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.

It’s March Madness!

There are plenty of places in Chicago you can go to cheer on your alma mater or favorite NCAA team, but which ones will reward you for every dollar you spend on pitchers and pizza and burgers and wings?

Here’s the skinny on the bars that support some of your favorite teams, and will also give you Ox&Pen points—points that you can redeem for rewards at any merchant in the network.

Lotties Pub
Although Lotties, a Bucktown favorite, has been busy beefing up its on-screen resume as the feature bar in NBC’s Chicago Fire, they are ready for March Madness. And per usual, they’re ready for the swells of fans coming in to watch two teams in particular:

Kansas University
Owned & operated by two KU alumni, Mark Domitrovich and Dan McCarthy, Lotties definitely understands the nostalgia of the Crimson & Blue. Plus, it’s the “Official Chicago Bar of the KU Alumni Association,” so you know they can handle you and your friends decked out in school spirit.

University of Wisconsin
The Big Ten Tournament start today, oh my! But as all the Badger fans out there know, Wisconsin doesn’t play until Friday. Head to Lotties to guarantee you’ll see your game; they have loads of plasma TVs dedicated to every move of the athletes from Madtown.

The Pony
If you like Kentucky, plan to do your game-watching at The Pony, at Belmont & Ashland. Even if the Wildcats don’t win it all again this year, at least you can watch the Tournament surrounded by friendly faces.

Standard Bar & Grill
Chicageaux’s home of the LSU Tigers is at Wicker Park’s Standard Bar & Grill. Their attempt at making it to the Big Dance starts today at noon, as they take on Georgia. If you’re fortunate enough to have a decent lunch hour or two, pop over to Milwaukee Ave. and pull up a chair; the TVs will be tuned into the game.

Don’t forget to check in & submit your receipt!
Keep in mind you get points for just about any engagement with the aforementioned restaurants. Check in, share with your social networks and submit your receipt to earn Ox&Pen loyalty points.

These customers’ concerns were totally valid; with many loyalty apps, the points you earn at any given merchant can only be redeemed for rewards at that particular merchant. Should the merchant and the loyalty program in question sever ties, the customers who have 89,000 points saved up are pretty much S.O.L.

Sadly, this type of situation is not that uncommon. In fact, I think we all know someone who was negatively affected by the decision of a merchant to discontinue use of a loyalty program.

In an effort to mitigate the amount of disgruntled customers, Ox&Pen’s loyalty points are good toward rewards at each and every small business in our network of local merchants. In the unfortunate event that a merchant is no longer part of the Ox&Pen network, all the points you earned at that bar during post-softball team celebrations or extra-fun Sunday Funday brunches (you know who you are) aren’t for naught. Any accrued points at that, or any merchant you visit, can still be used like cash at every other merchant in the network.

There you have it. Loyalty points that won’t “go bad.” If you’re concerned about the loyalty program your favorite bar, restaurant, café or boutique is using—and what will happen to your points if they discontinue use—let them know that Ox&Pen circumvents the issue with universal points.

Interested in learning more about the loyalty network built for small businesses? Download the latest version of Ox&Pen for iPhone® or Android™ and follow us on Facebook. Let us know what you think about a universal loyalty network for small businesses!

Divine Dine & Wine in the West Loop on February 28!

That’s where Divine Dine & Wine comes in. On February 28, the West Loop’s annual “celebration of culinary excellence” will feature over 50 different dishes and pairings from some of the city’s most drool-worthy restaurants. Among the eateries participating: Haymarket Pub & Brewery, Saigon Sisters, Vera, Sepia, Glazed & Infused, Porkchop, Three Aces, Carnivale, Lillies Q, Skinnie Piggy and Pastoral. YUM.

We (the businesses, the residents, the visitors) owe a tip of the hat to the West Central Association, the driving force behind Divine Dine & Wine and countless other events Chicagoans enjoy throughout the year.

The WCA has made it top priority to work with businesses in an effort to better expose local brands to new, interested and engaged audiences. This is an organization that fully understands the value of building up the neighborhood for the benefit of both residents and commercial endeavors. They’ve created quite a loyal network of local merchants and customers, and Ox&Pen is excited to partner with the WCA to increase the interest in shopping and dining and small businesses.

Learn more & purchase tickets here.

Among the many interesting findings:

• Consumers estimate a restaurant rewards programs would increase their visit rate to a particular restaurant by an average of 35%.
• Nearly two-thirds of consumers (65%) report they would recommend a restaurant more to others if that restaurant offered an appealing rewards program.
• A single rewards program membership covering multiple restaurant brands has significant appeal to consumers. 73% of respondents agreed they would like to have one rewards program membership that was honored at multiple restaurants.

