Socially responsible marketing is the business approach that gains more power not only because of a new generation of consumers but also due to the latest events in the world. 87% of millennials think that brands should be involved in solving social as well as environmental problems, and during the pandemic, 68% of customers want businesses to provide support for medical workers and make donations.
Let’s dive deeper into this topic.
How accepting donations online can affect your sales?
Studies show that consumers are not only more likely to buy products from companies that are proactive in their beliefs and support charities but also are looking for such brands. Here are 5 stats you need to know:
- 66% of consumers are ready to pay more for products from companies that support charities and have a similar social position to their own.
- 87% of Americans consider advocacy for the issue they care about as one of the important things when making a purchase decision.
- 52% of U.S. consumers are looking for brands that have a proactive position and have the same values.
- Using checkout donations reduces cart abandonment and increases sales by up to 29%, and the average check is 26% higher.
- eBay retailers that support charities have decreased the customer churn rate by 67%.
As you can see, donations can boost your brand reputation and increase sales. But it has one more bonus. Donations can help you reduce a tax bill, as the amount you donate is tax-deductible.
But using a socially responsible marketing strategy, you need to stay away from greenwashing, a.k.a. green sheen. Spreading misleading information about your brand or products just because it is popular and sounds good can hurt your business. Consumers are suspicious of a loud statement, and 65% of respondents confirmed that they are trying to double-check the information about the brand in other sources to make sure they stand on an issue.
What is the best way to take donations online?
There are 2 ways how you can support charities. You can:
- donate a part of your profit from each purchase. For this, you need strong information support. Write posts on your blog, spread the word on social networks, place banners on your website.
- enable checkout donations. For this, you can use our partner’s extension Donations Suite. Thus, your customers will have the opportunity to choose the charity organization they want to support and the amount they want to donate:
How to set up checkout donations?
Step 1. To enable Donations Suite, go to Stores > Configuration > MageWorx > Donations.
Step 2. Here you can set the minimum donation amount, default description, add predefined amounts.
Step 3. Also, you can enable the Round Up Donation. So users can donate the difference between a specific number and the order subtotal. For example, if your order subtitle is $27,85 and the round-up amount is $5, the sum of the round-up donation will be $2.15.
Step 4. Save the changes.
Step 5. Next, you need to add one or several charity organizations you support. For this, go to Sales > MageWorx Donations > Organizations and click Add New Organization.
Step 6. Here you can enter the name and description of the organization, specify the sort order, and upload an image.
Step 7. Save the organization and test the result on the frontend.
After you are ready with all the settings, you can track all the donations made in your store. For this, go to Sales > MageWorx Donations > Donation. Here you can see the donation amount made with each order and selected charity organization.
3 Examples of Social Responsibility in Marketing
TOMS’s campaign “One for One” was launched back in 2006. Since then, for every pair of shoes you buy, they donate one pair of shoes to children in need. According to their report, TOMS has donated 95 million pairs of shoes. Moreover, they take part in assistance to visually-impaired people. They report about help with 780,000 sight restorations. Also, they have provided 722,000 weeks of drinking water.
Wells Fargo donates around 1.5% of its profit yearly. For example, in 2017, they donated $286.5 million to 14,500 charities. Wells Fargo supports nonprofit organizations like food banks and business incubators. They also encourage employees to take part in volunteer work and support a charity of their choice. For this, they offer 2 paid days off per year.
Lego is focusing on environmental protection. They plan to invest $150 million in alternative energy sources and reducing waste. They already have reduced their packaging and use up to 100% of renewable energy in the production process. Lego plans to increase the recycling rate up to 90%. For this, they will hire a special team that will manage the use of sustainable materials.