The 2016 Nielsen Australian Millennials Report revealed that Millennials were worth 7% of the Australian retail market. In the US alone, Millennials will spend close to $200 billion this year. With buying power like this, developing consumer loyalty is essential for success. So how do you do this?
Purchasing for profit... 93% of Millennials prefer to buy brands known for giving back to the community. Purchases are made based on the brands' support of charities and causes - be they social, environmental or political. Millennials put their money where their beliefs are. Brands and organisations need to do the same to ensure they can attract Millennial money.
There are so many ways to give back. Some organisations have their own foundation like the Cotton On Foundation. Brands like Decjuba are creating and selling products for a cause. Decjuba sells t-shirts and clutches to support The Hunger Project Australia. Smaller organisations are also following suit. Florist Miei Fiori donates 100% of their net profits from every bunch of flowers. Giving back is no longer a trend, it is a way of doing business. Retail brands are now seeing the power and the profit that purchasing for a purpose can give them.
The creation of organisations like i=Change make it even easier for retailers to partner with charities. Founder, Jeremy Meltzer created i=Change as a tool to helps online retailers turn their brands into a force for good. “We built i=Change to create a new & sustainable funding stream for extraordinary NGO projects, focused on women & girls’ development. We’ve done this by re-imagining for retail a uniquely simple, powerful & transparent way to give back.”
Online customers for brands like Camilla, Pandora and Esther can choose to donate to a charity during the checkout process. This straightforward process is seeing amazing results for the charities and the retailers alike. There has been a significant reduction in abandoned carts and a 6% increase in the average order value. i=Change has helped change the lives of over 100,000 people in 14 different countries… and this is just the beginning.
At Chorus Executive we know business for good is good business. We have a partnership with The Hunger Project Australia. This developed out of my own experience with the organisation. This organisation is close to my heart and has found a place in the hearts of my team and now our clients. This financial year we committed to donating $20,000 for The Hunger Project Australia.
John Mackey, CEO of Wholefoods said, “Earn a share of a customer’s heart and she will gladly offer you a great share of her wallet.” By 2021 Millennials will have a 17% share of the retail market, companies must get on board. Winning over the hearts of their consumers now, will prove to be incredibly profitable for organisations in the long term. Purchasing for a purpose can also make a difference in the world – proving to be a win-win for everyone.
How amazing would it be if every company moved in this direction. Not only could the business world change the world, profits and the economy would boom. Philanthropy is not just good for the community and your soul it is simply good business.