Your brand makes a statement and should always reflect what you stand for. This is your shared purpose with your customers. The role of social and community support in connection with your brand and shared purpose with customers cannot be understated. Shared values are increasingly gaining momentum and customers are motivated to join loyalty programs that are associated with a good cause and with a brand that gives back to the community. Customers are now more empowered than ever and brands must work twice as hard to gain their loyalty. According to a survey report by Censuswide, 89% of customers switch to a brand associated with good causes they care about. A Nielson report stated that almost 73% customers were willing to spend extra money on a business that’s associated with sustainable activities. Because making a difference is a huge motivator, customers are proactively looking to support kinder, more self-aware and socially-responsible brands.
Loyalty Programs like TOMS Passport Rewards have aced this trend. They encourage their loyalty members to donate their points toward a charitable cause or initiative. For example, currently, members can redeem points for a $20 donation to help support the COVID-19 Global Giving Fund. This option creates goodwill and helps customers create more emotional bonding with the brand. The Body Shop’s Love your Body Club allows their members to choose to donate their loyalty rewards toward one of their charity partners (Born Free USA or the National Parks Conservation Association) which coincides perfectly with their commitment to sustainability. Some other loyalty reward program examples that support causes are Warby Parker: For every pair of Warby Parker glasses purchased, a pair of glasses is donated to someone in need. Similarly, United Airlines Mileage Plus members can make donations to the American Red Cross. Several companies such as Signet Jewelers, Dominos, and New York & Company are proud supporters of St. Jude Children’s Research Hospital.
So, why incorporate charitable causes in your loyalty program?
Here are some suggestions to enhance your loyalty strategy with impactful community or social based rewards:
Use your data to analyze and understand your customers through their purchase history as well as any applicable surveys, feedback and social media interaction. A successful loyalty program will be able to fetch you information regarding how customers personally invest and what social concerns they relate to the most.
Annex Cloud Has United with Worldpay to Streamline Earning Loyalty Rewards