Donations instead of codes

How Offering Donations Instead of Discounts Can Increase Your Conversion Rate

Have you ever considered offering donations instead of discounts to increase your conversion rate?

Andrew Forman -

Offering Donations Instead of Discount Codes Increases Conversion Rates with Andrew Forman

Tis’ the season to give! We interview Andrew Forman with Offering a discount isn’t always the best idea when enticing people to buy. Andrew walks us through how offering donations and giving to charity instead of discount codes increases your conversion rate. We discuss why discounts are problematic for the long-term profitability of a business and how brands are embracing the move towards social good. Andrew explains how giving away money will outperform a traditional discount – It is true! This is a timely episode as we are coming up to Give to the Max Day.

Why Offering Donations Instead of Discount Codes Increases Your Conversion Rate

Money is king. A massive portion of your company’s annual profits is made through money spent on direct mail, promotional, and ad spending.

One of the most significant issues with discounts is that it’s just a temporary hit to your bottom line, and all it does is increase your expenditure on mailing lists.

Why is Money Really King?

A recent article from the Financial Times revealed that the average luxury brand spends around $3 million on mailing lists alone. This doesn’t take into account the amount of time people spend browsing their emails.

Offering a discount code is a quick solution to an easily solved problem by having an intelligent email list manager build out your prospect list.

The Problems With Offering Discount Codes

The best online stores that we interact with daily are giving discount codes simply because they want to be part of our daily lives.

Giving away discounts to get users to do things they don’t want to do is like training a dog to do a specific task without the owner’s consent. If you are preparing a dog to pull a wagon, is this ethical? Is this ethically right if you’re training a dog to do something more helpful, like picking up litter?

Discount codes are a privilege to be had because most of us are content to give them away.

The Benefits Of Offering Donations

Of course, to offer up a donation instead of a coupon, the first question you should ask is why you’re doing this. Why not just use your standard discount code?

This is where you get into the whys, when, where, and how. It’s essential to figure out why you want to offer your customers a donation instead of a discount code.

It’s All About Impact

One of the most popular reasons to donate your discount code is because the customer is already involved in your business’ cause. In fact, 35% of customers are willing to support charities even if the cost is higher.

By offering them the opportunity to make a donation, you increase your impact and customer experience. You’re also making it easier for customers to make a difference, which you always want.

How Brands Are Moving Towards Social Good

Discount codes have been around for years, and it’s not a new concept. Yet even though this model has worked for so long, the times are changing, and brands are no longer interested in protecting profits at the expense of social good. In fact, there is a growing trend of brands taking the drastic step of totally boycotting discount codes in favor of generous approaches, such as promoting donation schemes.

Looking at this trend, it would seem that the future of a brand lies in focusing on making a social contribution. In order to do so, a brand needs to use every tool at its disposal, especially discount codes, to draw consumers to them. Some brands are so committed to building social value that they have abandoned discount codes altogether.


The rise in digital technologies and marketing innovations means that traditional ways of doing business will struggle to compete against the multi-channel and omnichannel environment created by companies in the modern era. While a move away from offering discount codes will initially see competition increase, those that adopt a different approach may be able to build long-term relationships with customers that work to their advantage in an increasingly competitive marketplace.