America's Charity Checkout Champions

Transcription

1 America's Charity Checkout Champions Top Campaigns That Inspired Consumers to Donate at Point of Sale in 2012 America's Checkout Charity Champions Page 2 Tips for Point of Sale Campaign Success Page 7 The 2012 List of Million- Dollar- Plus Campaigns Page 8 Cause Marketing Forum, Inc. (914) info@causemarketingforum.com

2 AMERICA S CHECKOUT CHARITY CHAMPIONS 2012 s Top Point of Sale Donation Programs: A Cause Marketing Forum Report In the United States, it is common to be asked to donate spare change or give a dollar to a good cause when shopping or dining out, but until now no data has existed on the scope of such corporate- backed charity checkout campaigns. In the Spring of 2013, the Cause Marketing Forum analyzed the largest programs to better understand how much this form of fundraising generates for charity each year, the benefits to participating companies and best practices for creating more successful programs. More than $358 million was raised in 2012 by an elite group of 63, million- dollar- plus charity checkout campaigns identified by Cause Marketing Forum. In aggregate, these large point of sale donation programs have raised over $2.3 billion over three decades. $358.4 Million total DONATIONS RAISED IN 2012 BY 63 MILLION-DOLLAR-PLUS CAMPAIGNS While most initiatives involve brick- and- mortar retailers, the number one consumer donation- THE BIG THREE producing program in 2012 was ebay Giving Works: its US participants generated more than $54 million for thousands of nonprofits. Throughout the year, ebay Giving Works empowers sellers to 1 earmark a percentage of their sales proceeds to charity and also invites buyers to make voluntary contributions. Since 2003, ebay Giving Works has generated over $240 million in charitable donations in the US alone. 2 The largest in- store program of 2012, a six- week Miracle Balloon Campaign by Walmart and Sam s Club, brought in $41.6 million to benefit Children s Miracle Network Hospitals (CMNH). 3 Consumers purchased paper balloon icons at checkout in more than 4,000 stores to support the national network of pediatric hospitals. Since 1987, the annual campaign by Walmart and Sam s Club has raised more than $556.8 million for CMNH. The third largest consumer donation campaign was a year- round coin collection effort at 13,000+ COIN COLLECTION McDonald s restaurants that raised $27.9 million in 2012 to benefit Ronald McDonald House Charities. Between 1992 and 2012, the program raised $227.4 million. $27 million $27,900,000 TO RONALD MCDONALD HOUSE CHARITIES VIA COIN DONATION Miracle Balloons $41 Million to the Children s Miracle Network Hospitals via paper Online Donations $54 million TO OVER 22,000 NONPROFITS VIA BUYER AND SELLER 2

3 The data collected by Cause Marketing Forum on the largest programs is just the tip of the iceberg. For each of the 63 million- dollar- plus point- of- sale campaigns identified in this study, Cause Marketing Forum estimates there were hundreds of smaller campaigns fielded by businesses large and small, each of which raised thousands to hundreds of thousands of dollars annually. This report does not equate bigger with better; resource limitations led us to focus on programs that generated $1 million or more. There were also some multi- million dollar campaigns in 2012 for which Cause Marketing Forum could not obtain data. The goal of this report is to provide a window into how much is being raised by consumer donation campaigns, describe the techniques being used and offer tips on creating successful programs. It concludes with a list of 63 initiatives that generated more than $1 million for charity in About the Checkout Charity Champions Methodology: Cause Marketing Forum combed through public data to identify the largest point of sale donation programs and asked companies and nonprofit organizations to provide campaign details in the spring of We relied on publicly available information such as annual reports or press releases when companies or nonprofits declined to provide information for the study. Information based on public information is footnoted in the report. To qualify for inclusion, a Charity Checkout Campaign had to invite consumers to make donations at point of sale and had to have raised at least $1 million in consumer donations in Only program activity in the United States was included in the study. The Biggest Beneficiaries Children s health charities were the beneficiaries of a whopping 47% of total dollars ($168.4 million) generated by point of sale donation campaigns measured in this study. Two giants in CHILDREN S HEALTH CHARITIES COMPRISED 47% OF TOTAL DOLLARS RAISED this space include St. Jude Children s Research 3

