ORLANDO-Salem, Ore.-based Maps CU launched a "Buy Local" initiative and has experienced an uptick in membership and interchange revenue as a result.
The program, which business development officer Amanda Brenneman detailed for the crowd at Credit Union Journal's Grow Show, is free to participating businesses and members. Businesses do not have to be members to participate. The initiative was launched in January 2011 to coincide with a re-brand at the CU.
Brenneman said partnerships come from sources such as cold calls, member referrals and the local Chamber of Commerce, and businesses can sign up for either ongoing (year-long) offers that are exclusive to Maps members, or feature offers that run for two weeks. In those instances, the businesses offer a discounted or free item-with an average value of $3-that is redeemable with an online coupon.
For feature offers, the business gets increased foot traffic but doesn't lose out on any money because Maps reimburses the merchant for the cost of all redeemed offers. While feature offers are available to everyone, ongoing offers are exclusive to Maps members who must pay with Maps plastic, which brings interchange income to the credit union.
On Broadway
Brenneman offered the example of one local merchant, Greg's Broadway Café, which she said has seen the most successful offer in the program to date. The restaurant offered a feature deal of a cheeseburger, fries and a drink-normally $7.95-for $5. More than 500 people took advantage of the deal, and Maps paid the shop $2,200 for that two-week promotion. Since that special ran in March, said Brenneman, the CU has seen a 14% increase in members going back to that restaurant and spending money there.
"It definitely is working, and we're seeing a steady increase," she said. Some other local businesses have stopped advertising in local newspapers and are just using "Buy Local" to promote their business instead, she added.
The website saw an average of 1,000 hits last summer, and during April had nearly 1,300 visits. Debit card usage is up at every business the CU partners with, and overall spending since the program began in January 2011 has risen by 131% at local businesses. Brenneman said that Maps does not have hard numbers regarding increased memberships from the program, but said there is anecdotal evidence to indicate that.
