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Why Giving Back Increases Brand Loyalty

YEC
POST WRITTEN BY
Nikki Carlson

When people think about corporate responsibility, TOMS is usually the first brand that comes to mind. Its popular “Buy one, give one” campaign not only provided millions of shoes to people in need, but also built a loyal fanbase of customers.

While corporate philanthropy isn’t new, we’re in the middle of a do-good renaissance where brands give back. But as brands, we know philanthropy is about more than doing good in the world. Philanthropy increases brand loyalty when you practice it genuinely. Giving back increases engagement by sharing a mission and purpose with your customer base.

If you’re targeting a younger demographic, you need to embrace corporate charity programs. Your customers expect nothing less. Both millennials and Gen Zers grew up in a world that encouraged recycling and social good. Instead of donating money directly to causes they care about, shoppers under the age of 40 prefer to give back through where they shop.

Appeal to more customers, encourage lifelong brand loyalty and do a little good with a smart corporate giving program.

Why give back?

The most obvious answer is because charity is the right thing to do. Brands have an opportunity to improve the world on a grand scale; imagine how much better the world could be thanks to corporate giving programs. Aside from making the world a better place, giving back has other benefits for brands, too.

1. It creates a strong internal culture.

In my experience, the best way to foster employee happiness and engagement is by having a mission. When you have happy, motivated employees, your brand thrives.

For example, drinkware company Mizu is on a mission to eliminate the environmental effects of single-use plastic. Not only does its line of reusable products fit in with this mission, but it gives employees a rallying cry. Because Mizu’s purpose is to design beautiful alternatives to single-use plastic, its products and culture reflect its promise to the environment.

2. It encourages purchases.

Shoppers prefer to buy from charitable companies because it makes them feel good. They know they’re part of something bigger than themselves and that their purchase is changing the world.

This sense of pride upon purchase encourages even more purchases. If a customer is torn between your brand and another brand that doesn’t give to charity, they’ll likely pick you over your competitor. In fact, 81% of millennials say they want to support brands with corporate citizenship.

3. It fosters long-term loyalty.

Loyalty is a powerful tool that sells while you sleep. When customers feel good shopping with you, they’ll continue to do so. And not only will they continue to buy from you, but they’ll advocate on your behalf to their social networks.

How can you give back the right way?

It’s not enough to donate money to a charity and claim you’re giving back. Follow these tips to give back in a way that resonates with your brand and audience.

1. Be genuine.

“Causewashing” is a real problem. Breast Cancer Awareness ribbons used to grace the packaging of many products during Breast Cancer Awareness month. While most brands were genuine in their give-back efforts, some used it to jump on the bandwagon just to boost sales. Some brands were even called out for participating when their products contained known carcinogens.

Customers see right through this. Your charity has to be genuine and ongoing. For example, plant-based drink company Rebbl has dedicated itself to sustainable labor and farming practices across the world. It donates 2.5% of its net sales to the anti-trafficking organization Not For Sale. The brand also uses sustainable practices in transportation, packaging and agriculture to live out its brand promise.

Your business goals should tie into your giving goals. Align your brand values with how you want to give back to the world.

2. Share the impact.

Customers want to see the impact they’ve made buying with you. So show them. Display a counter on your website with how much money your organization has donated to charity, or how much aid was given. On the TOMS website, it says that they’ve given over 86 million shoes.

Numbers are powerful. They show customers the direct result of their purchase. Don’t shy away from the impact your brand has on the world.

3. Create a brand story.

Your brand has to have a story, and that story should tie into your giving initiatives. Stories communicate meaning, emotion and purpose. With the right story, you can inspire customers to make the world a better place by shopping with your brand.

Get focused on your story. TOMS, Mizu and Rebbl aren’t just brands that randomly give back -- they have specific causes they’re tied to. It’s who they are and who the world sees.

The bottom line.

Corporate responsibility kills two birds with one stone: On the one hand, you make the world a better place, and on the other, you get more business. Giving back is a win for everyone. Embrace your mission and values to create a giving program that will grow your brand and change the world for years to come.