Understand Your Buyer> How to connect with your buyer > The Donation Effect
What is it?
The Donation Effect occurs when you encourage potential clients to donate old, unwanted or unused goods that will be donated to charity. You are rewarded for your donation with a discount or free gift.
Why does it work?
It works because not only do we like to get something for free, we also get to feel good as we are “selflessly” donating to charity and helping the greater good. This is a variation on the Good Cause Effect where you attract buyers thanks to your charitable nature. It also harnesses the convenience of The Trade in Effect where the hassle of disposing of something you don’t need or want is taken care of.
How can you use it?
Depending on your offering, think about the most relevant and actionable thing you can recycle on behalf of your clients. It could be the older version of the thing you sell, or something related to it. The example shown involves recycling plastic toys and rewarding the person with a kids meal at Burger King – this is the kind of synergy to aim for.
Example
IKEA once ran a campaign where customers could bring in old furniture to be donated or recycled. In return, they received a voucher or discount toward new furniture.
This worked on three levels:
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Donation – Customers felt good knowing their old furniture would be reused or recycled responsibly.
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Reward – They were given a tangible reason (money off) to make a new purchase.
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Convenience – They avoided the hassle of disposal, making IKEA the easiest choice.
If you sell physical products, think about what your buyers are replacing – and offer to take it off their hands in return for something valuable. It’s part feel-good, part practical, and all sales momentum.
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