As more businesses adopt prepaid cards to meet a range of business needs, the automotive industry in particular has expanded their card applications:
Recalls/Class Action Settlements
Car companies have reduced the cost and complexity of issuing cheques, distributing rebates, and managing settlements by using prepaid cards. Using cheques can be expensive: issuing one cheque can cost between $15-25. Using the simplicity and flexibility of prepaid cards allows for efficient and cost-effective disbursement of funds, which can be managed and loaded via an online platform.
Improving Customer Service
At dealerships, unhappy customers are being reimbursed with prepaid cards. Vehicle owners appreciate the flexibility and convenience of being able to spend the funds anywhere Visa or MasterCard is accepted including online and overseas. In addition, a custom-branded prepaid card (with your organization's logo and designs) reminds customers which company gave them the gift.
Rebates and Marketing Campaigns
Running a contest and need the perfect prize? Prepaid cards are the ideal incentive. They can be funded with almost any dollar amount and are easily loaded through an online platform. Clients can set where the funds can be spent (i.e. dealerships or service locations) or allow the money to be used at any store or online retailer. Spend data can be tracked, meaning insights on how the investment is used are easily measured and scaled.
Employee Sales Incentives/Rewards
Sales channels are rewarding sales staff for reaching sales quotas or thanking employees for their years of dedicated service using prepaid cards. Incentives and recognition programs increase employee loyalty, improve corporate culture and decrease attrition. Tasking managers with individually purchasing rewards for their team is inefficient and creates complexity around when to reward employees and what incentive is appropriate. A prepaid card program simplifies the process, and ensures recipients can buy whatever reward they wish.
Why Prepaid Cards?
The answer is simple, prepaid cards are easy to use, cost effective, and are a prestigious reward for improving customer experience.
Customers appreciate the simplicity, flexibility and convenience of prepaid cards.
Cardholders can choose where to spend the funds and are able to use them at any retail or online store, worldwide, that accepts Visa or MasterCard. They can also be easily branded with a custom design and logo so cardholders will can further appreciate who they received the funds from.
Prepaid cards are also the most favoured incentive of millennials. In the 2014 Canadian Incentive Trends Survey, prepaid cards were chosen as the most desirable reward for the millennial generation.
Organizations that use prepaid cards are able to track the spend data and receive insights on the investment impact of their prepaid program through reporting options. Retail or restaurant gift cards by contrast are sunk costs - after the cards are purchased, businesses have no visibility into when, how, or even if they are used.
How Nissan Used Prepaid to Improve the Customer Experience
Nissan Canada wanted to implement a rebate program with universal appeal that would provide instant rewards to customers across the country upon their purchase of select Nissan vehicles.
They chose to offer prepaid Visa cards, with funds ranging from $300 to $1,500, to incentivize customers to purchase particular vehicles.
This choice allowed for custom branding, which fit with their national and dealership advertising campaign - as well as help reinforce the Nissan brand to customers.
In addition, data from the card was easily managed and measured, and usage patterns could be tracked.
Berkeley handled program setup, card issuance, program administration, and customer service for the card program. The program was so well received by both clients and carholders that Nissan subsequently expanded it's use of prepaid cards across North America, and continues to use prepaid cards for a wide range of applications to this day.
