© Can Stock Photo Inc. / PixelsAwayGift certificates are major business for stores and there’s no reason why your chamber can’t offer the same conveniences with your shop local campaign. But before you sign with a community currency program, there are a few things you should know:
Who Holds the Money?
One of the most important questions you can ask a potential vendor is who holds the proceeds from the sale of the gift cards?. If the vendor says they do and they cut you a check to pay out your local businesses, beware. If you pay the businesses, your chamber should hold the money in your community. You’ll have peace of mind and access to the cash should something happen with the gift certificate company or your relationships.
What Data Can I Track?
A robust community currency program will give your chamber, and member merchants, insight into what people are buying and how they’re spending. If the gift certificate vendor is only offering purchasing software without a way to track, you can’t tell merchants what people are buying so you can’t leverage that information to sell memberships or bolster your gift certificate program. You’ve cheated yourself out of persuasive sales information.
Is the Local Currency Branded or Earmarked for Your Community?
Some companies sell Visa cards that are branded to your chamber community or business but when it comes down to it, although it may say “Community Dollars” they can be used anywhere. If the point of your program is to ensure local spending, make certain the program you select makes it impossible for the money to be spent outside of your community. That way you’ll know all dollars bought will be spent here as well.
Is Additional Revenue Possible?
Besides buying gift certificates are there possibilities for additional non-dues revenue for the chamber? Is there ad space or upgraded listing potential, for instance? Can a merchant choose to be featured for additional cost?
Don’t make a decision about a lucrative program like community currency without having all of the details. These questions will help you make an informed comparison between the options out there.
