Ox&Pen

Many loyalty programs (including Ox&Pen Version 1.0) award points for check-ins at shops and restaurants—check-ins that don’t necessarily translate into revenue for the merchant.

Presumably it’s great if a loyalty app shows a shop owner that 89 people checked in at their establishment last week, but what is the value of each of those check-ins? Did each person who checked in spend $5 or $50, or $0? How does the average ticket of the “check-ins” compare to the amount the average customer spends? By rewarding check-ins with points that are redeemable for rewards, the shop owner is paying for each check-in, so the resulting revenue is of critical importance.

Is it possible to reward customer behaviors that bring in revenue for the merchant? Below are three actions that business owners value. At Ox&Pen, we’re working to redefine loyalty to include each of these metrics, which when coupled with a customer check-in, prove to be  more deserving of rewards than check-ins alone.

Ticket Spend
Arguably the most obvious desire of a small business owner is for customers to make purchases. Rewarding customers for every dollar they spend is something credit card companies have been doing for years; through strategic reward initiatives, it could be the norm for small business loyalty programs.

By offering rewards for shopping and dining at certain shops and restaurants, loyalty programs can influence consumers to do more spending at small, local merchants, which is a step in the right direction to competing with larger-than-life corporate chains.

Customers sharing experiences with the merchant through social channels
Even if a customer doesn’t spend copious amounts of cash with each visit, he or she may be broadcasting the merchant’s name to hundreds or even thousands of friends and followers on Facebook and Twitter, which could end up being just as valuable for a small business as money spent.

Word of mouth marketing has long been a favorite buzzword of marketers; Nielsen reports that 92% of consumers trust recommendations from people they know, while only 37% trust search engine ads and 24% trust online banner ads (Zuberance). In terms of creating brand awareness, channeling resources to get people to talk about a brand seems to lead to a higher ROI than a big media buy.

Social loyalty programs, in particular, are in the unique position to incite a word of mouth movement. By rewarding people for sharing merchant experiences on social networks, business owners are investing in the type of exposure that has been proven to spur visits and spending from a new, expanded pool of customers.

Customers returning to spend more money
The only thing better than a customer spending money at a small business, is a customer returning again and again to spend even more money (slaps forehead). This is, of course, consumer loyalty in its truest form, and something that can be achieved with the help of a strategically employed loyalty program.

Loyalty is changing
No, running a successful small business can’t be drilled down to three generalized items. Rather, I’m inviting interested parties to take a look at the changing game of loyalty. How can loyalty programs reward customers for their actions that matter most to the merchant’s bottom line?

Since inception, Ox&Pen has sought to bring real value to local businesses by focusing on increasing the consumer behaviors that they value most, like dollars spent and social shares. After working with Chicago’s local, independently-owned merchants for a year, we have learned so much about what they need from a loyalty program. At the end of the day, they need more customers spending more money.

Continue reading “What actions are small businesses rewarding when…” »

You know it’s January in Chicago when you’re excited about 30- and 40-degree weather. Most of your attention is focused on which layers of clothing will keep you warmest in the biting cold as you hustle from your building to the bus and again from your bus to the office. The rest of the time you’re thinking about what to make for dinner that will warm you up from the inside.

Today, take a break from your anxious cooking blog scanning to find a recipe for stews and soups, and let a professional lend a hand. Frontier‘s critically acclaimed Chef Brian Jupiter has graciously shared a page from his own recipe book for Elk Shepherd’s Pie. Warm enough for a Chicago winter, foodie enough to share with friends. Once you master the recipe, post a photo on Ox&Pen’s Facebook page and let us know how it went!

Chef Brian Jupiter's Elk Shepherd's Pie

Elk Shepherd’s Pie
Serves 5-6

Ingredients:
4 large potatoes, peeled & cubed
Salt & pepper to taste
4 tablespoons butter
1/2 cup heavy cream
2 pounds elk stew meat
1/2 teaspoon fresh rosemary, chopped
1 small onion, chopped
1/2 cup celery, chopped
1 cup carrots, diced
1 cup fresh fava beans
2 cloves fresh garlic, minced
1/2 cup red wine
1 cup beef stock
1/4 cup flour
3 tablespoons olive oil
2 cups Grafton cheddar cheese

Directions:
1. Place potatoes into a large pot and cover with salted water. Bring to a boil, then reduce heat to medium-low, cover, and simmer until tender, about 20 minutes.

