Proposed Central Corridor Loyalty Program

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1 Proposed Central Corridor Loyalty Program 1

2 Business Problem Retail business will lose revenue in the range of 20% to 60% due to construcaon CCLRT ADer construcaon has started, idenafying current customers that have stopped using businesses on the corridor will be impossible A corridor wide strategy to keep customers on the Corridor and agract new customers does not exist 2

3 Business Need Grow revenue prior to construcaon to posiaon businesses to survive Generate enough revenue during construcaon to survive Grow revenue ader construcaon to enable the businesses to thrive 3

4 Impact on Economy Revenue of small businesses on the Corridor is between $100 M and $200M A 10% drop in revenue = $10 to 20 M loss of business for Corridor A 30% drop in revenue = $30 to 60 M loss of business for Corridor A 50% drop in revenue = $50 to 100M loss of business for Corridor 4

5 Vision Create a sustainable and self funding program to help business build revenue before construcaon, reduce the revenue loss during construcaon and grow revenues ader construcaon Develop markeang tools to enable businesses to use the data gathered to agract new customers and increase the visit frequency of their exisang customers Create a economic development tool to agract new businesses to the Corridor and increase their probability of success 5

6 SoluAon Discover Central Corridor Card Merchants Sign Up for Program, Determine Offer and Receive Kit Customer displays with custom branded Community Corridor Cards Terminal to swipe cards Customer Receives Card Customers receive cards from local merchants, non- profit/cause organizaaons or events (via all of the Discover the Corridor efforts) Customer Accesses Local Discounts Cardholders present the cards at any paracipaang Central Corridor merchant to receive an instant discount Merchant swipes the card using the program terminal Program terminal provides a receipt showing the merchant s chosen discount amount and customer receives discount 6

7 SoluAon (conanued) Discover Central Corridor Card Merchants Select Cause If the merchant or card is assigned a cause/beneficiary in connecaon with the Corridor effort, a poraon of the merchant s total program discount is reserved for the cause instead of given to the cardholder at POS Cardholders Register Online or Via Text Message ADer registering, cardholders can search discounts by store, category or locaaon register card on program website RegistraAon provides valuable demographic data for the program and for merchant markeang efforts during construcaon Program Produces Data Various forms of meaningful and acaonable data, such as customer demographics (i.e. , phone number, address, age and vocaaon), buying behavior (i.e. spend, purchase frequency, favorite shops), and cause interest are collected 7

8 Sample MarkeAng Materials Corridor Community Card Website (not logged in) Keytag Website (logged in) Poster Terminal 8

9 Time is of the Essence Gather customer informaaon before businesses are impacted to maximize the number of customers in the database Build business revenues prior to construcaon so they can put some money in the bank Get new customers accustom to going to the corridor prior to construcaon Put tangible tools in the hands of business now to channel the vast community support 9

10 Business ImplementaAon Business by business program introducaon, training and implementaaon 250 cards provided to each business for distribuaon to their customers, addiaonal cards available for a fee Business selects a cause, a poraon of the merchant s discount is reserved for the cause Each business creates a custom offer Full markeang and POP provided MarkeAng toolbox and peer to peer soluaons idenafy what is working to drive traffic, revenue and cash flow 10

11 Proposed Economics for Businesses Preferred pricing package for Corridor business $300 upfront cost Includes terminal, training, POP and access to addiaonal markeang tools $0.25 per transacaon $20 per month minimum (up to first 80 customer visits included) $75 per month maximum (300 customer visits) $900 per year for customer visits Normal pricing is $350 to 500 upfront, $39 monthly fee and 3% fee per transacaon 11

12 Community Engagement PR opportunity for organizaaons that support businesses on the corridor DonaAon to charitable organizaaons Discount to employees and/or members in a tough economic Ame MarkeAng opportuniaes to program users RecogniAon of and awards to the organizaaons that have provided the most support to business in aggregate and by cards distributed 12

13 Customer RegistraAon Campaign to register customers and card holders Access to searchable website AddiAonal offers Drawings GiD cards 13

14 Proposed Economics for OrganizaAons Cards will be sold to organizaaons for $0.30 to $0.90 per card, depending on card volume Cards can be sold by the organizaaon to cover the cost or as a fundraiser AddiAonal markeang material will be available for a fee Co- MarkeAng payments of 30% of the discount offered will be made quarterly to organizaaons or their designated cause 14

15 Funding OpportuniAes Catalyst funding to help smaller businesses and organizaaons Buy down the upfront cost for small business Pay for the producaon of cards for smaller organizaaons to join outreach program PotenAal funding sources for markeang include large companies, foundaaons and government Build program awareness Increase reach of the program by distribuang cards to employees and/or members 15

16 Timeline First Terminal installed early November Website available mid November Card distribuaon agreements with businesses, universiaes, hospital and community organizaaon by end of November PR event to formally launch program with distribuaon partners and public officials in early December or January 16

17 Summary Quick implementaaon Immediate impact on business Support during construcaon from exisang customers and new customers MarkeAng and growth opportuniaes ader construcaon Funding source for organizaaons that support businesses along the Corridor 17

18 Program Creators Augeo MarkeAng, Augilar ProducAons and Bywater Business SoluAons in consultaaon with the Business Resource CollaboraAve and Corridor businesses Businesses located in St. Paul and on the Corridor in Minneapolis 18

19 CCCACC Support Request Purchase and distribute Central Corridor cards Promote the use of the cards at Corridor area businesses IdenAfy opportuniaes to expand and improve the program and its use at local businesses 19

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