Shop local and small business campaigns are trending right now but unlike the popularity of the Khardashians, they’re a trend we want to see stick around. (Sorry, Kim.)
In order for local shopping and spending to increase, you have to have a strong marketing campaign that lasts longer than a Hollywood minute. One way to give your shop local efforts staying power is through local currency.
What is Local Currency?
Local currency is often issued by your local chamber or business association and it works the way a gift card or check would, but it’s redeemable at participating local businesses. It cannot be spent outside or your participating merchants so when local currency is purchased, you’re guaranteed the money will go back into your community.
Sometimes chambers and merchant associations work with local banks to create local checks. Doing so can be an administrative headache for the person in charge of the program because the checks have to be recorded manually much the way a personal check is.
Some local currency programs are online allowing people to purchase them anytime and anywhere they have an internet connection. This means more sales and less administrative toil. The local currency can also be emailed to recipients for ease of delivery on those last-minute gifts.
Merchants love local currency because it allows them to offer gift certificates without handling the responsibility directly and gives their business more marketing opportunities. Larger businesses love local currency because it helps them support local business and the community and provides them with another option when it comes to employee recognitions and end-of-the-year gift giving. Employees love receiving local currency because unlike gift cards that can only be used at one store or business, local currency gives you the option to use it at any one of the participating merchants.
Want to know more about local currency from a merchant’s perspective? Check out this video.
