The Elevator Pitch

1
(No Transcript)
2
The Elevator Pitch

• Austin Community Change is changing the way
  people shop, and the way merchants do business,
  by providing a simple-to-use identification card
  that rewards customers and benefits the community
  when cardholders shop at participating local
  businesses.

3
The Elevator Pitch

• As a merchant, Austin Community Change provides
  you with an exciting new way to use Sophisticated
  Customer Loyalty, Cause Marketing,
  and Co-operative Promotion to
  impact your bottom line.

4
Who are our Partners?

• Interra Project
• Non-profit based in Seattle
• Directed and co-founded by Jon Ramer
• Been developing this model for 5 years
• Branded partner for national expansion
• Nietech
• Creating and managing the card transaction
  infrastructure
• Previously released a pilot program called
  Community Smart

5
The Economics of Change

• What is in it for the Merchant?
• Bigger Customers
• By providing incentives at sales thresholds,
  merchants drive ticket lift
• Better Customers
• By providing consistent incentives, merchants
  drive frequency
• More Customers
• By participating in a city-wide marketing effort,
  merchants reach new customers

6
The Economics of Change

• Review the Merchant Dashboard

7
The Economics of Change

• What is in it for the Cardholder?
• The Head
• When cardholders shop at participating
  businesses, they generate cash rebates
• The Heart
• Cardholders also generate donations to
  non-profits of their choosing, creating a cause
  related incentive

8
The Economics of Change

• What is in it for the Districts Non-Profits?
• With each purchase there are two beneficiaries
• The local Austin Main Street District
• The non-profit of the consumers choice
• Beneficiaries have a strong incentive to promote
  card use, and therefore local shopping!

9
The Economics of Change

• By creating incentives for the Merchants, the
  Consumers, and the Community Non-Profits there is
  a structural foundation for growth

10
The Economics of Change

• What can a Merchant adjust?
• Rebate
• Rebate up to a maximum amount
• Rebate Threshold
• Specials on select days
• Fixed rebate amount
• Rebate plans must yield 26 cents.

11
Operations Logistics

• How a transaction works
• Consumer shows the Community Card at Purchase
• Salesperson types the total value into the credit
  card terminal
• Salesperson swipes the Community Card through the
  terminal

12
Operations Logistics

• Terminal communicates the value of the purchase
  through the Mastercard Exchange
• Terminal creates a Decline message on the
  terminal
• Customer proceeds to pay in any form desired
  (Cash, Check or Credit Card)

13
Operations Logistics

• How the money flows
• Example rebate plan 5 off purchases over 30
• Consumer purchases a 35 item
• 5 is collected from the Merchant
• A 26 cents transaction fee is deducted
• 60 is credited to the consumer
• 10 is credited to the BMS district
• 10 is credited to a non-profit
• 20 is used to support the program

1.75
14
Operations Logistics

• How the money flows
• Cardholders receive a rebate check in the mail
  or have their rebate direct deposited
• Non-profits receive a direct deposit from Interra
• BMS districts receive periodic (quarterly)
  distributions from the BMS Foundation

15

• The End