Author Archives: Angus Jones

About Angus Jones

Angus started his first small business in 1989 and has since gone on to have a successful career in marketing. He realised although there were many websites for small business none was addressing the question of how to. Angus has a passion to articulate benefits that add value to customers/readers.

$150K prizes for Australian innovation

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The Australian Innovation Competition has launched to uncover great Australian innovations hiding in plain sight. The competition is open to entrants of all ages from around Australia, seeking the country’s most creative ideas and solutions to solve real-world problems.

The competition will be judged by a panel of Aussie innovation experts who will award prizes based on market fit, customer support, and potential impact. A total prize pool of $150,000 will be shared between five winners who showcase the best examples of Australian innovation.

“Through this competition, we are looking to celebrate Australian ingenuity and particularly those innovations that are hidden from view right across our economy,” said Kylah Morrison, General Manager – Skills and Innovation for Industry Growth Centre METS Ignited.

“There are so many fantastic ideas being generated in our schools, universities, research organisations and private companies around the country. My aim is to find them, celebrate them, and give them an opportunity to shape the future of Australia,” Morrison continued.

No matter how big or small, every idea – from any industry or part of Australia – will be in the running to win.

“If you have a great innovation that delivers tangible value to society, this is your opportunity to showcase your creation on a national stage, maximise your reach and expand your potential impact for the benefit of all. Your innovation might contribute to the energy transition to help combat climate change, it might support food production in extreme weather conditions such as drought, or it might leverage emerging technologies such as robotics and artificial intelligence in new ways. The sky is really the limit,” concluded Morrison.

Entries to the Australian Innovation Competition are now open. Submit your entry at https://innovationcompetition.com.au/

ABOUT THE AUSTRALIAN INNOVATION COMPETITION

The Australian Innovation Competition is a one-off celebration of Australian ingenuity that will be open from 29 June to 31 August 2023. The competition is promoted by Industry Growth Centre METS Ignited. Entry is free and open to entrants of all ages, from anywhere in Australia. All entries will be judged individually on their merits, and five winners will be selected by an independent judging panel of Australian Innovation experts, to receive a share in $150,000.

Worsening employment outlook

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The latest data from the Employment Hero SME Index, which uses an accumulative dataset of over 140,000 small and medium-sized businesses (SMEs) and 1.4 million employees, indicates employment outlook for Australian workers will likely worsen once the new National Minimum Wage increases take effect from July 1, 2023. 

The Index’s newest analysis reveals that median hours worked in April (calculated a month in arrears) declined by -6.4 per cent month-on-month. This drop was seen across all states and territories, business sizes, industries (except for Manufacturing, Transport, and Logistics), and all age groups minus those under 18. 

Additionally, in the Construction and Trade services; Healthcare and Community Services, and; Retail, Hospitality, and Tourism industries, median hours worked fell year-on-year, as was seen across all age groups. Given median hourly wages increased by 7.1 per cent year-on-year, this likely means that while most Australian employees work fewer hours than a year ago, their median hourly rates have increased. 

Accordingly, the SME Index for May, which indicates private sector wages have outpaced inflation, is at odds with the Fair Work Commission’s wage rise decision, signaling a warning that impending wage increases may exacerbate negative employment trends in the second half of 2023. 

As the Index infers that employees’ take-home pay has decreased given the reduction in hours worked, this aligns with the drop seen in discretionary spending across the Index’s Retail, Hospitality, and Tourism sectors and the ABS’ underemployment statistics, corroborating Australia is in a consumer recession. In May 2023, the median hourly wage for Australian SME employees was $35.87.

Indeed, the Retail, Hospitality, and Tourism sectors fell across average employment growth (-0.1 per cent), median hourly wages (-1.3 per cent), and median hours worked (-4.7 per cent) month-on-month. The median hours worked by employees in these sectors also declined compared to a year ago (-1.2 per cent), signaling this decrease is more than just a seasonal slump. 

