POS Giving: 3 Takeaways for Nonprofit Organizations
Has anyone heard that retail is changing? Maybe only every day, right?!
We all know retail is evolving and with it consumer expectation around how they interact with retail brands across the omnichannel. Therefore, it is inevitable that both nonprofits and their retail partners feel the need to evolve their charitable point-of-sale fundraising efforts to meet those consumer expectations. The evolution of these tactics around the $500 million annual fundraising tool should not be based merely on presumption, instead it should be rooted in data. The Catalist POS Giving: Progressing and Prospering consumer affinity study takes a look not only at consumer preferences for giving at the point-of-sale in 2018, but analyzes how those preferences have changed since we started asking for consumer feedback in 2015. The insights from this study will help nonprofit professional work with their retail partners to enhance current strategies with a goal of generating significant ROI for the retailer (while raising as much funds as possible to impact the cause!)
Make sure to download the whole study. It is packed with great information and key insights. Below are three key takeaways from the study to jumpstart the conversation with your retailer partners (or be VERY persuasive in the room when you are pitching a new retail target!)
1. MAKE THE BUSINESS CASE
Not only did 69% of consumers give to a cause at point-of-sale in the last 12 months, but 96% of them felt neutral or more POSITIVE about the retailer, 81% of them LIKED or did not mind being asked and 55% of them would SHOP at the RETAILER AGAIN because they were allowed to donate to a good cause! Customers are connecting the ask at the point-of-sale back to the retail brand that allowed them to feel like a hero in an otherwise ordinary moment. Make sure your retail partners understand this is not just a charitable action, it is a VERY effective customer loyalty tactic.
Action: Retrieve more data to help your retail partners understand the positive effect of engaging in Corporate Social Responsibility at the point-of-sale, then consider measuring the organic consumer buzz in the marketplace around your campaign. Using this latest POS data AND providing a detailed value-based wrap report to your partners post-campaign, should start to change the conversation internally from charitable partner to BUSINESS IMPACT partner.
2. BRAND VALUE MATTERS
Consumers list “It makes me feel good” as the #1 reason they give at the register, followed closely by “I feel passionate about the charity” as #2, and “I recognize the charity” as #3. Customers give because it makes them feel good about themselves. But equally important and integrated with feeling good, is that the consumer understand and feel passionate about the charity.
Action: As more corporate partners look to partner at the point-of-sale with nonprofits that consumers feel passionate about and in turn, makes them feel “good” when they give, it is important for every charity to be able to convey to their retail partners a deep understanding of their overall donor/constituent affinities, the value of their leveragable organizational assets, and their overall brand worth.
3. MOVE TO THE ROUND UP
When asked, consumers responded that they prefer to give almost 2 to 1 at point-of-sale via a round up vs. the purchase of an icon or $1 add on. Driven by the rise of e-commerce and easy digital giving tools, rounding up is not only the future of giving across the omnichannel experience, it is the here and now.
Action: Recently Catalist has seen round up campaigns generate more funds for the nonprofit, then traditional icon campaigns. Nonprofits should work with their retail partners to discuss adding a round up campaign to their annual partnership. If a retailer is not interested in engaging in a round up, yet you know the customer prefers it, and that preference will most likely turn into more point-of sale activation and increased fundraising, consider finding a corporate match that is more of a right-fit partner for your organization.