Nikon UK
Prepaid card programme extends marketing reach, drives efficiency and improves customer experience
Nikon is a world leader in digital and precision optical technology and imaging, offering a wide range of products utilising advanced technologies, from consumer optics such as digital cameras and other camera-related products, binoculars and ophthalmic lenses, to industrial precision equipment including IC and LCD steppers and scanners, microscopes and measuring instruments.
The Challenge
For years, Nikon UK had been running special customer cashback promotions on select camera equipment, issuing cheques as the method of payment. Nikon recognised the limitations posed by this paper payment process, both for the company and its valued customers. Cheques were highly inefficient, offered no branding or cross-selling opportunities and no ability to influence where funds were spent, provided no feedback on redemption behaviour, and inconvenienced customers who had to visit a bank and potentially wait several days to collect their funds.
The challenge Nikon UK faced was selecting a more effective cashback delivery method that would be efficient for the company, whilst delivering a high degree of convenience for the customer. It was concluded that paper cheque promotions were rapidly falling out of favour with consumers in the UK. As more and more young people bank online and through mobile devices, the importance of offering an easy to use, electronic cashback solution was vital. Such a delivery method would more accurately reflect the contemporary and cutting-edge image of the company and its advanced technology products.
Nikon UK needed a cashback solution that would help meet its critical marketing requirements. It was decided that a prepaid card solution would be the perfect fit for the programme.
The Solution
In 2010, Nikon UK selected Citi® Prepaid Services to provide a branded, prepaid Nikon Rewards card to replace paper cheques in its consumer cashback programme. The Citi Visa Prepaid card solution was designed to transform Nikon's paper-dependent promotions into a comprehensive, customised, best-in-class electronic cashback programme.
The Citi Prepaid card solution leverages the bank's innovative prepaid platform and market-proven implementation methodology that delivers a flexible programme designed to meet Nikon's critical marketing objectives. Once a customer, who has purchased a product that is eligible for cashback reward, has been validated by the fulfilment provider, a file is sent to Citi, whereupon a branded, pre-funded Visa card in the amount set by Nikon is issued. The data file transfer process is fully automated and requires no manual intervention on the part of Nikon or the fulfilment provider. Customers receive their personalised Nikon cashback card which can be used at more than 29 million Visa retail and online merchants globally.
As part of the implementation process, Citi worked closely with Nikon UK to incorporate the company’s marketing and branding onto the card itself, as well as the card carrier. Citi also incorporated Nikon’s branding onto a custom designed cardholder website where customers could check card balances and transaction histories.
“The Citi team managing our implementation did an outstanding job of ensuring that things went very smoothly,” explained Tim Carter, Supply Chain Manager, Nikon UK. “Initially, we gave them some basic briefs for the design and they came back very quickly, delivering almost exactly what we envisioned. Since going live, the initial cashback promotion has distributed 9,000 Visa cards to date, and has been a complete success.”
Nikon also receives detailed management reports from Citi, indicating the number of cards issued, the value of the cards, consumer spending patterns and where funds are being spent. This valuable data provides keen insights into customer demographics.
The Citi solution includes a dedicated programme support team and 24/7 multilingual customer service.
The Result
By switching to Citi's Prepaid card solution, Nikon UK customers now receive a custom Nikon-branded Visa card. Within a few months after launching the new programme, Nikon had issued 9,000 Citi prepaid branded cards and expects to issue many more over the course of the promotion. As a result, these cardholders are now able to use their Nikon Rewards Cards immediately anywhere Visa is accepted worldwide, giving them the flexibility to spend their funds as they wish. The Citi solution has dramatically improved the customer experience, making it faster and easier for card recipients to access their cashback funds. The cards offer greater convenience and eliminates the need to find a bank to cash their cheque. Citi's Prepaid card also has a free account management tool that makes it easy for cardholders to check the available remaining card balances online, on the phone, or through select ATMs.
For Nikon UK, the biggest success from the switch to a prepaid card solution has been the opportunity to successfully extend their brand marketing. Now, when customers use their cards to spend cashback funds, there is a strong brand association with Nikon. “Being the first in the industry to use a prepaid card for a cashback reward programme is a real plus for Nikon,” stated Tim. “It shows our brand is innovative and leading-edge.”
Some of the many benefits Nikon UK receives as a result of the Citi Prepaid card programme include:
- Reinforces brand marketing, drives increased customer loyalty
- Lower cost, faster delivery
- Operational efficiencies through electronification of payment processes
- Elimination of lost/stolen/uncashed cheques
- Reduced required payment resources, no technology investment needed
- Dedicated programme support team, easy online programme management
The fully customised cards and card carriers allow Nikon UK to personalise and brand the cashback reward cards to deliver a lasting impression that promotes customer loyalty. By driving customers to the Nikon-branded online account management site, the company has the opportunity to cross-sell and up-sell its products, presenting a unique opportunity to encourage the redemption of funds on additional Nikon purchases. In addition to delivering greater programme efficiency and cost savings, the Citi Prepaid solution provides Nikon UK with robust reporting that offers valuable insights into customer spend and demographics.
And the implementation process was seamless. “It’s been an absolute pleasure working with the Citi Prepaid card team,” added Tim. “They’ve been extremely professional and very detail oriented, and made sure everything was completed on schedule. The entire process has been remarkably easy from Nikon's point of view.”
Nikon UK is considering several Citi prepaid card features for future use, such as the ability to reload cards as part of a customer loyalty programme and the development of a counter sales staff reloadable incentive programme.
