Prepaid debit cards are everywhere these days — and so are their fees.
The cards allow you to load cash onto them and are accepted by businesses just like other types of plastic.

But you might have to pay a fee to activate the card, make ATM withdrawals, check your balance, talk to customer service or reload money onto the card. Monthly fees can be as high as $14.95, and you could be dinged up to $5.95 if you haven’t used the card in a while.

“This is sort of a gift card with lots of fees,” says Ruth Susswein, a spokeswoman with Consumer Action, which recently published a survey on prepaid card fees. “There can be fees for the most absurd reasons.”

Not all cards charge all these fees, of course. It’s possible to find cards without maintenance and activation fees and that don’t charge to reload money.

And savvy consumers can shop around for a card with the fewest fees based on the way they will use the plastic. You can, for instance, avoid monthly charges with some cards by loading $500 or $1,000 each month onto the card.

But the important thing is that you do your homework before buying a prepaid card — and that includes exploring whether cheaper bank alternatives exist. Otherwise, you might find yourself nickeled-and-dimed just to use your own money.

The prepaid card market has been growing rapidly for several reasons.

“It addresses a need that checking can’t,” says Anisha Sekar, vice president of debit and credit products at NerdWallet, a card comparison website.

Prepaid cards appeal to people trying to control spending and avoid overdraft fees, which typically run $35, Sekar says.

The cards also are used by consumers who don’t want a regular bank account or can’t get one because they bounced too many checks.

Some colleges use the cards as student IDs and to disburse financial aid, says Ben Jackson, a senior analyst with Mercator Advisory Group, a market research and consulting firm.

And consumers also buy prepaid cards to shop online without exposing their debit card information on the Internet, Jackson adds. (That’s not a bad idea, given the lax security provided by some businesses.)

Financial services companies are jumping on the prepaid bandwagon. Just last week Chase announced the launch of Chase Liquid, a prepaid card that will be available nationwide this summer.

For financial institutions, prepaid cards are a way to reach the estimated 60 million Americans without a traditional banking relationship. It also gives them a product to market to college students, now that federal law restricts young adults from getting credit cards on their own.

And most reloadable prepaid cards aren’t subject to new federal limits on how much banks can charge merchants to process transactions.

“The prepaid card market is another way to fill the revenue hole,” says Greg McBride, a senior financial analyst with Bankrate.com.

Mercator reports that $28.6 billion was loaded onto prepaid cards three years ago, and it projects that figure will climb to $167.2 billion in 2014.

And that’s not even counting all the prepaid cards used for payroll and government benefits, another area where the use of this plastic is growing. Next year, Social Security beneficiaries who don’t get benefits directly deposited in a bank or credit union will receive a prepaid card.

A number of shops in Amsterdam will refuse to accept cash money from the end of this month in an experiment to try to reduce robberies.

The city council is buying the smart card pin machines for some shop keepers so they can take part in the experiment. It is also funding posters and leafleting to make shoppers aware of the changes.

A spokesman for the city council admitted the experiment could drive both shoppers and robbers elsewhere. ‘But doing nothing is not an option,’ he said.

Cheaper

Not only is it safer for shops not to handle cash, but it is also quicker and cheaper, he said.

The campaign will centre on shops around the Ferdinand Bolstraat, the centre of Osdorp and shopping centres in Nieuw West.

Last year there were 547 armed robberies on Amsterdam shops, up 11% on 2008. Last week the owner of a jewelers shop on the Jan Evertsenstraat was shot dead during a robbery.

• Overview

  Loyalty cards can be powerful marketing tools.
  Loyalty cards are one tool in the small business marketing arsenal. These cards are designed to encourage repeat business by offering rewards for customers who return again and again. Loyalty cards are also used by some businesses to track customer purchases to better understand buying patterns and target marketing. Loyalty cards can work for many different types of businesses, but they make sense especially for restaurants and retail stores.

• Types of Cards

  Loyalty cards can come in many different flavors. A simple example is a paper card at at a coffee shop that is punched with each drink purchased. When you get to 10, you get a free drink. Newer versions of the loyalty card can look a lot like a credit or debit card. The card is scanned, and information about the purchase is captured into a database that tracks information on what has been bought and what rewards are available to the customer. With so many businesses offering loyalty cards, it can be easy for cards to get lost in the shuffle. Customers can connect their card to their email or phone number and then give that information to identify themselves at the register. This can be one advantage of going with a more advanced database system compared to a paper punch card.

• Types of Rewards

  Rewards can be as simple as a free side at a restaurant, a meal upgrade or a percent discount on the next purchase. Choosing the types of rewards to offer will depend on your business and what motivates your customers. Experiment with different kinds of rewards and check in with customers about what they think of your loyalty card program. At the same time, avoid getting too complex with the rewards. Keep the offers straightforward so customers know exactly what they have to do to reach the next reward.

