How to Turn Donations Into Marketing Magic - Retail Marketing Tip #16

I know they've been knocking...

Earthquake relief, school fund raisers, sports boosters, the high school choir is going to New York, your church needs a new roof - the list goes on and on. Everyone wants you to donate something for their raffle or silent auction, or door prize.
You want to help. Anyone with a lick of compassion does, but after a while the relentlessness of the requests begins to wear you down.
Call it "donation fatigue".

You may be tired of it, but think about it a little differently and you'll realize these folks represent a marketing opportunity, and a very solid one at that.
You have something they want - a donation. They have something you want - their members coming into your store.

If you treat these fine folks with respect you'll find that giving donations can be a wonderful source of new business. Here's one very effective way to get the most from this opportunity...
Rather then giving an item, donate gift certificates. That way the person who "wins" your item has to come into your store.

A good rule of thumb is to make your gift certificates between 25% and 50% of your average sale. If your cost of goods is at least 50%, and you keep the gift certificate value at less than half of your average sale, the worst you'll do is break even. On the plus side, you've generated lots of good will and at least one new customer.
Consider giving the group several smaller gift certificates, rather than one larger one. You'll get more new customers this way.

And keep testing. Give away different denominations of certificates - $10, $20, even $50 and then check the results. Compare the redemption rate, average sale, the "buzz" that each created, what type of customers were they drawing in, etc. Pretty soon you'll find the size that's right for your business.
Content Copyright © 2008 WhizBang! Training
By Bob Negen
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