2. Drain and then mash with salt, pepper, 4 tablespoons butter and heavy cream. Set aside.

3. Preheat oven to 400 degrees.

4. Heat cast iron Dutch oven pot. Add olive oil.

5. Add Elk stew meat and brown on all sides.

6. Add flour, onions, garlic, rosemary and celery. Deglaze with red wine.

7. Add beef stock and bring to a boil.

8. Reduce to simmer and cook for 1 1/2hours or until meat is fork tender. Season to taste with salt and pepper.

9. In salted boiling water, blanch carrots and fava beans until tender. Do not overcook.

10. In an oven safe dish, layer carrots and favas, then elk, mashed potatoes and cover with the Grafton cheddar.

11. Bake in preheated oven until the cheese begins to turn golden brown, about 30 minutes.

12. Serve hot.

Continue reading “Exclusive Recipe from Chef Brian Jupiter…” »

Shopping at local establishments might be as trendy and hip as skinny jeans, but it’s also a practice that can make the economy boom—so much so that wallets aren’t fitting into the back pockets of those jeans. A Local First study found that for every $100 spent at a business that promotes the use of local products, services, and goods, $73 goes back into the surrounding economy as opposed to the measly $43 that comes from big-box chains.

The Local First study is not unique; several other studies reaffirm the positive economic effects of shopping and dining locally. A Civic Economics study found that 179,000 square feet of retail space in New Orleans, hosting about 100 individual businesses, generates $105 million in annual sales, with $34 million remaining in the local economy. In contrast, a nationally-known big-box chain of the same size brings in $50 million annually, with only $8 million staying in the local economy, and requires an extra 300,000 square feet of space for its parking lot.

While the exact numbers vary from study to study, the conclusions are consistent: the more we shop and dine at locally owned establishments, the more money we’re reinvesting in the local community. We can literally have a hand in supporting local farmers, artists, designers and professionals. Not bad.

We all love our neighborhoods, especially in Chicago. What’s good for them is good for us, right? So what can we do, as consumers, to help preserve the character of our communities that small business owners have helped to create?

So what else can be done to encourage local shopping and dining? Daily deals were a platform purported to help small business but they flopped, leaving behind quite a few dissatisfied small business owners and consumers. Currently, loyalty is the industry buzzword, and many startup loyalty programs are trying to fill the shoes daily deals left behind.

How is Ox&Pen filling that void?
Ox&Pen is taking loyalty a step further than other companies in the space. The Ox&Pen loyalty network is designed specifically for neighborhood shops and restaurants, rather than for national chains or big-box companies. By offering universal loyalty points to the network’s consumers, Ox&Pen is able to encourage repeat visits and full-price purchases, something daily deals weren’t able to do, but is of utmost importance to small business owners.

Jake Kaminski, owner of Westminster Hot Dog shared this anecdote: “With Ox&Pen, the point system is set up such that customers want to come back again, and pay full price while they’re at it. When we ran daily deals, we had swells of traffic, but the people coming in were only interested in steeply discounted prices, and didn’t return if there wasn’t an extreme price cut.”

Working at a startup can be hard work, but hearing those words from a small business owner is one of the main sources of drive for the staff here at Ox&Pen. We won’t succeed unless our small business partners succeed, and that pushes us each day to make this work.

Continue reading “Shopping local this holiday season – not…” »

Like any good Chicagoan, I have a healthy sense of neighborhood pride. Irrespective of whatever hip and trendy eateries and boutiques open elsewhere in the city, I still frequent the restaurants, cafés and shops around Lincoln Park and Lakeview. That section of Clark and Broadway between Fullerton and Belmont is my neighborhood, the place I call home. When merchants in the area do well, so do neighborhood residents. When another huge chain retailer goes up half a mile from my building, I get a little upset. Nothing against that particular chain; it’s just that with each big box that appears, a little bit of character disappears from the neighborhood.

Chicago is a city of small, unique businesses and I know I’m not alone in feeling lucky to live among so many great dining and shopping options.

And I wasn’t alone in my disappointment upon discovering Rahmig’s House of Fine Chocolates, on Broadway, is closing its doors at the end of September, after 70 years in business. cbslocal.com reported that current operator Fred Paillon said “times have changed, with storefront shopping at local establishments having given way to one-stop shopping at strip malls.”

Paillon noted decreased local shopping, one unfortunate side effect of an increase in national chains taking over neighborhood streets. Huge chains have economies of scale working in their favor, as well as sizeable marketing budgets and other factors working as barriers to entry for small merchants.

