September 17th, 2015
Gift card distribution practices vary widely from organization to organization. What you may not realize is the amount of money that can be saved by making minor modifications to tighten up your program. Here are the top 5 distribution enhancements that can affect your bottom line:
- Warehousing: Gift cards are often lumped in with signage, menus, and other such print items, but they require a high attention to detail, because they are both product and a tender type which can be redeemed for your products and/or services. Make sure your gift cards are stored in a secure area to avoid fraud and theft.
- Tailored Distribution: Rather than replenish your stores with a standard level of inventory, use prior years’ sales performance to determine a level more appropriate to individual locations. This allows you to be more accurate in card production orders to avoid overproduction.
- Order Limits: If you have an understanding of individual store sales trends, placing limits on gift card replenishment orders from individual stores prevents hoarding and alleviates the potential for overproduction.
- Arrive Early: Take advantage of shipping rates and arrange for a planned distribution to arrive before Thanksgiving to prepare your locations for the holiday rush ahead of schedule.
- Card Captain: Assign a specific person or position at each location to handle all gift card communication, ordering, questions, and needs. This reduces miscommunication, prevents card hoarding, and streamlines card operations.
Optimum Card Solutions offers a user-friendly, cost-effective, secure, web-based distribution and fulfillment solution that is proven to improve card operations, inventory, and lower distribution costs. Our solution gives you data capture on all aspects of your distribution and greater visibility into your card program.
After implementing our distribution system and suggested process changes, a nationwide restaurant chain client stopped over a million dollars in fraud on their bonus card program, which was perpetuated by their own employees. Additionally, by modifying their gift card ordering process, it alleviate the cost and frustration of over-producing cards.
Gift card distribution is one of many areas of expertise for Optimum Card Solutions. Contact us today to learn more about the numerous solutions we have to improve your card program and positively affect your bottom line.