Is Your Sales SPIFF Program Stale?

How’s your SPIFF’s?  Performing or stale?  SPIFF’s are the mainstream program used by manufacturers and companies to incent a salesperson to sell a specific product…hence the name.  Sales Performance Incentive Fund – SPIFF (not sure why there is a second F).

Companies that wish to push a certain product through their sales network, retail and distributor channels will offer a set dollar amount for each unit sold in an effort to incent the salesperson to drive that specific product.  Currently, companies will cut a check or add money to the payroll of the salesperson.  This can be effective, but many times, especially for distributor sales people that participate in multiple manufacturer SPIFF programs, the value gets lost and sometimes they are not even sure what they did to receive the extra money.

Why not make your SPIFF program stand out?  After all, the only reason you’re running one is to move your specific products, so the more you pay out, the more product you move.  Pretty simple.  The key to making this successful is to make your SPIFF program stand out and to communicate the program so it is first and foremost on the sales staff’s minds.  A great way to do this is to use a Custom Branded - Reloadable - Prepaid Debit Card.  Co-brand a Visa or MasterCard with your logo and give one to all sales people in your program.  As they qualify for the SPIFF, simply electronically load the dollar amount onto their card.  Set up program messaging so that an email or text is sent immediately upon a new load that reinforces your program.  “Hey Bob, excellent job this month selling the Widget 3000.  $500 has just been loaded onto your Widget, Inc prepaid card.  Keep up the good work.”  Now that would turn a stale incentive program into a vibrant winner.

Benefits to using a Prepaid Debit Card for your SPIFF program?

1. Brand Awareness… put your brand, not your competitors, in the pockets and minds of your sales channels.
2. Save Money…no need to write, distribute and mail checks.
3. Save Time…no need to hassle with payroll or sales people calling in asking if they received their SPIFF.
4. Immediate Recognition…electronically load the cards for immediate delivery of funds.  Salespeople absolutely love this.

Please let me know if you have any questions or would like more information about using Prepaid Debit cards in your SPIFF programs.

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Refund Solutions for Higher Education – Why Use Prepaid?

Colleges and universities can now conveniently disburse funds such as financial aid, work study payments, payroll and scholarships by the use of a prepaid debit card.   

Converting from paper checks to electronic funds transfer not only streamlines the refund process, but makes it more economical for the students and the institution.  Students, parents and school administrators all benefit from faster, less costly and more secure distribution of funds.

Top 5 Benefits to the Institution:

1. Significant cost reduction – Free to Institution
2. Reduce administrative time – No phone calls and inquires about lost or stolen checks
3. Easy to implement – No internal technical resources required
4. Simplified payment process – Electronically send funds immediately
5. Enhance “Green” Initiatives – No more paper checks

Top 5 Benefits to the Student:

1. More Security – Safer than carrying large amounts of cash
2. Immediate access to funds – No need to wait for check to be mailed
3. Easy to Use – Can be used anywhere Visa or MasterCard is accepted
4. Less expensive – No need to pay check cashing fees or to have a checking account
5. Increase Financial Maturity – No more NSF’s or overdraft charges as with checking accounts

Students will appreciate the speed and convenience and schools will reap the rewards of an efficient funds disbursement process.  Please let me know if you would like more information on how to use Prepaid Debit cards to help with student refund disbursements.

Dave.cook@springbokservices.com

Refund Solutions for Higher Education

Colleges and universities can now conveniently disburse funds such as financial aid, work study payments, payroll and scholarships by the use of a prepaid debit card.

Converting from paper checks to electronic funds transfer not only streamlines the refund process, but makes it more economical for the students and the institution.  Students, parents and school administrators all benefit from faster, less costly and more secure distribution of funds.