The Healthcare and Community Services sector also appears to be experiencing signs of distress. While the average employment growth for SMEs in these industries is still growing, median hourly wages (-1.3 per cent) and hours worked (-6.2 per cent) have declined month-on-month and, in the latter case, year-on-year (-2.2 per cent). Demand for these services has likely decreased due to the cost of living crisis.

Ben Thompson, Co-founder and CEO of Employment Hero, said: “Employment Hero supports wage rises and the prosperity of both employees and employers. We know that thriving, robust economies create great opportunities for businesses and employees alike. 

“Businesses are facing economic headwinds and the pressures of inflation; further wage rises that ultimately cause a wage-price spiral or unemployment benefit no one, especially not employees.

“Our data shows wages are already outpacing inflation, and we are deeply concerned the FWC’s wage rise decision will exacerbate the current decline in employment growth reported in the SME Index. For example, some employers will have no choice but to reduce their employee numbers or drop hours. We are conscious of short-term gains that may produce long-term pain for Australian workers, especially as consumer spending appears to wane.”

Mr. Thompson continued: “We are fully supportive of better outcomes for employees and employers. Employees earning more is a great thing and we know the positive impact this has on society. However, the challenge Australian workers will likely face coming into the second half of the year is securing ample hours of work, which relies heavily on the stability and growth of our SME sector.”

Small Business Loan and Equity Funding

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To start a small business or expand a business to get through a rough patch, chances are you will need to get access to additional cash. The obvious choice is a small business loan, but other options may exist. Money can be sourced from debt (you must pay it back) or equity (someone takes a share in your business). This guide will examine what loans (debt) and equity funding options are available to provide additional cash or financing to start or expand your business.

Debt is when you take a loan or a mortgage with the intent of it being paid back over time. Normally some collateral is used to secure that debt, such as an asset that will be required to be sold if you default on that debt.
Equity funding is when a share of your business is essentially sold to another permanently and is not required to be repaid. Future profits or losses will be shared with any equity partners.

WHY do you need a small business loan?

You may need a loan to start or expand your business and capitalise on a growth opportunity. Although harder to get, funds may be acquired when times are tough, or you owe money.

WHAT are the available Debt options:

Self-funding: If you have personal finance,e you can put more money into the business yourself. You are entitled to get that money back without personal tax implications unless you pay yourself interest. Other forms of finance, like investors and lenders, will expect you to have some self-funding before they offer you money.

A loan: We all understand the basic principle. Normally a bank lends us some money, and in return, we pay it back in instalments plus some interest. A bank wants the confidence it will get its money back, so it will look at your business closely to understand your turnover and assets. A bank may require personal collateral, like your home, to secure the loan. Banks are, however, not the only source of lending. Family and friends are a source but tread carefully. If things go sour, you could ruin friendships and possibly others’ livelihoods. Other organisations like finance companies will also offer loans but be aware, the easier it is to get the loan, the higher the interest charges will be to compensate for the greater risk they are taking.

Line of credit:  This is similar to a loan but gives you access to a predetermined amount of credit. You can draw down on that credit and pit ay back whenever you need it. You will pay interest only on the outstanding balance.

Overdraft: This line of credit attached to your bank account allows your balance to go below zero.

Invoice finance allows for a business to borrow money against the amounts due from outstanding customer invoices. The funding company will provide a percentage of the invoice value to you upfront and when the customer pays you will receive the remainder less the funding company fees.

Leasing: Instead of buying equipment you essentially rent/borrow in return for monthly payments. A lease normally has a fixed set term of 3-5 years. The financier purchases it on your behalf and you then lease it back from them for an agreed (and fixed) monthly payment. When the lease is up, you can either re-finance the residual amount and continue a new lease on that vehicle for another set period or pay a final instalment for the ‘residual value’ of the lease and take ownership of the car. You can trade it in and upgrade to a new vehicle. A lease makes it simple to upgrade equipment like a car at the end of the lease. More details can be found in our leasing guide.

