How to Build a Thriving Business by Giving Back

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<p>How to Build a Thriving Business by Giving Back</p> <p>How to Build a Thriving Business by Giving</p> <p>Give to ReceivePurchasing decisions are becoming increasingly influenced by the impact a business has upon society as a whole.</p> <p>Consumers consider a companys social and environmental commitment before making important decisions:What companies you want to see doing business in your communityWhich products and services to recommend to peopleWhat to buy or where to shop</p> <p>VERY/SOMEWHAT Important (net)VERY ImportantGiving Gets Results</p> <p>The Impact of Giving Back: Case Study</p> <p>The ConceptStarted with $500,000 in fundingOne for One modelInspired by personal call to action during trip to ArgentinaProduct goes back to impoverished communitiesCombats basic apparel and health issues for children</p> <p>SustainabilityNo matter the business, it needs to be sustainable PublicityReliance on word of mouth, social media, and viral marketingPromotional events to support the cause in questionOffering &amp; ImpactEmphasis on something unique and rewarding for the consumerInspiration and motivation for action by consumersHow it Works</p> <p>The Impact and ResultOver 45M pairs of shoes donatedLoyal following, especially Millennials2013 estimated revenue of $250M2014 Reuters valuation of $625MExpansion into Eyewear, Coffee, Bags, and Backpacks</p> <p>Tom Shoes Business Model ImpactConfirms the importance of community involvementCustomers loyalty increases when businesses link their profitability with community improvements Validates the hybrid philanthropic for-profit businessSets precedent for corporate social responsibility as vital for all businesses</p> <p>It takes 20 years to build a reputation and five minutes to ruin it.</p> <p>- Benjamin Franklin,Founding Father</p> <p>Putting It In Focus</p> <p>Selecting Your CauseThe organization you support is the foundation for your imageIdentify the community/group you want to supportExamine the cause/issue you want to resolvePartner with those that will assist in your workThe goal needs to be:RelevantTangibleRealistic</p> <p>Understanding Your MarketConvey your business goals and intentions to consumers through mediums they useAnalyze your market and identify your demographicsFocus your advertising and branding towards your largest potential customer groups</p> <p>According to the National Restaurant Association survey:80% of consumers agree that restaurants are good corporate citizens72% of consumers agree that operators give back to their community9 in 10 restaurants are involved in community service94% of restaurants make charitable contributions$3 billion is donated by the restaurant industry annually</p> <p>Enhancing Your Image</p> <p>Movement of Market TrendsMarket Trends in recent years have shifted towards social media platforms due the success of reaching multiple crowds at once</p> <p>Business have to rely on these new market trends to enable them to stay in business</p> <p>The Importance of New Market TrendsNew Millennials are setting the standard for modern society and dictating how businesses will market to themThe future of what market trends they want to see happen </p> <p>{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</p> <p>- Muhammad Yunus,founder of Grameen Bank</p> <p>Corporate Social Responsibility</p> <p>Shifts of Corporate Philanthropy </p> <p>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 </p> <p>How can solve this issue?Look to alternative advertising channels that appeal to customer interestsUnderstand public opinion and support community initiativesFund charitable activities that inherently improve the local community and consumer baseSupport the Community &amp; Gain Customer Loyalty</p> <p>The Movement towards Corporate Social MarketCSM Programs can help build brand equity:Building brand awarenessEnhancing brand imageEstablishing brand credibilityEvoking brand feelingsCreating a sense of brand community, and Eliciting brand engagement </p> <p>Final Thoughts A thriving business is built upon strong community support and customer loyaltyCommunity-focused businesses command the support of consumers and prominence within societyPrioritize establishing strong customer relationships and involvement within the communitySuccess, customer loyalty, and long term profitability are rooted in a businesss ability to become a part of the community</p>