We had a chance to gain some insight from Render before we head out to Las Vegas next week. Here is what we discussed:
What are the most pressing issues/trends in your subject area that prepaid professionals should consider and/or watch closely in the coming year?
Need for Flexibility: The regulatory reforms over the last year drove numerous changes to card programs, which I expect to continue in 2012. As the government and card issuers interpret the new regulations, we may see new changes to terms and conditions, as well as disclosure rules. Program managers will have to evaluate if their card programs are flexible enough to handle those changes without destroying existing inventory and purchasing new, and whether they have the flexibility to easily change that language on carriers or the terms on the back of cards without incurring large transition costs.
More Targeted Marketing. Prepaid is the booming market within the financial services industry, and its attractive growth attracts more players to the market. Card program managers are thinking about how to differentiate their programs. Key questions they should be asking themselves include, do they have the ability to target niche markets affordably; and can they create custom cards and co-branded cards in smaller runs?
Getting to Market Quicker. The best part of prepaid is how fast it moves. In many cases, the decision cycles on programs are driven by marketing ideas that bubble up from corporations looking to boost sales or incentivize employees. Once a decision has been made, they want to move quickly. The key is whether or not they are aligned with a partner that can help launch the program fast, or are they stuck in a 6-8 week cycle, in danger of their customers losing patience and interest?
What are the 3 most commonly asked questions/concerns you hear from clients?
1. How can I launch programs that require new card designs faster than the traditional model?
2. I know digital on-demand is a faster proposition, but is it more expensive?
3. How can I remove the risk from my next program launch? I can’t afford to run out of cards, yet I don’t want to print too many and have to pay for destruction fees due to an overly optimistic forecast.
What is/are the most common mistake(s) and oversight(s) people make in the prepaid space related to your area of specialization?
People often don’t evaluate the entire cost of fulfilling a new program, although there are a handful of important aspects to consider. Program managers should conduct a thorough TCO of printing cards, inventory carrying costs, secure shipping from the printer to the personalization house, destruction costs and spoilage. Almost all our clients started off with a concern on cost. They approached us because they were excited by the opportunity to reduce inventory risk, speed up launches and target niche markets. Once they completed a thorough analysis of their existing secure shipping costs, spoilage costs (one client reported up to 60% spoilage) and short run penalties, they found that the TCO of an on-demand program was at par or better than their current program. In addition, they gained all the auxiliary benefits inherent to an on-demand model. Now when talking to our clients, they indicate they will never go back.
When customers hear that we produce on-demand cards, they immediately think: photo cards. Photo cards are just a small piece of the on-demand solution. The idea of eliminating the vault of cards you maintain today, quickly launching co-branded programs, having the flexibility to make changes in days not weeks, eliminating risk and at the same time expanding your marketing muscle --- these are the benefits on-demand has provided our clients.
About Render:
Render Dahiya began his career at Dallas-based FedEx Kinko's where he last served as the company's Senior Vice President of US Operations overseeing 16,000 team members at 1200 locations. Dahiya joined Kinko's in the company's early years and is listed as one of its founding partners. He helped grow Kinko's into a national brand that was eventually acquired by FedEx. After 19 years at FedEx Kinko's, Dahiya left the company to become part of the management team at Culligan International where he served as EVP of North American Dealers. There he helped lead a turnaround of the over 70-year-old brand, improving both sales and operating results.
Dahiya joined Arroweye in November 2007, and became CEO in May 2008. Once earning his stripes in the closed loop sphere—with a client roster that includes Macy's, Borders and eBay, to name a few—Dahiya helped lead Arroweye into the open loop industry in 2009, by obtaining Visa Vendor approval. This certification marked Arroweye as the first company to manufacture and print the Visa logo on-demand while simultaneously personalizing a payment card.
Test Drive a Personalization, Customization and Digital On-Demand Fulfillment Expert
You can schedule a meeting with Render Dahiya at Prepaid Expo here, if you need help implementing a custom card program, launching an online card ordering solution or fulfilling small quantities of custom or co-branded cards.
To register, visit www.prepaidexpousa.com
Call: 1 888-670-8200
Email: register@iirusa.com
* Please mention your priority code when registering to save $100 off the standard and onsite rate: XU2548BLOG.
|
Share this article with your social network, just click below to share now!
|
|
|
No comments:
Post a Comment