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The smartcard is simply a plastic card about the same size as a credit card.

The technology accompanying such cards, however, comes into its own with the embedded microchip that companies can load with data.

Looking to the future, it is expected that smartcards will grow in popularity and be used for telephone calling, electronic cash payments, and other applications such as using them to pay for parking.

The smartcard holds more information than the more traditional magnetic stripe card and are popular with Government Departments being particularly useful for controlling access to computer networks and systems.

Smartcards can be designed to be inserted into a slot and read by a special reader and can even be disposable for use at tradeshows.

Another benefit is that they are hard wearing and can also be reusable.

There are industry standard interfaces between programming and PC hardware in a smart card, which has been defined by collaborative working with most IT providers, such as Microsoft and IBM as an example.

With the current media activity, obligations surrounding security of data and of course, protecting a business’ reputation and integrity  the introduction of such systems in a business are  becoming more of a standard that an aspirational plan.

With major high street retailers now starting to link their credit cards with loyalty schemes the battle for consumer loyalty is really hotting up.
Marks and Spencer’s for example, off

With major high street retailers now starting to link their credit cards with loyalty schemes the battle for consumer loyalty is really hotting up.

Marks and Spencer’s for example, offer credit card holders with 1 point for every £1 spent in their own stores or 1 point for every £2 spent in other places meaning that you can even pay for that holiday or wedding and earn points. When using M&S’ own travel service, there is even a further 8% discount on offer.

However, there isn’t really anything special about that offer as it appears to be similar to many other schemes offered by banks and credit card companies when setting up account.

So, to make it more attractive, M&S have introduced the “Premium Club” whereupon members of this exclusive club will receive triple reward points and a host of other perks and discounts!

The Premium Club scheme includes a minimum of 5 treats and delights per year (including a gift for your birthday and a Christmas gift), Worldwide Family Annual Multi-Trip Travel Insurance cover worth in excess of £100 for most, and free top up drinks vouchers in their cafes. The drinks vouchers on offer equate to around £120 per year.

The catch, you have to pay £10 per month to be a member of the Premium Club devaluing the reward and recognition for your loyalty.

There remains the value of triple points, but is securing two pence discount for every £1 spent really worth it?

Whilst the concept is good and accepting quality comes at a price, when people compare products and the prices being charged with other high street retail and travel insurance providers, the M&S concept may not prove to be as successful as they hope.

The offer is simply not as good as it sounds!

Shopping centres and supermarkets aspirationally look to attract middle and upper-middle class consumers who are affluent with considerable spending power as well as brand awareness.

This gives manufacturers much scope and opportunity to use this channel effectively to launch specific offers on their existing and/or niche products. It furthermore generally offers them equal opportunity to charge premium prices from such consumers.

These products could be launched exclusively in the shopping centres or major supermarkets where the presence of a larger product range will increase the attractiveness of shopping therefore offering both the consumer and the retailer a win-win situation.

Even if you are not based in one of the new style shopping centres sprouting up all over the UK or in a niche market, manufacturers are constantly developing new products or rebranding existing items, so why not have a chat with your suppliers and see if you can negotiate a special deal that you could offer your loyalty/membership card customers.

Equally, if you are just moving into the loyalty card scheme business, they may be prepared to offer some tremendous deals to help you launch your scheme.

Once negotiations are complete, use email, mailshots and local media to ensure you tell as many people as possible. You could even get some new customers and loyalty/membership card holders out of it.

Many people have sensibly put their credit cards away and stopped using them as the current economic climate continues to bite.

With an ever increasing number of businesses laying people off or putting their employees on short time working, it is little wonder. Even the more traditional affluent age groups are starting to feel the pinch, cutting back on unnecessary expenditure.

Many businesses that were already well placed in the loyalty card markets now have to work that little bit harder to maintain their once loyal customer base.

They do however have a distinct advantage over those businesses that have not moved into the loyalty card market as yet, and those people must now be kicking themselves realising that they have missed a real opportunity.

All is not lost however. Consumers are extremely fickle and only the minority will stay loyal if better offers are available elsewhere.

Many people are now searching the web and advertisements in local papers and passing details of any special offers between their families, friends and colleagues to help each other realise savings wherever possible.

Therefore, introducing a loyalty card scheme may seem a little adventurous in the current climate, but get your marketing right, and there is a real window of opportunity for any business to pull in some much needed revenue.

When looking to purchase a printer it is always useful to consider flexibility.

As technology moves forward, the potential flexibility of printers is increasing in leaps and bounds.
Some printers now offer the facility for businesses to print and rewrite the same plastic card time and time again – up to 500 times in fact.

This is perfect for loyalty cards, visitor’s badges, discounted public transport passes or clubs and association membership cards to name just a few.

Thanks to the fast erase/print cycles, cards can be customised on demand whereupon you are able to add new data quickly and efficiently.

