How to Build a Thriving Business by Giving Back
Humblicity.com
Give to ReceivePurchasing decisions are becoming increasingly influenced by the impact a business has upon society as a whole.
Consumers consider a company’s social and environmental commitment before making important decisions:
What companies you want to see doing business in your
community
Which products and services to recommend to people
What to buy or where to shop
VERY/SOMEWHAT Important (net)
VERY Important
Giving Gets Results
The Impact of Giving Back: Case Study
The Concept
• Started with $500,000 in funding• “One for One” model
– Inspired by personal call to action during trip to Argentina
– Product goes back to impoverished communities
– Combats basic apparel and health issues for children
• Sustainability– No matter the business, it needs to be sustainable
• Publicity– Reliance on word of mouth, social media, and viral marketing– Promotional events to support the cause in question
• Offering & Impact– Emphasis on something unique and rewarding for the
consumer– Inspiration and motivation for action by consumers
How it Works
The Impact and Result• Over 45M pairs of shoes donated• Loyal following, especially Millennials• 2013 estimated revenue of $250M• 2014 Reuters valuation of $625M• Expansion into Eyewear, Coffee, Bags, and Backpacks
Tom Shoe’s Business Model Impact
• Confirms the importance of community involvement
• Customers loyalty increases when businesses link their profitability with community improvements
• Validates the hybrid philanthropic for-profit business
• Sets precedent for corporate social responsibility as vital for all businesses
“It takes 20 years to build a reputation and five minutes to ruin it.” - Benjamin
Franklin,Founding Father
Putting It In Focus
Selecting Your Cause
• The organization you support is the foundation for your image– Identify the community/group you want to support– Examine the cause/issue you want to resolve– Partner with those that will assist in your work
• The goal needs to be:– Relevant– Tangible– Realistic
Understanding Your Market
•Convey your business goals and intentions to consumers through mediums they use•Analyze your market and identify your
demographics•Focus your advertising and branding towards
your largest potential customer groups
• According to the National Restaurant Association survey:–80% of consumers agree that restaurants are good corporate citizens
–72% of consumers agree that operators give back to their community
–9 in 10 restaurants are involved in community service
–94% of restaurants make charitable contributions
–$3 billion is donated by the restaurant industry annually
Enhancing Your Image
Movement of Market Trends• Market Trends in
recent years have shifted towards social media platforms due the success of reaching multiple crowds at once
• Business have to rely on these new market trends to enable them to stay in business
The Importance of New Market Trends
• New Millennials are setting the standard for modern society and dictating how businesses will market to them
• The future of what market trends they want to see happen
“{While} its primary purpose is to serve society, a social business has products, services, customers, markets, expenses and revenues like a ‘regular’ enterprise ... It is a no-loss, no-dividend, self-sustaining company that repays its owners’ investments”
- Muhammad Yunus,founder of Grameen Bank
Corporate Social Responsibility
Shifts of Corporate Philanthropy Corporate giving relies upon the decision making of higher management, which creates a disconnect between who the customers support and the efforts that are funded.
Corporate Philanthropy = Competitive Advantage
How can solve this issue?
• Look to alternative advertising channels that appeal to customer interests
• Understand public opinion and support community initiatives
• Fund charitable activities that inherently improve the local community and consumer base
Support the Community & Gain Customer Loyalty
The Movement towards Corporate Social Market
CSM Programs can help build brand equity:• Building brand awareness• Enhancing brand image• Establishing brand credibility• Evoking brand feelings• Creating a sense of brand community, and • Eliciting brand engagement
Final Thoughts • A thriving business is built upon
strong community support and customer loyalty
• Community-focused businesses command the support of consumers and prominence within society
– Prioritize establishing strong customer relationships and involvement within the community
• Success, customer loyalty, and long term profitability are rooted in a business’s ability to become a part of the community
