If I were a retailer

Farzana Rasool —  August 6, 2013 — Leave a comment

If we really think about it, retailers are not simply trying to sell the products in their store. They’re not just trying to sell high quality merchandise or great customer service or unique items.

Retailers essentially need to sell a reason for customers to return to their store, and for more people to visit their establishment.

What better way to do this than through rewards cards that will ensure business will continuously walk through its doors? The customer will make a purchase and earn points for making that purchase. This will get them closer to affording a ‘rewards gift’ and so they keep returning to build up more points and to get closer to the free item.

Last week I looked at the possible ways I could use Tutuka’s online self-service option to create closed loop prepaid accounts for hotels and restaurants. Retailers can implement similar avenues for their customers to benefit from prepaid.

If I were a retailer I would consider several prepaid options for my store:

1-       Gift cards

  • Gift – Samantha needs to buy a gift for a friend’s son. Teenagers are fussy and she has no clue what to get. She buys him a gift card so he can pick what he likes.
  • Control spending – Samantha has a daughter in high school who needs new clothes before she leaves on holiday. Samantha can’t get time off work to take her shopping. Instead of giving her daughter her credit card she buys her a gift card so her spending is controlled.
  • Manage returns – Instead of handing a customer cash back when they return an item, I can give them a gift card for the same value so I don’t lose out on the sale.

2-       SMS vouchers

Samantha has another daughter studying away from home. Her daughter would like to update her wardrobe as well but doesn’t as yet have a bank account so Samantha can’t send her money easily. SMS vouchers are the perfect option so she doesn’t have to send her daughter a physical card and her spending is still controlled.

3-       Rewards cards

After all these purchases at my store, I want to reward Samantha for her loyalty and so I give her a rewards card that she can swipe every time she makes a purchase. Her points will eventually earn her a free item from my store. It will also help her move up rewards tiers so she becomes eligible for discounts.

4-       Incentive cards

To encourage my staff to make sales I give them a commission in the form of points, similar to how a rewards card would work for loyal customers. They swipe their card and earn points every time they make a sale. The points will eventually allow them to get an item from the store or can be exchanged for cash.

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