2. The Elevator Pitch Boston Community Change is changing the way people shop, and the way merchants do business, by providing a simple- to-use identification card that rewards customers and benefits the community when cardholders shop at participating local businesses.

3. The Elevator Pitch As a merchant, Boston Community Change provides you with an exciting new way to use Sophisticated Customer Loyalty, “Cause Marketing,” and Co-operative Promotion to impact your bottom line.

4. Who are our Partners? Interra Project –Non-profit based in Seattle –Directed and co-founded by Jon Ramer –Been developing this model for 5 years –Branded partner for national expansion Nietech –Creating and managing the card transaction infrastructure –Previously released a pilot program called Community Smart

5. The Economics of Change What is in it for the Merchant? Bigger Customers –By providing incentives at sales thresholds, merchants drive ticket lift Better Customers –By providing consistent incentives, merchants drive frequency More Customers –By participating in a city-wide marketing effort, merchants reach new customers

6. The Economics of Change Review the Merchant Dashboard

7. The Economics of Change What is in it for the Cardholder? The Head –When cardholders shop at participating businesses, they generate cash rebates The Heart –Cardholders also generate donations to non-profits of their choosing, creating a cause related incentive

8. The Economics of Change What is in it for the Districts & Non-Profits? With each purchase there are two beneficiaries – The local Boston Main Street District – The non-profit of the consumers choice Beneficiaries have a strong incentive to promote card use, and therefore local shopping!

9. The Economics of Change By creating incentives for the Merchants, the Consumers, and the Community Non- Profits there is a structural foundation for growth

10. The Economics of Change What can a Merchant adjust? Rebate % Rebate up to a maximum amount Rebate Threshold “Specials” on select days Fixed rebate amount ** Rebate plans must yield 26 cents.

11. Operations & Logistics How a transaction works… 1.Consumer shows the Community Card at Purchase 2.Salesperson types the total value into the credit card terminal 3.Salesperson swipes the Community Card through the terminal

12. Operations & Logistics 4.Terminal communicates the value of the purchase through the Mastercard Exchange 5.Terminal creates a “Decline” message on the terminal 6.Customer proceeds to pay in any form desired (Cash, Check or Credit Card)

13. Operations & Logistics How the money flows… Example rebate plan: 5% off purchases over $30 Consumer purchases a $35 item 5% is collected from the Merchant A 26 cents transaction fee is deducted 60% is credited to the consumer 10% is credited to the BMS district 10% is credited to a non-profit 20% is used to support the program $1.75 $.26 $1.49 $.894 $.596 $.149 $.447 $.149 $.298 $.00.0

14. Operations & Logistics How the money flows… Cardholders receive a “rebate check” in the mail or have their rebate direct deposited Non-profits receive a direct deposit from Interra BMS districts receive periodic (quarterly) distributions from the BMS Foundation

15. The End