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LOYALTY, REWARDS & GIFT CARD PROGRAMS AMIBA Aug 27, 2013
LOYALTY, REWARDS & GIFT CARD PROGRAMS
AMIBA Aug 27, 2013
Agenda • Introduction • Case Studies
• Supportland • Sonoma Go Local Rewards Card • Bernal Bucks • Oakland Grown Card
• Q&A
SUPPORTLAND Katrina Scotto di Carlo
SUPPORTLAND
Tuesday, August 27, 13
Tuesday, August 27, 13
We have a mission to provide tools for building thriving, local economies.
- Over 60,000 active users in Portland Metro Region
- Mobile apps and physical (recycled plastic) card
Tuesday, August 27, 13
- Works like an airline miles program for supporting locally owned economy.
- Get points by patronize local biz > redeem for local rewards
- Can use program across local economies (ie 60,000 users in Portland can travel and use same points and rewards in other Supportland-powered communities)
- Strict privacy policy
Tuesday, August 27, 13
- White labels to a community
- Currently, we sell accounts wholesale to IBA’s at $25/month per business. The IBA can resell for up to $75/month
- Currently $5,000 Starter Kit includes one-on-one training
- We take care of all technology updatesincluding website and mobile apps. Wetake all helpdesk and billing issues.
- IBA provides locally relevant marketingevents and utilizes our gamification tools: Raffle, Hunt, and Hookup. IBA gets the word out to business members and users.
Tuesday, August 27, 13
Tuesday, August 27, 13
SONOMA Sonoma County GO LOCAL and Sustaining Technologies LLC Terry Garrett
Intro •! Card: GO LOCAL Rewards Card •! Organization: Sustaining Technologies
and Sonoma County GO LOCAL •! Goal: Reinforce local first initiative •! Type: Rewards and Loyalty •! Technology
•! Rewards/Loyalty Card and supports Credit Union debit cards to behave as rewards card
•! Your organization’s role in the program •! Developed program, software development, system design •! LLC
•! Other entities involved and their structures •! N/A
•! Location / Type of Community •! Sonoma County, Mendocino County •! 1800 sq. miles, small city, small towns •! Wine country agri-business, slightly progressive
•! Launched: 2011
User/Cardholder Perspective How it works •! One card works at many businesses. •! Some are electronically processors, others require card to be shown. •! Rewards Card merchants issue cards to their customers. Cost: No cost Earning Rewards (GO LOCAL Bucks) •! Shop with GO LOCAL merchants •! Earn and GO LOCAL Bucks every purchase •! Any amount of purchase •! % earned varies by merchant—max is 10% Redeeming rewards (loyalty tracking) •! GO LOCAL Bucks spent every purchase •! Rewards given for first visit, on specific number of visits & specific total spent •! Transferring cash/points to others: Only admin can transfer for now •! Information Collected: Name, phone, email (optional)
Business Perspective How it Works
•! Business accepts rewards card when presented: 1) electronic process or 2) show it and give a discount
•! They can issue and accept local currency GO LOCAL Bucks as rewards and use the loyalty features for number of visits and amount spent to reward. They customize based on their business needs.
What they Need •! Electronic merchants need internet, computer and card reader.
Cost •! Start up costs: none if they have the 3 things above •! Annual or monthly costs: 2% of their rewards card sales each month
•! Time required of business: •! training employees and talking to customers •! Skills required by business: use a computer •! What are the expected benefits?
Retain customers and attract new ones
Association Perspective Requirements
•! Startup Cost: $0 •! Ongoing Costs (tech, marketing): $0 •! Time, skills, and type of people required:
•! Sales and customer service person(s) for merchants •! Customer service for cardholders (card replacement mostly) •! Ongoing marketing at point of sale and social media, plus general marketing •! IT for set up and maintenance of POS •! Maintain website to display offers and help consumers find merchants •! Data reporting and interpretation •! Create newsletters •! Bookkeeping (AP/AR), complementary currency account balancing •! Strategic planning
Revenue model •! GO LOCAL earns a royalty fee on every purchase
Profit •! Royalty fee is all profit since there is no cost
Features / benefits •! No risks, all profit, good service for interested members
Business outreach/recruitment •! What businesses are you targeting?