Top 5 Benefits to the Institution:

1. Significant cost reduction – Free to Institution
2. Reduce administrative time – No phone calls and inquires about lost or stolen checks
3. Easy to implement – No internal technical resources required
4. Simplified payment process – Electronically send funds immediately
5. Enhance “Green” Initiatives – No more paper checks

Top 5 Benefits to the Student:

1. More Security – Safer than carrying large amounts of cash
2. Immediate access to funds – No need to wait for check to be mailed
3. Easy to Use – Can be used anywhere Visa or MasterCard is accepted
4. Less expensive – No need to pay check cashing fees or to have a checking account
5. Increase Financial Maturity – No more NSF’s or overdraft charges as with checking accounts

Students will appreciate the speed and convenience and schools will reap the rewards of an efficient funds disbursement process.  Please let me know if you would like more information on how to use Prepaid Debit cards to help with student refund disbursements.

Dcook@storedvalue.com

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ATM Skimmers: Top 5 Signs To Look For

We’ve heard increasing reports of illegally installed “skimmer” equipment on legitimate bank ATM’s that steal both the ATM card number and the PIN.   The equipment used to capture your ATM card number and PIN is cleverly disguised to look like normal ATM equipment.  

A “skimmer” is mounted to the front of the normal ATM card slot that reads the ATM card number and a camera is placed nearby to capture the PIN.  Top 5 signs to look for, and how to protect yourself:

1. A skimmer may be placed over or in the card reader.  Give it a tug to see if it comes off.
2. Be secretive when entering your pin number.  Cover the keys with one hand in case someone is looking over your shoulder or there may be a hidden camera nearby.
3. Check brochure boxes, they can have hidden cameras on or in them.
4. If you see wires poking out, a scanner that does not seem secure, multiple scanning devices, or a sticker that says “Scan here first”, Do Not Use The Machine
5. Often the criminals who install skimmers stay nearby and “assist” users with their transaction.  They may pose as another customer, or a technician working on the machine.  Do Not Use The Machine if someone offers to help you with it.

Remember, always check an ATM machine out carefully, and if anything seems amiss, use another machine and notify the bank branch of what you observed.  We once had our ATM card and PIN compromised and someone was withdrawing money in Korea.  Fortunately, our bank caught it and we were covered.  I’m sure either my wife or I used a machine that had a Skimmer and Camera set up and we didn’t even realize it.   

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Customer Retention: A Real-Life Prospect Scenario

Is your customer dam overflowing?  Ever feel like you’re losing customers faster than your gaining them? Today, I thought I’d share an interesting application for Prepaid Debit cards that I’m working with a potential client.

The prospect is a telecommunications company that is in desperate need of a customer retention program.  They currently spend $0 dollars on customer retention because they believe the customer will keep coming back month after month if they wish to keep the service so why throw good money in that direction.  They spend millions of dollars on up front advertising to attract new customers.  So they must have a very high turnover rate as they continually need to push new customers into the system.

Every business needs new customers, especially in this particular volatile industry, but what they are missing is the value of the existing customer.  Some experts will tell you that it is 5 times more profitable to spend money and marketing dollars on retaining existing customers than it is on trying to acquire new customers.  The days of customer stickiness to a given brand are fading and cannot be relied upon to continue.

The prospect company does not make the customer sign a contract, so the business is month to month.  They are struggling with how to get the customer to stay.  Our suggestion is to use a reloadable, custom-branded Prepaid debit card as a perceived contract.  After 6 months of being a customer in good standing they receive the card with a small denomination, say $20.  Then after 12 months of continued service, $50 could be electronically loaded onto the card.  After two years, $100 would be put on the card.  The dollar amounts can vary, but you get the idea.  No contract signed, but the customers are incented to stick around.

Is your company in a similar situation?  Do you have an effective customer retention plan?  Does this spark your curiosity?  Stop the overflow and keep your customers.  Please let me know if I can help.

Program Messaging: Make Your Next Promotion A Huge Success

Incentive, reward, and loyalty programs utilizing prepaid debit cards are about creating and reinforcing behavior.   But one of the most overlooked aspects of what makes a program successful is Program Messaging.  The more you reinforce your message to your participants, the more likely they are to continue the desired behavior.  Studies have shown that effective communication reinforcing the desired behavior increases the likelihood that the positive behavior will be repeated. 