Small business marketing needs are increasingly a focus of attention, and over the past few years, platforms have emerged, packaged as marketing solutions for local merchants. Arguably the most notable was the daily deals model, which exposed merchants to huge, new audiences, but only when they offered up products at a steep discount. The hope was that consumers would be drawn in by incredible deals and would later return for more—and pay full price! Unfortunately, more often than not, customers didn’t return to pay full price; instead, they waited for the next daily deal and went to a different merchant to again pay half price (or less).

The surge of traffic taking advantage of daily deals was significant, but wasn’t always a good thing. Merchants were often left unprepared, understaffed and under stocked, which hurt both business owners and their customers. In some extreme cases, local shops and restaurants were forced to close their doors, due to cash flow problems stemming from a daily deal.

Long story short: daily deals once seemed like a great idea, but they proved themselves unsustainable. Chicago’s unique neighborhoods are in need of a tool focused on preserving their character. It’s not just municipal officials and federal candidates who are stressing the importance of small businesses in this country; consumers are right there with them. The success or failure of small, independent merchants directly affects the neighborhoods in which we all live and work.

That said, I’m proud to work for Ox&Pen, a company committed to driving traffic to independent merchants. Join us as we do our part to support local, unique businesses. What’s good for local merchants is good for us.

Continue reading “House of Fine Chocolates closes, Lakeview mourns…” »

If my Facebook news feed is any indicator, buying local is the new black. All anyone can talk about is locally designed and created goods and farm-to-table dining. There is a seemingly unending surge of support for small businesses. It’s the cool thing to do.

But going local is more than just a trend; it makes sense. Here are just a few arguments in favor of local living:

1.  The Numbers
Let’s crunch some numbers first. A study published on Local First Chicago found that if you spend $100 at a locally owned business, $73 stays in the local economy. Local merchants buy from local suppliers; pay local taxes that support local schools, police and fire services; pay wages to local residents; and make donation to causes within the community.

On the other hand, when you spend $100 at a non-local business, $57 leaves your community. This is because non-local companies get supplies and business services from other organizations outside the region and less of their tax dollars stay in the local economy.

There are other studies out there examining the economic effects of shopping and dining locally. While the exact numbers vary from study to study, the conclusions are consistent: the more you shop and dine at locally owned establishments, the more money you’re reinvesting in your local community. You literally have a hand in supporting local farmers, artists, designers and professionals. Not bad.

2.  Unique Items
When I want a unique item, I look first in the independent shops in my neighborhood. Local business owners often get their goods from other independent, local suppliers who create products in small batches. Corporate chains, on the other hand, must stock several locations across the country; to mitigate costs, they often fill their shelves with mass produced goods.

For example, I know when I visit that local stationery and card shop at Fullerton and Clark, I’ll be able to find original cards, designed by local artists, for every occasion under the sun. The same cannot be said of the selection of greeting cards at the Walgreen’s up the road.

3.  Going Local = Going Green = Getting Fit
Shopping and dining in your neighborhood often only requires a walk or quick bike ride. Not only are you going green, you’re also getting some exercise. Plus you’re taking advantage of this great weather (hello 80s!).

4.  Quality Products & Service
Owners of local shops and restaurants rely on each customer who comes through the door. Therefore, they care about each person’s experience and will do their best to make sure you enjoy yours. Years of informal observation have driven me to the conclusion that independent merchants put a good deal of effort into what they offer and the result is higher quality products and services than their big-box competitors.

So there you have it. Four reasons to shop and dine locally. I barely broke the surface, so please feel free to expand. Do you have any reasons to add to the list?

Continue reading “Going Local…” »

“I’m an Ox&Pen member and I have 1,276 points. Now what?”

First of all, if you have 1,200 loyalty points, holy cannoli! Second of all, it’s time to get out there and use them.

Keep in mind you can earn points with purchases at merchants in the Ox&Pen network. You’re also awarded points when you check in at merchants using the Ox&Pen app, and you get bonus points for sharing the check-in on Facebook or Twitter.

Earn points with purchases, check-ins, social shares and by inviting friends.

If you want to get lots of points fast, invite your friends to join Ox&Pen; you’ll receive 250 points for every friend who becomes a member.*

Once you’ve earned enough points, you can redeem them for goods and services at any merchant in the network. The points are effectively virtual currency on the Ox&Pen platform. Surprise! You have extra spending power you didn’t know you had.

But now that you know you can spend these points on actual goods and services, what types of things can you get?

