Seattle  

CHANNELING CONSUMER SPENDING FOR THE GOOD OF THE COMMUNITY

As the hidden social and environmental consequences of global commerce gradually become clear, consumers seeking to adopt a more sustainable lifestyle now focus on the mantra “Think globally, shop locally.” With this in mind, the Seattle-based Interra Project has created several innovative programs to provide incentives for consumers to spend their money at locally owned businesses and channel economic resources back into their communities.

Interra has established a series of community cards, which may be used at participating locally owned businesses. The customer presents the card before making a purchase, similar to a chain-specific rewards card. Every purchase over a minimum amount earns a monthly rebate, which is split between the customer and up to four local nonprofit organizations of the customer’s choice, selected from a list of participating organizations. The customer and the selected organizations each receive a monthly rebate check.

“The idea is to create a community loyalty program that’s different from a business loyalty program,” says Interra’s executive director, Jon Ramer, who co-founded the project together with Greg Steltenpohl, founder of Odwalla, Inc.; Dee Hock, founder and chairman emeritus of VISA International; and Brad deGraf. “We’re trying to overcome the gap between self interest and shared interest.”

Interra established its first community card in Boston in November 2006. The program earned an enthusiastic response and received the Mayor’s Special Appreciation Award for its role in channeling resources to local businesses, schools, and organizations. In October 2007, Interra launched a second program, the Puget Sound Community Card, in the Seattle area. A similar card, I Buy Neo, followed in Northeast Ohio in April 2008.

“This is what I call a rewarding route to sustainability,” says Ramer. “We’re creating incentives for businesses, residents, and nonprofits from shifting benefits to the common good.”

By participating in the program, local merchants demonstrate their commitment to supporting the community and attract increased business from customers who share their values. Since purchases must be above a certain level to qualify for the rebate, the program also encourages consumers to concentrate their spending at participating businesses.

“The very nature of the program encourages consumers to spend at an appropriate level that is beyond the average ticket sale,” says Ronny Bell, owner of Pioneer Organics, one of Interra’s sponsors, which offers home delivery of organic produce and natural groceries. “The customer gets into the habit of spending more money with the business.”

Ramer explains, “This is a way for us to work cooperatively to make the changes we need to make and to mobilize the wealth within the community to bring about those changes.’