“Incentive programs that deliver a lasting impact utilize the right message that is delivered at just the right instant and delivered multiple times.  As simple as this concept is, it is rarely achieved” — Tim Sloane, industry expert, Mercator Advisory Group

“Effective employee communication is a leading indicator of financial performance…. Firms that communicate effectively are four times as likely to report high levels of employee engagement as firms that communicate less effectively.” — Watson Wyatt 07/08 Communication ROI Study

So, what is Program Messaging?  Basically, it’s the ability to contact your recipients multiple times in an effort to reinforce the desired behavior and promote your program.  You can build a multi-touch prepaid program by sending personalized online, phone and text messages to your card holders.  When card holders check their card activity or balance by phone or online or receive a reload on their prepaid card, they can receive a personalized message from you that will greatly reinforce your program and will make sure the employee or customer understands why they are receiving the incentive.

Make sure your prepaid debit card vendor has the following options for Program Messaging for your next incentive campaign:

• Automated Email and Text Messaging
• Ability to customize the Card Holder IVR
• Ability to customize the Card Holder Website
• Ability to customize the Live Operator experience.

For more on Program Messaging and how it can help your next promotion be successful, please contact me direct at dave.cook@springbokservices.com.

Benefits of using a Prepaid Payroll Card

Did you know that an estimated 17 Million American adults are unbanked and an additional 21 Million American adults are considered underbanked?  These numbers were recently posted in a report by the FDIC and in my opinion they are staggering.

What exactly does this mean?  It means many of your employees do not have either a checking or savings account with a financial institution (Unbanked) or they have one but prefer to use alternative financial services (Underbanked).  These employees prefer to use non-bank money orders, non-bank check-cashing services, payday loans, rent-to-own agreements, pawn shops and refund anticipation loans.  These alternative financial services are much more expensive than traditional services and are costing your employees an exorbitant percentage of their hard earned money.

What can you do to help them keep more of their money?  Offer them the option of using a Prepaid Payroll Card.  The card is a reloadable Visa® card that is offered as a way to electronically distribute their pay.  These cards can be used anywhere Visa debit cards are accepted, making them as good as cash—and better than checks.

How does this help your employee?

• Cost Savings – Eliminates costly check cashing fees.  No activation or monthly fees.
• Faster Access to their Pay – Electronically loaded immediately to their card.  Eliminates possible costly mail delays.
• Safety – No need to carry large quantities of cash.
• Acceptance – The card is welcome everywhere Visa debit is accepted.
• Protection – Visa’s Zero Liability Policy protects cardholders against unauthorized purchases.
• Pay Anyone – Access to an online bill pay service enables cardholders to pay bills to anyone.

How does this help you?

• Cost Savings – Reduces payroll expenses. The electronic delivery of payroll is Free to you the employer and eliminates the expense of issuing, delivering and reconciling  paper checks.
• Optimize Payment Process – Avoids production, handling and distribution of checks; eliminates the time constraints and fees associated with lost and stolen checks.  Use your existing payroll system to set up direct deposit to the card account instead of to a checking account.
• Security – Provides safe and efficient electronic delivery of funds.
• Environmental – Enables your company to engage in “Green” initiatives.

I can’t think of a single reason why a company would not have this available to their employees.  Please let me know if you would like more information or to see if this type of payroll option is right for your company.

Springbok and National Jewish Health Partner

National Jewish Pays Participants in Weight-Management Program

National Jewish Health is adding an incentive – money – for people who are trying to shed the pounds through its successful weight-management program, FitLogix^®–. And they don’t even need to lose weight to get the prepaid cards. Beginning in early January, FitLogix^® participants who continue participating in the 12-month program will receive $10 prepaid cards after 6, 15, 25 and 47 weeks of participation in the program. Denver-based Springbok Services, Inc. will supply and service the debit cards.

