********The following article appeared in a sponsored supplement to Strategy.*******

Small, but mighty! It’s the only way to describe the marketing impact of a seemingly quiet little promotional item known as the prepaid long distance card. A relative newcomer to North America, prepaid cards have exploded into a $400 million industry. Revenues of $1 billion are projected by 1997.

Pre-paid cards have been in circulation in Europe since 1976 and in the United States since 1985. Like their counterparts in these countries, Canadian consumers see prepaid long distance cards as a quality offering, providing real value and convenience.

‘Prepaid long distance cards are a huge untapped resource that help companies grow their business and promote themselves,’ says Bruce Ray, national product manager for HELLO!( phone pass, the prepaid card offered by the Stentor alliance of Canada’s major telephone companies.*

A valuable premium

The applications for prepaid cards are endless: as part of a promotion or campaign, as high-quality membership cards, or as a fund-raising tool for organizations that purchase them at a discount and then sell the cards at face value.

Conference organizers might use prepaid long distance cards as an added incentive in conference mail-out packages. Creative card designs help promote and support the conference theme. Organizations can develop cards to create awareness of a special event sponsorship, or to commemorate special events. Prepaid cards are becoming very popular as keepsakes, and, in fact, many collectors now specialize in these items worldwide. International conferences and specialized magazines have sprung up to meet this demand.

The cards offer businesses an innovative way to thank customers for their support or loyalty, to compensate for late delivery of a product, or to build company awareness since the card serves as a mini billboard in a customer’s wallet. In addition, they can be used effectively within the company for employee recognition or bonus programs.

* The Stentor alliance consists of BC TEL, NorthwesTel, AGT, SaskTel, MTS, Bell Canada, Quebec Tel, NBTel, MT&T, Island Tel, and Newfoundland Telephone.

How do prepaid cards work?

Using a prepaid long distance card is about as difficult as ordering out for pizza. The caller dials the 1-800 number on the back of the card and is then assisted by an automated voice system through a series of steps (including entering the PIN number on the card and the destination telephone number). And you don’t have to keep track of anything. The system does it for you by ‘telling’ you how much usage remains on the card.

Complete operating instructions are printed on the back of each HELLO! phone pass. The card can be used for long distance calling from most Touch-Tone( phones, including pay phones, in Canada, the United States, and around the world.

The HELLO! phone pass – a premium incentive

Prepaid long distance cards are unique in design, application and packaging. To the consumer, long distance has a high perceived value. To the marketer, prepaid cards offer an opportunity to deliver a targeted visual and verbal advertising message to a captive audience. Language and style can also be customized.

Here are some other options available to marketers using HELLO! phone pass:

– custom-design the HELLO! phone pass with the organization’s logo or imagery, or create a design to reflect a special event or sponsorship;

– choose the dollar value or minutes of calling;

– choose the specific language service that will prompt the HELLO! phone pass user with calling instructions – English, French, German, Japanese, or Cantonese – or offer all five languages;

– choose an expiry date of 2 years or less;

– flexible activation.

In addition, HELLO! phone pass allows marketers to measure the success of their programs. The HELLO! phone pass reporting system provides timely data on the success of the program, right down to the specific region or city.

HELLO! phone pass is an interactive medium, from customized sponsor greetings to the option of using tailored surveys right over the phone. Every call is a branded interaction that rewards current customers and welcomes new ones.

In addition to promotional use, the HELLO! phone pass is currently available to the general public at over 200 retail locations in Canada including Shoppers Drug Mart/Pharmaprix stores, Canada Post outlets, and selected Via Rail locations, with new locations being added daily. As a result, more and more people are coming to recognize the HELLO! phone pass as a high-value, quality brand, thus adding to the value of individual promotions.