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Swiping
Benefits Local Economy
On
Tuesday, May 27, AP News writer Elizabeth Dunbar wrote
an article featuring the Country Loft Gift Shop in New
Ulm, MN. The eye catching component was the methodology
of shared efforts between economic development,
technology and the overall outcome of rural health. In
New Ulm, local sales are up despite the economy and so
are donations to local charities.
So here’s the short of it….
a ‘Rewards’ card is applied to a group of businesses,
perhaps within a municipality or throughout a given
region. Using the card within the network provides
consumer incentive by returning a percentage of sales to
the cardholder for future purchases and a simultaneous
donation to a local charity of the individual’s
choosing… which may include your own local hospital
foundation. In the wake of rising fuel costs, the use of
such a tool encourages smart financial gain for local
consumers with the emotional benefit of demonstrated
community support.
Like many rural residents,
John Pugh of St. Maries, ID has felt the pinch of a $120
fuel bill for every materials run to Coeur d’Alene for
his small construction business. “The argument of paying
higher prices locally is nearly a moot point when you
consider an individual’s transportation costs” reports
Pugh. If more people are buying locally there will be a
need for expanded local services, including supplying
coalition businesses with consolidated shipping runs -
which could represent new jobs. “Opportunity exists for
new services and economic growth within communities who
choose to keep their business as local as possible.”
Pugh said.
Described as an ‘economic
shot-in-the-arm’ for Rural America, the idea of loyalty
programs has recently gained momentum and presented
itself as a silver lining to rising fuel prices and the
practice of travelling for goods and services. Based on
existing technology common amongst large national
retailers, local participants are seeing increased sales
and a resurgence of local interest with coalition
loyalty programs. Dunbar’s article illustrates that the
card has proven itself in other applications such as
Target’s REDcard program which allows for similar
donations and rebates. “It has been proven that loyalty
cards can work” said Michael Bouchey, CEO of Alliance
Card, Inc. which hosts the ‘SmartTown Alliance’ program.
Alliance’s cards are neither
credit nor debit cards and can be issued to anyone over
the age of 10. While companies like Alliance have
established the technology and take a small percentage
for associated sales, the decision making process is
kept local with participating businesses able to
establish their own rates of return and incentive
programs appropriate for the community or region being
served. Rates are easily adjustable for promotional or
seasonal applications.
Applied to our interest in
Rural Health and Rural Healthcare, the program addresses
and reinforces the need to invest locally and to work
together to maintain healthy, vibrant communities. At
both the National and State levels, similar
conversations are occurring regarding the bond between
rural EDC and healthcare-related organizations.
Embracing local Chambers and
economic development entities helps to expand the
definition of rural health. Increasing professional
diversity within the WRHA is a priority of the
membership committee and we welcome your thoughts as we
work together to redefine and expand the meaning of
rural health and the investment we make in ourselves.
Since its launch, the SmartTown program has spread to
surrounding communities including Red Wing and Winona,
MN. Maybe your town will be next.
If you are interested in
learning more about the program:
www.smarttownalliance.com.
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