G-Team Philanthropic Deal: Groupon, DonorsChoose.org & JP Morgan Chase
Building on the success of a newly established ‘philanthropic deal of the day’ model, in 2011 JPMorgan Chase committed $500,000 to underwrite DonorsChoose.org gift cards that would be sold through daily deal site Groupon from November 28 through December 4, 2011. While the average Groupon discount is 50%, the DonorsChoose.org Groupon was delivered at an 80% discount thanks to financial backing from Chase. Groupon users could purchase vouchers in $10 increments. Chase matched each $10 purchase with an additional $40, up to a total of $500,000. Therefore, each Groupon purchaser had $50 to spend at www.DonorsChoose.org on the classroom project of their choice.
Messaging on the Groupon site provided detailed information on the deal, including the generous 400% match from Chase, background information on DonorsChoose.org, and the G-Team initiative.
Chase integrated this partnership into its employee culture by posting campaign information on large display monitors in its headquarters. Additionally, news about the launch of the partnership was posted on Chase’s intranet system, inviting employees to get involved and purchase the Groupon deal. The campaign was well received by Chase employees – particularly with the younger demographic.
Users who purchased the DonorsChoose.org Groupon could redeem their $50 vouchers at www.DonorsChoose.org and direct those funds toward classroom projects of their choice. Donors received thank-you packages from the classrooms they supported with their Groupon dollars, ensuring extended engagement with the campaign.
Originally intended for week-long promotion, the deal sold out in under 48 hours, making it the fastest sell-out for a Philanthropic Deal in Groupon history. Thirty percent of all purchasers were first-time Groupon customers.
As a result $441,000 in materials and experiences were channeled to public school classrooms and 3,888 unique projects have been supported.
Judges commended the creative use of matching funds in this campaign that made everyone a winner. The customer/donor felt good about being able to direct a $50 gift card for a $10 donation. Groupon was able to expand its customer base and Chase got in front of a desirable market segment.
