Giving Tuesday is the perfect opportunity to connect with customers, drive growth, and do good for your community. And, after the year we’ve all had, it is an opportunity most businesses cannot afford to pass up.
What Is Giving Tuesday?
Giving Tuesday is an annual day held on the Tuesday after Thanksgiving. First created in 2012, it was established as a global movement by the 92nd Street Y and the United Nations Foundation as a response to Black Friday and Cyber Monday shopping season. It has since grown to become a popular movement.
In 2019 Giving Tuesday participants raised $511 million in the U.S. and $1.97 billion since inception.
What This Means for Businesses
Giving Tuesday is a must for any brand that wants to drive growth while they also do good. And, frankly, there’s no growth without good.
The purpose-driven consumer is the majority across every demographic. That’s because consumers’ behavior has made a seismic shift. They are now focused on addressing social issues in an effort to realize a healthier, cleaner, more inclusive world. Making Giving Tuesday a huge opportunity to attract many of these socially-mindful shoppers.
In other words, there has never been a better time for businesses to demonstrate their commitment to a purpose that extends beyond profits. Consider the fact that over half of shoppers — 68 percent — expect companies to spend its government funding for the benefit of their employees and the community. Being self-serving is no longer the fashion. Conversely, with the rise of cancel culture, it is like taking the express lane to being ‘canceled.’
How Giving Tuesday Helped Businesses
Here are a few companies that were able to drive growth and do good with cause-marketing campaigns for Giving Tuesday 2019:
- Kindful saw a revenue increase of 50% and a 1,151% increase in the number of donations
- Engaging Networks saw an increase of 22.18% and a 15.5% increase in gifts made from a mobile device
- Neon One raised $36,556,745 and NeonCRM clients saw an increase of 36.7%
The best perk of Giving Tuesday campaigns is the fact that you’re actually doing some much needed good. Here are some of the social impact that other businesses were able to realize:
- Facebook raised $120 million as a result of 1.1 million people creating fundraisers that benefitted 97,000 organizations
- PayPal raised $106 million and matched 10% of all donations on that day
- Coca-Cola matched $100k in donations to its nonprofit partners
- TOMS Shoes kept its stores closed nationwide until 1:00 pm to give employees a chance to volunteer at local organizations
A Well-Paying Opportunity, But Brands Beware
While it bears repeating that social impact is among the top shopping motivators today, a caveat follows: After taking a sharp plummet in Q2 because of the pandemic, consumer spending is not expected to make a significant recovery within the foreseeable future.
This means businesses will find it increasingly difficult to drive repeat purchases this holiday season. It is wise, also, to take note of how the effects of COVID-19 on consumer behavior are manifesting elsewhere:
Foot traffic and in-store capacities have been greatly limited.
This further hinders the ability to drive more sales. Not to mention, as it were, in 2019, in-store traffic was already down by 4.2 percent.
Big box retailers are eating away at market share.
Home Depot, for example, is stretching holiday specials to last almost 2 months. And that’s just 1 of may examples. This makes it incredibly difficult for small brands [<$5B ann.] to remain competitive.
Over-discounting would literally kill already thin margins.
With consumer spending already low, most businesses cannot afford to over-discount this holiday season. Discounts of 37-47 percent — the average in 2019 — would effectively destroy on margins.
But! The shift in consumers’ values means people are now voting with their wallets. They are actively prioritizing the brands whose values align with their own. Creating a huge opportunity for smaller brands to maximize sales this holiday shopping season.
And, the change is permanent. After witnessing and, in many cases, experiencing the devastations of COVID-19 firsthand, shoppers have become much more mindful according to a recent study by Accenture:
- 64 percent are less inclined to shop on Black Friday
- 60 percent are less likely to shop on Cyber Monday
- 76 percent wants retailers to close on Thanksgiving so workers can spend time with families
- 61 percent plan to minimize in-store shopping to reduce health risks to retail workers
The Silver Lining
While these statistics signal an unfavorable holiday season for your business, there is a pathway that you can take as your road to success. It is a roadmap to increased holiday sales and higher customer acquisition while establishing your business as an ally of social impact.
Drive Growth and Do Good this Giving Tuesday
Givz is designed to enable brands to sell more, engage better, and maximize margins, all while doing good.
With Givz, you can convert discounts into donations, so every time a customer makes a purchase, they’re given charitable dollars to donate to any U.S. charity of their choice. Everything happens after checkout – so there’s no added friction. And, unlike discounts that are immediately applied, customers must act to redeem their charitable dollars post-purchase.
We enable you to meet the new customer demands, maximize profit margins, and send real help to charities in need.
The results that we deliver to our clients:
- 20% increase in sales
- 75% cost-reduction compared to discounts — maximizing margins
- 7x engagement
Stand Out With Givz
Let us help you to drive growth while doing good this Giving Tuesday. To learn how, shoot us an email and one of our dedicated growth specialists will reach out with a free custom growth strategy that is designed for success and grounded in impact.