•! Retail and restaurants •! Main business districts •! What types has it worked best with? Grocery
•! How have you recruited them? •! Members •! Year-round marketing •! In person visits - Sales Calls
Cardholder/public outreach Recruiting new cardholders
•! We give cards to members and they give to customers •! We activated 5,000 debit cards with local credit union
Do people understand the program? •! Some do
Connecting with existing cardholders •! Monthly newsletter •! Weekly user update email •! Printed directory •! Facebook, Twitter
Status / Growth Number of participating businesses
•! 45 electronic and 110 show the card
Number of current cardholders •! 15,000
Amount spent via cards to date •! $2 million
Growth over time •! 120% growth year over year in sales •! Has picked up in the last year with five merchants using our
program exclusively for rewards.
Results / Impact Data Collection and Feedback
•! Daily data from electronic transactions and local college has surveyed merchants twice in the past year.
Impacts to Date •! Businesses: helps them emphasize local first and deepen
commitment to and with customers. See other merchants they share customers with.
•! Association: no risks, income •! Cardholders: savings and meaningful connections with
businesses. •! Community: economic multiplier and greater awareness of local
businesses
Wrap up Biggest success •! Helping local grocer rebuild market share competing against
Whole Foods.
Greatest challenge •! Explaining the program to businesses and cardholders. Still
working on it.
Replicability / Plan •! We’d like to license it outside of our 5-county area, but must
find a community willing and able to do what it takes (time and money)
•! We are expanding to surrounding counties through licensing (most recently Mendocino).
BERNAL BUCKS Arno Hesse
“Bernal Bucks encourages residents to spend money in the neighborhood.” New York Times
bernalbucks.org !"
Bernal Heights now has its own debit card and it is believed to be the first of its kind in the country. KGO-ABC7News
!"
The cards can be used anywhere that debit cards are accepted, but when they’re spent at participating Bernal Heights merchants, consumers get 5% back, to use on future shopping trips or donate to a good cause. San Francisco Chronicle !"
Debit Card: easy, familiar mechanism. Works with the shopping of a busy family.
!"
Input from
Residents We like rewards. But we cannot carry around multiple punch cards.
Your loyalty card is the card you pay with.
!"
Input from
Residents I like rewards. But I won’t remember all those special deals for every business.
5% rewards.
Period.
!"
Input from
Businesses We love loyalty. … however: we cannot deal with new equipment or new fees.
Works with existing equipment and processes
!"
Input from
Businesses No Discounts! We have spare capacity, but not spare cash.
5% rewards, provided in goods and services (like frequent flyer miles)
!"
Move your money: deposits held (and lent) by a local credit union with community development charter !"
No bank account needed: Give Bernal Bucks
!"#
Bernal parents can now support the school – and other local causes – through their shopping and dining. By using the Bernal Bucks Card at participating local businesses, the non-profits can earn up to 5% of the purchase amount in Bernal Bucks rewards. Members set their choice in “Settings”, when logged in on bernalbucks.org.
Local residents can donate Bernal Bucks to a neighborhood
non-profit. !!"