Asset financing refers to the use of a company’s balance sheet assets, including short-term investments, inventory, and accounts receivable, to borrow money or get a loan. The business borrowing the funds is providing some of its assets to secure the loan. Default on the loan and your assets will be taken away.

Store Credit:  Many retailers, for example, Harvey Norman, will offer their own financing package potentially with an interest-free period. Generally the interest rates are high and failure to pay on time comes with large penalties.

Trade Credit:  As an example, you buy your supplies from a company and they give you a 14-day invoice due for payment in 14 days. Thus giving you 14 days to pay for what you have already received.

Factor Companies: A factoring company will buy your outstanding invoices from you for a reduced cost and then chase up the debt themselves. It is a fast way to get cash but at a high cost compared to other methods.

HOW do I get a small business loan?

How do I get a small business loan?

Sources of debt will include banks, building societies, and credit unions.

Finance companies also provide debt but must be registered, check the Australian Securities & Investments Commission (ASIC) register https://connectonline.asic.gov.au/RegistrySearch/faces/landing/ProfessionalRegisters.jspx?_adf.ctrl-state=1cuetuxolm_4

As part of the process of getting a loan your credit history, assets and income will be reviewed.

To understand and compare loan costs and  options from different institutions visit https://www.finder.com.au/business-loans

WHY do I need equity?

Equity is a great source of cash if you cannot either get a loan or a large enough loan. It is also a method of spreading risk but assumes the equity provider believes they will get their money back plus some.

WHAT are the sources of Equity funding?

As a source of additional cash in return for a slice of the business, equity funding can be done in the following ways:

Self Funding: as before, you inject additional personal money taking a larger share (assumes you are not a sole trader)

Family or friends will take a share or partnership in your business in return for their money. Remember to consider the implications.

Private investors: Same as above but not a family or friend. A new partner can often bring new valuable skills into a business.

Private equity/Venture capitalists:  These are firms who search for high-growth potential businesses to invest in. They usually come with loads of experience and inject their management into the business. They often insist on a controlling percentage of the business.

Stockmarket: A small business is unlikely to list on the stock exchange, but this complex procedure allows individuals to publicly buy and sell shares in the business. Shares are issued in return for a one-time-only cash payment.

Crowdfunding:  This is a very modern way of raising money for a business. Essentially you ask many people to either invest or donate monetoin your business idea via the Internet. In return you give nothing if they donated, or if they invested, a product or a cheaper product when you are up and running, equity or money back with interest. See ASIC for more details https://asic.gov.au/regulatory-resources/financial-services/crowd-sourced-funding/

Government:  The government does not provide finance and is not likely to buy equity in your business however they do provide grants which may assist you greatly. The types of grants and assistance normally come in the following areas innovation, research & development, exporting, and business expansion. Some information on grants can be found at https://www.business.gov.au/Grants-and-Programs

HINT

More information on funding options can be found at the Australian Small Business and Family Enterprise Ombudsman https://www.asbfeo.gov.au/resources/business-funding-guide

SUMMARY – Get small business loan or equity advice

We strongly recommend that you speak with your accountant or business advisor before committing to loans and equity funding options. Always shop around for the best deal and always think carefully before doing business with family or friends.

Dukes Gym increased billable hours by $100K

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This Dukes Gym case study demonstrates how automation can free up small businesses so they can focus on the more important things like customer experience (and increasing profitable hours!).

With Aussies tightening their purse strings in response to high inflation and interest rate hikes, gym memberships are on the chopping block. Household spending intentions for health and fitness have already declined 13.7% in the month of April. To limit the impact on business, gyms need to do all they can to keep customer service front and centre. 

Duke’s Gym, like all gyms, is reliant on staying competitive thanks to a positive customer journey and steady cash flow. No one likes chasing payments, and with previous payment providers, Founder Jonathan Quieros experienced unseen drawbacks to using common payment platform providers:

– Awkward manual payment-chasing processes

– Time-consuming admin

– Tacked-on transaction costs and dishonour charges

– Terrible customer service

To remedy this, Jonathan partnered with a payments partner that offered full integration with the business’ member management platform, Gym Master, eradicating a common admin pain point in one go.

