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   Statistics

 
  How it Works

Are You Ready?

 

  Stored Value Cards.
  Commonly know as gift cards.
 
                   
 

 

 


              Single Location  
              Multi - Location
             Community /Mall


Are You Ready?  Every year more and more merchants are reporting
higher profits due to gift and loyalty cards.
 Are you Ready?


                             
      Gift
                        Rewards
                         Loyalty
                           Cash
                     Store Credit

 

+Statistics
   Here are some eye opening statistics 

•  Plastic gift cards out sell
    paper gift certificates 10 to 1.
•  Card circulation helps build brand awareness.
•  Declining balances keeps full cash value in store.
•  56% of customers spend more than cards value.
•  Customers using cards are less price sensitive.
•  Boost customer loyalty and shopping frequency.
•  Easy for customer to buy, give carry and use.
•  Powerful promotional tool for marketing campaigns.                 
Are You Ready?
•  Detailed reporting for accurate accounting.
•  Electronic audit trail minimizes losses.   

 Use one of our
 Standard Cards
       or
     Submit your own
     Custom Artwork

 

 

•  Gift card sales in 2005 were estimated at approximately $65 Billion - up from an
    estimated 24% from the previous year.
• The average consumer spent $233 on gift cards with an average value of $48 dollars.
• Consumers wanting a gift card totaled 60% in 2005, up from 57% in 2004.
• Consumers purchased an average of 4.86 cards each and spent an average of $39.00
   on each card.

• 92% of adults have gift card awareness - up from 76% from 2002.
• Boosts customer loyalty & shopping frequency.
• Fifty-nine percent of the American shopping public, 131 million people, has used
   or received a gift card in the past twelve months.

Sources  National Retail Federation, Tower Group, Bain, Smith Barney, Deloitte-touchι, TNS, The Wise Marketer, ICSC, ValuTec Card Solutions

 

HOW STORED VALUE WORKS

Gift Card Sales
Merchants use in-store displays to merchandise Gift Cards much like they would any small impulse-buy product—by the register with counter signs and colorful card hangers. A customer purchases a Gift Card with cash, check or credit card for any dollar amount desired. The amount purchased is recorded as “stored value” or “prepaid” in the host database.

Reload Incentives
The cardholder can purchase additional value or “reload” the card for any amount—by phone. The merchant can offer an incentive to customers to encourage card reloading. For example: increase the customer’s stored-value amount by 20% (i.e., a $50 reload is recorded as $60 in stored value for the cardholder).

Redemptions
The Cardholder presents the gift card for full or partial payment of a purchase. The merchant swipes the card through their POS terminal for authorization and transmission of transaction data on the host platform. The card’s magnetic stripe identifies the card number and merchant location for which the card has been issued.

Loyalty Cards
Several points-based loyalty card programs can be implemented using stored value technology. One of the simplest and most powerful applications is what we call Auto Rewards. Under this program, the system automatically adds a specified Reward Value to your customer's card when that customer has accumulated a designated number of points.
.... For example: when 50 points are accumulated, $10 of spendable value is loaded on the card and the 50 points are removed. This cycle simply repeats, continually motivating the customer to return to earn more points and more reward dollars. It's also easy for the customer to understand and for sales associates to administer

Reporting
A monthly summary report of all transaction activity is provided via mail, email or fax. In addition, a variety of program management reports are available 24/7 via the Valutec website. You can generate Transaction Detail reports that list every transaction for specified periods of time, or a Pooling report that reconciles the imbalances created when cards are purchased at one merchant location and redeemed at another in a multi-store, multi-owner environment such as a franchise company.

 
          Are You Ready?     Want More Info?  
          Talk to us about stored value program for
     You,  your Merchant Association or Merchant block.
                                                               - John Lord  
Pres.
                                                               800-992-7587
                                                                                                               Monday-Friday
9am-8pm Sat till 5pm

 
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