bernalbucks.org
“… an innovative and cutting-edge economic development project that supports local businesses and community-based organizations …” Board of Supervisors, San Francisco !"#
OAKLAND GROWN Erin Kilmer Neel Sustainable Business Alliance
Intro Goals •! Gift - Redirect money from chain stores outside Oakland •! Rewards - Encourage ongoing local shopping •! Local currency (future) – increase b2b economic activity Type of Card •! Gift and rewards card •! Closed Loop Card (not Visa) with Cash & Rewards Our role
•! Program manager (local AMIBA alliance) Our partner
•! Custom program by small Oakland-based financial tech company •! Location
•! Oakland, CA population of 400,000 in SF Bay Area •! Very progressive, diverse, passionate, neighborhood-y
•! Launched at end of 2011
User/Cardholder Perspective How it works •! Load money on card and give as a gift card •! Buy items with the money on the card •! Earn rewards when you shop How do people get one? •! Buy online, at some participating stores, at events Cost to cardholder •! Was $5 fee, now free •! Reload at stores, online soon Earning Rewards •! Earn 5 OakShares each time you spend $5 or more Redeeming rewards
•! Each business decides on rewards •! Redeem by coming to store and choosing to redeem for that store’s offer •! OakShares automatically removed from balance
Transferring Points/OakShares - by program admin Info we collect – Name, email, phone, zip code when they register card
Business Perspective How it works
•! Existing Credit Card Terminal, New Terminal, Simple Card Swiper or Web Interface Program Elements •! Automatically calculates and adds 5 OakShares, provides custom receipt •! Real time data for business What do the businesses need? •! “Open” credit card terminal or access to web •! Hoping to work with Swipe Cost: $50 startup, $25/month (tech costs, not ours) Time required of business •! Initial training, training of new staff, program updates •! Time during sales transaction Skills & knowledge required by business
•! Appropriate commands on terminal or website, card program features and benefits Expected benefits to businesses
•! Foot traffic •! Integrated marketing / social media •! General program marketing throughout the community •! Specific marketing – web, Facebook, Twitter, monthly email •! Realtime usage data
Association Perspective Requirements
•! $6500 Initial Tech Development •! Ongoing marketing, tech, banking, admin costs •! Staff - Marketing, sales and outreach, training, events,
customer service, fulfillment - 2 positions •! $100k
Revenue model •! Trying several: Card fees, bulk fees, co-branded, sponsorships
Profit: None yet Features / benefits
•! Great tangible thing to show, talk about in support of cause •! Ability to view data •! Ability to change program elements •! Ability to create custom programs (co-branded, neighborhoods, give
back) •! All money stays local •! Local bank
Business outreach / recruitment
Targeting Businesses •! First, city-wide by variety - gift and neighborhood •! Then by neighborhood •! Staple items for rewards •! “Local Anchors” •! Ones that already have high foot traffic**
Recruiting Businesses •! Members •! Door to door •! Partners, neighborhood associations •! Community Events •! Our events •! Presentations
Cardholder/public outreach Recruiting cardholders •! Our events •! Community and partner events •! Ads – newsweekly paper & website, billboards, bus shelters •! Social media •! Partnerships & Bulk sales (city, employers) •! Windows - Decals / Posters •! POS Signage Understanding the program •! Gift card clear, rewards require explanation Outreach to existing cardholders
•! Monthly emails (added later) •! Card crawls •! Same as recruitment methods above
Status / Growth •! 25 Businesses •! 900 Cardholders •! $25k Loaded to date ($1200 loaded per month) •! $12k spent ($500+ per month 25 x $22) •! $13k on cards now •! 2-3x more spent each month this year
Results / Impact/Feedback •! Everyone enthusiastic about idea •! Requests for special programs
•! Ambassador Card •! University of California – employees, funds scholarship
•! Businesses want more volume •! Cardholders want more businesses
Wrap up Successes
•! Support from community •! Increasing sales and usage
Challenges •! Making it easy to implement for all types of businesses •! Usage - Resources to market program & recruit •! Difference between gift and rewards •! Business model •! Business skepticism •! Competitor card
Replicability / Plan •! Our technology partner has various options
Future plans •! Overcome challenges •! Mobile options •! Collaborate with currency initiatives •! Broader community engagement / social rewards (ditch discount mentality)
Q&A
OAKLAND GROWN : VARIOUS IMAGES
Register Your Card or Log In
Register Your Card
Rewards Listed Online
Card Crawl – Neighborhood Shopping Event
One card. Many local businesses.
Gift Card
Oakland Grown Card - Gift
Oakland Grown Card - Rewards
Rewards Card Earn rewards (OakShares) for shopping local!
Oakland Grown Card - Currency
!OakShares can be expanded to a local currency
Encouraging local b2b transactions
to further strengthen our economy
OakShares
OakShares OakShares
What can you
get with the
LotionsFrom
OaklandGrown.org
Skincareby Feleciai
Online Ad and Decal
Billboard
POS Signage
Partnerships in the works
