BANK AND CREDIT UNION MARKETING

Incentives That Give Back

Incentives That Give Back

There’s a growing trend in the marketing world: incentives that give back. Unlike traditional incentives that offer a reward directly to the consumer (such as a gift card, coupon or entry into a drawing), give-back incentives instead offer the reward to a worthy cause or organization. For instance, your financial institution may promise to donate $25 to a local school when a consumer closes a loan with you. Or maybe you’ll offer to contribute a can of food to your local food bank for each consumer who signs up for e-statements.

The possibilities are endless – and so are the opportunities for making a positive difference in your community. Along with this undeniably wonderful benefit, here are a few more reasons why you should consider offering incentives that give back:

• They’re new and different.
Standing out in a saturated marketplace isn’t easy. But by replacing traditional incentives with give-back incentives, you have a better chance of catching the eye of socially-conscious consumers.

• They make the consumer feel good.
Simply put: It feels good to do good. So when a consumer helps a charitable organization through a company’s give-back incentive, it surrounds them with positive feelings about their interaction with you. This, in turn, means when the consumer needs financial assistance again in the future, they will likely turn to you first – remembering the positive experience they had with you previously.

• They portray you as a socially responsible financial institution.
These days, being socially responsible is a big deal – especially as Millennials begin to take over the market. According to statistics, 37% of Millennials will pay more for something if doing so helps to support a cause (blog.rackspace.com). What are the implications of this statistic? It means Millennials truly care about doing business with philanthropic companies, so a give-back incentive could be especially effective in acquiring business from members of this generation.

• They encourage word-of-mouth referrals.
The downside to a traditional incentive in which you enter consumers into a drawing is that it may discourage people from sharing the promotion with others. (Obviously, a consumer’s chance of winning is higher when there are fewer competitors in the pot, so you can see why people might be reluctant to get the word out.) But with a give-back incentive, everybody wins – and consumers who are passionate about the cause you are supporting will likely share your promotion with others, thereby drawing more business to your financial institution.

• They bring attention to the cause or organization.
If nothing else, offering a give-back incentive will provide an opportunity for you to shine the spotlight on a charity or organization that is trying hard to help those in need. Even if a consumer doesn’t take advantage of your offer, they may see the incentive details on your marketing piece and choose to make their own independent donation. It might not be the kind of win you had in mind, but it’s still certainly a win for mankind.

Inspired to give these give-back incentives a try? Talk to us today about how we can help!

Sources:
https://blog.rackspace.com/marketing-to-millennials
https://www.forbes.com/sites/sarahlandrum/2017/03/17/millennials-driving-brands-to-practice-socially-responsible-marketing/#66c85e864990
https://www.linkedin.com/pulse/whats-new-incentive-marketing-experience-cause-greg-canose/
https://www.entrepreneur.com/article/197820
https://www.marketingweek.com/2015/11/25/how-to-innovate-with-incentives/

 

Posted by Molly Kant - February 14, 2018