Every merchant in the Ox&Pen network offers rewards for different amounts of points. To cash in your points, simply find the merchant you want on your mobile app, select the “Use Points” tab and click “Use Now” next to the

Use your points at any merchant in the Ox&Pen network!

appropriate point value. You’ll then scan the merchant-provided QR code to redeem. If you want to do your homework ahead of time, take a peek at the complete list of rewards, found on the Points tab in your Ox&Pen member dashboard within the web app.

Here are examples of what your loyalty points are worth:

• 500 points:  $6 at Roots Pizza, $6 at Bleeding Heart Bakery and Café, free bakery pastry at Dog-a-holics
• 1,000 points:  $10 at Krista K Boutique, glass of sherry at Vera, $15 at Roots Pizza, $15 at Bleeding Heart Bakery and Café
• 1,200 points:  free entree at Porkchop
• 1,500 points:  $20 at The Fifty/50, $18 at Pizza Persona
• 2,500 points:  free pound of dog food at Dog-a-holics, $30 worth of food and drink at Leopold

Now that you have a taste of what Ox&Pen loyalty points can get you, are you ready to take advantage of free stuff?

*Insider info: Ox&Pen partners with merchants on the network every so often to host events to show appreciation for our members. At those events, members typically have the chance to check in and share for a lot more points than normal. For instance, tomorrow there is a free whiskey and gin tasting at Porkchop. In addition to free tastes and 15% off the bill, Ox&Pen members get double points for check-ins and shares! 

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Let’s talk about universal loyalty programs. Those of us earning frequent flier miles with an airline that is part of an alliance can likely redeem those miles for free flights on any airline in said alliance. The same is true of some credit card loyalty systems; every dollar you spend translates into a point that can be used at one of several merchants within the credit card’s network.

While the above examples truly embody the idea of a universal loyalty program, neither caters to small, local business owners or their patrons. Rather, those programs work best on a bigger scale; their loyalty networks are typically reserved for large, national (or international) chains.

In the very early stages of conceiving what would later become Ox&Pen, I knew supporting local businesses would be one of our critical objectives and that the loyalty component would be a huge driver in achieving that. I knew the network effect of the above mentioned loyalty programs could be extremely powerful for small businesses, but there were challenges in creating this with seemingly disparate neighborhood specialty shops.

Often, if our favorite mom-and-pop shop has its own rewards program, it involves a punch-card, where, you get something free with every 10^th purchase, but rewards can only be redeemed at that location. This system works well for people who live or work nearby. But if a particular vendor is on the other side of town, the effort required to get there 10 times might outweigh the benefit of receiving something for free. In this case, the punch-card loyalty program isn’t really added incentive to visit that store over another, and both the consumer and the merchant miss out.

However, with Ox&Pen, you can earn loyalty points for purchases and social engagement at a card shop near your home on one side of town, for example, and later redeem those points using your smartphone at that new lunch place near your work on the other. You feel good because you are shopping locally and earning loyalty points at the same time. The owner of the card shop is also happy; he gains an incremental sale that otherwise may have gone elsewhere. What a novel concept: creating a “loyal” customer, even if just a one-time shopper.

Not only does Ox&Pen’s model provide its members with plenty of flexibility in how their hard-earned points can be used; but business owners benefit by joining forces with other small, local establishments. As a network, they can much better compete against their big-box rivals in the loyalty game.

Continue reading “Universal loyalty program built for small, local…” »

Arguably Chicago’s second biggest holiday this week (not sure if anything can trump Lincoln’s birthday in this city), it’s Valentine’s Day. If you’re looking for ways to sweeten up the day and evening beyond the glut of candy sure to be found in your office kitchen, we suggest treating yourself (or a loved one) to something special at one of Chicago’s many unique, local merchants. Here are a few West Loop favorites:

Wine, cheese and hospitality
You’ve probably read about Vera in Chicago Magazine, the Sun-Times and countless other publications that have given the Spanish wine bar one of many

Vera Cheese Bar & Dining Room

gushing reviews. The warm and inviting décor and the seasonally rotating wines alongside Spanish sharable plates make Vera a perfect spot for couples or groups of friends sharing an evening of fine dining.

Create your own Little Italy
Dining in? Stop by the family-run J.P. Graziano on Randolph, just west of Halsted, for the city’s finest selection of Italian meats, cheeses, bread and dessert. Pick up some Prosciutto de Parma, fresh mozzarella, hot sopresatta, aged Manchengo and fresh Italian bread for a dining experience rivaled only by a fresh meal on the streets of Florence.

