New Program Helps Rentailers Offer Gift Cards12 Feb, 2002 By: Hive News
The Video Software Dealers Association (VSDA) is debuting an Electronic Gift Card Program, a designed to directly increase sales and customer loyalty for member retailers.
VSDA has partnered with Valutec Card Solutions (valutec.net) on an electronic card system that will let rentailers offer their customers gift cards, prepaid rental cards (known as stored value cards) and loyalty cards. VSDA retail members receive special discounts on both card manufacturing costs and transaction fees.
Each card system is fully customizable, from card design to reward program parameters. VSDA member retailers may choose from any of the special VSDA card designs or work with Valutec's designers to create custom cards of their own.
The VSDA Gift Cards feature VSDA's new industry promotion slogan, "Don't Just Sit There, Rent Something," on a choice of nine different gift card layouts as well as one general Home Entertainment card option.
"According to available research, gift cards increase incremental sales, they increase store traffic -- about 55 percent of recipients make more than one trip to the store to use up the card's value -- and they outsell paper gift certificates by 200 percent to 400 percent," said VSDA's director of Marketing, Celeste Day Drake.
"Gift cards have grown enormously in awareness and popularity in the past twelve months," added Drake. "A year ago only 15 percent of Americans had heard of gift cards. Now more than 80 percent of Americans know about them. A wide variety of retailers use gift cards including hardware and bookstores, clothing stores and as well as restaurants and coffee outlets. This member benefit couldn't come at a better time."
Valutec will produce the gift cards, assist with point-of-sale promotional aids and provide card-system training, monthly transaction reporting and ongoing technical support for all VSDA members who participate.
"No single store retailer could negotiate program terms like the special pricing terms negotiated by VDSA for our members," added Andersen.