How to give back and make money

Read time: 4 minutes

Hey there 👋 - it's Brian.

I love giving back to the community. But it always felt like something you do to volunteer.

Then, I met another consultant who helped businesses fit social and environmental good ("Purpose") into their corporate strategy to make it financially attractive.

It hit me. If we can get businesses to find Purpose financially attractive we can motivate more businesses to prioritize their resources to make a difference.

In today's issue, I'll explain some best practices I used with my clients on how to make the world a better place while also making you more money.

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How American Express promoted a social cause to add 45% more customers

It's 1983. NY-based credit card company, American Express, wants to give back to their local community while growing their customer base.

The decide to help restore the Statue of Liberty. Every time someone uses their Amex card they donate 1 cent to the restoration.

What happened?

New Yorkers flock to get American Express credit cards. They raise $1.7M for the statue of liberty and increased new card applications by 45%!

The Statue of Liberty gets restored and Amex gets to keep these customers for years.

Businesses that align their goals with doing good for the world will make a bigger difference

I've worked companies that say they care about making the world a better place, but it's not prioritized. They feel good, but don't seem motivated to make a change.

Imagine a world where the world's most powerful companies were judged based on how much of an impact they made on the world. More of an impact? More valuable company.

That shift from Purpose is "something you do to volunteer" to "my livelihood depends on it" drives companies to prioritize their best resources towards making a real difference.

I had this realization myself and instantly got involved.

Our conversations shifted from "here are a few things you can do to look good" to "here are how social and environmental good will help you meet your revenue goals and give you a competitive advantage."

Your business becomes more valuable when you integrate Purpose with your core business goals

Imagine how much more you could prioritize doing good for others, if they also helped your business make money.

Your brand becomes more valuable because employees, customers, and suppliers are all more eager to work with you.

According to Deloitte:• 78% of consumers are more likely to remember companies with a strong Purpose• Brands with a Purpose can double their market value 4x faster• 50% of workers would take a pay cut to work at an environmentally responsible company

This means you're able to get more customers, raise your prices, keep your employees, and get favorable terms with suppliers.

A few examples of where I've helped companies align Purpose and business goals:• A social platform creating an environment where everyone's voice is heard• A bank providing financial products to underprivileged communities• A pharmacy increasing access to life-saving drugs

In these cases, success of the project meant improved social good AND more revenue.

2 opportunities to align Purpose with your business goals:

1) Cause marketing

Donate a % of your sales to a cause. People come to you to support your cause, then stay a customer because they like what your brand represents.

American Express donating sales to the Statue of Liberty restoration is a great example of "Cause marketing."

Keep in mind:When you support a cause it means you will attract customers, employees, and suppliers who agree with you (and repel those who don't). So when you choose a cause, be sure to choose a stance that attracts the people you need for your business goals.

In the case of American Express, choosing to restore the Statue of Liberty means a large % of the customers, employees, and suppliers that want to work with them are based in New York.

This is a great cause to choose if your strategy is to win the NY geography. If not, consider another cause.

Your choices need to drive the customers, suppliers, and employees you need to achieve your business goals.

2) Expand your solution to an under-represented customer segment

This is typically easier said than done since under-represented segments tend to be less profitable.

You can make this more profitable by reducing risk and reducing cost to deliver your solution.

So here's how we helped a bank extend financial products to customers who were typically left out.

Reduce risk:One reason these customers are left out is because they're less likely to pay back the bank. We studied the reasons and found that they didn't have access to financial education.

We lowered the risk that customers wouldn't pay us back, by allowing access if customers completed a financial education game.

For your business, there are two main risks to consider:• Market risk - does the under-represented segment want your product?• Execution risk - can you get the product to them and get paid?

Focus on execution risks as those are what you have control over (for more - see previous issue on testing revenue opportunities).

Reduce cost:The average under-represented customer had to travel 1.5 hours to reach the nearest bank branch! So they couldn't reach us and it was costly for us to create new branches.

We found a retail store popular in the area and partnered with them to serve our products.

Potential customers came in to access financial products and would buy products from their store. We reduced distribution costs and the retail store got more customers. Win-win.

Review what's the most expensive part of getting your solution to under-represented customers.

For example:• Distribution• Supplies• Talent

Look for partnerships to reduce costs. When sales improve Purpose, both you and your partner benefit.

Get your employees, customers, and suppliers to value you

Align your business goals with Purpose and your brand value will benefit.

Employees want to work for you. Customers want to buy from you. Suppliers want to give you prioritized terms.

That's a wrap!

If you have any questions, reply to this email and I'm happy to guide you.

If you found this helpful, please forward this email to 1 friend or colleague. They'll appreciate you and you'll help grow the community.

See you next Thursday 👋

Brian

Clickworthy Resources

• Infographic: Why Purpose strategy is good for business• Newsletter: How to build your strategy• Newsletter: What is Strategy?

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