By: Gabe Bailer, PP, AICP
Downtown New Jersey Board Member 
Project Manager, Harbor Consultants

Business Improvement Districts (BIDs) across New Jersey and the country are constantly seeking new ways to strengthen local economies, support small businesses, shop local, and attract visitors to their downtowns. One increasingly popular strategy is the implementation of customized downtown gift card programs. These cards function like traditional gift cards but are designed specifically to be spent at participating businesses within a BID or downtown district, ensuring that money spent stays local.

This article explains what a customized downtown gift card is, how to implement one, and the benefits it provides. It also shares insights and real-world experiences from two communities—Downtown Cranford and Summit—that have successfully launched customized gift card programs.

A customized gift card for a Business Improvement District (BID) is created through a partnership between the BID and a gift card platform. The BID provides branding elements—such as its logo, tagline, and colors—which the platform uses to design a unique card that reflects the identity of the district.

The customized gift card can be issued in both physical and digital formats. Purchasers select the denomination and typically buy the card through the gift card company’s website, often accessed directly via a link on the BID’s own website. Physical cards may be mailed to the purchaser or picked up at the BID office, while digital cards are delivered electronically.

Once purchased, the card can be redeemed at participating businesses within the downtown—and in some cases, at select locations outside the district. Functioning like a credit card, the gift card is processed through a business’s point-of-sale (POS) system, making it seamless for both merchants and customers.

So why use it? The first reason is obvious: to increase business for your downtown merchants by providing another way to support them. A customized gift card reinforces the idea of shopping local and supporting the businesses in your community.

Another benefit is that it strengthens the BID’s brand. The card can be designed with your BID’s logo, colors, or tagline to promote shopping and supporting local—and you can make it look great, too. It also encourages customers to explore new businesses they may not have visited before. Because the card can be used at a variety of participating merchants, it helps drive new business and increase foot traffic downtown.

Recipients appreciate the flexibility as well. Unlike a single-store gift card, a BID card offers choices across multiple businesses, making it a more versatile and appealing option. Finally, it creates a thoughtful gift. What better way to thank a teacher, coach, friend, or neighbor than with a customized gift card they can use right in the community where they live?

While several downtowns across the state have launched similar programs, this article focuses on two examples: Downtown Cranford (my hometown) and Downtown Summit. To learn more about their experiences, I spoke with Caren Demyen, Executive Director of Downtown Cranford, and Nancy Adams, the Executive Director of Downtown Summit.

Downtown Cranford launched its customized gift card program in 2021 in partnership with the gift card management company Miconex. According to Executive Director Caren Demyen, the program was an immediate success, generating approximately $20,000 in sales within its first month. Today, about 140 businesses participate, with annual sales reaching around $100,000 and an impressive 80% usage rate.

The gift card can be purchased online or at the Downtown Cranford office. Online purchases are fulfilled by mail, providing a convenient option for buyers. The card itself features artwork by a local artist depicting Downtown Cranford’s iconic clock plaza—a central public space and community landmark.

Downtown Cranford also maintains a dedicated page on its website with a purchase link and a list of FAQs for residents and visitors. According to Ms. Demyen, the card has become a popular gift for teachers, coaches, PTA members, and local employees. She notes, “Downtown Cranford’s gift card has helped shape the community’s mindset to shop local, rather than supporting big box stores.”

Downtown Summit introduced its customized gift card program in 2018 through a partnership with the gift card company EML. According to Executive Director Nancy Adams, getting the program off the ground required significant effort. It involved ongoing communication with businesses to ensure they understood the program, registering them on the platform by swiping a card through their POS systems, and raising public awareness of the new initiative.

That hard work has paid off. Today, more than 150 businesses accept the Downtown Summit gift card—including some located outside the downtown area. From June 2024 to the present, over 720 cards have been purchased, generating approximately $55,000 in sales. Of that amount, $43,800 has already been redeemed across nearly 1,200 transactions, demonstrating that the cards are not only being purchased but also actively used.

The gift card can be purchased online or at the Downtown Summit office, and the program is supported by a dedicated page on the BID’s website featuring details and a list of participating businesses. According to Ms. Adams, the cards are especially popular at the end of school and sports seasons as gifts for local teachers and coaches. She explains, “There is a lot of legwork involved, but once it’s running, it’s successful. The gift cards are a good thing as they drive business directly into our Summit businesses.”

If your downtown is looking to start a customized gift card program, there are several steps involved in making it successful. First, you need to select a gift card company. The provider should have proven success with other downtowns, offer a platform that makes it easy for customers to purchase cards and for merchants to redeem them, and maintain manageable costs to ensure financial sustainability. Second, communication is key. To build a successful program, you must make your businesses aware of the gift card and encourage their participation. This involves explaining how the program promotes local commerce and creates opportunities to attract new customers. Finally, marketing and visibility are essential. The community needs to know the gift card exists, which businesses accept it, and how it can be purchased.

A customized downtown gift card offers a powerful tool for supporting local businesses by keeping dollars in the community, attracting new customers, and strengthening the downtown brand. As demonstrated by Downtown Cranford and Downtown Summit, these programs have successfully achieved all three goals.