Differentiate Yourself in Charity Sponsorship

Business analyses find that, on average, if your store promises to make a charitable contribution of $1 for each item purchased at the regular price, this results in a higher percentage gain in sales than if you offer a discount of $1 off the regular item price.
     Plus you’re helping the charity!
     Greg Buzek, president of consulting firm IHL Group and a trustee of the Retail Orphan Initiative (RetailROI), suggests that you choose a theme charity with which your store becomes associated. Choose your partner carefully based not only on the high quality of the charity, but also on how well your sponsorship differentiates your store. Mr. Buzek advises against picking a cause that is identical to a cause selected by another store serving the same target population as yours.
     Research findings from University of Minnesota, University of South Carolina, and University of Georgia support the importance of pairing the charity partner with the personality of the business. Those researchers used one of the most basic dimensions in consumer psychology: promotion-focused versus prevention-focused.
     Prevention-focused shoppers put top priority on products and services which help them avoid losing what they have now. Promotion-focused shoppers put top priority on products and services which help them gain more than they have now.
     Shoppers in luxury stores are more likely to be promotion- than prevention-focused, while it’s the other way around for shoppers for necessities. That influences the merchandise they’ll buy in the ways you’d expect. However, when it comes to the charitable activities, they support, it’s more complicated: Shoppers interested in self-enhancement in their purchases are more comfortable when the store includes among their main partners charities supporting traditional causes, such as basics and conservation.
     If these luxury store brands do include a symphony orchestra or art exhibit among their partners, they might do well to also highlight their continuing association with a charity providing food, shelter, and education to disadvantaged populations.
     Stores selling commodities need be less sensitive to having charity partners which promote self-enhancement. An important consideration with these stores is that the money be for causes in the local communities so the results can be easily seen.
     As it happens, the local angle is helpful also because it allows the retailer to stay in touch with past customers to provide updates, strengthening both a continuing relationship with the consumer and a continuing association between the store and the charity.

For your profitability: Sell Well: What Really Moves Your Shoppers

Click below for more:
Pair Contributions with Purchases
Sell Either Protection or Promotion
Donate In Ways that Encourage Others to Donate