Gift Cards Powering Profit Ability

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This presentation highlights how gift cards enable retailers, specifically small, independent retailers to increase sales, cash flow and ultimately profitability.

Published in: Technology, Economy & Finance

Gift Cards Powering Profit Ability

  1. 1. Gift Cards: Powering Profit-Ability LCS Card Services http://dynamicdebits.net © 2009 Lakes Communication Services All Rights Reserved
  2. 2. Table of Contents <ul><li>The Road to Success </li></ul><ul><li>Key Fact about Gift Cards </li></ul><ul><li>Company Information </li></ul><ul><li>Web Resources </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  3. 3. The Road to Success <ul><li>The road to success in today’s retail marketplace is paved with gift cards. LCS Card Services puts the most powerful customer retention tool in your hands when you are ready to: </li></ul><ul><li>Attract New Customers </li></ul><ul><li>Increase Sales </li></ul><ul><li>Increase Store’s Foot Traffic </li></ul><ul><li>Keep Sales Revenue in Store </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  4. 4. Attracting New Customers <ul><li>Your store’s most satisfied and loyal customers will buy gift cards as the ultimate way to refer you new customers. And, with holidays, graduations and other special events always on the horizon, gift cards position your business to get in on the most profound way to generate “advanced sales” in the market today. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  5. 5. Increases Sales <ul><li>Gift cards will impact both sales volume and average ticket for any store that adds them as a product offering. And, over 60% of customers who redeem gift cards tend to spend about 33% more above the total value of the gift card. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  6. 6. Increases Store’s Foot Traffic <ul><li>Gift cards also drive a store’s daily customer count upward. For example, when one customer buys 10 gift cards and gives them away (one each), that store can expect up to 10 new customers looking to redeem those gift cards. </li></ul><ul><li>http://DynamicDebits.net.Solutions.html </li></ul>
  7. 7. Keeping Sales Revenue in Stores <ul><li>Instead of giving cash or reversing credit/debit card charges, stores can issue gift cards for refunds. Merchants can also place net cost differences on gift cards. So, gift cards are a bona fide solution for merchants to keep hard won sales revenue in their stores. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  8. 8. Sample Pro Forma <ul><li>Example: Merchant has 100 customers daily; sells 5 gift cards per day (5%) averaging $25.00 per card load. $125 X 30 days = $3,750.00 in additional monthly sales revenues. </li></ul><ul><li>Annual Impact: $45,000.00 </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  9. 9. Key Facts about Gift Cards <ul><li>Gift cards are dynamic marketing tools that offer issuers a gateway into the consumer’s wallet or purse. This is the most highly coveted place for product marketers to be. Each gift card sale typically impacts two customers; the buyer and the recipients. And, gift cards are also great advertising tools that some liken to “mini-billboards” for your business. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  10. 10. More Key Facts about Gift Cards <ul><li>Gift Cards are now preferred over gift certificates by gift givers. In stable economic times, gift cards are even preferred over cash. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  11. 11. More Key Facts about Gift Cards <ul><li>Over 60% spend more than the initial value of the gift card they receive. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  12. 12. More Key Facts about Gift Cards <ul><li>Electronic gift cards have evolved to become a desired product by purchasers and recipients alike. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  13. 13. More Key Facts about Gift Cards <ul><li>Over 70% of Gift Card Buyers are ages 25-54; most are married with children and are full-time employees with some level of college education. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  14. 14. More Key Facts about Gift Cards <ul><li>Both males and females purchase about 5 gift cards each; males are more likely to load higher dollar values -$58.00 versus $45.00. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  15. 15. More Key Facts about Gift Cards <ul><li>Adults 65 & older maintain the highest average dollar value when purchasing cards ($77.00); versus an average of $50.00 purchased among all consumers. </li></ul><ul><li>http://DynamicDebits.net.Solutions.html </li></ul>
  16. 16. More Key Facts about Gift Cards <ul><li>Internet users typically are more aware of gift cards than non-internet users. </li></ul>
  17. 17. More Key Facts about Gift Cards <ul><li>Internet users are more likely to purchase gift cards than non-internet users. </li></ul>
  18. 18. More Key Facts about Gift Cards <ul><li>Internet users typically say that a gift card that could be used with multiple merchants would be appealing. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  19. 19. More Key Facts about Gift Cards <ul><li>Internet users typically prefer re-loadable cards versus non-internet users. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  20. 20. More Key Facts about Gift Cards <ul><li>Consumers increasingly are likely to purchase a gift card from a merchant’s website. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  21. 21. More Key Facts about Gift Cards <ul><li>Consumers equally are likely to make an internet purchase using a gift card. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  22. 22. More Key Facts about Gift Cards <ul><li>Gift Cards increase sales and cash flow. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  23. 23. More Key Facts about Gift Cards <ul><li>Gift Cards increase foot traffic and customer flow. </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  24. 24. More Key Facts about Gift Cards <ul><li>Various sources contributed to this presentation fact sheet: </li></ul><ul><li>Stored Value Cards </li></ul><ul><li>Financial Institutions’ Pulse </li></ul><ul><li>The Pelorus Group </li></ul><ul><li>Consumer Insight’s Survey </li></ul><ul><li>ValueLink – a First Data Company </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  25. 25. About Our Company <ul><li>Lakes Communication Services is a business development organization that specializes in prepaid debit products and ecommerce solutions. We offer many solutions for retailers and e-tailers to develop and market gift card programs, including: free hosting, sales support, online advertising and more. No program is too large or too small. </li></ul><ul><li>LCS Card Services is a newly formed division of Lakes Communication Services focused in merchant card services, including: credit/debit card processing, business funding solutions and gift card programs for small to mid-sized merchants. </li></ul><ul><li>For more information, please visit our website at http:// dynamicdebits.net or email business development at [email_address] . </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>
  26. 26. Web Resources <ul><li>Blogroll </li></ul><ul><li>DebitMogul’s Master Weblog </li></ul><ul><li>http://debitmogul.wordpress.com </li></ul><ul><li>The Ultimate GiftCard™ Network’s Podcast </li></ul><ul><li>http://blogs.dynamicdebits.com </li></ul><ul><li>Recommended Websites </li></ul><ul><li>LCS Card Services – a division of Lakes Communication Services </li></ul><ul><li>http://dynamicdebits.net </li></ul><ul><li>The Ultimate GiftCard ™ Network & Marketplace (under construction) </li></ul><ul><li>http://dynamicdebits.com </li></ul><ul><li>Facebook users </li></ul><ul><li>Search </li></ul><ul><li>The Ultimate GiftCard ™ Network </li></ul><ul><li>Capital Bankcard of Southern California </li></ul><ul><li>BINSmart ™ Cost Manager </li></ul><ul><li>Merchant Cash Advances </li></ul><ul><li>http:// DynamicDebits.net.Solutions.html </li></ul>

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