4 Hospital and Children s Miracle Network Hospitals, which raises money for a network of 170 hospitals throughout North America. Clearly, helping sick children is a compelling ask. Charities fighting disorders and diseases received the second largest share of donations: 21.2% ($76 million) of dollars raised went to groups fighting conditions such as autism, breast cancer, cystic fibrosis and muscular dystrophy. Top Industry Sectors Four industry sectors dominated this collection of campaigns generating $1 million: Mass merchandise/club stores (Walmart/Sam s Club, jcpenney, Kmart, TJX, and Costco) rang up $72.6 million for good causes, a 20.3% share of dollars raised. The online sector (ebay and Apple) brought in 16.6% of donations. The supermarket sector (Safeway, Food Lion, Stop & Shop, Publix) carted in $52 million for a 14.5% share. Casual dining/quick serve restaurants (McDonald s, Yum! Brands, Chili s Grill & Bar, Wendy s, Arby s and Joe s Crab Shack) collected $51 million in donations, 14.2% of the total. Tactics: Consumer donation cause marketing campaigns can take many formats. The most popular include: Icon/Pinup: At checkout, consumers are asked if they d like to purchase what is typically a paper icon (e.g. a sneaker or pink ribbon) for a set dollar amount (usually $1, $3 or $5) to benefit a designated charity. The icon is then displayed in the store. Partners of Children s Miracle Network Hospitals have raised hundreds of millions through the group s Miracle Balloon pinup program over the years. Donation Request: Similar to the pinup program above, consumers are asked to make a flat donation upon checkout, typically in a fixed dollar increment. Coin Collection: A canister, box or other collection device is placed at point of purchase with messaging on where a consumer s spare change will be donated. Ronald McDonald House Charities received $27.9 million in 2012 from coin collection in over 13,000 McDonald s locations. 4

5 Round-up: Consumers are asked upon checkout if they d like to round up their purchase to the nearest dollar increment with the overage going to a designated charity. For example, if a consumer agrees to round up a $12.47 purchase, $.53 goes to charity and the consumer pays an even $ jcpenney raised $10.4 million in 2012 over 6 months using this tactic to benefit 7 nonprofit organizations. Incentives: A popular way to stimulate greater participation in consumer donation campaigns is to offer an incentive. Incentives regularly used include a coupon for future purchase at the participating retailer or a collection of offers from other companies. These incentives entice consumers to donate, make the ask from cashiers a bit easier and, structured properly, can provide valuable data to measure sales impact for companies. Via their Give, Get and Save the Rainforest campaign, for example, Macy s raised $3.2 million for The Nature Conservancy by giving shoppers who made a $3 contribution a discount coupon. Longevity: Many of these campaigns have been around for years, creating brand affinity and campaign consistency for the nonprofit and the participating company. The longest running campaign in this survey, a partnership between Kmart and the March of Dimes, began in The campaign raised $8 million in 2012 and raised a grand total of $106 million for the charity between 1983 and Business Benefits: In our years of reviewing these programs at the Cause Marketing Forum, we ve seen how charity checkout campaigns can provide business benefits such as driving store traffic, stimulating sales through associated coupon redemption and elevating employee job satisfaction. Executives behind some leading programs shared these thoughts on the win- win nature of such initiatives: Greg Pedone, General Manager of ebay Giving Works, told us: "As a leading charitable giving platform, we understand the power of our global commerce networks and technologies to enable our community of over 112 million to support the causes they care about most. Over the past decade, our giving programs have raised more than $350 million for more than 30,000 organizations all around the world. And in addition to all the social impact these funds have enabled, we're also realizing important business benefits as a result of our efforts to scale charitable giving. We're deepening relationships with our buyers and sellers, building new partnerships with celebrities and retailers, and 5

