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Municipal Management
Tehachapi sees overwhelming success with a small business loyalty program By NICHOLETTE CARLSON | The Municipal
As a way to stimulate the local economy, promote community engagement and support small businesses, the city of Tehachapi, Calif., created a small business loyalty program in March. Utilizing ideas from a previous Main Street card program as well as a similar program in another California city, the city of Tehachapi wished to combine incentives for shopping at local businesses while also providing a boost to local restaurants.
Ammie Fisher, who owns Alligator Rose, supported Go2Girlz Antique Boutique with a $100 purchase and selected a Prime Bar and Grill gift card. (Photo provided by the city of Tehachapi, Calif.)
66 THE MUNICIPAL | JULY 2021
In this small business loyalty program, all city residents received an incentive to shop local. When residents brought in receipts totaling $100 or more from local stores, they could choose a $20 gift card from a local restaurant. These receipts could come from any combination of independently owned small businesses within city limits. The only items that did not qualify toward redemption were alcohol, tobacco, grocery items or gasoline. Restaurant gift cards were placed in a book, and those redeeming receipts were able to choose from whatever was currently available. Each person was limited to one gift card per week. Receipts were stamped and returned to the participant. With this plan in mind, Corey Costelloe, economic development coordinator and assistant to the city manager, approached the city council for permission to use $1,000 to $2,000 of economic development money for the loyalty program. The amount was approved. However, Costelloe admitted, “We burned through that in a week and a half.” Not wanting to end the monthlong loyalty program after less than two weeks, Costelloe was thrilled when residents and businesses began donating money and gift cards to the loyalty program in order to continue to support one another. Though gift cards still ran out early, the program was able to run through the majority of March. The primary means of promotion were word of mouth and social media. The loyalty program was mentioned on the city’s free podcast TehachaPod. Promotional videos were created and shared. Signs and flyers were also made with the loyalty program’s own logo design. Costelloe stated it was important in that first stage to “make it look as professional as possible.”