• Customer Loyalty

  The ultimate purpose of loyalty cards is to get customers to spend more money. Businesses can achieve this by encouraging repeat business, offering incentives for larger purchases and reserving special offers just for loyalty program members. Remember you are likely in competition with other businesses that also offer loyalty programs. Check in periodically to see what the competition is doing. Loyalty cards are an ongoing process. Analyze any data you collect and adjust the rewards to generate greater customer loyalty over time.

• Customer Information

  When it comes to the ethical aspects of loyalty cards, the collection of customer information is a hot topic. Many loyalty card programs require a customer to sign up by providing personal information such as name, address, birth date, phone number and email. Surveys asking about age, income, preferences and shopping habits may also accompany the loyalty card sign-up process. It is a business’s responsibility to safeguard this personal information. Implement a privacy policy and take steps to secure your customer data. Don’t sell or share your customers’ information without their express permission.

• Tracking

  Loyalty cards can be used for tracking purchases on a customer-by-customer basis. This can lead to a greater understanding of shopping habits and enable businesses to track the success of marketing initiatives. As with personal information, it is important for businesses to keep tracking data secure. Many consumers are willing to give up a certain amount of privacy in exchange for loyalty program deals and rewards. Use the data to make adjustments in the way you stock your store and to help with the design of future promotions.

Maybe you wondered if there is possibility to make a bar code more durable? Usually bar codes or numbers on plastic cards are printed using monochrome thermal transfer technology over the laminate and are not durable. After few months the print is gradually erased.

However Perfect Cards factory can print for you bar codes or other personalization data under the laminate, which makes them indestructible and durable. Order your free sample pack today to see for yourself!

A customer loyalty card program can help a business show it values its customers, will encourage repeat business, is a low-cost way to advertise a business and can help an establishment learn more about the customer. According to Search CRM, a loyalty card program is an expensive endeavor and can cost a business up to 5 percent of its revenue. In addition, it can take up to 18 months for a business to see the return on the program fully. Setting up a customer loyalty card program is a long-term commitment that can bear fruit when executed properly.

If you need plastic cards for your loyalty program, contact Perfect Cards for the best quality low priced cards!

Read more here:

http://www.ehow.com/how_6713572_set-customer-loyalty-card-program.html

Millennium & Copthorne Hotels (M&C) has launched a new loyalty programme in the UK in a bid retain custom as business travel slowly recovers.

The M&C Loyalty Club has three tiers of membership, Classic, Gold and Diamond, with points from qualifying stays redeemable against a range of food and beverage and lifestyle rewards.

Other card benefits include complimentary room upgrades and newspapers, early check in and late check out, 20 per cent off weekend breaks and a welcome drink on arrival.

The programme has been live at M&C’s hotels in Asia since April and comes as the sector as a whole attempts to move away from the heavy discounting of the recession while retaining customer loyalty.

If you need help with your loyalty program, please contact us.

Calypso, ITSO & VDV are the first to demonstrate interoperable multi-application smart ticketing in international public transport use. Three European smart ticketing organisations Calypso Networks Association (Belgium), ITSO (UK) and VDV (Germany) have demonstrated that a single smart card can be used for public transport across all three ticketing systems. In an innovative international multi-application demonstration, tickets from three national transport ticketing applications – British ITSO, French NaviGO and German Core Application (VDV-KA) – were loaded onto a card, proving that a single smart card can be used for travel on local public transport networks in different countries. This is a major step forward in smart ticketing technology, as most smart cards are currently restricted for use on a specific network. Interoperability demonstrations took place at the beginning of May 2010 during the UITP hosted Interoperable Fare Management Forum. The meeting and demonstration concluded the work of a two-and-a-half year EU-IFM Project, which objectives was to increase access to public transport networks in Europe and make it more user-friendly and compatible through provision of interoperable ticketing devices.

The Project was coordinated by ITSO. The interoperability demonstration was managed by RATP (France) with active participation from VDV and technical assistance from Nextendis (France) and ESP Systex (UK). The card used is a common production card from VDV. The EU IFM Project is funded by the European Commission under the 7th Community Framework Programme for Research and Technological Development through DG INFSO under the IST Programme: ICT for Transport.

If you need such cards, please contact Perfect Cards: www.perfect-cards.com

Increasing Customer Loyalty: A Case Study

California-based pizza maker zpizza understands the importance of repeat custom to its business, having recently run an integrated direct marketing campaign combining mail, e-mail and mobile to entice consumers to join its ‘ztribe’ loyalty club. The chain – which is known for making gourmet pizza with unique toppings – is hoping to build the club with the long-term goal of doing more business with its members in the future.