“GoCardless and Gym Master have saved us roughly 20 hours a week, filing, scanning, entering data, going back and rechecking stuff,” says Jonathan.

“Those extra billable hours work out to an additional $100,000 dollars a year in revenue.”

“Previously, customers that had transactions fail were hit with dishonour fees of up to $20 … we also didn’t have visibility into this and that made the whole experience terrible for customers.” says Jonathan.

Small businesses thrive on customer loyalty. With economic headwinds driving consumers to make tough budget decisions, Gyms need to focus on proving their value to members – frustrating payment processes will send even loyal fitness junkies packing.

Duke’s Gym makes a really interesting case study to explain how removing common pain points in financial processing helps SMEs improve cashflow and better serve their customer base.

EcoTank high-capacity ink tank inkjet printers

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Epson’s sales of its award-winning EcoTank high-capacity ink tank inkjet printers recently topped 80 million units worldwide. The printers have become one of the company’s biggest selling products with the ET-4850 EcoTank all-rounder one of its top five selling products in Australia and New Zealand. There are now three EcoTank ranges – EcoTank for everyday home and business printing, EcoTank Photo which uses 6 colour inks for superb photo quality and EcoTank Pro that includes professional grade, robust, durable machines with pigment inks.


The Epson EcoTank ET-4850 all-in-one printer, powered by PrecisionCore® Heat-Free Technology, like all EcoTanks, offers cartridge-free printing with easy-to-fill, supersized ink tanks. Each replacement ink bottle set includes enough ink to print up to 6,000 pages – equivalent to about 145 individual cartridges, which means far less waste. It also boasts exclusive uniquely keyed EcoTank bottles which make it easy to fill each colour tank, a high-capacity 250-sheet paper tray, 2.4″ colour touchscreen, 30-sheet ADF, fast auto 2-sided printing and convenient wired and wireless networking.

EcoTank also has a number of global brand ambassadors including Olympic 100 metre world record holder, Usain Bolt, basketball legend Shaquile O’Neil and in A/NZ comedy icon Jimeoin, who is the face of Epson’s, “No cartridges. No Joke.” campaign. The campaign is seen and heard across multiple A/NZ media channels including free-to-air and catch-up television, radio, social media and in-store and promotes the fact that EcoTank users enjoy superb quality, hassle-free printing at a low cost, making the printers the perfect solution for busy homes and home offices.

Epson Australia MD, Craig Heckenberg, said, “EcoTank users never need change an ink cartridge again. With big ink tanks, cheap refills and thousands of pages worth of ink included, you won’t have to worry about running out of ink at the worst possible times either.” 

All 80 million EcoTank printers sold use Epson’s patented PrecisionCore Heat-Free Technology, which use less energy and reduces running costs compared to laser printers and is far kinder to the environment too.

For more on the Epson EcoTank range go to: https://www.epson.com.au/v2/ecotank/

3 things before end of financial year

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With tax time just around the corner, the Australian Taxation Office (ATO) is reminding small businesses about three things to be aware of ahead of the end of financial year:

  1. the new small business boost is now available
  2. temporary full expensing ends 30 June 2023
  3. deduction rate changes: running a business from home and car expense rates have changed.

ATO Assistant Commissioner Emma Tobias said ‘with only a few days left till the end financial year, now is the time to talk to your tax professional if you think these things may be relevant for your business.’

1. Small business boosts now available

The boosts are available for small businesses investing in digital operations, or skills and training – for example, new equipment like technology, cloud-computing, e-invoicing or cyber security.

‘Small businesses will receive a bonus 20% tax deduction for eligible expenses in their tax return, so for every $100 spent, you’ll get a $120 tax deduction – but there are caps on the total amount that can be claimed,’ Ms Tobias said.

