Rebates and Consumer Reward Management

Great question! The NDP Group just released a rather gloomy forecast for overall retail sales this Holiday season, (26% of consumers are expecting to spend less than last year), but chief industry analyst Marshall Cohen concluded: "Keep in mind, many consumers don't go out with the intention of getting a gift card but will likely do so when they can't find an appropriate or affordable gift. And don't forget those post-holiday promotions. The markdowns could almost double the value of a gift card."

Based on all of this, it seems that smart marketers will focus on giving a gift card or prepaid open loop card as a value proposition that lets the recipient choose exactly what they want (and if on sale, even better), and the giver does not waste money on something less than perfect. Sounds like the best of both worlds.

Please contact me directly so we can discuss a patented process that we are about to launch that may be an excellent value-added feature that will absolutely make your cards stand out from the others.

Sure, glad you asked!

The first step, of course, is to indicate on your campaign that a portion of the rebate dollars can be used to offset carbon, as part of your GREEN message. If your company is also contributing a part of the rebate money to help offset carbon, you would indicate that as well. Tip: if you are planning to offer a $100 MIR for a product, we suggest you offer the consumer a $90 rebate and use the $10 to make a corporate donation per qualified sale – at no additional cost to you. Then, simply ask your customer to check off a box on the MIR submission indicating how much, if any, of their rebate they want to donate: EG: [ ] All [ ] $10 [ ] $25 [ ] None, thank you. Our care team will work with you to write all the appropriate copy for you.
Once we know the amount of funds that are generated, we work with livclean™ to fund their internationally accredited initiatives that help offset carbon in our atmosphere. We then send the consumer a certificate acknowledging their contribution to our global carbon offset initiatives.
NOTE: livclean’s carbon offset programs are recognized by The David Suzuki Foundation and certified by numerous international associations.

The scratch off feature is intended to protect consumers who purchase cards in a "gift card mall" or end cap unit in a retail environment from fraud and illegal use. If the gift card displayed the pin number prominently then individuals could record them, utilize the unique pin identifier on any sold card, report it missing and potentially have it reissued or use it in-store or on-line. When the card is swiped to activate in-store, the pin is registered and activated with the funds loaded, although the user or purchaser remains anonymous, so the pin number is the purchasing consumer's only reference number to check balances or for on-line transactions and sales.

That is an interesting observation. The concensus is that there is still considerable growth in the gift card and stored value market. According a recently published report: "The U.S. Market for Prepaid Cards with a Focus on Gift Cards", published by Packaged Facts, consumer spending on Gift Cards is expected to hit $52.2 billion by 2012, up from $40 billion in 2007, with 67% of all consumers expected to purchase a Gift Card. The average yearly spend on Gift Cards is projected to rise to $326, up from 2007’s $288, with 35% of consumers expecting to spend ‘more’ in the future, 10% said they would spend "significantly more".

Also keep in mind that there are different categories of "gift cards" including open loop (American Express, Visa, MasterCard and Discover) and closed loop cards (store specific "gift cards") as well as other "stored value" products currently being used for payroll, medical benefits, welfare, disaster relief and other mass markets.

That being said, we feel very strongly that the next growth area will be Mobile Rewards and Payments, utilizing the massive base of wireless devices to drive consumer behavior, response and convenience.

We are currently developing mobile applications through our company for mobile couponing, loyalty and rewards that are managed through the device - and compliment our Green Initiatives, as there is no paper, postage or mail delivery involved. The critical missing element missing in the current plastic or physical Gift Card usage is that the user is considered to be anonymous, whereas with mobile couponing, we can track down to the device that is used for the reward, creating powerful CRM capabilities.

We are in exciting times and yes, technology will play a major role in the ongoing creation of reward and loyalty - as long as it is seamless and easy to use.