Many people have AirMile cards or cash rewards on a Costco card. They influence behaviour.
What if a card could help you save and invest?
How does brand loyalty affect a charity?
I have not found examples yet, but you can think about how valuable they might be. Here’s how it started for me.
Joachim Klement writes interesting columns. The one from 11 February addressed the issue of stock rewards instead of cash or other rewards.
I found an article from late 2020 that reported on a Harris Poll that found people would welcome the idea.
People are enchanted with the idea of having from 0.5% to 2% of their purchases turn into stock in specific businesses. It is an easy way to become involved in the stock market with a company and the products you use.
It pays off for the merchant too. The Klement article claims that traditional programs have a payback of $3.51 of extra sales for every $1.00 of reward. Not bad, but stock-based rewards resulted in $23 of new sales.
There is a strong link between what companies you own and how much you spend on their products. For companies that want to build loyalty, it is a profitable program.
We have seen similar outcomes in other situations.
Charities should address a similar idea approach and make it easier for their members to participate. Many charities have concerns that people will give less on an annual basis if they are working on a process that provides future capital. That seems to be an uncommon outcome. Most people involved with planned giving tend to give more in the present too. Commitment.
From a strategic point of view, begin with understanding what will identify and assist potential donors. Know how you will connect. It involves three aspects. What I think of as the Columbo Triad.
Show people a way to do something valuable for reasons they believe in and they will tend to do it.
In many ways, estate plans begin today.
Many opportunities are missed because the charity does not do enough to make it easy for a potential donor.
There are far more people who would like to donate than do.
Understand your purpose and how people can connect to it. Sometimes it is as simple as understanding brand loyalty.
There are more than 80,000 charities in Canada. That’s a lot of competition. The most capable are able to show why what they do matters. The ones who can connect and lead their members will survive.
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I build strategic, fact-based estate and income plans. The plans identify alternate ways and alternate timing to achieve both spending and estate distribution goals. In the past I have been a planner with a large insurance, employee benefits, and investment agency, a partner in a large international public accounting firm, CEO of a software start-up, a partner in an energy management system importer, and briefly in the restaurant business. I have appeared on more than 100 television shows on financial planning, have presented to organizations as varied as the Canadian Bar Association, The Ontario Institute of Chartered Accountants, The Ontario Ministry of Agriculture and Food, and Banks – from CIBC to the Business Development Bank.
Be in touch at 705-927-4770 or by email at email@example.com