Retailers – Want To Add A New Revenue Stream?
Filed under: Consumer Loaded Programs, Consumer Promotions, Prepaid Resources, Uncategorized
Are you looking for new revenue streams? Are you currently selling prepaid cards? You should be.
According to the 2010 Federal Reserve Payments Study recently updated on April 5, 2011, the fastest growing sector is Prepaid Cards with an annual growth rate in transactions of 21.5% from 2006 to 2009. The sheer number of transactions alone is staggering: 6 Billion!!! That’s the exact number of ATM transactions that occurred over the same time frame. Transactions on Prepaid Cards equaled cash transactions at ATM’s. This is an amazing trend that you as a retailer can capitalize on. Your customers are already purchasing Prepaid Cards and using them so why not have them purchase from you and create a whole new revenue stream? The upward trend of the acceptance and usage of these cards means a golden opportunity for companies with vision. Let’s say you administer the gift card program for a major U.S. retailer and you want to add a new revenue stream and increase foot traffic to your stores. Why not sell branded network prepaid cards in two different flavors: A fixed value and a general purpose reloadable. Here’s a sample scenario: Retail chain with 500 locations
- Sell a $50.00, single-value, branded network prepaid card with an industry standard retail mark-up of $4.95.
- Average 2 cards sold per location per day = 1000 cards sold per day
- 1000 cards per day x 360 days = 360,000 cards sold per year.
- 360,000 cards x $4.95 per card = $1.78M
- 360,000 cards x $50.00 customer load per card = $18,000,000 in loads
- Industry statistics show that up to 70% of branded network prepaid cards will be spent at the brand on the card. Let’s take a very conservative estimate of 25% of loads coming back to you the retailer
- $18,000,000 in loads x .25 = $4,500,000 back to your organization.
- You could also factor in the sales lift associated with a typical prepaid card transaction and add even more revenue to the equation.
Sell a General Purpose Reloadable card and also add revenue from the reload fees and lift from cardholders coming into your retail stores to reload the cards. If you want to capitalize on this upward trend and have another vehicle to have your brand in the marketplace, give me a call and I’ll be happy to walk you through in more detail.
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Is Your Sales SPIFF Program Stale?
Filed under: Channel Incentives, Consumer Promotions, Employee Incentives, Prepaid Resources
- Image by Giuliagas via Flickr
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?
- Brand Awareness… put your brand, not your competitors, in the pockets and minds of your sales channels.
- Save Money…no need to write, distribute and mail checks.
- Save Time…no need to hassle with payroll or sales people calling in asking if they received their SPIFF.
- 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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