The future of charity is undeniably intertwined with digital innovation
Why is it that corporations make up as a little as 5% of all charitable giving when we know that individuals and foundations represent a massive 87% of all giving, with as much as 40% of millennials enrolled in monthly giving programs. And why is that corporate America is ignoring this obvious engagement opportunity?
By enabling members to earn cashback and then opening real choice, marketers are discovering a powerful opportunity to re-engage with latent members and to acquire new customers. And we know that the more challenging the economic environment, the truer this statement becomes!
Many retailers are still working with the belief that their best strategy option is to ‘lock’ their valued customers into earning points that can only be spent back in their stores. On the contrary, the evidence suggests that in 2024, savvy customers are ‘moving on’ to retailers that empower them to elect how THEY wish to redeem their points, whether this be by taking their family on a holiday, purchasing that flat screen television, or supporting a cause that they care about.
After all, in 2024, one of the real take homes we are seeing around the globe; redemption IS retention! The question that many marketers ignore is: Is it more important to have the redemption spent back with you or to have a repeat purchase down the track? It really is a bit of a ‘no brainer’ when you think about it…remember, we’re talking the Google generation where comparison shopping is a given!
The introduction of loyalty programs offering charitable donations as an optional reward/incentive effectively democratizes the act of giving by making it accessible and equitable across all demographics and income brackets. This engagement opportunity enables the Host to engage with their customers regardless of age or economic status as every individual can now contribute to a cause they care about.
It's no longer exclusively a matter of personal wealth; instead, routine actions like everyday purchases can be transformed into opportunities for philanthropy. And note to the sceptics out there, it makes good business sense for the host business as well!
It's now also more and more common for members of one program to be able to swap points in one program for those in another. These mechanisms exist within a partnership ecosystem that is often anchored by one or more major brands such as Delta or Marriott’s Bonvoy and Uber as examples of many emerging in the past few years. Additionally, there are currency exchanges, like points.com where loyalty program members have multiple brands to pass points between but none that focus on passing points to charities with this ease of flow.
Consider also that despite the ubiquity of digital technology and the unparalleled access it provides to audiences worldwide, it is concerning that a whopping 52% of charities still do not have a digital strategy. And the proportion of digitally naïve represented by this statistic actually seems to be growing, indicating a resistance or hesitation to adapt to the modern digital landscape.
This reliance on traditional methods of operation, fundraising, and support may render these critical organizations vulnerable to stagnation. In an age where competition for attention and engagement is at an all-time high and where non-profit status does not guarantee audience leniency, the absence of a robust digital strategy can severely inhibit a charity's reach and impact.
Rapid technological evolution continually introduces new applications, productivity tools and innovative service delivery methods. However, the complexity of these developments can feel overwhelming, possibly discouraging organizations from venturing into burgeoning digital universes. Perhaps it is concerns over the difficulty of transitioning to a digital platform, the challenge of integrating new technologies, or the daunting task of maintaining digital tools that have kept so many charities rooted in traditional methods.
Knowing that the future of charity is undeniably intertwined with digital innovation, Points4Purpose is creating digitally enabled loyalty models that empower all individuals to make a difference in the world, magnifying the spirit of collective responsibility and humanity. For example, by creating an online points marketplace for charitable giving, this novel approach breaks down socio-economic barriers that have historically hindered widespread participation in charitable altruism.
With its powerful white label loyalty platform, Points4Purpose exists to alleviate these challenges and to turn these into engagement opportunities. Offering a comprehensive understanding of the digital landscape and its intricacies and a leadership position in charitable giving being enabled at global, regional, and local levels, Points4Purchase is guiding brands looking to incorporate charitable giving into their programs through diligent digital transformation.
