SVM (company)

Infobox_Company
company_name = SVM
company_
company_type = Private
foundation = 1997
location = Des Plaines, IL
key_people = Marshall Reavis (Founder and Managing Director)
num_employees = 33
revenue = Undisclosed
industry = Promotions and Incentives
products = Gift cards
homepage = [http://www.svmcards.com/ www.svmcards.com]

SVM LP began as Stored Value Marketing in 1997. SVM is based in the Des Plaines, Illinois and is a provider of gasoline, restaurant, and other retail gift cards (also known as stored value cards). SVM sells gift cards both to businesses and to consumers, and provides other related services to its clients. SVM is a privately held company and is considered a pioneer in the marketing of stored value products (gift cards). [ [http://www.info-now.com/article71#maj Debit Cards: Their Value in an Incentive Program] "Info Now".] [ [http://findarticles.com/p/articles/mi_hb4898/is_200311/ai_n18009932 SVM Becomes Exclusive Shell Gift Card Distributor] "BNET Business News", November 2003]

Corporate history

SVM was founded in 1997 by Marshall Reavis, a former employee at Mobil Oil Corporation. While at Mobil Oil, Reavis was instrumental with the introduction of one of the earliest-known prepaid “gasoline gift cards,” then called the Mobil GO Card. When SVM first opened, the company only provided gasoline gift cards and had two employees.

In 1998, the company expanded its product offerings with the first non-gasoline gift card product. In the same year, the company expanded it service by adding production, inventory management and fulfillment services. Also that year, Paul Eno joined SVM and created all internet-based card ordering and fulfillment systems. In 1999, SVM hosted its first client internet landing page.

In 2001, SVM began issuing gift cards in an outsourced environment. In 2004 SVM deploys a web-based card reloading system on behalf of a major oil company that enables consumers to reload gasoline gift cards instantly online. In 2005, SVM establishes a relationship with American Express Incentive Services and becomes a reseller of the American Express-branded Fill It Up Card (prepaid gasoline card). By 2008, SVM hosts 21 client internet landing pages and SVM customizes a multi-use gift card.

Products and Services

SVM’s gift card products include a full range of major gasoline brands. SVM’s product line also includes gift cards for fast food and casual dining restaurants, retail, travel, and specialty retailers.

SVM’s role in the issuance of gift cards is in two main ways:

In some cases, SVM is the third-party issuer. In this situation SVM contracts with the processor who holds a database of all card numbers, and SVM holds the funds until cards are redeemed. SVM then settles with the retail companies.

In other cases, SVM does the same functions as in the first example except that SVM does not hold the funds. Gift cards are resold through an agreement with the retail company. Cards in this scenario may be sold either in a retail store environment, or may be sold directly business to business. [ [http://www.npnweb.com/uploads/featurearticles/2006/Technology/0605_tu.asp The Gift of Gallons] "NPN", May, 2006.]

SVM’s additional services include card program production, fulfillment of cards (to both retail outlets and customers who purchase the cards), and inventory management services. SVM also provides customer service and Internet hosting services.

SVM has a “sister company,” SFS (SVM Fulfillment Services), that provides fulfillment of gift cards to actual retail locations. This company was established in 2005.

The Growth of Gift Cards and Card Usage

The use and popularity of gift cards has grown in recent years, especially during the holiday season. [ [http://retailindustry.about.com/b/a/124970.htm Gift Cards Move to the Top of Shopping Lists] "About.com", November 9, 2004.]

Nationally, holiday gift card sales in the U.S. were expected to reach an all-time high of $35 Billion in the 2007 holiday season, a 25% increase as compared to 2006’s actual holiday spending figure of $27.8 Billion. Gift card sales during the 2005 holiday season reached $18.48 Billion. [ [http://www.itsasurvey.com/artman2/publish/consumers/Study_Reveals_Gift_Card_Sales_Could_Skyrocket_to_35_Billion_This_Holiday_Season_printer.shtml Study Reveals Gift Card Sales Could Skyrocket to $35 Billion This Holiday Season] "Archstone Consulting Survey", September 2007.]

Consumers often buy gift cards for personal gifts. [ [http://www.usatoday.com/money/industries/retail/2006-12-29-gift-card-usat_x.htm Gift Cards Change Way Retailers Do Business] "USA Today", December 29, 2006.] Companies use gift cards as rewards to employees as a way to motivate, reward and thank their workers either as a one-time program or on an on-going basis. [ [http://www.managesmarter.com/msg/content_display/incentive/e3ib5ce1539248626d69e4fd7df96fcb5b3 Gas Card Boom] "Manage Smarter", June 7, 2007.] [ [http://albuquerque.bizjournals.com/albuquerque/stories/2007/06/04/daily12.html?jst=s_cn_hl St. Vincent Treats Gas Pain] "New Mexico Business Weekly", June 5, 2007.] Companies also use gift card to attract and retain customers and motivate them to purchase their products and services. [ [http://www.washingtonpost.com/wp-dyn/content/article/2005/10/07/AR2005100701817_pf.html Gasoline Giveaway Fuel Is the Fashionable Freebie for Luring Consumers] "Washington Post", October 8, 2005.] [ [http://www.nacsonline.com/NACS/News/Daily_News_Archives/June2007/nd0611073.htm Gasoline Gift Card Sales Pump Up] "NASC", June 11, 2007.] [ [http://www.managesmarter.com/msg/content_display/incentive/e3i60f5b2f4b4752ad5ed13e728f0a4a0e4 Gas Gift Cards Get Summer Travelers Moving] "Manage Smarter", September 12, 2007.]

References

External links

* [http://www.svmcards.com/ SVM official website]
* [http://www.americanexpress.com/ American Express official website]