Empowering Generosity.

Even before the global pandemic of Covid-19 brought many businesses to a standstill, loyalty programme managers were searching for solutions to drive emotional connections with their members. No longer content for their purchase transactions to be tracked and rewarded, savvy consumers increasingly expect brands to behave in responsible ways that drive positive benefits for their families, communities and the planet. It’s a tall order, but an essential mindset for brands to embrace if they want to appeal to emerging generations whose priorities are evolving dramatically.

Enter “For Good Causes” – a UK-based fintech company that we first wrote about as part of our “Guide to Loyalty in 2018” – is a platform that describes its purpose as “empowering generosity”, and the brand is one that’s going from strength to strength, perhaps one of the few that is even finding some silver lining in the current challenges.

Some of the popular UK brands allowing customers to donate unused loyalty points to their favourite charity.

Key Insights:

1. “For Good Causes” estimates that there are over £7 billion worth of unspent points on UK loyalty programme balance sheets. These balances represent a liability that brands prefer to “liquidate” – but only in a way that drives real value for their members.
2. Meanwhile charities worldwide and being dramatically impacted charities from all sides, forecasting a 48% decline in voluntary donations despite a 43% increase in demand according to research by the Institute of Fundraising. The perfect storm and an even bigger crisis for those who rely on their services.
3. One of the key insights for brands I learnt in a recent interview on my loyalty podcast was that “you can’t tell customers what to care about”. As a result, the brand has partnered with over 20,000 charity partners, to ensure UK consumers can always support a cause that’s close to home, and close to their heart.

“Hello Fresh” is another popular UK brand allowing customers to donate unused loyalty points to their favourite charity.

How Does it Work:

• Any brand that offers consumers a rewards currency such as points or miles as part of their marketing strategy can take part. It’s free to take part and there are no monthly fees. Instead a 10% commission is charged on donations managed via the platform.
• The loyalty programme owner determines the conversion rate for their points, miles and rewards.
• Any UK registered charity can be set up to receive donations on the platform. It’s also free for them as the company earns its revenue via a small commission on the points donated.
• Consumers with points to donate simply log in as usual to their loyalty programme and select the amount of points they want to exchange – essentially buying a digital donation voucher.
• The member receives an email with their charity token.
• Finally the member visits the “For Good Causes” website to select their preferred charity and donate the voucher.

“For Good Causes” connects loyalty programme members to over 20,000 UK Causes.

There are so many reasons we love this concept – it’s digital, it’s scalable but mostly because it’s mutually-beneficial. At a time when brands are anxiously looking for ways to matter to members, this partnership ensures customers can enjoy the benefits of their membership, while driving much-needed revenue for their favourite charities.

And finally, we love their ambition! Like any ambitious fin-tech start-up, the team in “For Good Causes” are setting some really big goals – to raise £500m for UK charities over the next 5 years and £5bn internationally. We certainly will do everything we can to help them succeed.