February 24, 2016
It’s become a well-known fact: Millennial buyers are drawn towards organizations and companies who put an emphasis towards philanthropic efforts. Philanthropy shows people that your organization cares and is willing to put forth an effort to help the community. It shows people that your company and your company’s people are good people. It helps build trust. Millennial buyers expect more than just product and services when they are choosing which company to go with. They want character, reliability, and credibility. Company brand has become a key part of winning new customers, especially amongst Millennials. Millennials don’t buy as objectively as past generations do; they look at other characteristics like the personality of a company. For many reasons, social good and philanthropy can help your company or organization build a brand and win more customers. Here area few reasons why your company’s philanthropic efforts can bring in more sales and grow the organization.
It reflects positively on your company.
A strong company brand is critical for attracting new millennial customers. Millennials don’t just look at what your product does, they look at who you are as a company, and whether you are respected. Social good and philanthropy are powerful tools for building your company’s brand. The same goes if you have an organization or university. If alumni or prospective customers see that you are expending effort towards social good, they will feel more inclined to connect with you.
If a buyer knows that part of your profits go to charity, they are more likely to make purchases.
People respect people who give to charity. If a customer knows that a portion of their purchase will go towards helping people, they will feel more inclined to make a purchase. In fact, they might choose to make a purchase simply on the basis that it makes them feel like they are doing a good deed or contributing to charity. Paying $50 for a pair of headphones doesn’t seem so bad if you know part of the revenue is going towards helping sick children. Philathropy makes people feel better about making purchases, which can bode very well for your new sales.
If a buyer empathizes with a charity of your choosing, they will want to help the cause.
Knowing that their money is going towards a good cause makes people feel more comfortable spending money. If the particular cause resonates specifically with the customers, then they will feel even more inclined to buy. Philanthropy is a source of motivation for some people, and a source of guilt for others. However, even when it creates guilt, that guilt can still motivate people. Many people feel a desire to give money to charity, but lack the will to do so. If they know that they can give to charity will buying a product they genuinely want, then you have helped them give to charity and you have helped them feel good about their decisions. Thus, tying your profits to charity will make your customers feel good about buying from you and inclined to continue doing so.
It makes you seem more trustworthy.
Millennial buyers are influenced not only by product or service, but also by their relationship with the company they are purchasing from. If a millennial feels like they can trust the company, they will be more likely to buy from them. Moreover, if the customer shares similar values as the company, they will also feel a greater inclination to make a purchase. Trust is key when it comes to millennial buyers. It doesn’t matter how great your product is – if your customers don’t trust you then they will buy somewhere else. Having credibility and being reliable towards customers is crucial for gaining their support. Thus, it is equally important that your company or organization puts an emphasis on social good in order to build a trustworthy brand.
It makes it make you look more financially secure.
If a company can afford to give away a chunk of their earnings to charity, then the assumption is that they can afford to do so. Giving away money to charity is a sign that you have enough revenue for yourself and now you want to help out those in need. It makes your organization or company look like a hero, and a benefactor. Social good brands your company as a strong, compassionate organization that is honest and caring. This brand invites customers to build trust and favor you over other companies.
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