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.

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