Driving scalable economic growth with Open Rewards: Insights from community programs

Local governments and business organizations are always looking for innovative ways to boost economic activity and support small businesses in their communities. One solution gaining traction is Open Rewards, a citywide rewards platform that incentivizes residents to shop locally while making it easy for business owners and administrators to participate.

During a recent webinar, communities using Open Rewards—including Orange, CA, El Paso, TX, and others—shared how their shop local programs are transforming consumer behavior and strengthening local economies. Here’s a look at how the app works, why it’s different from traditional rewards programs, and the measurable impact communities are seeing.

What is Open Rewards?

Open Rewards is a community-wide shop local app designed to encourage residents to shop at local businesses. The platform makes it simple for consumers to earn rewards on purchases while keeping administrative overhead low for both businesses and city staff.

Unlike traditional rewards programs, Open Rewards eliminates the need for businesses to train staff, manually track vouchers, or handle reimbursements. Instead, all processing is handled through the app, creating a frictionless experience for both shoppers and business owners.

Key differentiators include:

• No action required by businesses: Businesses are automatically enrolled in the program, freeing owners from training or processing rewards

• Multiple payment methods supported: Consumers can pay via credit, debit, cash, or checks, and rewards can be redeemed through bank deposits, Venmo, PayPal, or mailed checks

• Flexible program design: Cities can fund programs at varying levels, from small pilots to full-scale initiatives, and adjust reward rates for special events or seasonal promotions

How Open Rewards works

Consumers earn rewards by shopping at participating local businesses. For example:

• A resident spends $100 at a local supermarket and earns 5% cashback ($5)

• They visit a small mercantile shop, spend $30, and earn $1.50

• At dinner, they spend $71 and earn $3.55

Once rewards are earned, they can be redeemed at any participating local business within the same community, ensuring that every dollar circulates locally. In one example shared during the webinar, a shopper with $104 in earned rewards generated $24,150 in economic impact, representing a 24x return on the city’s investment.

Proven impact across communities

Communities using Open Rewards have reported strong engagement and tangible economic outcomes:

• Orange, CA: 750 participating businesses, $783,000 in economic impact, and a 19x ROI from city-funded rewards

• El Paso, TX: 3,000 participating businesses, $57,000 in economic impact, with 92% of shoppers indicating that Open Rewards influenced their decision to shop local

Behavioral insights from the platform are also powerful: 77% of users return to make a second purchase, and 30% submit more than 10 receipts, showing that the program effectively incentivizes repeat local spending.

Residents report discovering new businesses and shifting shopping habits: "I didn’t know this store existed. It’s become my favorite spot, thanks to Open Rewards."

Customizable programs and promotions

Open Rewards supports creative, community-specific campaigns:

• Diamond Bar, CA: Restaurant Week with 25% cashback for all restaurants

• Lancaster, CA: Double Reward Fridays offering 10% cashback weekly

• Camden, NJ: 50% rewards in a targeted urban enterprise zone

• Frisco, TX: $400 vouchers for local employers

• Fairview, TX: $10 vouchers for university students

These flexible options allow communities to drive traffic during slow seasons, support specific neighborhoods, and engage new users while tracking measurable outcomes.

Partnering for success

Program success often depends on collaboration between cities and local business organizations. Examples include:

• Orange, CA: City and Chamber partnership for funding and promotion

• Arlington, VA: Coordination across multiple business improvement districts

• La Crosse, WI: Downtown association funds rewards for central businesses

Even corporate partnerships have been effective, with companies like Amazon in Arlington and Audi in Signal Hill funding rewards for employees and customers, encouraging local spending while adding value to their own programs.

Data-driven insights

Open Rewards provides cities with real-time dashboards to track:

• Economic impact and ROI

• User engagement and retention

• Popular businesses and spending trends

This transparency allows administrators to adjust promotions, demonstrate impact to stakeholders, and show business owners tangible results from participating in the program.

Conclusion

Open Rewards offers a scalable, easy-to-manage solution for encouraging residents to shop locally while strengthening small businesses and community economies. By simplifying program administration, supporting multiple payment and redemption methods, and offering flexible promotions, cities can stimulate local commerce and foster long-term economic resilience.

Whether for a pilot program or a citywide initiative, Open Rewards is helping communities across the country keep local dollars local and create measurable economic impact.

Want to see what it looks like for your community? Schedule some time now.