Here are several SPICED features that provide merchants a way to target occasional shoppers:
Competitive Shopper Messages/Coupons. Merchants can avoid losing customers to the competition by recognizing occasional customers that are probably shopping elsewhere and instantly offering an incentive on the next purchase. For example, a petrol retailer can recognize an infrequent customer that has not been to the chain in over 30 days, and instantly print an offer encouraging the customer to come back the next week. It is difficult and expensive for merchants to achieve a similar result using existing data mining and direct marketing techniques, whereas with SPICED, the feature is built into the payment transaction and the offer is simply printed at the bottom of the credit or debit card receipt. There is no need for merchants to operate a separate database, or integrate with bank systems, or use any other equipment other than traditional payment terminals. Merchants simply accept payment scheme brands with the SPICED applet built-in and ask their acquirer or terminal service provider to set up the campaigns of their choice.
Smart Sampling Offers. Merchants can encourage customers to try higher margin products and services by giving a different surprise sample at each visit.
Game Programs. Merchants can avoid the cost and trouble of complicated loyalty programmes and build continuity through games based on cumulative spending or number of visits.
SPICED also supports promotions designed to help merchants reward frequent shoppers:
Frequent Shopper Coupons. Merchants can avoid giving high value promotions to all customers by delivering their most valuable coupons after a certain number of visits or cumulative spending. For example, rather than offering a “Buy 1 meal and get 1 free” promotion to all customers, McDonald’s can give the offer only to customers that have eaten there 3 times in the last month, printed at the bottom of the customer’s normal credit or debit card receipt.
VIP Service Vouchers. Merchants can avoid loss of margins when offering high value services by identifying their best customers and surprising them with VIP treatment.
SPICED is part of Welcome’s XLS payment technology, so banks already using XLS can upgrade their POS terminals to accept payment scheme brands equipped with the SPICED applet and make their acquiring services even more valuable to merchants.