Skip to main content

The Donation Amount in Transactional Cause Marketing

One question I am frequently asked is: "just what is the best amount to set the donation at in transactional cause marketing?" What percentage should the donation be in cause marketing?

As a rule of thumb, academic studies have found that more is more when it comes to setting the amount. That is, the greater the donation the better the sales boost. But that’s not terribly helpful in this age when every Baby Boomer knows the exact number of his good and bad cholesterol.readings. People want a tidy little percentage.

But that’s fraught with problems for some sponsors. If you set the number very high, doesn’t that suggest that your prices are too lofty?

For LavishGiving.com, an online gift store, that number is 10 percent. When you make purchases totaling $100 or more, after 7 days LavishGiving.com will send 10 percent of the total to you as a gift card from Networkforgood.org, which you can then donate to the your charity of choice. The time lag is to allow for returns.

LavishGiving.com was founded by Jane Pennels (seen above), a cancer survivor, who started LavisihGiving.com as a retailer with a mission.

“Back on my feet with an ‘all clear’ test result,” she reports on her website, “the entrepreneurial bug bit me again. But this time, I was determined to create a retail business through which I could give back to some of the organizations that have touched my life so profoundly… My assignment was clear: create a business that gives customers an effortless way to make substantial donations to their favorite causes, while shopping for the things they want to buy anyway. It's a win-win. A no-brainer.”

That’s fine for her, you say, Ms. Pennels has skin in the game. Moreover she seems to be a ‘lifestyle entrepreneur.’ How much should the donation be for my company and my product?

Good question. Contact me and let’s talk.

Comments

Popular posts from this blog

Top Eight Cause-Related Marketing Campaigns of 2007

Yeah, You Read it Right. It's a Top 8 List.

More cause-related marketing campaigns are unveiled every day across the world than I review in a year at the cause-related marketing blog. And, frankly, I don’t see very many campaigns from outside North America. So I won’t pretend that my annual list of the top cause-related marketing campaigns is exhaustive.

But, like any other self-respecting blogger, I won’t let my superficial purview stop me from drawing my own tortured conclusions!

So… cue the drumroll (and the dismissive snickers)… without further ado, here is my list of the eight best cause-related marketing campaigns of 2007.

My list of the worst cause-related marketing campaigns of 2007 follows on Thursday.


Chilis and St. Jude Children’s Research Hospital
I was delighted by the scope of Chilis’ campaign for St. Jude Children’s Research Hospital. As you walked in you saw the servers adorned in black co-branded shirts. Other elements included message points on the Chilis beverage coas…

Cause-Related Marketing Meets Microfinance

Kiva.org and Advanta.com Mix it Up

You’d have had to have been in Ulaanbaatar, Mongolia the last year or so to have missed the run up of microfinance. Between 2004 and 2006 more than $4 billion of capital flowed into microfinance institutions. All told experts say the total loan microfinance loan portfolio may be as much as $12.5 billion. And of course the father of microfinance, Muhammad Yunus won the 2006 Nobel Peace Prize. Microfinance is now so respectable, so effective, (so profitable!) that it’s already enjoying its first global backlash.

Actually that first sentence is hyperbole. Because even in Ulaanbaatar… far from almost anywhere on the vast, frigid steppes of Mongolia… microfinance is thriving such that the earliest recipients of micro loans there are now complaining about taxes and government bureaucracy! And May 29-31, 2008 the Conference of Microfinance Institutions will convene in Ulaanbaatar, the eleventh such annual conference.
Now Advanta, a credit card issuer to small…

Cause Marketing Beer with BOGO, Brew One Give One

On Monday’s post I touched on the topic of telling people what your cause marketing campaign accomplished when completed. I’ve recommended this approach to clients as a way to keep open the lines of communication with customers and clients and to get extra value from the campaign.

In other words, you’ll want to hold back some of the promotion’s budget to continue to activate the effort until the very end.

But what if that really cuts across the grain in your organization? What if it’s just not in your corporate DNA to do anything but to frontload your cause marketing activation? Well, then, add the report back to the activation of your next cause marketing effort.

New Belgium Brewing of Ft. Collins, Colorado, said to be the seventh largest brewery in the United States, did just that with this ad in Sunset magazine. I found this ad in the Alden Keene Cause Marketing Database.

New Belgium donates $1 for every barrel it brews and sells. It’s a BOGO cause marketing effort, Buy One Give One. …