The Evolis Tattoo Rewrite for example comes with an automatic or manual feeding mode and is suitable for issuing small runs of cards or over-the-counter operation. Moreover, its card feeder keeps your cards away from dust and permits encoding options such as magnetic stripes and contactless smart cards.

Looking at the fixed operating costs for the Evolis Tattoo Rewrite, it is pleasing to note that it comes with a 1 year warranty and allows you to rewrite without using ribbons.

A key factor will of course be the number of ID, membership or loyalty cards you expect to produce, and the number of times you think you will rewrite them, so if you are thinking of purchasing such a printer, it is worth having a chat with a specialist supplier to make sure you buy the printer best suited to your present and future needs.

The world’s most popular wireless smart card has had a bit of negative publicity, particularly in the USA in recent years, with reports and evidence that The Mifare Classic, used in many public transport systems all over the world has been the subject of intense scrutiny from security researchers.

And it doesn’t look like it is going to ease up just yet but improvements to RFID technology adopted by Mifare means that customers are still confident in the company’s systems.

Mifare-based systems are used by the Moscow Metro, the busiest metro system in the world helping to increase the performance at the terminals and checkpoints and above all, improving the travellers’ experience.

In addition, since the introduction of the system, Moscow Metro has been able to significantly reduce the level of fraud.

Using such systems in a smaller company environment to control access into and around a building can bring similar benefits to an employer.

Contactless access control in the form of ID card passes etc., offers an employer a digital audit trail of an individuals movement around the business premises restricting access to certain sensitive areas to permitted personnel only, an extremely valuable element when considering data protection and employee/customer records.

There are no certainties when businesses are looking to address the issue of maintaining customer loyalty, particularly during an economic downturn, never-the-less, companies must still be prepared to act quickly to meet changing demands.

Customer loyalty takes on a new and even more important significance during a recession as when money is in short supply, both consumers and corporate customers have an added interest in seeking out and ensuring they secure the best deals at the most competitive prices.

Be in no doubt, at the end of the day, their loyalty will be to themselves, not suppliers and suppliers that fail to appreciate this and get it wrong can expect revenue to drop off sharply.

As a rule, a company’s most active consumers generally numbers around 20% of their total customer base and these 20% will account for about 80% of its sales.

Companies operating successful Loyalty Card schemes such as Tesco have systems in place which can monitor their customers shopping habits enabling them to interrogate data, identify new spending trends and re-align their purchasing and marketing accordingly.

Now that gives them a distinct advantage over their competitors. The important factor is to learn from the data collated.

On a very basic level, the new knowledge accumulated can be used to develop targeted sales strategies which perhaps pay more attention to attracting repeat customers, and less time spent trying to sell additional products to smaller companies that don’t really have the need.

When looking to get your Loyalty Card to work for you, it is also important not to over react.

Be flexible in the sales approach, be prepared to change - quickly if necessary, and discipline yourselves to give any adjustments time to “bed in” before changing the strategy again.

Everyone worries so much nowadays about identity theft and the security implications when someone loses a purse or wallet that we have perhaps lost that element of trust and faith in people “doing the right thing” when finding possessions that could be of value.

Whilst this lack of trust etc. may be well founded for some, we should never forget that there are still plenty of people out there that do actually “do the right thing” and hand stuff they find in to lost and found departments of the buses, trains or at police stations.

Yes, it is acknowledged that many employers will have procedures and processes in place for their people to report the loss of any access control or identity card (and probably also disciplinary procedures), but never forget that an identity card displaying a company name, logo and/or an employees name will also help the finder of any lost purses/wallets return the card and the other stuff found.

That ID card may be the only thing lost that aids the authorities to trace the person that lost the purse/wallet etc.

The staff ID card also has a similar marketing bonus to that offered with loyalty card schemes if it includes a company name/logo as most employees leave their passes on display when nipping out somewhere during their lunch breaks etc.

Some consumer products/brands are lucky enough to have an exceptionally loyal customer base, but that is no sign for complacency.

With ever increasing pressures on expenditure, Loyalty and Discount Card schemes take on a new importance, particularly during this current economic downturn.

With the media continuously reporting lay offs in virtually every business category, it is equally clear that a business needs to balance payroll whilst ensuring its standards don’t slip and ideas remain innovative to maintain customer loyalty.

Loyalty is a fickle business and be under no illusions that if you don’t keep ahead of the game, your loyalty and discount card schemes will lose their value and effectiveness very quickly.

Never forget that data pulled together from your Loyalty and Discount Card schemes will enable you to learn a lot about your customers buying trends on both a regular and seasonal level.

Use that information as well to help with your marketing plans.

This is the first real, global recession to hit businesses since the birth of the modern retail loyalty card, and effective, meaningful analysis will enable companies operating such schemes a ground floor opportunity to learn valuable lessons, react more quickly to changes, and hit the ground running if it ever happens again.

A “bird in the hand is always worth two in the bush” as the saying goes!