Inviting and Maintaining Loyalty by Giving a Damn

Why should anyone buy from you?

There’s no secret about what drives the typical for-profit business. Revenues and market share rule the roost. And generally, competition is fierce.

Of course, marketing can make all the difference. But when a company lays out the features and benefits of its offerings, the difference is often blurred or inconsequential between them and those of the competition. For example, many offer free returns. And all top brands make their headphones wireless.

Plus, what companies think is meaningful may not resonate with everyone. XYZ-Co may be loud and proud about its cordless drill’s variable-speed trigger, but what consumer Bob cares about is whether it will hold a charge all day at the work site.

And then there’s the all-important price. When a customer-in-waiting decides where to go and what to buy, price can tip the scales if all else seems about equal. So, the temptation may be to throw a discount at the price. And while this may make today’s sale, it could also serve to cheapen the offering. Not to mention it does nothing for tomorrow’s strategy, unless permanent low-balling is the end game.

So, a rewards program can make sense.

A rewards program is more than just a disguise for discounts. It’s a good reason for customers to switch over and give a company a try, especially if rewards build relatively quickly.

Importantly, a rewards program helps maintain loyalty by discouraging customers from going elsewhere. After all, if they have to buy, they might as well get more and more freebies and savings by sticking around.

In short, the standard rewards program drives profit and market share with a mutual giving arrangement between the customer and company that stays in-house: the customer gives money for a service or product and the company gives back some rewards for doing so.

However, more and more these days, this kind of tribal loyalty is simply not enough.

Consider a super-powered rewards program for your company: Social Impact

Stakeholders are becoming activists in droves, reminding companies to straighten up and fly right to earn their business or they’ll go elsewhere. This insistence of doing good may mean different things in various industries, like ensuring fair wages and fresh water in the product’s source village, or reducing a carbon footprint, or donating company products to neighborhoods in need.

Particularly now, it can even mean taking the moral route, like the ceasing of operations in Russia by Starbucks, McDonald’s, PepsiCo and Coca-Cola. While each of these companies has long had social responsibility platforms, few could argue their reputations wouldn’t be tainted by remaining active in that country.

By adding a social impact dimension—or embracing social impact that may already be baked into your mission—your company essentially becomes a rewards program with an earnest sense of societal duty. The advantages of binding social impact to your for-profit operation are evident for both you and your clientele.

For you…

Your company will become known as one that cares about community. For example, TOMS’ customers know that with every purchase they make, a pair of shoes is given to a child in need. Can the same be said for TOMS’ competitors?

Moreover, by also adopting a social impact stance within your company, you can actively address diversity, equity and inclusion (DEI) in your workforce. Your sincere attempt to ensure fair and proportional hiring, treatment, and promotion of all employees should drive their loyalty and productivity while lowering turnover. Not to mention that this can help you recruit top talent. Lots of people want to be part of a company that genuinely seeks to improve both community and workplace. Plus, from diversity can come new and exciting ideas, which is always good business. Conversely, when companies stray from responsible practices, employees often vote with their feet.

For your customers…

They can feel good about choosing your company and its offerings, knowing their patronage helps make the world a better place. They’re part of the solution. They can promote social change not only by being part of your story but simply by retelling it to others. It’s the opposite of buyer’s remorse; it’s like buyer’s delight.

Twilio: A good example of embracing social impact

For those that don’t know, Twilio is a Fortune 500 company that makes programmable communication tools. If you’ve ever been sent an authentication code or booked through a travel site or been contacted with special text messaging, you’ve likely been involved with a Twilio product.

In fact, we proudly call Twilio our thought partner when designing specialized communications for our clients.

While their for-profit revenue is in the billions, social impact has been at its core from day one. According to Twilio CEO Jeff Lawson, “We believe business should leave society better than we found it, and the most effective approach is integrating social impact into our business so that our success ripples outward…as we scale, our positive impact scales.”

As noted in their 2021 Impact and DEI Report, Twilio provided $66 million in grants, donations, product credits, and discounts to social impact organizations. Plus, it committed $18 million and 1,000 volunteer hours toward its goal of helping one billion persons get vaccinated against COVID-19.

Twilio also focused on building an antiracist work culture “so that Twilions view their decisions and actions through an antiracist lens." Additionally, Twilio used DEI data in a plan that supported “the advancement of underrepresented and marginalized communities” to optimize their fair hiring practices.

For Twilio, social impact and for-profit operations feed each other. As noted in their blog: “We actively build ties so that when we build a better company, we also increase our ability to generate social impact. And when our social impact program grows, so too does our business.”

Power your social impact with CauseMic

If you already operate with social impact, you’ve got a big leg up on contemporary business. If not, it’s never too late to identify and establish a path forward, say, by forging community partnerships that leverage your products or services. In either case, CauseMic can help.

With a crafty mix of technology and marketing, we can let the right people know what you’re doing for the community, be it local or global. Our goal is to tell your story, to make current and potential buyers realize that purchasing from you goes beyond your for-profit mandate. Like for every hoodie you sell, you provide a new baby blanket to a nonprofit called Help The Kids.

We specialize in prompting action from those who want to make a difference, to give and make things better. So engaging the appropriate audience to join in your company’s do-good efforts is well within our wheelhouse. And as your social impact scales, so too does your for-profit operation. You may well find that a greater number of venues want to push your hoodies so that more baby blankets get in the right hands.

Plus, you can imbue your company workforce with DEI actions that underscore your desire for positive social change, making things better from the inside out.

In short, doing good is good business. Customers, employees, shareholders, community, your bottom line—all can benefit from social impact. I’m Matt at CauseMic. Let’s chat!