Earlier this week I looked at 2 ways business could implement Cash Cards. The first example was a bookshop that replaced its existing paper based Gift Vouchers with a myrewardcard.ie card and the other was a restaurant that used the system to reduce the amount of time taking telephone orders tied up the line while also reducing cash handling.
Today I want to finish the series of examples with two more; a toy store running a Christmas Club and a Taxi Company which increased cash flow while encouraging regular bookings.
Taxi Company Looking to Increase Regular Bookings
The taxi company wanted a way to encourage regular bookings, particularly from corporate clients. It felt that a points based Reward program was too complex to manage and explain. Instead it decided to use the Virtual Wallet.
People making advance bookings were encouraged to sign up for a Wallet. Whenever the person rang to make a booking the depot could usually identify the person from the caller ID. Where this was not possible they asked the person for their card number.
The depot could then identify the person and simply asked them to confirm the address where they wished to be collected, saving the time of getting directions. At the time of booking the depot informed the client of their account balance and at the end of the journey the fare was deducted from the clients card. If there was not enough credit the passenger could top-up as well. Each top up of €20 received an extra €1 credit, providing a bonus to the client and encouraging them to use the system.
The company started with a paper based system limited to regular bookings. When the driver was given the booking they were also told the card number and the credit on it. They then recorded the value of the trip and this was deducted back at base.
The system could later be extended to trips made without pre-booking and, using internet enabled phones, the paper was eliminated.
This system achieved a number of benefits for the taxi company;
- It allowed them to reduce the cash held in each car
- It reduced the amount of cash required in each car since passengers tended to leave the extra on their account.
- It helped cash flow as the passengers paid in advance, offsetting the top-up bonus.
- It encouraged repeat business.
- It made bookings more efficient as most of the information was already present in the system at the time of booking.
Toy Shop Christmas Club
A toy shop ran a successful Christmas Club every year. However they found that it was time consuming and the data they collected was spread around, making it hard to use effectively. They also found that their cash flow was hurt since a significant percentage of customers did not spend the full amount saved and they had to return the remainder at a key period of the year. Finally a number of customers every year lost their savings book and this left the business to decide whether to refund the customer or not.
The store purchased their own branded cards simply labelled “Saving Card”. These were issued to customers who wanted to save. Customers could save regularly and any amount remaining on the card could be rolled over to the next year. The same card was issued as a Gift Card.
The Saving Card successfully replaced the existing Christmas Club solving the previously identified issues. It also had the advantage of allowing the saving habit to be implemented all year round. By using it as a Gift Card they now also had a way to encourage recipients to return after their first visit. All the data on new and existing customers allowed targeted promotions.
These and the previous examples are just some of the ways Cash and Reward cards can be used to help increase custom while also reducing time taking orders, increasing cash flow and generally helping businesses survive the recession. If you want to discuss how you can use a card to bring additional benefits to your business give me a call on 021-2349920.