time.
  11. 11. ELECTRONIC GIFT CARDThe cards we provide are chip cards whichcontain a ‘Points Purse’ and a ‘Gift Purse’the Gift purse can be added to at anytimeand can be reused. If cards are given tofriends and family the card automaticallyturns into a points loyalty card as the Giftcash is spent.Gift denominations are determined by theSalon Manager and can be audited.
  12. 12. Creating the Gift CardUsing the Managers card the gift cash is added to the card in seconds. Every time the card is inserted into the terminal the available cash is shown on the terminals screen.The Gift card can be used as whole or part payment in the salon for services or product.
  13. 13. Points or Minutes• The card can be set up to gain Loyalty Points i.e. 5 points = £ 1.00 spend• This can be changed at any time to introduce promotion days or demo days.• Instead of using Points you can use the card to build up time in the salon/spa i.e. you can gain 5 Minutes for every £ 10.00 spent etc. This is easily changed by the manager as required. The minutes can be collected for free beauty spa sessions etc.
  14. 14. How are points gained• 5 Points for every £1.00 spent (suggested)• Up selling at sign up time - 50 points for sign up of form - 3 VIP levels - Bronze (Single) - Silver (Double), - Gold (Triple). - Extra Bonus Points - Product purchases
  15. 15. Examples of how points can be exchanged• Shampoo Samples– 20 Points• Gift Voucher – 100 Points• £5.00 of tokens - 500 Points• £10.00 of Tokens - 1000 Points• 1 Hour of Treatment 2000 Points• 11/2 hours of Treatment 3000 Points• Purchase of product – see catalogThese are examples of Points you can use to purchase drinks or further tokens.
  16. 16. Building Customer Loyalty• Loyalty Card helps guarantee your Customer returns for further plays.• Affiliate Partners who will recognise the Platinum Card. Travel Agents, Restaurants, Hotels, etc• Sending out Statement of account with special offers etc• SMS and Emailing Customers
  17. 17. Preserving your Business• Adding loyalty points cards to your business keeps your cash flow in your business and not your competitors• Offering Gift Card facility and Loyalty points gives added value to the card• When staff members leave they would find it harder to take away your clients because they cannot use your loyalty card anywhere else.• No need to give out discounts thus again preserving your business cash flow.
  18. 18. Sending Out StatementsDear Mrs Cuthbertson,We are pleased to let you know that you have 2450 points on yourSmart Account and we would be pleased to see you at our BankHoliday opening day where you would be able to redeem your pointstowards products in our gift collection. You would of course be able togain even more points by taking advantage of our special offersdetailed below.Beauty Selection Face Pack Skin Treatment Massage 1000 Points 2,500 points 5,000 points 5,000 points
  19. 19. Example Gift CollectionSkin Care Products 500 Face Pack 750 points Massage 1500 Points Gift Cards from 500 PointsSkin Tone 2500 points Ladies Bag 5700 Points Ladies Scarf 5700 Points FlipFlops 1500 Points Make up set 1000 points
  20. 20. What If? We could provide a solution which:-• Allowed you to improve retention• Up sell to regular Customers• Help get off the discount trap• Increase top line profits by at least 15%• Offer your customers a unique Card
  21. 21. Gift/Loyalty in a BoxUnique and Powerful Hand Held Loyalty System Hand held Unit Desktop with Audit Trail
  22. 22. SALON IMAGES
  23. 23. SMART REWARDS Loyalty in a Box• LOYALTY IN A BOX enables Retailers to launch their own Loyalty System, with the capabilities of the famous branded Loyalty Schemes, but at a fraction of the cost and with greater simplicity.
  24. 24. HOW DOES IT WORKPoints Award Your valued customers are allocated Loyalty Cards which can be branded with your Logo or with one of our unique designs. These Cards are used for storing Loyalty Points which are earned for every transaction made in your store. The Loyalty Card acts as a constant reminder of your brand, inducing customers to return more frequently and increasing expenditure.
  25. 25. What Do I needWe provide you with everything that youneed for your Loyalty scheme, from theLoyalty Terminal and Cards through to thepoint of sale marketing and optional PCSoftware.
  26. 26. What is Included• Hand Held or Desk top Smart Card Terminal• Plastic Customer Smart Cards• RTB Certificate• Rechargeable battery and Cradle• Managers and Clerk Cards• System Marketing Booklet• System training and instruction Manual
  27. 27. YOUR FIRST STEPS• In the first instance you should decide what you want to call your schemei.e. ‘Gift Shop’ Loyalty Card Privilege Card Advantage Card Priority Card Gift Rewards Gold Club Platinum Card Club Card
  28. 28. Sending us your LOGO• Once you have decided on your Scheme name you should send us your company LOGO or a picture of your shop or scheme design.• You can send this by Email or by post• Once we receive the information we will provide you with a PROOF CARD for you to approve or make amendments.
  29. 29. YOUR LOGO and IDENTITY• Your logo will be used on the cards and in any point of sale literature we prepare for you. i.e Scheme application forms etc.
  30. 30. Proof Accepted what Next• Once you have approved your card we can produce the smart cards for your scheme.• Normally at this point we take payment for the system either by cheque or Credit card.• At anytime you are free to visit us in Beverley to discuss the scheme and have hands on to the equipment before purchase.
  31. 31. SCHEME OPTIONS and SuggestionsIn the first instance we recommend using the 5% system. This option is set up as follows:-For every £1.00 spent you award 5 pointsi.e. £50 = 250 Points £75 = 375 Points £100 = 500 Points
  32. 32. After the TransactionOnce the transaction is completed thepoints are written to the smart chip and thecustomer is given back the Smart Card.The customer can verify how many pointsthere are on the card at any time during orafter the transaction by simply insertingthe card.
