Independent Banker - September 2020 - 81

Day. While temporarily shuttered businesses everywhere
were trying to figure out how to bounce back, the risks to
seasonal businesses were particularly acute. " They have to
get all the way through to next summer, " he says.
At the same time, he and Christine (CJ) Conrad, vice-president
of marketing and solution development at the community
bank, noticed that " altruistic individuals were going
out and purchasing gift certificates. And we thought, 'Let's
make that a real thing.' "
So, the bank created what it calls " lift certificates, " essentially
gift certificates with an extra lift for local entrepreneurs.
Participating businesses agreed to offer gift certificates
at a discount as an incentive to customers who wanted
to support their summer favorites. The business chose the
discount, and based on the amount, Martha's Vineyard
Bank matched a portion of the discount. For example, if a
restaurant offered 20% off, the bank matched that with another
20%. The customer therefore paid $60 for $100 worth
of future food, and the restaurant received $80 (the $60
that the customer paid and $20 kicked in from the community
bank).
Martha's Vineyard Bank already had its own merchant
processing, so it took less than a week to set up the online
store, Conrad says. Purchases were made through a subdomain
of the bank's website and sent to the businesses on a
weekly basis.
Boost for businesses
The first lift certificate was sold on April 13, and within
the first two months, the program generated more than
$350,000 in sales for more than 100 participating businesses
on Martha's Vineyard and in neighboring Falmouth.
Shoppers were locals, as well as those with second homes on
the island who want to support their summer staples.
When he got the first email about the program, restaurant
owner and bank customer Stephen Bowen thought it was
a proactive thing the community bank was doing to try to
create revenue for small businesses, but " I honestly did not
realize how successful it would be, " he says. Bowen, with his
wife, Susan Bowen, owns the casual Waterside Market and
La Soffitta, an Italian restaurant above the market. They had
been selling gift cards to regular customers before the lift
certificates were an option. " We have been amazed by everyone's
generosity, " he says.
" I was amazed how many we sold, " he adds. " Demand was
great, and that really helped keep people employed. " Waterside
Market stayed open for takeout orders and eventually
reopened for outdoor dining but the higher-end La Soffitta
closed temporarily before reopening for outdoor dining.
The Bowens promoted the offer through social media,
primarily Facebook, using the Martha's Vineyard Bank link.
" I have never seen a bank, local or national, do something
like this, " Bowen says. Other participating businesses
included spas, hotels, art galleries and boutiques. Businesses
selected dollar amounts that made sense; for example,
a photographer had a higher base price than a restaurant.
The bank budgeted $125,000 for the program, calculating
that this would lead to a $625,000 total boost for small
businesses between the bank's donations and the customers'
purchases. Unlike traditional gift cards, where the
funds live on the card until they are redeemed, the lift certificate
money went to the businesses almost immediately.
The lift certificates were just one way that Martha's Vineyard
Bank and the Martha's Vineyard Bank Charitable
Foundation helped those affected by COVID-19. The bank
" In seven weeks, we
generated more than
$330,000 in revenue in
an oceanside community.
That gets you up in the
morning to go to work. "
-James Anthony,
Martha's Vineyard Bank
committed more than $625,000 toward recovery and safety
efforts, including making coronavirus testing available to
anyone, regardless of insurance or ability to pay.
Anthony is the type of CEO who doesn't like to be the center
of attention, so he was " terribly embarrassed " when he
got shout-outs and " thank yous " when he was standing in
line at the post office and the grocery store. But he's also
proud of what the community bank has been able to do in
difficult times. " This has changed our relationship with customers
in a remarkable way, " he says. " In seven weeks, we
generated more than $330,000 in revenue in an oceanside
community. That gets you up in the morning to go to work.
That's almost mission banking. "
Margaret Littman is a writer in Tennessee.
independentbanker.org Q 71
http://www.independentbanker.org
Independent Banker - September 2020

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