‘If you’re a small business who invested in technology or digital operations between 29 March 2022 and 30 June 2023, then this boost is for you.

‘It’s important to remember, any item you purchase must be first used or installed ready for use by 30 June 2023 in order to be eligible,’ Ms Tobias said.

Likewise, the Small business skills and training boost allows businesses to claim an additional 20% tax deduction to train new and existing employees between 29 March 2022 and 30 June 2024.

The training must be through a registered external training provider in Australia.

2. Temporary full expensing (TFE) ending 30 June 2023

TFE ends end of financial year 30 June 2023

Small businesses can still claim an immediate deduction for the cost of eligible assets first used or installed ready for use by 30 June 2023 in this year’s tax returns.

However, the end of TFE on 30 June 2023 means that the cost of assets that are not already being used or installed ready to use by 30 June 2023 are not eligible for an immediate deduction under TFE in small business tax returns this year.

TFE supports small businesses making capital purchases by allowing an immediate deduction for assets, rather than claiming the depreciation over a number of years.

‘Even if you’ve paid a deposit or received an invoice, the asset must be installed ready to use by 30 June 2023. If the asset is not installed ready for use by the deadline, you may still be able to claim deductions under the general or simplified depreciation rules,’ Ms Tobias said

3. Deduction rate changes

Both the running a business from home deductions and car expense deductions have changed for this tax time.

The key change a small business claiming car expenses needs to know is:

  • The new cents per kilometer rate is 78 cents for 2022-23, but remember to keep written evidence to show how you worked out the work-related kilometers. This is method is available to sole traders and partnerships.
  • The car limit has increased to $64,741 for the 2022-23 income year.

The working from home deduction methods have also changed for this year. Small businesses can choose one of two methods to claim working from home deductions: either the actual cost or fixed rate method. Only the fixed rate method is changing. However, your business structure can affect the method you can use and the expenses you can claim, especially if your business is a company or trust.

Ms Tobias said ‘if you are claiming car or working from home deductions, make sure to keep good records. This will give you more flexibility to choose the approach that gives you the best deduction at tax time.’

The ATO recommends small businesses seek advice from a registered tax professional or read about the changes on the ATO website before making investment decisions.

More information on completing your tax return can be found here.

A payment gateway is crucial for success

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An online store’s primary purpose is to transact. For it to succeed, the website must provide a simple, easy and safe consumer journey via a payment gateway. Implementing the right payment solutions can ensure the final step, the purchase, is hassle-free, which can avoid last-minute hesitancy and even increase a customer’s basket size, thereby increasing the business’s sales. With digital wallets increasingly overtaking credit cards for online payments (Global Payments Report FIS), it is more important than ever for businesses to adopt an assortment of payment methods for consumers.

While the ability to process payments on a website may seem straightforward, elements like security, compliance, transaction fees and platform regulations can be quite complex. Getting something wrong could result in significant costs due to increased development time, additional processing fees, or even legal penalties. Not only this, but the time spent troubleshooting and fixing technical issues limits business workflow and may cause website downtime, thus impacting the website’s user experience and potentially losing custom.

It is therefore, imperative that organisations invest in reliable payment gateways to bolster security, efficiency and consumer trust.

Retailers can easily utilise innovative and secure payment gateway on their websites by investing in a reliable web-hosting platform. With the website being managed by a hosting platform or partner agency, the time previously spent on monitoring, mitigating and fixing complex tech and security vulnerabilities can be better spent optimising business profits through marketing and further innovating a product or service.

Working with a website management platform like WP Engine can reduce the burden on businesses by offering easy access to best-of-breed eCommerce capabilities, including Stripe Connect, optimised  WooCommerce hosting, and headless blueprints for connecting with Shopify and BigCommerce. By offering the right payment solutions to customers, businesses can ensure seamless online transactions, enabling them to increase basket size, consumer conversions, and, with a better user experience, repeat customers.