Zpizza particularly wanted to increase the number of ‘heavy users’ – customers who spend over $50 a month and order at least twice – at each of their stores across the US. The aim of the campaign was to identify local people and entice them to join the loyalty scheme.

The zpizza campaign consisted of pizza themed scratch cards that were mailed to up to 3,000 people in the local area surrounding each store. Recipients could then text in their winning code revealed on the scratch card along with their email address to claim whichever prize they had won. There was an assortment of prizes, of which the majority were free coupons; however prizes up to $5000 were possible.

The result of the campaign was a resounding success. Zpizza not only spurred existing customers into action, but also reached potential new customers; receiving nearly 2000 entries from their scratch card campaign. Registrations to ztribe were up nearly 20% compared to the regular sign-up rate. Zpizza hopes to run another loyalty promotion in the near future.

The majority of businesses, including zpizza, understand that encouraging repeat business can have a huge positive impact on their bottom line. Most recently, a study from business intelligence consultant Retail Active found that it can cost as much to gain one new customer as it does to keep five existing ones, and that repeat customers typically spend about one-third more than new ones.

If you need free consultation, how your company can benefit from such loyalty programs, please contact us. www.perfect-cards.com

Simple answer – Keep Customers Loyal

No matter what size or type of business you run, customers are essential; without them your business could not exist profitably.

Customers that are loyal will return more often, giving higher sales! However, a surprising number of businesses appear to just expect customers to arrive, and seem to do nothing to make them want to return.

This article looks at different ways in which you can help to keep customers loyal.

Why Is It Important To Have Loyal Customers?

Repeat Sales

If your customers develop a loyalty to your business, they will be much more likely to choose you over your competitors in the future. Over the course of a year, the sales of one loyal customer can add up to a significant amount.

Something every business benefits from is a ‘customer for life’ – a customer who will always buy from your business where possible. If your business satisfies loyal customers every time, then hopefully many will become customers for life.

“80% of your business comes from 20% of your customers”

80/20 Rule

Most businesses tend to find that 80% of their business comes from only 20% of their customers. These are the ‘customers for life’ and loyal customers who purchase regularly.

Although it is vital for any business to attract first time and occasional customers, it is usually much more beneficial to turn the ones you have into loyal customers.

This is especially true in fast moving markets, where customers may use your product on a daily/weekly/monthly basis.

If you have 1000 customers who buy 1 product each year, you will sell 1000 products a year.

or

If you have 100 customers who buy 10 products each year, you will still sell 1000 products a year.

Word of Mouth

This is the cheapest form of marketing, where your satisfied customers speak to their friends and family, effectively selling your business to them.

Loyal customers will be much more likely to tell their friends about your business than occasional visitors, even if the service given to both of them is great. Not only do loyal customers spend more, but they can also help bring in even more new customers.

Loyal customers can be especially useful in service businesses such as plumbing and electrical repairs, where most people use word of mouth recommendations to decide which business/person to use.

“it costs five times more to gain a new customer than keep an old one”

Cost

Probably the best reason for making (and keeping) your customers loyal is also the simplest: It is commonly stated that it costs five times more to gain a new customer than keep an old one.

Turning just 10% of your occasional customers into loyal customers could save you up to 8% of the costs of gaining customers (Such as: marketing, price offers, staff costs and time, etc…).

Discounts For Loyalty

One way to encourage loyalty is to offer discounts on future purchases. This could be money off the same item or related items (e.g. A discount off a TV stand when you buy a TV.)

These discounts encourage the customer to save money, with the ideal outcome being a satisfied customer who becomes loyal to your business.

A popular form of offer is ‘introduce a friend’ discounts, whereby if a customer introduces a friend, they both get a discount or special offer. This not only encourages customers to return and be loyal, but also provides a positive introduction for new customers.

E.g. Introduce a friend to our furniture and get £20 each on their first sale over £200

Loyalty Schemes

Many large businesses (mainly shops and stores) now have ‘loyalty schemes’ (e.g. The Nectar Card, Air Miles) which use discounts to encourage people to buy from them. They usually work using ‘points’, the more you spend with them, the more points you earn, points can then be used to save money on some items.

The discounts are usually minimal (Often as little as 1-2%), but they provide a direct reason to remain loyal to one business. The cards given out with most schemes also provide a reminder of the business.

The main benefit to most stores was being able to monitor what their customers bought, allowing them to move products and send out discounts for the products those customers purchased often. (e.g. If you bought lots of dog food, they would send you offers related to dog owners) This type of information gathering is very useful.

