Riverside Launches App-Based Rewards Pilot Program To Support Local Businesses

Riverside shoppers are now able to earn rewards for shopping or dining at 500 different local shops through Open Rewards, a free mobile app.

The Riverside City Council voted unanimously Tuesday to approve the one-year pilot program, run by Bludot Technologies, for a total cost of $55,940. Councilmember Steve Hemenway was absent.

“As we are, more and more, seeing people shop online, it’s becoming harder for the city to be involved in that economic development process,” Councilmember Steven Robillard said at the December 9 meeting. “I think it’s a creative idea to try to bring more of the local spending home.”

The program will be funded by the $50,000 that the council approved, with any unused money returned to the city at the end of the pilot year. Rewards points earned by shoppers will not exceed the council-approved amount. The other $5,940 covers the cost of  annual software and support fees.

Simone Saunders, a project manager with the community and economic development department, told the council that local businesses within the city have been impacted by increasing online shopping. She added that the pilot program would increase online exposure to the local shops by offering a “cashback-like” incentive when residents buy from participating businesses across the seven wards. 

To collect points, shoppers can either link a payment card to the Open Rewards app or upload their receipts from participating stores. Points can then be redeemed at other local businesses participating in the program, similar to using a gift card. 

“To encourage strong engagement at launch and consistent participation throughout the year, we are proposing a 10% rewards on launch day and 5% rewards for the remainder of the pilot,” Saunders said.

Miranda Evans, deputy community and economic development director, said in an interview with The Riverside Record that the team decided to launch the rewards program the day after the council approved the pilot to maximize the time people had to earn points during the holiday season.

The team, she added, also plans to host other seasonal promotions throughout the following year, including for Valentine’s Day. 

“The app will allow [us] to keep features and functions fresh and new to the events of that month,” Evans said. “We can update it and refine it in real-time and add those promotions as well.” 

Evans also told The Record that there were currently no plans to increase the incentives, like the 10% offered Wednesday, as the department was looking to stretch out the approved funding for the duration of the pilot. 

Businesses on the app are limited to non-chain brick and mortar food, retail, beauty, fitness and tailor services. Now that program has been approved, city staff said it had reached out to all eligible shops to confirm their participation. Saunders also told the council the shops would not be required to change their processes if they chose to opt into the program. 

Evans also told the council that the program would allow the city to track consumer engagement with local businesses. 

“Riverside Rewards, powered by Bludot, introduces data-driven insights that we have not previously had access to, giving us the ability to better understand consumer behavior, measure our program performance with [key performance indicators] and refine our economic development strategies with real-time information,” she said.

In an email to The Record, Evans said that both the city and Bludot can track the total rewards distributed, economic impact, the number of users and coupons redeemed as well as consumer comments. 

She also said the city would use the data to measure engagement with the pilot program, receive feedback from participating businesses on the app’s value and evaluate the program’s impact on local spending.