6 innovating our tools and technologies to drive anywhere, anytime shopping and giving. Walgreen Co. s Bonnie Gordon said that Doing good equals doing good business. There IS value in cause marketing. One of the top business benefits of Walgreens Way to Well initiative is to (b)uild Walgreens brand preference and differentiation, ultimately increasing consumer basket and trial of health and wellness services, she said. Holly Thomas, VP of Cause Marketing for Macy s, shared, Point of sale charitable donation campaigns have been a very important strategy for Macy's, working with national partners such as Reading Is Fundamental, the American Heart Association's Go Red for Women movement and March of Dimes to name a few. Our entire organization is energized by the success of these campaigns, and our customer appreciates the easy opportunity to give back - that when compounded across the country, adds up to big results for our charity partners. We believe in long- term partnerships where - together with our customers - we can drive real social impact through a sustainable business model. We are proud to celebrate decade- long partnerships this year with Go Red for Women, Reading Is Fundamental and Make- A- Wish. Together, these 3 partnerships have totaled more than $128 million in fundraising. Conclusion: The data and insights contained in America s Charity Checkout Champions makes it clear that point of sale donation campaigns should be taken seriously as a source of charity funding and a vehicle for companies to do well by doing good. Cause Marketing Forum intends to track progress in this field and invite all companies and causes to join us in celebrating outstanding efforts and sharing best practices in producing sustainable programs that generate social and business benefits. For more information, please contact info@causemarketingforum.com. 6

7 7 TIPS FOR SUCCESS IN POINT OF SALE CAMPAIGNS Children s Miracle Network Hospitals Chief Corporate Partnerships Officer, Clark Sweat, has the following tips for creating point of sale programs that pack a punch with consumers. 1) Select the right partner To ensure an authentic partnership, there must be a natural fit between nonprofit and corporate brand, including a corporate culture that sees eye to eye. Logistically, this means a high traffic location that matches well with your brand footprint (local, regional, national). 2) Educate employees - If the people selling your campaign don t buy into the importance of the program, results suffer. It s critical to provide support and training to these key front- line ambassadors at the register as well as tactics to bolster confidence to make a consumer ask with each transaction. 3) Create professional materials - There are many logistical challenges that accompany retail- based programs. Well- designed materials that demonstrate impact can ensure your boxes get opened on site, and systems to track delivery and simplify the reordering process are critical. 4) Build Incentives for customers Whether it s offering coupons for future purchase or simply providing a choice of multiple giving levels, consumers are more likely to make a donation if there s something to entice them to do so. 5) Involve vendors to build a total store event Some of the most powerful programs leverage key vendors so that the promotion becomes more visible throughout the entire store and prepares the customer for an ask upon checkout. 6) Analyze the data - Campaign analytics are of critical importance and should be examined daily during the campaign in order to proactively identify challenges or replicate wins. 7) Recognize and thank When the campaign s over, it s not over yet. It s essential to provide campaign results both to employees and consumers after the conclusion of the campaign for a comprehensive experience. 7

8 THE LIST ebay Company Name WalMart and Sam's Club McDonald's Costco Wholesale Safeway Safeway Charitable Beneficiary Year Initiated Final Donation 2012 Total Campaign Donation Since Inception Over 22,000 Nonprofit organizations 2003 $54,020,000 $240,968,189 Hospitals 1987 $41,643,464 $556,750,072 Ronald McDonald House Charities, Inc $27,900,000 $227,400,000 Hospitals 1988 $14,444,331 $136,649,713 Hundreds of nonprofit organizations 2001 $12,350,561 $107,516,468 Easter Seals Special Olympics Rebuilding Together Multiple local nonprofits 1986 $9,237,548 $139,000,000 Safeway The Prostate Cancer Foundation 2001 $9,235,491 $84,932,527 Walgreen Co. Susan G. Komen for the Cure 2011 $8,541,403 Kmart March of Dimes 1983 $8,000,000 $106,000,000 Safeway Lowe's* Kmart* Pizza Hut CVS/Pharmacy Speedway Rite Aid The Muscular Dystrophy Association (MDA) 2002 $7,607,677 $68,782,673 The Muscular Dystrophy Association (MDA) 2001 $7,600,000 $30,000,000 Hospital 2006 $7,500,000 $37,000,000 United Nations World Food Programme 2007 $7,400,000 Hospital 2004 $6,400,000 $37,446,525 Hospitals 1991 $6,272,307 $50,000, Hospitals 1994 $6,000,000 $56,000,000 itunes American Red Cross $5,300,000 Walgreen Co. American Red Cross 2011 $5,287,932 CVS/Pharmacy Chili's Grill & Bar* Food Lion ALS Therapy Alliance Cystic Fibrosis Foundation 2002 $5,200,000 $30,274,639 Hospital 2002 $5,059,671 Hospitals 1991 $5,000,000 $45,000,000 Macy's Reading is Fundamental 2004 $4,800,000 $27,000,000 Dick's Sporting Goods* Taco Bell Hospital 2007 $4,800,000 $22,000,000 Taco Bell Foundation for Teens Various Nonprofit Organizations 2010 $4,200,000 $10,000,000 Toys "R" Us Toys for Tots 2004 $4,000,000 $31,600,000 ANN INC. Williams Sonoma* Hospital 2007 $4,000,000 $15,800,000** Hospital $3,800,000 Spirit Halloween Over 130 children's hospitals 2006 $3,500,000 $11,000,000 jcpenney Salvation Army 2012 $3,400,000 Walgreen Co. American Diabetes Association 2011 $3,253,394 8

