Whether you’re a retailer, restaurant, hotel chain, or consumer brand, finding ways to attach with customers while generating incremental revenue is all the time a top priority. An efficient yet often neglected strategy that checks each boxes? Offering a custom prepaid or bank card to loyal fans.
White-label branded card programs give firms the facility to get their brand literally into the hands and wallets of their customers while making a latest income stream with every eligible transaction the cardholder makes. Not to say the precious shopper data and increased brand impressions it provides.
Unlike old-school punchcard rewards programs, branded cards establish a relentless, mutually useful relationship between brands and fans – but provided that done right. Before taking the plunge, let’s break down exactly what white-label solutions entail, their varied advantages, and a strategic approach to make sure that your branded card is successful story somewhat than a flop.
The term “white label” may sound a bit cryptic, however it’s actually a fairly easy concept. White labeling allows brands to place their very own brand, logo and custom card designs on what is actually an existing prepaid or bank card infrastructure built and managed behind-the-scenes by a card issuing partner.
So somewhat than having to construct and oversee all of the complex payment network integrations, account management and card issuing operations internally, your brand simply handles promoting and positioning the cardboard to customers – the fun stuff! The partner does the heavy operational lifting to maintain every thing running easily.
This approach gives brands one of the best of each worlds: the power to benefit from the expansion opportunities and engagement branded cards offer without having to turn into payment processing experts themselves overnight. And by tailoring the rewards structure, fees, cardholder advantages and more to match a brand’s goals, white label solutions offer flexibility in comparison with one-size-fits all co-branded airline or retail cards.
So now that we all know the lightweight logistics behind white label cards, what’s actually in it for brands besides slapping their logo on plastic? Because it seems, quite loads.
Stronger Customer Loyalty and Engagement
Branded cards encourage cardholders to make your brand their top-of-wallet alternative for purchases in an effort to maximize rewards and advantages. By incentivizing consistent purchasing behavior, it establishes a cycle of value that strengthens loyalty over time.
Incremental Revenue Stream
Branded card programs generate continuous revenue through interchange fees your issuing partner shares on transactions. These small percentages add up, especially for brands with large customer bases.
Increased Brand Visibility
Imagine 1000’s of shoppers whipping out cards along with your brand front and center wherever they shop, dine or travel. It’s invaluable promoting real estate and subconsciously reinforces brand affinity.
The acquisition data provided from branded card programs gives incredible insights into your customers’ shopping habits and helps inform higher merchandising, offers and engagement. You gain visibility into where your customers are shopping, how often they’re buying and other granular spending analytics. These precious spending insights allow for highly targeted offers and marketing messages tailored to different customer cohorts.
Prepaid and credit represent the 2 primary options relating to branded card programs. Which route makes most sense is determined by your customers, business model and specific program goals. Let’s break down a cliffs notes comparison:
Branded Prepaid Cards – For brands with occasional or seasonal customers somewhat than deeply loyal fans, prepaid cards offer more flexibility. Shoppers simply load money onto the cardboard to then use towards future purchases along with your brand. This is right for encouraging future business and getting access to latest customers based on card distribution partnerships. Think: malls, airports, concert venues. Otherwise hard to succeed in pockets of potential latest brand devotees.
Private Label Credit Cards – These directly issue credit through your brand, allowing cardholders to make purchases on future credit. Risk is higher than prepaid, but your customers may have signficntly increased spending power in consequence. Rewards are key for driving ongoing activity here. Consider bonus earn rates or member-only perks and discounts.
Alright, time to make those white label visions a reality. When you’ve aligned on goals and chosen the best prepaid or bank card product mix in your brand, here’s the right way to set your program up for achievement:
- Pick The Perfect Partner – Find an issuing provider or processor suited to your enterprise needs, goal demographic, risk tolerance and program vision. Be sure you agree on things like security, transparency, service flexibility and more.
- Design an On-Brand Card – Select eye-catching colours and aesthetically on-brand card artwork. Consider special materials like metal cards for a premium program. This card real estate is invaluable for making an impression, so make the most
- Promote Your Recent Offering – Website banners, in-store signage, social media content, mailing list blasts…you name it. Use all brand communications channels to hype the brand new card and its most tasty features or perks.
- Monitor Performance – Analyze card usage data, transactions, enrollments and activations to repeatedly refine the cardholder experience. Idle cards = lost opportunity. Optimize onboarding and ongoing incentives to maintain customers engaged.
- High-quality-Tune the Value Proposition – Check in with cardholders to get feedback. Survey concerning the sign-up process, rewards structure, account management and where they’d wish to see improvements. Getting the cardboard is the first step, but you would like compelling ongoing value to vary purchase behavior.
Overall, white label branded card programs could be a powerful way for brands to deepen customer relationships while generating ongoing revenue. But it surely does take some strategic planning upfront to maximise the engagement and ROI opportunities. By choosing the best program type, partner, and card design – and promoting the launch effectively – you set yourself up for long-term success.
Most significantly, keep refining based on real-world usage to constantly evolve the worth your card provides. Done right, branded cards can absolutely take your brands’ connections with customers to the following level.