Donating can increase your revenues 10x times. 📈 Here’s how 👇
Being marketers we must learn how the big brands think! ðŸ§
Big brands don’t just donate towards environmental and social causes for the greater good, but their own good.🌳 👇Here’s why I say this:
As JP Morgan once said, A man always has two reasons for doing anything: a good reason and the real reason. This stands true when I mention why brands donate towards certain causes:
- Good Reason: To help the world get better.
- Real Reason: To increase their revenues.
Here’s how it works for brands:
👉 Donation changes the mental willingness to pay.
Let’s say a brand increases the prices to generate more revenue, people get baffled and complain that the companies are here to loot the common people. And at the same time, when the brand donates a % of the revenue to a cause, the mental willingness to pay changes.
You suddenly become more likely to pay, given that your innate feeling of helping someone is triggered. How you perceive a brand & where your money goes are far more important to your brain.
👉 It shapes the perception of the brand.
When people judge a brand, they look at numerous aspects and not just the product. Donating towards a cause lets businesses capture what we call a ‘Halo Effect’. This is a cognitive bias that suggests that impressions of people, brands, and products in one area positively influence our feelings in another area.
So, if a brand is doing something good for society, it’s bound to be good. Isn’t it? So you must buy only from them.
📢 I have an example to explain this — Nomadlist.com is an online platform that finds you the best places in the world to live, work and travel as a remote worker. On starting donating a % of revenue towards removing CO2 from the atmosphere, their conversions increased by 200%.
Do check out how: https://twitter.com/levelsio/status/1356685990354649089
What instances can you recall from your shopping experiences? Have you been paying more to the brands when they claim to do something good for society? Think about it, once more!
Also, being a marketer or a business-person, you can too try to leverage this phenomenon and get started with increasing your revenues.
I write stories about marketing, branding, and business in general. Consider following if you liked this piece. ðŸ§