It seems that as daily deals decrease in popularity, merchants are turning to loyalty programs in an effort to incentivize repeat visits. It makes sense, after all; merchants would rather reward customers who come back and pay full price than offer goods and services for 50% off (or more) to patrons who don’t seem to return.

Loyalty programs, as most people reading this are aware, have become more than a punch card you pick up at each restaurant or shop you frequent. Many loyalty programs now come in the form of mobile app that basically aggregates all of the digital punches you earn by visiting various businesses. You can use one mobile app to rack up points at each merchant you visit. Some of these apps tout themselves as a “universal” system. Here’s the problem: the points you earn through such a digital punch card are not universally redeemable for rewards.

Fortunately for the 73% of customers who want one rewards program that honors points at multiple restaurants, Ox&Pen has created a network of merchants, all of which honor points that were earned at any of the other specialty shops and restaurants.

By setting up this unprecedented network of local merchants, customers are now able to accrue points at multiple businesses, across multiple categories, and put them toward rewards at any of the businesses in the network. Yes, that does mean that if you make purchases at Roots Pizza, Krista K Boutique and Leopold, you can redeem your points for rewards at Jefferson Tap. Pretty sweet… I guess you can include the team here at Ox&Pen as part of the 73% that prefers universal points.

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.

Have you ever seen a beautifully-wrapped gift? I’m not just talking about when the ribbon matches the paper and the card. I’m talking about the type of gift that is presented so amazingly that it becomes the most talked-about gift, even if it’s a pair of socks in a room full of iPads.

Win the gift wrap contest this year.

We’ve all seen those gifts, but who has ever had the time (or the creativity) to be the person to give such a work of art? Good news. There’s a service that can help you win the gift wrap contest (yes, it’s always a contest) this holiday season.

Boon is what happens when the holiday boards on Pinterest team up with a personal assistant to become the ultimate professional service—professional gift wrapping. Turn over your packaging and wrapping responsibilities to the experts at Boon; you won’t be disappointed with the masterpieces that come back to you. Plus you’ll save time. How much? You’ll save so much time that you can go back to daydreaming about the day you’ll actually build that United States-shaped bookshelf you’ve been eyeing.

The icing on the cake? When everyone oohs and ahhs over your gifts, go ahead and tell them it was you and your craftiness that made it happen; Boon’s gift to you is keeping everything a secret and letting you take credit.

Just for Ox&Pen members: 20% off any service at Boon.

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.

Best Movember mustache goes to...

Big news: Ox&Pen founder & CEO, Andrew Gluck, will take the stage tonight at Technori Pitch! You’ll know who he is because he’ll be the presenter with the best Movember mustache.

If you haven’t been to Technori Pitch yet, it’s well worth your time. As technori.com articulates, “Technori Pitch is a monthly showcase of the city’s most innovative companies, pitching their latest technologies. It’s the city’s first large-scale, curated platform for companies to demo before an audience of entrepreneurs, executives, and enthusiasts. Every month, five companies get 5 minutes to demo their product and 3 minutes of moderated audience Q&A.”

As most of you know, Chicago’s startup scene is burgeoning, and Technori Pitch is your chance to see a few of Chicago’s up-and-coming companies. Plus, after the event, there are food & drink specials at Rosebud Theatre District; we can’t complain about that. Join us tonight! Tickets available here.

Peanut Butter Chocolate Cupcake at Skinnie Piggy

The cupcake menu at Skinnie Piggy is like a page out of my dreams; there are so many decadent options to choose from that I get decision anxiety every time I go in. Flavors include crowd-pleasing favorites like Red Velvet, German Chocolate and Vanilla as well as creative originals like Salted Caramel (salted caramel buttercream frosting on vanilla cake with salted caramel center, topped with caramel drizzle), Pina Colada (pineapple and coconut buttercream frosting on vanilla cake with pineapple chunks inside), and Lemon Drop (lemon buttercream frosting on lemon cake with lemon mousse filling and topped with homemade candied lemon zest). When I’m with Vanessa, nine times out of 10 we’ll leave with the Macon, a peanut butter cupcake filled with chocolate ganache topped with brown sugar butter cream frosting and a piece of candied bacon. Yum!

Skinnie Piggy boutique sweet shop

Great news for Ox&Pen members: Skinnie Piggy is one of the most recent local merchants to join the Ox&Pen universal loyalty network! Stop in for a treat and start earning points in Little Italy or in the West Loop today. Or, if you’re in need of some instant gratification, drop in to buy a coffee and get a free Piglet cupcake!

It gets better…
If you’re a new Ox&Pen member, head to Skinnie Piggy West Loop (940 W. Madison) on Friday, 9:00 am – 6:00 pm and claim four FREE Piglet cupcakes! Not an Ox&Pen member yet? Just download the app (for iPhone® or Android™) and we’ll see you there! Don’t delay; supplies won’t last.