Denver's Lower Downtown (LoDo) BID launched a consumer cashback pilot in Q3 2025. The district pitched it as a game-changer for merchant foot traffic. We wanted to know: did it actually work?

We surveyed 38 of the 47 participating merchants three months after the pilot ended. The results were more nuanced than the district's press release suggested.

The Program

The LoDo cashback pilot offered consumers 8% back on purchases at participating merchants. The district covered 5%, merchants covered 3%. The pilot ran for 12 weeks with a total district investment of $89,000.

62% of eligible merchants participated — a strong number by industry standards. Consumer adoption reached 4,200 unique users.

What Merchants Reported

The Winners (42% of participants)

Sixteen merchants reported meaningful revenue increases they attributed to the program. Common characteristics:

Average reported revenue increase: 12% during the pilot period.

The Neutral (39% of participants)

Fifteen merchants reported no meaningful change. They participated but didn't actively promote. Most said they "didn't have time" to do the extra work the program required.

The Skeptics (19% of participants)

Seven merchants reported that the program cost them money. Their 3% contribution exceeded any revenue gains they could attribute to the program. Most were in categories with low repeat-visit potential (specialty retail, services).

The Frontage Verdict

The LoDo cashback pilot worked — for merchants who worked it. The 42% who actively promoted the program saw real returns. The 58% who participated passively saw nothing or lost money.

This is the pattern we see across cashback programs nationally. The technology works. The question is whether merchants have the capacity and willingness to do the promotion work that makes it effective.

Questions to Ask Before You Participate

  1. Do you have time to promote it? If you can't commit to in-store signage, staff training, and social media posts, don't participate.
  2. Is your category a good fit? High-frequency categories (food, coffee, convenience) benefit most. Low-frequency categories (specialty retail, services) often don't.
  3. What's your contribution? If you're covering more than 3% of the cashback, the math gets harder.

What the District Should Do Differently

The LoDo BID marketed this as a passive benefit: sign up and watch customers flow in. That set unrealistic expectations. Future programs should be explicit: this works if you work it. If you can't commit to active promotion, don't participate.

The district should also consider category-based eligibility. Enrolling merchants in categories where the program historically underperforms doesn't help anyone.