Union Capital Boston

erty trap.

“I’m stuck!” laments Nadia, who lives in the Boston neighborhood of Roxbury with her three children. Although she works full time, Nadia’s $28,000 annual salary is barely more than half of the median family income in Boston ($52,000), and more importantly, insufficient to meet the city’s high cost of living. Like many in her community, she does not want to depend on government assistance but has to use SNAP benefits and Section 8 housing to make ends meet. By joining UCB, Nadia will earn points—tracked by swiping a QR code on her smartphone or keychain—for doing things that benefit both her family and her community. For example, Nadia picks up her children from school on a Friday and earns 100 UCB points by volunteering at their afterschool program. On the way home, Nadia shops at the local grocery store and receives 50 UCB points for her purchase. On Saturday, Nadia takes her children to the neighborhood playground and joins in a cleanup earning another 100 UCB points. Nadia has now earned 250 points in her UCB Virtual Bank account. She logs into the UCB Virtual Store and uses her points to purchase a monthly MBTA pass that she needs to commute to work—all from giving back and being loyal to her community. UCB plans to partner with schools, businesses, and civic groups that will benefit from increased participation and business. Ultimately, these institutions will pay fees to UCB in exchange for increased patronage from and improved outcomes for UCB members. UCB will use capital garnered from these fees to purchase and distribute rewards, including public transportation passes, health care coverage, home loan assistance, and college tuition payments. The concept of customer rewards is not new, but the goal of organizing loyalty in a low-income community is a new endeavor that we believe will yield important benefits based on recent academic studies. According to research by Canada’s Knowledge Development Centre, key motivations for low-income volunteers like Nadia include desire for personal and professional development, and contribution to one’s community. Furthermore, Mark Rosenbaum in the Journal of Services Marketing (Vol. 19, Iss: 4, 2005) demonstrates that participation greatly increased when customer loyalty programs were communally-based, rather than just financially motivated, because individuals highly valued connecting with their community. Robert Putnam’s research demonstrates that this community loyalty improves social capital, which is a key component for breaking out of poverty. The benefit of a low-income community rewards program is therefore two-fold: create opportunities for individuals and families, while simultaneously improve the surrounding community.