Promoting stored value accounts is an important added benefit to market to your customers. Features like online account funding, balance reminders, and transaction history; it provides customers with a convenient, speedy way to purchase the snacks they want from a MicroMarket. All they need is their finger! The benefit to the end user is widely talked about. However, what do Operators gain from encouraging their customers to use stored value accounts?
- Enhanced customer experience.
- Targeted communications to customer.
- Reduction of credit card fees.
We’ve already explored how stored value accounts can enhance the customers’ experience, so let’s focus on communication. Stored value accounts provide Operators with an additional avenue to communicate special promotions, events and incentives beyond traditional flyers and digital signage. At 365, our MicroMarket committee regularly sends out promotional emails via My Market Account. Premier Vending Services, a Canteen Franchise Group based in Salt Lake City, Utah, is no stranger to running incentive programs through My Market Account to their 20,000 users.
“We have several locations that use the market accounts as their exclusive incentive program. [It’s a] win/win,” said David Dimick, Chief Operations Officer at Premier Vending Services, “For example, funding an employee’s account when their goals are reached or safety protocols are followed. [It] is a very big bonus for our customers.”
There is another added benefit for Operators – savings! Roughly half of all MicroMarket purchases are made using a credit or debit card; the other half is purchased using stored value accounts. That means that half of all transactions are costing Operators on a per-swipe basis. A quick look at the numbers tells the story.
• Average credit card purchases (not including funding): $2.72
• Average credit card funding at kiosk: $10.45
By driving account adoption as the primary payment method, Operators can “pay one fee that covers four of their [customers] lunch breaks rather than paying a fee at each break separately,” said 365 Retail Market Business Analyst Erin Calkins in the What You Don’t Know About Account Funding Could Be Costing You Thousands of Dollars in Fees white paper.
She goes on to say,
“By encouraging customers to create and fund stored value accounts, you can raise your average credit card transaction amount, and lower your blended credit card rate.”
So the big money question is: How do Operators drive account adoption?
“We use My Market Account to pre-sign up employees prior to a market opening. This is the only way we do it,” said Dimick.
“The first way to grab your customers’ attention and patronage is easy; send them a message! Using your Admin Portal, send out a communication to let them know about new products, sales, and promotions. An engaged consumer spends more and visits more frequently…now your engaged customer, is not only a repeat customer, but also a customer that you pay one credit card fee for every 6-7 transactions, rather than every transaction.”
Ready to try it out? Watch this video on the 5 Common Missteps to Avoid with Stored Value Accounts.