Your Shopping Cart is Missing the One Thing Your Customer Cares About

How much belief-driven revenue could you have potentially earned this holiday season?

Another maniacal holiday shopping season has passed us by, almost as fast as it came hurling in. All those gifts we spent hours searching for to show our loved ones we really, really care, are now tucked away in our everyday lives.

In a time of the largest consumption of goods, why is that we feel a little empty after the holidays? Could it be that we are not seeing the bigger picture? Have we realized the potential opportunity that presents itself every holiday season? We’re talking about something bigger, better, more impactful than all the matching pajama sets Grandma gives us every year.

The “holiday spirit” is not only found in gifts, it’s found in giving back. It’s the one thing that makes an impact well after the pine needles are swept up.

“Nonprofits raise 50% of their revenue the last 6 weeks of the year.” — CBS News

Over the past few years, waves of people have increasingly begun to weave social awareness into their daily lives, routines and purchasing behaviors. Our collective sense of charity is now reflecting buying behavior. According to the 2018 Edelman Earned Brand survey,

“64% of people are now belief-driven buyers who choose, switch, avoid or boycott a brand based on its stand on societal issues.”

Why shouldn’t consumers also expect the brands they support and purchase from to act as an extension of their own beliefs and causes?

This expectation is here to stay; well past the giving back season. People have only become increasingly more aware of the social issues and causes they care about. So much so that according to the Edelman Earned Brand Report of 2017,

“65% of belief-driven buyers will not buy a brand because it stayed silent on an issue.”

In order for brands to ramp up their giving, they need to ensure that charitable giving helps grow the business — and share up the ladder a way to calculate the actual value of having an impact strategy for earning these customers.

Can you answer the question “how much belief-driven revenue you could have earned this holiday season?”

In today’s online retail environment, in which all the slack has been driven out of the system by competition, decision makers look, to account for the quantitative return on every marketing dollar spent on attracting, converting and retaining customers. Return on Ad Spend (ROAS) represents an accounting of the result of every dollar spent on a marketing campaign to attract, convert, and retain customers.

This metric, though, leaves a lot on the table.

If you’re interested in attracting and retaining cause-focused customers, how do you account for the money spent on matching or initiating donations? In other words, what is your Return on Donation Spend (RODS), or your potential return for every dollar donated?

How do you create an impact with these customers while keeping their purchasing experience simple?

Change Commerce® Calculator

We asked ourselves the same thing at ShoppingGives. It’s why we came up with our retailer program, Change Commerce.

Change Commerce is our retail shopping cart technology that allows customers to choose which cause or charity they direct charitable dollars to, during checkout. The customer gets to choose their recipient, at no additional cost to them. It’s a new way of communicating value to the customer around their impact and giving.

To illustrate the impact a retail brand can have by speaking to potential belief-driven customers, we developed a calculator to help you measure the impact and lifetime customer value of building donation into the cart environment using Change Commerce. Here’s how it works:

You enter a few basic metrics:

  • Average monthly users
  • Average order value
  • Average conversion rate
Change Commerce Impact Calculator

From there, we plug in ShoppingGives data derived from averaged results of existing Change Commerce customers. We generate three estimates:

  • Total Donations Generated: the total charitable impact you can generate annually based on your current traffic and order value.
  • ROI for your impact: your net revenue increase generated from customers pushed over the edge of conversion due to your charitable giving, and
  • Return on Donation Spend (RODS), which indicates the potential return on every dollar donated in the cart environment on your eCommerce site.

Here’s an example…

Let’s imagine a retail site with 56,000 average monthly users, an average order value of $75, and an average conversion rate of 2.5%. Based on ShoppingGives data generated from existing Change Commerce customers, we would expect annual total donation impact to lie at $13,630, with an ROI on the donation technology of $82,510, and a RODS of $4.04.

What does all this mean?

That brands can better reach belief-driven customers on the brink of conversion. It’s critical to today’s retail customers that the brands they support also support the causes and organizations they care about — and now it’s possible to know the value of a dollar spent on donation. Ultimately, you can create impact both for the causes your customers care about, and the business you’re building.

Head over to our Change Commerce Calculator, and plug in a few of your eCommerce metrics to see what your RODS might be for 2019. We’d love to hear what you think in the comments or through our site.

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ShoppingGives

ShoppingGives

The simple and native solution for eCommerce and Direct-to-Consumer brands to seamlessly give back.