A FIRST DATA CUSTOMER SUCCESS STORY:
IMPROVED CASH FLOW MANAGEMENT AND
ONGOING CUSTOMER SATISFACTION DRIVE
SUCCESS FOR THE LARGEST U.S. MIDAS FRANCHISEE
Client
Max Auto Supply
Challenge
Implement a fully-integrated gift
card program that provides ongoing
customer satisfaction
Solution
First Data Gift Card
Program for Merchants
Results
Immediate access to interest-free
cash flow and increased customer
satisfaction
First Data introduces auto repair
franchisee to the power of gift cards.
Max Auto Supply, the largest Midas International franchisee
in the United States, had a difficult-to-manage gift certificate
program in place. The company was convinced they needed
to explore alternatives, focusing on a fully integrated gift card
system from First Data.
Complementing its existing First Data credit/debit and check
processing services, Max Auto Supply appreciated the ease
of implementation and integration with their current point-ofsale system and other benefits, including improved cash flow
management and powerful reporting tools. Moreover, the
company’s relationship with First Data pays added dividends
in the form of ongoing customer satisfaction.
A First Data customer success story: Katz Midas Franchises
The Challenge
With over 100 stores in six states, Max Auto Supply is the largest Midas International
franchisee in the United States. Operating as Katz Midas Franchises, the network
was looking for an alternative to its gift certificate program, which had become difficult
to manage.
“Pre-printed gift certificates made it impossible to track usage and processing. Not only
The gift card
program is a fully
integrated system
that complemented
our existing First
Data service.
- Ted Behnken
Chief Financial Officer
Max Auto Supply
that, counterfeiting had become a problem,” says Ted Behnken, chief financial officer for
Max Auto Supply. “Clearly, we had to find a better way.”
The Solution
First Data had a better way - in the form of a gift card program. “We weren’t really
too sure what kind of demand there would be for a Midas gift card,” explains Behnken.
“But First Data made it easy, and when customers started asking for it, we were
pleasantly surprised.”
And because the company had an existing relationship with First Data for its credit/debit
and check processing, the gift card program seamlessly integrated with their existing
terminals, creating a worry-free implementation. “When we looked at the program, it was
a fully integrated system that complemented our existing First Data payment processing,”
recalls Behnken. “It’s the same terminal, the same software, the same online reporting.
And it was relatively inexpensive.”
“What’s more,” Behnken adds, “it’s easy to preload, track and reconcile any activated card.
We’re able to confirm that we’ve truly banked the cash, which helps our comfort level. “
The Results
Typically, customers who use a gift card spend more at the counter, but Katz Midas
has also seen additional benefits from their gift card program. “The gift card program
provides immediate positive cash flow,” says Behnken. “Although it’s not a sale in terms
of income – technically it’s a liability against future work – we have access to that cash,
interest free.”
“In addition, there’s a huge benefit to a gift card program from a customer service
standpoint,” added Behnken, “We’re able to resolve customer service issues by offering a
gift card and it encourages them to come back to see us again.”
Because of the company’s success with the gift card program, Max Auto Supply received
calls from fellow Midas International franchisees asking “How’d you do that?” and they
were able to share insight with fellow franchisees. “This thought process and the resulting
advancement of gift cards is the direct result of our relationship with First Data.” Behnken
explained.
“Another product of our relationship with First Data is the development of a process
focused on providing ongoing benefits to our customers, as well as their friends and
families. We are looking at a number of options, so it’s been a good thing.”
firstdata.com
© 2011 First Data Corporation. All rights reserved.
Page 2
71