Content from Ricky Blacker, Senior Sales Engineer and WordPress Evangelist, WP Engine

3 Essential Tips During EOFY Season

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The end of the financial year (EOFY) is a crucial time for Australian small businesses. It provides an opportunity to review financial performance, make necessary adjustments, and plan for the future. As this season approaches, small business owners should consider taking advantage of technology tax deductions and optimising their financial processes. To help Australian small businesses make the most of the EOFY season, here are three essential tips.

Embrace Technology and Maximise Tax Deductions

Technology plays a vital role in enhancing business operations and financial management. Embracing technologies like AI may feel intimidating, but with the right technology partner, small businesses can take a considered and tailored approach to technology adoption.

  • Upgrade Business Equipment: Take advantage of the instant asset write-off scheme to deduct the cost of eligible assets. Invest in technology such as computers, software, or machinery to streamline operations, enhance productivity, improve customer experience, and reduce costs. For example, a construction company could potentially save up to AUD 34,100 per year if just one of its workers used technology to conduct two site visits virtually per day, instead of travelling one-hour to do it in person, Nearmap estimates.
  • Embrace Cloud-Based Accounting: Transition to cloud-based accounting software like QuickBooks. It simplifies record-keeping, streamlines invoicing and expense management, and offers real-time insights into your financial health.
  • Automate Processes: Automation not only boosts efficiency but also provides accurate data for financial analysis, resource management and decision-making. Explore options like receipt scanning apps, payroll software, and expense management tools to simplify your financial workflow — or use automated customer, project, and environmental insights to identify cost-saving and business-building opportunities and remove the risk of costly human error.

Review and Reconcile Financial Records

Reviewing and reconciling financial records is essential for accuracy and compliance. Consider the following steps:

  1. Conduct a Financial Audit: Review income and expenses, ensuring proper categorisation and recording. Identify any discrepancies or missing information.
  2. Reconcile Bank Statements: Compare bank statements with accounting records to ensure accuracy. Identify outstanding payments, uncategorised expenses, or errors.
  3. Update Inventory: Conduct a comprehensive stocktake to assess inventory value accurately. Identify slow-moving items, potential write-offs, and ensure accurate financial statements.

Seek Professional Guidance

Navigating the complexities of EOFY can be overwhelming for small business owners. Seeking professional guidance from an accountant, bookkeeper, or technology provider can provide valuable insights and ensure compliance with tax regulations.

  1. Engage with an Accountant: Collaborate with a qualified accountant specialising in small business taxation. Maximise deductions, identify cost-saving opportunities and ensure accurate reporting.
  2. Schedule a Business Review Meeting: Discuss financial performance, tax planning, and strategies for the coming year. Gain a deeper understanding of your business’s financial health and identify areas for improvement.
  3. Stay Informed: Keep up to date with regulatory changes and new initiatives that impact tax regulations and incentives.
  4. Find the right technology partner for you: Technology adoption is not just for big corporations. The right provider will offer solutions designed specifically to meet the needs of small businesses — your perfect technology partner is out there!

The end of the financial year is an ideal time for Australian small businesses to optimise their financial processes. By embracing technologies, leveraging government incentives, reviewing financial records, and seeking professional guidance, businesses can maximise their benefits and set themselves up for success in the new financial year.

Please note: the advice provided is general in nature, and it is recommended that small businesses seek professional advice based on their individual circumstances.

Written by Gafar Fadl, General Manager SMB, Nearmap, and Tish Bhagwandeen, Intuit QuickBooks Trainer Writer Network, Chartered Accountant

Gift cards – why you should offer them!

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A gift card is a convenient way for a customer to provide a gift to a friend, family member or business associate. They are most commonly used for gifts when you don’t know what to buy someone. Interestingly a survey done in 2017 by finder.com.au found that one in seven gift cards purchased in Australia went unused. This guide will look at why you should offer them, what are the rules you must abide by and how you go about offering them.