Pamper yourself
You deserve it. Whether the past few weeks at work have been draining or you just need something to get you through the latest cold spell, check out HM Day Spa on Madison and treat yourself to the gift of relaxation. A haven for reflection and inner discovery, everything at this brand new facility is designed to give you the ultimate spa experience.

Put some spring in your style
You can’t quite feel it yet, but spring is right around the corner. Ditch those dismal grays and get ready for warmer weather by brightening up your wardrobe. Ladies, check out Tribeca on Madison for the latest colorful apparel handpicked from the runways of the hottest designers. Gentlemen, visit Entourage Man at Halsted and Washington where you’ll find the latest pieces that facilitate “style beyond desire.”

No matter who you’re with, enjoy the day as you explore the great establishments the West Loop has to offer.

Continue reading “Your guide to a very local Valentine’s…” »

comScore reported in December that 20 million mobile phone owners scanned a QR code in October 2011. The February briefing from trendwatching.com coined “point-know-buy,” the trend that is changing the way we access information: from text-based to image-based. We no longer need text-based searches to access information.

Use your phone to scan and sign up for early access to www.oxandpen.com.

Instead, we now find what we need simply by pointing our phones at visuals right in front of us. QR codes are one of the technologies fueling this next wave of “infolust.” It seems that those little squares full of black and white designs are here to stay for a while.

You’ll note that this isn’t the first time we’ve brought up QR codes. As you’ll soon learn, QR codes are an integral part of the Ox&Pen network. QR codes enable this sophisticated, smartphone-based platform to function seamlessly. With them, Ox&Pen members are relieved of the need for anything except their mobile device when redeeming offers or earning loyalty points.

To take advantage of a promotional offer, Ox&Pen members simply scan a QR code provided by the merchant. The same is true for checking in, which members do to earn loyalty points. No printing necessary. No need to dig through pockets and purses to find that easy-to-lose clumsy card or fob. It’s about the user experience; if you have your smartphone on you, you’re set. Just visit a merchant in the network, open up your Ox&Pen mobile app (coming soon!) and start scanning!

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One of the most exciting parts about explaining Ox&Pen is when people have their “Aha! Moment” (shout out to Oprah, a former West Loop neighbor) as they realize the many benefits of the network. However, it’s not always simple to shed light on every corner of Ox&Pen’s many inner workings.

Sometimes, when I’m sharing what it is Ox&Pen offers, I hear comments similar to, “Oh, so you guys are running daily deals,” which is actually the furthest thing from the truth.

First of all, exclusive promotions aren’t necessarily our bread and butter; our main order of business at Ox&Pen is to provide members the unique opportunity to earn universal loyalty points, but that’s a topic on its own.

But on the topic of promotions, I’d like to take this time to lay out the many ways Ox&Pen is not a daily deal site.

Daily deals require upfront purchases.
To use any daily deal, you must buy it up front. Even if you aren’t sure when (if ever) you’ll use it, you’re locked in. (Did you know that 25-40% of all purchased deals go unredeemed?) Ox&Pen promotions, on the other hand, don’t require advance purchase. If you remember one thing, let it be this: Ox&Pen members don’t pay upfront for a promotion; instead, offers are redeemable at point of purchase.

Daily deals come on a daily basis.
Many daily deal sites have one featured deal, occasionally surrounded by a few other smaller deals. They last for 24 hours, and then they’re gone. So not only do you have to make an upfront purchase, but you are rushed to make the decision to do so, rather than redeeming a promotion on your own time. Ox&Pen exclusive offers are good for many weeks and as a member, you are able to browse them at your leisure and redeem them whenever you want.

Daily deals are inconvenient.
They also lack instant gratification. Generally, daily deal sites are not mobile-based, which means you have to print out a voucher proving you purchased the deal and present it to the merchant. With Ox&Pen, check for exclusive offers as you’re walking down the street. If you find one you’d like to redeem, all you have to do is walk into the merchant and scan a QR code.

Daily deals don’t cater to your interests.
Sure, deal sites may send you daily emails boasting crazy-steep discounts, but how can you be sure they will consistently be for experiences or services you actually want or need? As an Ox&Pen member, set your personal preferences to stay on top of the promotions in which you’re most interested—and ignore the ones that you don’t need at the moment. Better yet, search for the type of offer you want, rather than waiting for it to come to you.

These are just a few ways consumers will notice Ox&Pen departs from the daily deal model. But don’t take my word; sign up for early access to the network and see for yourself.

Coming up next: how Ox&Pen’s network works to generate repeat business for local merchants.

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