  33. 33. Redeeming the points At some point the customer may wish to ‘CASH IN’ his points towards purchases.The redemption value should be initially set as follows:- 100 Points = £ 1.00 500 Points = £ 5.00 1000 Points = £ 10.00 2000 Points = £ 20.00
  34. 34. TAKING POINTS OFF THE CARDThe terminal has the option to take points off the card using the ‘Subtract Points’ option.You can either hand over a Gift Voucher to the value of the points or simply deduct the value from the transaction.
  35. 35. EFFECT OF RedeemingCustomer has spent £ 100 to achieve a £5gift voucher.That £5 will now need to be spent back inthe centre on goods or services you sell.The effect cost to you for this transactionwill be less than £ 2.50 based on Cost ofsales.
  36. 36. Cost to you if Discount usedIf the same transaction had been madeusing the discount structure that costwould be £ 100 X 10% = £10.00The £10.00 leaves your shop with noguarantee of it being spent with you in thefuture. Therefore the saving to your cashflow using the loyalty Solution is £7.50 orbased on a turnover of £ 10,000 per weekthe saving is £ 750.00 per week
  37. 37. CUSTOMER RETENTIONThe customer having purchased from your shopwill leave with not only the goods but also apersonalised loyalty card with ‘Points’ gainedfrom the purchase and the satisfaction thathe/she will return at some stage to make furtherpurchases and gain additional points.The card will also contain the Shop number anda reminder to shop there again in the future.
  38. 38. Software Marketing• Search on Clients not recently visited.• Output Files to CSV for Mail merge• Multiple terminal Database• Full Audit Trail reporting.• Individual Account Summary’s• Check on Log ins through Desktop terminal
  39. 39. Smart Card EntitlementOptional SuggestionsEach customer who spends over a certain amount i.e. £ 20.00could be entitled to a loyalty card.Very regular clients should be given a card to ensure retentionof your best clients.You should invite the customer to join into the scheme andrequest that they complete the form.Do not hand over the Smart Card until the form is completed.
  40. 40. Typical CostsStandalone Unit with 100 Cards £ 595.00(Complete Gift Card & Loyalty Points)2-5 Terminals £ 399.00 each Cards from59p each single colour 85p each full colour6 – 10 terminals £ 350.00 each11 – 20 terminals £ 325.00 each20+ POA (Rental of Terminals by arrangement, subject to status).
  41. 41. What You Get in the Box• Hand Held or Desk top Smart Reader/Writer• Recharging Cradle and Battery• Printed Cards + Training Cards Including Set Up and Design of your Card• Master Cards and Programming Cards• Marketing Your Loyalty Scheme Handbook• Posters & Application templates if applicable.• 12 Months RTB warranty and Support
  42. 42. Questions and AnswersQ. What if the Customer loses his/her cardA. In the Standalone system the card should be treated as a ‘Gift Card’ or ‘Cash Card’. If the customer loses the card it is like losing cash and the reverse of the card will have a disclaimer.If on the other hand you utilise the software you can keep a record of the time, Date and Points gained at each visit.
  43. 43. Terms and ConditionsThis Example is used on the back of Gift CardsThe ‘Company’ cannot replace or reimburse the value of the points of your card if it is Lost, Stolen or Damaged. Please look after this valuable card carefully and treat it just like cash. To check your points balance or to add more points hand your card over at the checkout.Your Customer can bank their points in at any time in return for a ‘Gift Voucher’ or against Purchases. You should encourage banking wherever possible at the Point of Sale.
  44. 44. What About ReturnsMost shops these days offer Credit Notes against returned or unsuitable goods.As a General Rule If they are a Loyalty Card holder you should not give points out for Credit Note Purchases.
  45. 45. What if Customer forgets CardIf the Customer forgets their card you should validate the Sales Receipt and insert your test card to calculate points and write on the goods receipt.The Customer simply brings in the receipt next time and you add the points to the card and sign the receipt with points given.
  46. 46. How Many Customers can I have in the system• The Standalone system is limitless in terms of card holders 100 - 500,000+• The Audited system is again limitless, however you will need to download your transactions on a regular basis i.e. the terminal holds about 1000 transactions i.e. loyalty card holder visits.
  47. 47. How long does it take to get new cardsYour Art work will already be set up in the system we therefore require 1 Weeks notice to get new cards to you.Simply phone through your order. Once you are a customer of ours you will have a 30 day credit account.
  48. 48. Some of our Clients• Compass Group• British Airways• National Trust Enterprises• Alpha Airport Catering (6 Airports)• Crown Courts• Vauxhall Motors• Clarins UK• 500 Schools & Colleges, 120 Golf Clubs
  49. 49. SMART CARD WORLD• Won Major Award for Best Loyalty System in 1999.• Industry Sectors, Salon, Restaurant, Retail• Largest Sector Education with 1.4million cards over last 5 Years• Finalists in Nat West Awards for most Innovative Business Idea (2007)• Finalists In Nat West Awards, Micro Business of the Year. (2007)• Suppliers of one of the largest small business loyalty schemes Clarins with 100 Terminals and 350,000 cards in last 3 years.
  50. 50. Our Services• Supply of Smart Cards including personalisation, embossing, fulfilment• Supply of Terminals Handheld, Desktop & PC USB.• Point of Sale and application forms etc• Software for Database and Marketing• Bespoke Development• Personalisation and Fulfilment• Data Mining