Rebates and Consumer Reward Management

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.