A gift card, gift certificate or gift voucher is a prepaid stored-value money card or certificate, usually issued by a retail store or bank, to be used as an alternative to cash for purchases within a store or related businesses.

WHY should I offer gift cards?

Gift cards offer several advantages for small businesses; the cost to provide them is minimal compared to their potential return. Consumers generally feel a gift card is an opportunity to spoil themselves.

Small Business Advantages include:
  • Give customers an incentive to spend money at your business and create repeat purchases.
  • Revenue is generated in advance sales as no goods or services are redeemed yet.
  • Having customers carry a gift card around with your logo builds your brand.
  • In most cases, customers will spend more than the gift card amount.
  • Gift cards provide you with a promotional opportunity. Spend $100 and get a $10 gift card.
  • Customers may never actually spend the value of the card, whether it be the last few dollars on a card or the whole amount.

WHAT are the Rules around gift cards or vouchers?

As of November 2019, the rules changed around gift cards. The rules now state that a gift card must have a minimum expiry date of 3 years from the date the card is sold. That expiry date must be listed on the card and no post-purchase fees can be added. A post-purchase fee would include activation, account keeping or balance enquiry fees. Penalties for non-compliance are $6,000 for an individual and $30,000 for a business.

When you sell a gift card/voucher, the customer has an asset of your business until the voucher is used. Thus, from an accounting perspective, when you record the sale of a gift voucher, it needs to be recorded as a liability posted to an Unclaimed Gift Certificate account. When the customer redeems the voucher, all you need to do is create an invoice and pay for it using the funds from the Unclaimed Gift Voucher account. This way, you can easily track the value of outstanding gift vouchers or write off any that remain unredeemed after the expiry date.

From a GST perspective, a gift card has a monetary value but does not need to be included in your GST activity statement until it is redeemed for products or services. The exception to this is when a gift card is not for money but rather a tangible product or service, then GST must be paid and reported on the voucher sale. For example, 10 hours of technical services.

 If the voucher expires before it’s redeemed, you’ll need to report the unredeemed amount as income and 1/11th (being the GST component) is reported and paid to the ATO.

HOW do I offer gift cards?

The three most common forms of gift vouchers/cards are:
  1. A credit card-sized plastic card electronically loaded with a specific money amount. Note that some cards can have additional funds added or topped up later.
  2. A gift certificate is some form of a paper promise from a business allowing you to redeem the specified amount back from the store.
  3. eGift cards or vouchers. This is normally a set of codes and sometimes a barcode that you can receive via email. These codes/barcodes can then be applied at the checkout for credit.
As a small business, you should consider the following:
  • Which type of cards you will offer as above?
  • How do you tell customers they are available? Signs, internet, etc
  • Will you restrict to set values or variables? Such as $50, $100 and $200?
  • Will the expiry be 3 years or more?
  • Can it be redeemed in your online store if you have one?
  • If you have multiple stores using the same brand, is the gift voucher transferable?
  • Integrating your POS and Accounting systems allows you to process and track these vouchers simply. (most have this functionality)
  • Are there any special terms? Such as not allowing gift cards to be used to buy gift cards or transferable for cash.

Some plastic card solutions make it simple to activate and redeem cards by simply swiping the card through your EFTPOS reader. Other solutions will require some other type of solution, like keying in a number. Be wary of a manual system that can be lost or stolen.

You can brand your gift cards by having a custom gift card printed by various companies for less than $1 each. However, note some POS software solutions require you to use their gift cards which may cost more.

HINTS

If you sell gift cards, make sure to showcase them in a highly visible place that customers must walk by. For example, placing gift cards next to the sales desk will lead to more impulse buys from customers.

SUMMARY – gift card solutions

Offering gift cards allow customers a convenient way to provide gifts to others. A small business benefits from having the money upfront and encouraging repeat visits to the store. Tracking and accounting is key to managing them with POS and accounting package companies offering solutions.

