Searching for the Right Gift Card Program
You’ve thought about it and realized that it is finally time to add gift cards to your business — a smart decision. As you sit down to begin the search for a supplier, you quickly realize that there is a lot to consider. How do you go about making a choice that’s the right fit for your business? With several areas to consider, it’s best to break the decision-making process into a few, specific areas. Asking a few key questions can help you make the proper selection.
Where do I Start First?
Great question. Chances are you’ve already received calls from Independent Sales Organization (ISO) reps who offer a variety of services you need – credit card and check acceptance, transaction processing equipment (terminals), payroll services and even gift cards. You may have received responses from gift card companies after requesting a call by virtue of an online lead form. You’ve heard the pitches – but how do you choose the right gift card company for you?
Let’s start with some simple questions. If you are speaking with an ISO, you should ask about which gift card suppliers they are representing. Some of these gift card companies offer a variety of different financial services to go along with the gift cards. Others are solely in business to service those who need to develop a gift card program. These suppliers will likely be better suited and more experienced to help craft a program that fits your needs.
Look closer. Ask whether they are using a proprietary gift card system and platform or whether they are licensing a system from someone else. Ask them what their stated uptime is. (It can be aggravating to have a system go down for some technical issue right when you are trying to process or sell a card to a customer.) Ask what kind of customer service program is in place. Is their phone support available on their dime? How about email? Is there an all-hours, all-days service coverage in place if a problem comes up?
Now, let’s dig a little further. Let’s look at the types of plans they have available for transaction processing. Some will bill you “per transaction,” with limited or no monthly fees attached. Here, the business is charged a minimal fee when a card gets activated, when a card is redeemed, when value is added to a card, or if a customer queries the card to find out the balance. Others offer simpler “flat-fee” schedules that combine all card activity for the program into one fee per month, which covers a sizeable group of transactions. To figure out which plan might be best for you, you need to try to estimate the amount of activity and card sales and then compare the different programs. This is one of the areas an experienced card supplier can help you to tailor a plan to your needs.
How will you know how your program is doing? That is measured by activity reports supplied by your gift card company. Be sure to ask what reports are available and how they are accessed. Generally, the more reports available to you, the better. Although some may seem advanced when you’re starting out, you’ll soon get to the point where you’ll want to dig deeper into the data.
What about the Equipment?
Gift cards use software applications that are integrated into the various terminals and Point-Of-Sale systems. Something not to overlook is how compatible the gift card system is with your own transaction processing system. Will it work with your current terminals? How smoothly will it be integrated into your Point-of-Sale system? To be sure that your system is compatible, get the details. Also, you may also find out something about the level of sophistication and market strength the gift card supplier has by learning how many different terminals and systems they can work with.
The Right Cards
The first decision about card design is whether you want a custom card or if a standard card will do. Gift card companies will often have a set of standard card designs that appeal to a specific category or market and even some targeted for specific holidays. The benefit with these is that you can quickly offer your customers a semi-personalized card (business name, text and possibly a logo). While these don’t have a full-custom design, you can be offering your customers appealing gift cards within a week. So, take a look at those standardized card designs and find a company that offers an appealing solution. A more advanced gift card supplier will take it a step further. They may have online tools that allow you to select not only different designs, but sample different colors and fonts to make the entire personalization process available to you before you commit to the program.
The alternative to standard cards is a custom design specifically for your business. Although custom cards are often more expensive and can take longer to produce, the payoff is a unique card that reflects your business’ identity and personality. Custom cards help merchants brand themselves and contribute to a coordinated marketing approach. If you choose to create a custom card, ask about your gift card supplier’s graphic design capabilities. Some companies have a staff of designers who will create a quality card design for you at a reasonable cost. Ask about how designs are proofed – many offer web or email-based proofing that makes it easy to approve your design quickly.
A Few Final Questions to Consider
Rather than stop with card design, find out what additional merchandising tools are available. Some card suppliers will have an array of card carriers and hangers, display racks, posters, signage and envelopes that will help you drive awareness and sales. Presentation at the place or point of purchase can dramatically boost card sales…and profit for you. Some suppliers can also provide you with various gift card presentation products that you can sell along with your gift cards.
Lastly, take a look at the communication your gift card company has with its merchants. The gift card industry is a robust and dynamic one. A gift card company that keeps its merchants informed about the latest techniques, tips and industry trends can help you turn bigger profits from your program. Does your gift card company offer periodic emails or newsletters that help their clients sell their gift cards? Find out.
You’ve made a good decision to pursue a gift card program. Once you hook up with a gift card company, it can be tricky to convert your program to a new one later. So, do a little research, ask the right questions and you should be able to find the right gift card supplier to meet your business’s needs.
Filed under: Marketing