9 Macy's The Nature Conservancy 2012 $3,200,000 Food Lion Easter Seals 2004 $3,100,000 $16,000,000 Macy's March of Dimes and 8,000 local nonprofits 2006 $3,100,000 $42,000,000 Toys "R" Us Autism Speaks 2007 $3,100,000 $13,300,000 GNC* Hospital 2006 $3,100,000 $10,000,000 Stop N Shop The Jimmy Fund 1995 $3,000,000 $50,000,000 Wendy's Dave Thomas Foundation for Adoption 1996 $2,790,000 $20,000,000 Arby's Share Our Strength 2011 $2,665,129 $4,170,000 Publix New York & Company* Corner Stores Claire's* 21 Hospitals 1992 $2,507,029 $23,576,549 Hospital 2008 $2,500,000 $10,000, Hospitals 1997 $2,357,229 $16,902,450 Hospital $2,000,000 jcpenney USO 2012 $1,900,000 Toys "R" Us Sears Alex's Lemonade Stand Foundation 2011 $1,900,000 $3,400,000 Rebuilding Together and its 200 local affiliates 2007 $1,800,000 $15,500,000 Sunglass Hut One Sight 2006 $1,792,445 $6,700,000 jcpenney Breast Cancer Research Foundation 2012 $1,600,000 Circle K American Red Cross 2010 $1,513,160 $3,000,000 Ace Hardware jcpenney Hospitals 1991 $1,500,000 $50,000,000 4H Boys & Girls Clubs 2012 $1,490,000 Finish Line* Special Olympics $1,450,000 Love's Travel Stops & Country Stores Hospitals $1,432,911 Wells Fargo American Red Cross $1,400,000 Brooks Brothers Hospital Make-A-Wish Foundation 2005 $1,350,693 $7,785,000 Jiffy Lube Muscular Dystrophy Association $1,250,000 Famous Footwear March of Dimes 2003 $1,245,000 $11,195,000 JP Morgan/Chase American Red Cross 2012 $1,198,324 American Airlines U.S. Fund for UNICEF 1994 $1,185,740 $8,880,407 Kia Motors DonorsChoose.org $1,150,000 jcpenney Share Our Strength 2012 $1,100,000 TJX Companies American Red Cross 2012 $1,030,331 Joe's Crab Shack Share Our Strength 2005 $1,013,998 $2,400,000 Family Video Lymphoma Research Foundation $1,000,000 * Data gathered from publicly available sources (see Appendix A) ** Reflects several programs 9

10 Appendix A Lowe's* Kmart* html VgnVCM e2015acRCRD Chili's Grill & Bar* Dick's Sporting Goods* Williams Sonoma* GNC* New York & Company* Claire's* and VgnVCM e2015acRCRD&SearchUrl=search_results.jsp&QueryText=chili's VgnVCM e2015acRCRD VgnVCM e2015acRCRD html VgnVCM e2015acRCRD VgnVCM e2015acRCRD Finish Line* 10