6 ways brands can win customer loyalty

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Customer loyalty can be a brand’s most affordable and effective ambassadors by creating word-of-mouth referrals and purchasing time and again. With retail sales falling – a 0.6 per cent drop in the March quarter after a 0.3 per cent in the December quarter – loyalty is waning, and a top priority for brands next financial year will be finding ways to reclaim and retain customers. A major survey offers the answers: transparency, being community-minded, thanking them, and offering a high-quality at good value are some of the things customers say brands can do to win their loyalty. 

The insights were derived from a survey of an independent panel of 2500 Australians, analysed by Customology, Australia’s leading specialist in customer lifecycle management. Collated in a new report, ‘The Unspoken Customer’, Customology offers insights into the attitudes about brands among consumers who don’t normally review online, provide feedback or participate in brand surveys. Customology’s ‘The Unspoken Customer’ report can be found here.

Customology founder and CEO Mark James says: “Customer loyalty is intrinsically linked to a brand’s success, and loyalty can be scuppered if customers are not rewarded appropriately. Rewards, however, must be genuine and add tangible value. A coffee wholesaler, for instance, will need to offer customers incentivised value to ensure they shop with them for their next order. They key is to recognise and appreciate the customer’s loyalty and reward the behaviour you want to influence.

Conversely, it is extremely difficult to win back once-loyal customers after you have lost them.”

Six things brands can do to win customer loyalty.

  1. Don’t rely on marketing emails. Too many brands use the spray-and-pray approach, relying on marketing emails to create loyal customers, rather than creating genuine value. Customology’s study found that 46 per cent of customers hardly read these emails and almost two-thirds (61 per cent) said they rarely influence their purchase decisions. Brands could use a mix of communication channels, such as SMS, direct mail, push notifications, social media and advertising. And while customers provide plenty of information about themselves to help brands create personalised messages, most brands continue to spam their customers with the same messages at the same time. 
  2. Thank customers. A simple thank you goes a long way for customers who have chosen to spend their hard-earned cash with you. One in 5 customers (19 per cent) reported not receiving any form of communication after their first visit, despite sharing their contact details. A follow-up email or a push notification with a personalised note on what their purchase means to the business is a good place to start. 
  1. Give back to the community. Customer expectations of brands have grown. They want a holistic view of the brands they’re purchasing from, and this knowledge makes a direct impact on where they spend their money. Customology’s data shows 82 per cent of customers think it’s important for brands to give back to the community, and 50 per cent believe it would directly influence their brand loyalty. It’s worthwhile for brands to promote their corporate social responsibility – whether that’s supporting a local community project, reducing their environmental footprint, or donating a portion of profits to charity. 
  2. Be honest and transparent. Honesty is the best policy, and brands need to walk the talk to earn their customers’ trust. The reality is, however, that 48 per cent of consumers don’t believe brands are honest in their communications, and 50 per cent don’t believe online reviews are genuine. When what brands say about themselves don’t match what customers hear from elsewhere, the brand is perceived as out of touch or, at worst, deceptive. Brands could focus on developing a more human relationship with their customers: own up when things don’t go right and be clear on how they will fix them. 
  3. Loyalty programs must provide strong value. It might come as a surprise that a whopping 68 per cent of customers are loyal to brands that don’t have a loyalty scheme. However, 82 per cent of customers believe they should still be rewarded for their loyalty. Brands could assess whether existing loyalty or reward programs are still relevant and providing value. Customers should be recognised and rewarded based on their unique position in the lifecycle, their specific purchase behaviour and preferences.
  4. Quality, value and customer experience are key. There is less reason to provide a loyalty program if you maintain these three values. More than half (55 per cent) of customers would be tempted to go to a competitor if the quality of a brand’s products or services declined, 50 per cent would leave if they found better prices elsewhere, and 42 per cent would leave a brand if they had a poor experience. Ultimately, customers will remain loyal to a brand if they consistently receive quality products and services, at a competitive value rate.

Customology’s ‘The Unspoken Customer’ report can be found here: https://www.customology.com.au/the-unspoken-customer-download/