The History of Gift Cards
Whoever developed the idea of gift certificates was a marketing genius. The idea of taking someones money (which is valid anywhere) plus giving them a certificate redeemable just at your restaurant was a pure cerebrovascular accident of brilliance. It made present giving easy and guaranteed the restaurant profits either through redeemed or dropped certificates.
The problem with paper present certificates was that they took time to issue, track and redeem. Generally, the certificates were kept in the secure place and access was restricted to only a very few. If a certification were sold, it took time in order to issue and interrupted the manager/owner to issue the certificate.
Tracking the certificates, which were usually sequentially numbered was critical as gift certificates could be stolen, forged and then redeemed thus creating a loss rather than additional profits. It was because of these problems that many restaurants stayed away from gift certificates and thus missed out on some large marketing opportunities.
In recent years magnetic credit cards have taken the place of paper accreditation. Balances were kept in a data source, which were linked to the card via a quantity in the magnetic stripe. Some credit card companies have jumped onto this bandwagon offering gift card programs that act similar to a credit card. The balances are kept off site at the credit card processor. The processor after that charges a transaction fee to include to/redeem the gift card. This fee can run between $. 15 – $35 per swipe of the card. On small credit card transactions such as coffee houses these fees gouge deep into the income of the sale.
A newer trend is to house the gift card balances at the store level. There is no deal fee and virtually no time lost digesting the transaction outside of the store. Anywhere may be added to the balance of the card, thereby making the card reusable but not disposable. Your logo is in the card, making it a constant reminder of your restaurant every time the customer looks within their wallet.
The Need for Gift Cards
Dining places need the ability to securely sell, monitor and redeem gift card transactions without transaction fees. Balances must be kept in-house. The customer should be able to increase their balance at any time, making the particular gift card like your own personal debit card system.
The credit cards should be reusable and they should have your own logo on them for a constant tip of your restaurant.
The Solution To Manage Present Cards
Many point of purchase products now have optional gift cards modules that tracks numbered document certificates as well as issue, tracks, redeem and reports on magnetic gift cards. With the optional magnetic card reader and magnetic cards properly formatted for the software, you are able to take full advantage of this powerful marketing tool.
The gift cards should have your logo in it for advertising purposes. They also may be packed for a nicer gift presentation. A few companies have even worked out testing programs with other non-competitive companies to show gift cards at each others company.
The cards have no value till sold, thereby eliminating the problem of theft, forgery and redemption associated with stolen certificates.
The cards are reusable once fully redeemed. The client may also add to the balance, thus creating your very own debit card system with frequent diners being able to continue to use/reuse their card on future trips. This have become huge in espresso shops where customers use their particular cards on a daily basis to make purchases.
A few point of sale products maintains the balances at the store degree for single store operators. You don’t need to to process the gift credit card outside the store as balances are usually adjusted up or down at the end of the transaction. There are no deal fees with this type of data storage.
For multiple store operators a couple of point of sale products have the ability to house gift card balances in a central location with every shop accessing and updating gift credit card balances through high-speed internet connections. However the balances are being kept off-site there are still no transaction fees with our system.
The Benefit of Gift Cards To You
The potential for huge profits, additional sales plus repeat customers are the overwhelming great sell gift cards. Being able to private label the cards, add to balances and create your own debit card system make using magnetic cards for gift cards essential to a profitable restaurant operation.
Abandoned cards are also an enormous area of realized profits. When balances get below $1. Here’s more information about Mysubwaycard look at our own site.
00 the device still recognizes them as active. However , customers tend to abandon their own cards if the balances get beneath a certain amount. For some larger companies these types of abandoned balances along with lost credit cards equal millions of dollars per year in earnings.
DirecTouch Point of Sale also allows you to set expiration dates for the cards issued. This helps create a feeling of urgency for your customers to come back to redeem the cards.
A few restaurateurs will use gift cards since enticements to get people to try their particular restaurant. Instead of writing on the back again of their business card the owner may put small balances ($5 or even so) on cards and then spread them to certain people to get them to test their restaurant. This is a great way to obtain people to come to your restaurant and even more secure than writing on the back again of a business card.