February 8, 2023

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Home » How Offering Donations Instead of Discounts Can Increase Your Conversion Rate

How Offering Donations Instead of Discounts Can Increase Your Conversion Rate

Donations instead of codes

Have you ever considered offering donations instead of discounts to increase your conversion rate? Offering donations can be a great way to boost conversions while positively impacting the world. Donations are a great way to show customers that you care about the causes they care about.

Not only will customers appreciate your donation, but they will also be more likely to purchase your product or service. Moreover, donations can create a sense of loyalty between you and your customers, inspiring them to continue to purchase from you in the future.

Studies have shown that customers are more likely to convert when presented with a donation option instead of a discount. This article will explore how offering donations instead of discounts can increase your conversion rate and explain why it’s an effective strategy.

What is a donation?

A donation is an act of generosity, usually financial, given to a person, group, or cause that the donor believes in. You can donate to any cause you believe in, such as a charity, political campaign, or a friend trying to fund a project.

Charitable donations are gifts of money or other assets to a charity for the public or social benefit. Charities and non-profit organizations rely on donations from individuals, organizations, and companies to support their work.

Donations can be made online, offline, and by mail. Online donations can be made via credit card, debit card, gift card, or checking account. Offline donations may be made by check, cash, or money order. Mailing donations are made by mailing a check or money order to the organization.

Why offering donations instead of discounts can increase your conversion rate.

People are more likely to make a purchase when they feel good about the decision they’re making. If a customer is choosing between receiving a discount on your product or donating to a cause, they care about, the choice to donate shows that they are dedicated to supporting the cause.

A customer who donates money to your cause is more likely to feel optimistic about the purchase and less likely to feel guilty about spending money on your product. Moreover, customers who make donations to your cause are more loyal to your brand.

Customers who make a donation feel a special connection to your brand because they are responsible for making that positive impact in the world. This connection will inspire customers to continue purchasing your products because they know their money is going toward a positive cause.

How to select the right charitable organizations to partner with

Before choosing which charitable organizations to partner with, you should research the causes, you want to support. You can search for charities that align with your business and the causes you want to support.

You can also look for charities with a low administrative cost so that most of your donation goes towards the cause. With internet access, finding charities that align with your business is easier than ever. You can also visit your local library to find charities in your area.

After finding the right charities to partner with, you should contact them and ask if they are willing to accept donations from your business. You can offer to donate a percentage of your sales or suggest a specific amount. You should also ensure that they have the infrastructure to accept donations.

Tips for setting up a donation program

When setting up a donation program, you should be transparent about the amount customers donate. You should also ensure that customers are aware of the cause they are supporting with their purchase. You can use your product packaging, website, marketing materials, or other promotional materials to share information about the cause your customers are supporting when they make a purchase.

This can be displayed in a clear and concise manner so that customers understand where their money is going. You can also include information about the cause on your receipt.

You should also ensure that you comply with any donation laws in your area. You should always abide by the FTC rules regarding disclosures and disclaimers. You can learn more about these laws here. You can learn more about setting up a donation program by listening to the podcast here

Examples of successful donation programs

  • Starbucks iced coffee – To promote a new line of iced coffee drinks, Starbucks offered customers a chance to make a difference in the world when they ordered one of the drinks. When customers ordered one of the iced coffee drinks, they were offered the chance to donate $0.25 from each drink to clean water efforts. Customers were so excited about the cause that they made over $10 million in less than two weeks.
  • Pink buckets – During Breast Cancer Awareness Month, Domino’s Pizza partnered with the Susan G. Komen Foundation to support the fight against breast cancer. Customers could make a donation to the Susan G. Komen Foundation when they ordered one of their products. For every pink bucket sold during the month of October, Domino’s donated $5 to the breast cancer cause.
  • Swipe Out Hunger – During the month of September, snack brand Popcorn, Indiana, partnered with the non-profit organization Feeding America to support their Swipe Out Hunger program. Customers who made a purchase on the Popcorn, Indiana website were offered the chance to donate $1 from their purchase to Feeding America, the nation’s leading source of food for the hungry.

Benefits of offering donations instead of discounts

There are many benefits of offering customers donations instead of discounts. First, customers who make a donation are more likely to be loyal to your brand. Customers who make a donation are more likely to feel positive about the purchase, less guilty about spending money on your product, and more inclined to continue purchasing from you in the future.

Another benefit of offering donations is choosing the cause you want your customers to support. You can also offer multiple charitable organizations to provide customers with a variety of causes to choose from. Moreover, donations are a tax-deductible expense, so you can positively impact the world while reducing your tax burden.

Donations are also a great way to promote a charitable cause you support without appearing too salesy. If a customer is considering making a purchase from you, they will be happy to know that they can support a cause they care about while making the purchase.

Conclusion

Offering donations instead of discounts can be a great way to increase your conversion rate. Customers are more likely to purchase when they support a cause they care about, and they are less likely to feel guilty about their purchase.

Moreover, customers who make a donation are more likely to continue purchasing from you in the future. By selecting the right charitable organizations to partner with, you can positively impact the world while increasing your conversion rate.

We had a great interview last year with Andrew Forman from Givz.com on this subject. You can hear the complete interview by clicking below.

Andrew Forman - Givz.com
Andrew Forman – Givz.com

Who is Brent Peterson?
Brent is a serial entrepreneur and marketing professional with a passion for running. He co-founded Wagento and has a new adventure called ContentBasis. Brent is the host of the podcast Talk Commerce. He has run 25 marathons and one Ironman race. Brent has been married for 29 years. He was born in Montana, and attended the University of Minnesota and Birmingham University without ever getting his degree.

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