Business intelligence continues to be an area of high priority for organizations that are looking to improve their decision making on the data collected from processes, people and applications.  Understanding what your customers want is a fundamental principle of marketing. This principle is simple in theory, but challenging to put into practice. 

It is difficult for marketers to know what is on the customer’s mind today, then accurately anticipate what the customer may need/want tomorrow. The challenge doesn’t stem from lack of customer data.  The fact is, customers and prospects are giving us information about themselves all the time.  Through every purchase, response, event, transaction and web site hit, consumers reveal something about themselves.   The challenge is integrating customer intelligence into a powerful business system.

Consumer spend analytics, derived from prepaid card awards, enables strategic decision making, opportunity assessment and revenue prioritization.  Transaction processing data provides real insight for corporate leaders in marketing, product development, consumer experience, customer relationship and advertising management.  These detailed reports outline:

• Where in the world your customers are spending their monies.
• What they are spending their monies on.
• How much they are spending and in what stores.

Synthesized with demographic data, static reports are transformed into a true decision support system for an organization.  A Colorado company called Clear Peak, has been able to harness this powerful solution, and offer their clients a true competitive advantage. 

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Over the last 5 years consumer focused companies have moved their rebate programs from paper checks to plastic prepaid cards.  This demonstrates an ongoing trend to reduce paper in the payments system, while providing consumers with the added convenience of a MasterCard® or Visa® card.  The Mercator Advisory Group, a leading industry consulting group, predicts the growth of prepaid cards in the consumer incentive market to grow at a  200%+ clip by the end of 2010. 

Consumer rebates create an opportunity for a organization to drive brand loyalty by ingratiating themselves with their end user.  A prepaid MasterCard® or Visa® loyalty card offers an Original Equipment Manufacturer (OEM), a unique financial vehicle for promoting their product or service. 

• Consumers:
  • Get the item they want at a lower price
  • Have immediate access to their funds and universal acceptance –– with no trip to a bank necessary

• Original Equipment Manufacturers:
  • Receive a substantive revenue lift in the product/service being promoted
  • Establish an active, personal connection with the consumer through a customized card activation/registration process
  • Capture end user spending behavior by effectively levering a processor analytics engine
  • Enjoy brand enhancement as the custom designed card is used by the consumer to make subsequent purchases
  • Utilize custom card carriers/greeting cards to construct detailed messaging to be directed at their customer
  • Improve the economics of their rebate program

Some consumer groups claim that the reason for the shift from check to card is the hope (by the OEM) that the end user will forget about using their reward.  The reality is that the “breakage” income is only a small component in the overall revenue derived from the card.  Most OEM’s want their customer to spend the awarded monies on other goods/services they offer. 

My advice to cardholders:

• Use the card immediately
• Identify fees and the timing of those fees
• Monitor your card balance (via the web or IVR) so you can easily navigate a split tender transaction (divide the bill)
• If your card is lost/stolen, immediately report it so you can receive another card

My advice to OEMs:

• Prior to making a decision, review the capabilities of both rebate fulfillment companies as well as prepaid card companies (many times money can be conserved by negotiating separate contracts)
• Look for economic flexibility with your potential partner (what revenue streams can be shared)
• Understand the personalization capabilities of your potential partner –  can they help establish a one to one relationship with the end user
• Understand how program change requests will impact the delivery timeframe
• Ensure that complex reports (spend data) can be accessed in a timely fashion

Prepaid cards are a flexible, cost-effective way to distribute cash rewards to participants.  If utilized correctly, both the OEM and consumer will enjoy the many benefits associated with the card.   

Almost every American is aware of the significant health care crisis in our country. The problem is overwhelming; a third of all adults are considered obese, 33% more are considered overweight, 5% at the dangerously overweight level, diabetes rates are at an all time high and are increasing.  The majority of Americans lead a sedentary existence, while a significant number of people still smoke despite the obvious consequences.  The health care crisis has resulted in medical insurance premiums growing year over year at a double digit rate.  Companies are now forced to cut back on in-force benefit plans as well as pass increases onto their employees. 

Today, many companies are working with their brokers and insurance carriers on solutions that will help mitigate the annual health insurance increases.  One strategy that is succeeding is the institution of a corporate wellness initiative.  This process starts with the creation of an employee personal wellness profile after completing a detailed health risk assessment.   An individual can then choose self selected education for their own health risks and diet, as well as monitored diet and fitness programs.  There is also the ability to screen for high-risk individuals, and proactively approach them for direct lifestyle modification programs via wellness interventions.

In order to effectively impact positive change, employee involvement in a wellness program must be managed through the use of a corporate incentive plan.  The program must:

• Offer a reward that motivates an employee to participate.    
• Be simple to implement and administer.
• Ensure that every participant who achieves a goal receives recognition. 
• Promotes your worksite wellness program through branding and active communication (via text, email, IVR & web).

A reloadable MasterCard^® or Visa^® prepaid card is the easiest, most convenient method of rewarding employees for participating in a corporate wellness initiative.  It’s the perfect way to motivate employees to stay engaged with the a wellness program.

• The program starts with the construction and customization of a company branded, reloadable prepaid card. 
• Card designs, messaging, card carriers, inserts, letters, envelopes, and website pages are personalized to deliver tailored and precise communication to all participants.
• Cards are delivered and include a definitive statement on how employees can earn monies on their card.
• Additional dollars are dropped on the card as long as the employee meets certain program objectives.
• Good habits are reinforced via immediate messaging on the card (text, email).

Company leaders must look to their insurance brokers, insurance carriers as well as wellness providers to affect positive change within their employee population.  Empirical evidence now suggests that companies that implement, and adhere to wellness best practices will see a dramatic drop is overall claims.  Companies like National Jewish Health and Staywell offer the statistical evidence that reveals that active participation in a wellness program leads to significantly reduced operating costs (medical claim & short-term disability) as well as an increase in presenteeism.  

On June 24^th at 2 pm (EST), there will be a web seminar conducted by National Jewish Health and MasterCard.  The distinguished panel will share insights on the effective use of incentives to encourage broad participation in corporate wellness programs, resulting in significant financial savings.  Anyone interested in participating can contact me, and I will email them the online enrollment information. 

In a highly competitive retail environment, where the consumer is becoming more and more discerning, it is critical to maintain brand loyalty.  Brand allegiance can be secured, which ultimately guarantees the original equipment manufacturer (OEM) incremental revenue streams.  A customized private label prepaid card is an elegant, and effective tool that rewards buyer commitment, thereby ensuring complete share of wallet.

The Solution

• As a reward for their purchase, and subsequent product registration, a consumer is sent a fully customized, private label prepaid card.
• The OEM branded, private label card contains inherent characteristics that will:
  • Restrict end user utilization so loaded monies can only be spent in predetermined brick & mortar or online stores.

Program Results

• All dollars associated with the loyalty program are funneled back to the OEM in subsequent purchases.
• Consumer utilizes private label card to justify the purchase of an item costing significantly more than the value of their prepaid card.
• The OEM immediately ties the reward with the initial purchase thereby ingratiating themselves with the consumer.
• Consumer feels empowered to immediately spend earned monies on another OEM product.
• Consumer recognizes who awarded them the card every time they make a purchase thereby strengthening the relationship with the OEM.
• A private label card levers the Visa/MasterCard infrastructure, so an investment in propriety networks is unnecessary. 
• The OEM captures consumer profile data during the registration process.

Original Equipment Manufacturers will continue to look for unique ways to differentiate themselves from worthy competitors.  A private label prepaid card can be an effective way to ensure the appropriate consumer devotion to their product lines. 

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