Giving is the new getting: 5 ways to elevate brand loyalty through philanthropy

TOMS. Bombas. Beauty Counter. Oatly. The Honest Company.

It’s astounding how these challenger brands have passed the pack, considering that their products alone are not notably better than the other mainstream options available. In fact, you could even argue that their product quality is not as good as that of their widely popular competitors.

So how’d these brands gain dominance? Their success lies in what they give away, not in their products themselves. 

There’s been a massive shift in buying habits of customers – partially to offset the guilt of how much we consume – and I’m sure you’ve seen how it’s affected your bottom line. 

Especially as Gen Z rises to spending prominence, they're more prepared to demand transparency and ethical operations from the places they patronize.

Your customers want to be generous

In a 2013 Cone Communications CSR study,

“93% of global consumers expect companies they do business with to support social and environmental issues.” 

Beyond focusing on your profits and customer satisfaction, there’s now a new ethical standard customers are looking at: your ethos. Conscientious consumers are demanding that companies pay attention to their own sustainability practices, and they want to see your CSR in action more than talked about in a press release. 

Reducing your carbon footprint, investing in DEI, improving labor policies, participating in fairtrade, and volunteering with a charity throughout the year are great first steps. But corporate social responsibility (CSR) doesn’t have to just be an internal initiative – you can get your customers involved, too.

And honestly, including your customers in your charitable efforts may be way more impactful and authentic. 

A fresh approach to brand loyalty

Imagine the brand loyalty that would flourish with a customer base that’s contributing to where their reward dollars go – and the brand affinity your business gets for stewarding that process. 

Plus, you’ll get to know your customers on a deeper level and connect with causes that they care about rather than just saying that you’re contributing to CSR. You can still offer monetary rewards and perks, but give your customers the opportunity to engage in philanthropy – even if it’s in a small way.

Here are 5 creative ways to build brand loyalty through showing customer gratitude in a new way:

1. Partner with local nonprofits. Allow your unique selling proposition (USP) to inform the types of nonprofits you should partner with – and don’t overthink it! People can smell out phony sponsorship from a mile away, so it has to make sense at a high level to be effective. For example, a hotel chain is in the business of comfort and temporary housing, so find nonprofits that support the same goal – perhaps an animal shelter or support for people experiencing homelessness. Supporting local nonprofits can even be effective beyond the dollar to share material goods like pillows, shampoos/conditioners or cleaning equipment to help offset their overhead. One more important note: If you’re giving to a nonprofit, extend that trust to how they handle your gifts and be generous with your support without strings attached. Philanthropy isn’t a gift if it takes more to manage you as a donor than it does to help the people who need it most. Nonprofits are always looking for invested business partnerships – here are 5 ways nonprofits are building trust with their donors.
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2. Tie customer purchases to donation-based perks. On the flip side of using your positioning to connect with a local nonprofit, consider how your products or services could individually be tied to a donation. Planting a tree for every product sold or donating a percentage of your sales could be a more effective way to make a practical contribution based on individual product purchases. These perks not only benefit the environment or community, but also help customers feel like they’re a direct part of making a difference, gamify the process, and enhance their connection to your brand. 
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3. Let customers choose their charity. Personalize the giving experience by allowing your customers to choose the cause their purchase supports. This helps to extend your reach beyond just one cause and see what causes resonate most with your customers. Pro tip: keep a pulse on this data and be willing to pivot depending on your region. But going back to our first tip – make sure that these causes align with your core offerings or it can feel like slapping a bow on a faulty gift. And a word of caution: too many choices can deter people from giving, so consider narrowing their choices down to 2-3 options, then update them over time. 
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4. Match your customers’ donations. For every dollar a customer donates through your platform or for a specific period, match their donation to double the impact. This can encourage more customers to participate in charitable giving, knowing their contribution will be amplified. Most nonprofits already know how to handle a matching campaign and it’s best practice to do this around November-December for end-of-year gifts, so start the conversation with your charity early in the 3rd quarter to get on their shortlist. 
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5. Invite your customers to join your CSR initiatives. Get creative with your assets. Many companies have large commercial spaces that are no longer filled with employees. How can you use that space after hours or to support your customers? Or use your large social media following or email list to shine a light on a local organization? For example, if there’s a commercial real estate space you’re trying to sell or lease, host a local art show that benefits some of your favorite artists and local nonprofits. You can also invite customers to participate in your volunteer activities, like community clean-ups or charity fundraisers – this will enhance their sense of belonging and loyalty.

Leverage “surprise and delight” for the greater good 

Generosity has a lasting impact on people’s hearts and minds, and embracing it can also create a positive impression on customers that keeps them supporting your business. But the key is in making decisions that are aligned with your brand and feel authentic.

Integrating creative and unexpected acts of giving into your business model will help to differentiate your company from the competition and build a loyal customer base that feels valued and understood.

By locking arms in charity work together, everyone wins. Your company cultivates a deeper connection with your customers, nonprofits get added brand awareness and support, and your customers can feel good about themselves by giving to a cause they love. Plus, you never know when an act of generosity or kindness will spark a lifelong passion for philanthropy!

Pushing the boundaries of CSR

Corporate Social Responsibility is now table stakes for doing business in 2024. I’d challenge you to take some time to think about how your business can surprise and delight your customers, while also engaging them in the process of deciding how you’ll give back – together – for the greater good. 

These 5 ideas are by no means an exhaustive list of options for how your business can use generosity to build brand loyalty – there are many loyalty program examples out there to learn from, but they’re a good start that will put your company years ahead of the competition and in lock-step with your customers.  

Incorporating these perks not only enriches the customer's experience but also strengthens your brand's commitment to social responsibility, creating a win-win scenario that boosts customer loyalty and community well-being.