Nov 12, 2013 Dave King
As the electronic payments revolution continues to intensify in the private sector of the United States and far beyond, businesses need to maintain unique approaches to prepaid cards and other transaction methods to separate themselves from the competition. Some companies are beginning to combine the powers of ACH cards with prepaid and loyalty programs to develop comprehensive approaches to payment strategies.
Convenience Store Decisions recently explained several ways in which companies can improve their marketing, sales and retention performances by sculpting effective gift card strategies. Many studies have found that customer retention is far more valuable and critical than new prospect acquisition, as loyal individuals will spend more money in stores, and this relationship takes less of an effort to sustain.
According to the news provider, strong loyalty and gift card programs can be significant drivers of revenue increases, with studies indicating that consumers will tend to spend more when these options are available. As customer behaviors continue to shift more toward the digital arena, businesses should consider taking the electronic approach to prepaid and loyalty cards.
The source added that these programs should always include point of sale? systems, an easy enrollment process, redemption rewards and expedited activation capabilities. The goal is to create the most streamlined and efficient process for the user, as ease-of-use will lead to stronger engagement and subsequently higher participation.
As all of these various consumer-oriented tools continue to converge, businesses should consider using ACH cards, prepaid accounts and loyalty programs in tandem to maximize customer retention. By creating a comprehensive approach to sales, marketing and payment processing, the company will be better positioned to run like a well-oiled machine during heavy traffic.
With the holiday shopping season rapidly approaching, the time might be now to get moving on these strategies.