What Makes Our Program So Successful?
The old principals of Advertising & Marketing no longer work. Our program combines the most beneficial elements of a Loyalty Program, at the same time accomplishing everything a business needs, to be successful in the areas of Advertising & Marketing. The “New Method” is the opposite of what was typical in the past: Too many businesses viewed people as a means to their profit end, rather than as partners in creating shared value. The old way of thinking from the “me generation” has been replaced by the “we generation”. For those that desire true success and positive growth, businesses, sales partners, employees, and customers must all benefit from supporting each other by building permanent relationships that are based on principals that put the well being of each partner on equal ground with each other. In other words, if all parties engaged in this relationship are not winning, then no individual participant is winning either. We have proven over the course of the past four and a half years that by being generous to the consumers that commit to “Shopping Local”, the more we all give in this effort, the more everyone receives. Our program is not an expense to our Members. It’s an investment with a measurable return that recycles disposable income to everyone carrying one of our cards. At the same time paying Group Profit Share to Members when their own customers shop at other participating businesses. Our Advertising Budget provides us the means to reduce that cost from the businesses that we serve. As our Members increase in revenue volume, new jobs are created within the communities that we serve, allowing us to contribute to a stronger community, boosting the economy at the Grass Roots Level.
Over the past few decades, the Big Box Stores have waged a relentless war against small businesses. From the leader of the pack – Wal-Mart – down the growing list of discount houses in all categories, small business owners have had to close their doors because none can compete with their low prices. But the Big Players can only go so low. With our program we have proven that we can out perform them by rewarding consumers and returning 88% of our revenue right back into the hands of the “partners” that form our growing Team. There is no limit to the level that we can give back to our cardholders. The greater our volume grows, the less we will keep. The complete opposite of “old corporate thinking”. We are creating a paradigm in the thinking of consumers and businesses alike. When we change the way we look at things, the things we look at change!
Although it is true that some businesses may be strong enough to “stand alone” and still survive, one of the primary reasons to become part of this “Team” is that each Member contributes to everyone else’s success, and the greater the participation from “the Whole” allows us to increase the portion that we spend on Advertising in behalf of all of our Members, which will automatically reduce the dollars they spend on advertising and marketing. Consider this: If each marketing radius has just 150 businesses, of all types, and each business has a customer base of 200 customers which carry that Members Card, and each cardholder spends just $300 per month at any combination of the participating businesses that represents $9,000,000 in Retail Sales during one month. That’s over "One Billion" per year in taxable sales that stays in each community, participating on that conservative level.
How do we know that this principal works?
Let’s look at our history. Since we introduced our software/infrastructure 2008 in Kitsap, Mason, and Clallam Counties, this is what we accomplished:
From 2008 through October 2013, with 25 to 35 participating businesses, in a variety of categories, and an active cardholder audience of approximately 400 consumers, we processed a over $4,010,688.00 in Retail Sales. That's an average of $133,689.00 per business. Total amount of "credits" that we awarded to consumers to "spend" at participating businesse: $125,916.00.
If we can accomplish this much, on such a limited level of activity, we can only imagine what we can expect as our program grows and expands in to multiple areas, both inside WA State, and beyond.
Since January 1, 2013 through October of 2013 consumers have spent over $1,047,073.00 in retail sales with an average of 30 active businesses and 374 active card holders participating per month. This reflects an increase of $112,215.00 from same period last year, and was accomplished through “Passive Growth” proving the sustainability of our program.
Affiliate Programs for Chambers, Marketing Associations, etc…..
The “Shop Local” Movement is springing up in communities all across the map, in towns and cities of all sizes. Consumers are beginning to realize that dollars spent at the Big Box Stores and Discount Houses are taking away the quality of living in numerous ways. For every dollar spent at a locally owned business, between 60 to 75 cents of that dollar benefits the community. When a dollar is spent at a big box store, only 6 cents stays at home. Shopping Local is a very good thing. However, in today’s economy, it makes it easier to shop local when there is a measurable return for doing so. That is why the Frequent Buyer Rewards Program can support consumers as well as help support the Shop Local Chapters that choose to adopt our program. For every business within any organization that adopts our program, the organization receives 2% back on all transactions processed. As an example, if a Chamber has 75 Members that join the Frequent Buyer Program, and each Member has a customer base of 100, and each cardholder spends $350 per month, the Chamber receives $2100 per month out of our revenue. This “passive” residual income creates a stable flow of revenue, which increases exponentially, as our volume increases. It’s also a great way to lend support, Chamber to Chamber, as adjacent communities become involved.