Customer loyalty programmes have been the key weapon for businesses in the battle to win the hearts of customers who might have been wavering as the recession dragged on, our recent research shows.

Popularity of loyalty schemes during recession

Our study of 500 marketing decision makers found that 71% of respondents felt that loyalty schemes had become more important to successful business during the recession and 60% of businesses are concentrating more of the their budget on loyalty programmes and their associated marketing activity than they were a year ago.

Changes in consumer behaviour and spending during the downturn made it essential for marketers to alter their strategies in order to retain customers. As tough economic times encouraged a culture of promiscuous shopping with consumers seeking out the cheapest deals, many businesses started to concentrate on customer retention and development in a bid to stem customer churn.

Many businesses have clearly recognised that making use of existing customer loyalty programmes and customer data to better understand customer needs and shopping habits during the recession was a wise use of the marketing budget. Some firms even launched loyalty schemes during the recession – e.g. HMV, CDWow, Play.com and CBS Outdoor – proving that businesses are realising the value of having a programme in place.

So, although the resources of many businesses in various sectors took a pounding during the recession, it appears that loyalty schemes are still paying dividends in the eyes of the majority of businesses.

Nonetheless, 50% of marketing decision makers believed that the vast majority of loyalty schemes were not fully integrated with all other marketing activity. If marketing activities are not integrated, then a business is less able to ensure consistency of message, which could be problematic as the UK exits recession. Companies that fail to integrate marketing activities – especially when it comes to existing customers – risk being inefficient and contradictory in their communications to customers, thus hurting the potential ROI of their campaigns.

However, those that have integrated their loyalty schemes with other marketing activities will be in a better position to develop strategies for retention once the downturn is over.

Perfect Cards company helps in creating, implementing and running loyalty schemes for any size of business. Request free consultation now!

The growth of digital printing technology has brought technical advancements, more options, and exciting new features to today’s commercial printing. It’s also brought some confusion. An understanding of the advantages and disadvantages of digital printing and how those compare to traditional offset lithography is critical in making the right choice.

Most Common

Offset lithography is the most common high volume commercial printing technology. In offset printing, the desired print image is burned onto a plate and is then transferred (or offset) from the plate to a rubber blanket, and then to the printing surface. The lithographic process is based on the repulsion of oil and water. The image to be printed gets ink from ink rollers, while the non printing area attracts a film of water, keeping the non printing areas ink-free.

So … Which is Better

Well, it seems that depends.

Advantages of Digital

• Shorter turnaround.
• Every print is the same. More accurate counts, less waste and fewer variations, due to not having to balance ink and water during press run.
• Cheaper low volume printing. While the unit cost of each piece may be higher than with offset printing, when setup costs are included digital printing provides lower per unit costs for very small print runs.

Advantages of Offset

• High image quality.
• Works on a wide range of printing surfaces including paper, wood, cloth, metal, leather, rough paper and plastic.
• The unit cost goes down as the quantity goes up.
• Quality and cost-effectiveness in high volume jobs. While today’s digital presses are close to the cost/benefit ratio of offset for high quality work, they are not yet able to compete with the volume an offset press can produce.
• Many modern offset presses use computer-to-plate systems as opposed to the older computer-to-film work flows, further increasing quality.

Still Not Sure Which is Right?

Use this checklist to help decide:

• Quantity. Offset printing has a front-end cost load. Short runs may have a high unit cost. But as quantities increase, the unit cost goes down with offset printing. Very short runs can be much more cost effective with digital printing; while larger quantities are likely to have a lower unit cost with offset printing. Furthermore when printing plastic cards at Perfect Cards you can merge projects with other clients and have even lower cost. Always ask us for a quote!
• Printing medium. Do you need or want a special paper, finish or unusual printing surface, or unique size? The options are increasing continually for digital, but offset printing still offers the most flexibility.
• Color. Digital presses use four-color process printing. If you need only black ink or one or two ink colors, offset printing may offer a more cost-effective solution. If you need four-color printing, digital may offer advantages in lower up-front costs.
• More on color. If you’re planning to print using the Pantone® Matching System, offset printing will give you the best match, since it uses actual Pantone® ink. Digital printing simulates the color using a four-color matching process, so some digital printers may offer less accurate color matching on projects.
• Proofing. Digital offers accurate proofs since you see an actual sample of the printed piece. Accurate color proofing for offset printing costs 140 EUR at Perfect Cards. You get 21 cards of accurate proof. You can even put 21 different projects in this test run.

Summary

Use the above checklist to help you decide and talk to your printer before submitting your job for advice on preparing files properly for the option you choose.