“Our data clearly show that the longer people stay in the program, the more weight they lose. So, we decided to pay them to stay in the program.,” said David Tinkelman, Vice President of Health Initiatives at National Jewish Health. “Previous research has shown that financial incentives can significantly increase quit rates. It is more than the actual cash, however; it is the immediate recognition and reward for doing the right thing.”

The National Jewish Health-Springbok partnership reflects a growing trend among companies that are trying to reduce healthcare costs by offering positive rewards for healthy behaviors.

FitLogix^® relies on customized personal coaching, Internet education and support and accountability through activity monitors and scales wirelessly connected to computers to help people lose weight. Since its inception, participants have lost an average of  7.5 pounds. Those who stay with the program the full 12 months lose an average of 12 pounds. These results have translated into health benefits as well. Healthcare claims for 1.500 FitLogix^® participants dropped more than 13 percent from the previous year.

Companies, health plans and individuals can all sign up for the FitLogix^®. For more information visit the FitLogix^® Web site at http://www.nationaljewish.org/programs/prevention/fitlogix/fitlogix.aspx or call 1-800-934-4834.

Watch the News Report: National Jewish Health Pays You To Lose Weight

B2B Prepaid Terminology and Definitions

If you’re new to the fascinating world of B2B Prepaid, you may get lost and confused with all the terminology. I’m here to help. I’ve identified many terms that you will come across and need to understand as you make decisions on how to run your program. I’ve listed them in alphabetical order for your convenience.

Acquirer – A bank or processor that sponsors merchants for the acceptance of credit and debit card transactions.

Breakage – The unused portion of funds on a prepaid debit card at the date of expiration.

Closed Loop – Store cards or gift cards that can only be used at a single merchant or single merchant group (such as Starbucks).

Custom Card – Cards that are customized to a given companies logo, look, feel, brand or messaging.

Embossing – The raised lettering and numbering found on most debit, prepaid and credit cards.

Faux Card – A card where the front is a printed picture of the actual debit card and with generic information. The back of the card is blank with no issuing language.

Generic Embossing – Cards that are embossed with generic verbiage such as “Thank You” instead of the cardholders name. These cards are great to keep on hand for “On The Spot Rewards” to employees or customers.

Interchange – A fee paid by the merchant to the issuer in POS (Point Of Sale) transactions. This is a source of revenue for the issuing bank and/or the processor.

Merchant Category Code (MCC) – A code assigned by an Acquirer to a Merchant to identify the merchant’s principal trade, profession or line of business. This four digit code is also known as the SIC CODE.

Open Loop – Open loop or branded cards are debit, prepaid or credit cards that can be used on the “open” networks of MasterCard, Visa, Discover and American Express. The term Open is used because they can be used at a variety of merchants as opposed to Closed Loop gift or store cards.

Payroll Card – A prepaid debit card issued by an employer to their employees who don’t have a banking relationship or participate in direct deposit.

PCI - Payment Card Industry

PCI Compliance – A set of comprehensive requirements for enhancing payment account data security. This standard is intended to help organizations proactively protect customer account data.

Prepaid – Also known as stored value. Cards are pre-funded with a set dollar amount and can be either single value or reloadable.

Private Label – A card program that allows prepaid cards to be restricted in their use to a single merchant or group of merchants. They do not have the MasterCard or Visa logo on them, but it rides on their network. These cards are not embossed. The cards will only work at defined locations.

Reloadable – A card that can have additional money added or “loaded” electronically.

Replica Card – A card where the front is a printed picture of the actual debit card and with generic information. The back of the card has standard verbiage and a unique number to identify the card.

Selective Authorization – The capability to restrict where a card can be used or specifically steer clients to a single merchant, merchant category or group of merchants.

Single Value – A card that has a one-time, fixed amount of money. The card can be used until funds are depleted or until the card expires.

Slippage – The money that is still on cards that are issued but not activated for use prior to the expiration date.

Transaction - An action between a cardholder and a merchant that results in activity on a cardholder account.

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