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Gift and Loyalty Card Programs

In today’s competitive retail environment, the battle to retain customers is fierce. The winners are those who establish and maintain one or more competitive advantages in the minds of their customers. Gift and/or Loyalty Card program by creates a compelling reason for consumers to prefer one business over another. With a Gift and /or Loyalty Card in his or her wallet, a customer is much more likely to choose that merchant for future purchases.

Gift Cards are sold to customers for their own use or can be gifted to family or friends. Cards can be redeemed at store locations just like a credit card and balances can be debited from the card upon purchase. Cards are swiped through traditional credit card terminals, POS systems, Virtual Terminal or website and payments are collected by the merchant at the time of sale.

Loyalty cards are typically issued or given to the customer at the business location. The card is then presented each time the customer visits and points, dollars or % amounts are added to the card based on predetermined reward program that the merchant sets. One of the most important advantages of having a Loyalty solution is that merchants have the ability to collect important cardholder demographic information like: name, address, email, birthday etc. Customers spending patterns can be tracked and special targeted offers can be sent directly from the merchant.

Shop Local Program The Shop Local Card is a gift card that can be used universally between multiple merchant types participating in a Shop Local Program. Even better—each participating merchant can have a Loyalty/Rewards program that is specifically designed to help increase foot traffic and sales for their business. Shop Local merchants benefit from the combined marketing power of multiple businesses cross promoting each other. Shopping local is an excellent means of promoting businesses in the community and developing loyal customers through a network of participating merchants.
Gift and Loyalty Cards Facts
  • Two-thirds of all consumers have purchased at least one gift card
  • 55% of gift card recipients make more than one trip to the business to deplete the value of their card
  • The average recipient spends 20% more than their card’s initial value
  • 69% of companies using them stated that gift cards are more effective than cash in motivating and rewarding employees
  • 10 - 15% of gift card recipients never redeem the full value of a card, meaning the business keeps it as profit
  • 81% of consumers purchase gift cards for birthdays. 67% percent purchase gift cards for holidays
  • Studies found that 40% of shoppers using a retailer’s card bought items at full price. Only 16% of shoppers using other payment methods bought at full price
  • When retailers switch from paper gift certificates to gift cards, they sell anywhere from 50-100% more
(Sources: American Greetings, epaynews.com, Green Sheet Quarterly, National Retail Federation, J.C. Williams Group, Incentive magazine)

Benefits of Gift and Loyalty Cards:
Gift Cards
  • Increase sales and cash flow for the business
  • Promotes impulse purchasing and additional sales
  • Issue gift cards to consumers in lieu of giving cash back for returned items and keep the money in house.
  • Improves brand awareness within the community
  • Provides real time web based tracking and reporting
  • Security features to reduce fraud and duplicate usage
  • Easy reconciliation and reporting systems to save time
  • Fast transactions and ease of use at the point of sale
  • Always know how much money is outstanding and what types of activity was processed
  • Ability to issue gift cards in any dollar amount
  • Cards can be re-used and recycled through the system
  • You can issue, redeem or check balances on cards instantly through a terminal or online system
  • Easily assign user privileges for all employees within a location
Loyalty Cards
  • Enhanced image/brand reinforcement
  • Repeat loyalty customers spend 33% more than new customers
  • Promotes more return visits and larger average tickets in the location
  • Ability to capture customer information and track purchase history
  • Creates better relations between merchants and their customers
  • Promotes increased spending and repeat business by rewarding customers for their patronage
  • Sets the merchant apart from his local competition
  • Card members are more likely to refer others to visit
  • Promotions or special events can also be launched using cards
  • Solutions are affordable yet offer robust functionality to manage programs
  • Better ROI (return on investment) than traditional marketing methods
  • Streamlined procedures at the POS

Gift and Loyalty Cards can be used for all kinds of businesses: restaurants, retail and department stores, services (salons, spas, medical - any service imaginable), business to business, and gift cards can also be used for internet and online purchases, and mail order/telephone order purchases. The possibilities are limitless.

Chamber of Commerce, Main Street Associations, Outlet Malls, Trade Groups etc are some of the examples of Businesses that can benefit from Shop Local program.

To see examples of our Gift and Loyalty packages click here.
Click here for Frequently Asked Questions about Gift and Loyalty Cards.
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