CERIDIAN STORED VALUE SOLUTION

“Better to give than to receive, we are improving our psychological health and inner beauty”

DOLOR SET AMET

Why people love gift giving

Why people love gift giving“Giving a gift is a universal way to show interest, appreciation, and gratitude, as well as strengthen bonds with others”

CHAPTER 1

Psychology behind Gift Giving

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Smiling from the heart no matter give or take

Receiving the most awaited gift from somebody

“ There is an enormous sense of satisfaction when seeing the ex-pression on the face of someone you’ve given a gift to. A way to express feelings, giving reinforces

Why people prefer gift in cash

rather than in kind

“According to the theory of consumer choice the con-sumer (i.e., the receiver of the gift) knows more about what will maximize their utility than the gift giver does. Accordingly, if we really care about allowing the receiver of the gift’s ability to maximize their utility, we s h o u l d o n l y give gift card as cash

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Economic theory on gift giving- “People prefer to receive gift card to buy what he/she really wants”

The girl cries because she receive the gift which is not she wants

People who receive the gift card will have get more happiness than receiving the hard gift because the receiver will 100% know what they really love.

This is why Gift Card Market is growing every year

How important are each of the following considerations when buying a gift card?

Extremely Important

The ability to let the gift receiver select something they want

91%

The ability for a gift receiver to select the size, color or model of choice

84%

The ability to have an alternative if I can’t decide what to get

76%

The ability to give something other than cash or check 73%

The ability to provide a special treat such as a meal or a movie

68%

The ability to give a last minute gift 63%

Empirical research on customer preference on Gift cards and Gift in kind

Over 91% of customer want to give their gift receiver to pick what they really want and wider of choices.

CHAPTER 2

Why Retailers need to sell Gift Card

“Retailers offer gift cards because they are profitable product and consumers love to buy them”

SUMMARIES

1. Steady Sales - All Year Around

2. Long Term Business Growth

3. Customer Acquisition & Cross Selling

4. Brand Recognition and Loyalty

5. Unbeatable ROI

SECTION 1

Gift Card business to Re-tailer

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Bespoke the brand image by featuring the merchant logo

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Gift Cards Not only Increase Sales But Also Steady Sales

Lessens the validity cash between months

More Steady Sales - People Prepaid for Products

Cards for “Birthday”; “Anniversaries” ; “Baby Showers” ; “Graduations” the list go on

Sales Increase not only during holiday season but year around

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Long Term Growth Engine

Unlike other retail product with the nature of short life cycle, Gift Card are a growth engine for many retailers

Sales Growth Engine - Long Term Effect

1st year : Avg 350% growth ; 2nd year : Avg 200% growth ; 5th year : CAGR 67%=> Gift Card Product Line would be 2%~7% of total sales

Immediate and long term effect of Gift Card Program

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80% of gift card recipients have received the card to a store where they never shopped, 1/3 of those will become repeat shopper

The most Cost effective tools for Customer Ac-quisition

Gift Card is powerful for up-sell and cross-sell

The most cost effective tool for cross selling and customer acquisition

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They are a walking billboard carried in wallets for everyone to see

Bespoke the brand image by featuring the merchant logo

Customer keep return visiting to your store

Continuously remind customer of your Brand

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Brand Recognition and Brand Loyalty

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Unbeatable ROI

Typically, customer purchase goods worth 80% more than value of Gift Card

Lift your sales

Revenue Stream of Gift Card

Breakage : Avg 2%~8%Interest Earning : 30 days to 60 days

Breakage and Interest Earning

Typical Cost : <1% of total salesTotal ROI : Avg > 750

Impressive ROI for Gift Card Program

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Emotional attachment on Gift Card

“Every Great Company would have different philosophy but would share the same in common - “Love”

Gift Giving is the most common way to express “Love”.

For those Retailer, not yet start their gift business, should leverage the Gift Card business to help their beloved customer to love each other and to convey this message to all the world.

About Ceridian Stored Value Solution

ACHIEVEMENT SUMMARY

1. Global Provider: 650+ clients across 45 countries

2. 550 MM+ card production ; 1.2 Billion transaction processed

3. More Top 100 retailers than anyone else

World Leading Prepaid Solution

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Ceridian SVS has been the pioneer since 1992 in providing prepaid solution service for 650+ customer worldwide in which 6 of top 10 retailers in USA

“ We are a World Leading Prepaid solution service company, serving different customers in different retail industry all over the world”

20+ experience in Prepaid Solution

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SVS clients are all over the world and in different retail industry

About Author : Kelvin Tai

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“ Seasoned IT/Business consultant on Financial and Retail industry, specializing on payment solution”