“We do a program with many of our retail partners where consumers can donate at-register through cut-outs or tear-offs. Now one of our partners is thinking of changing this format to do a round-up program, which we think may provide greater funds from consumers. Our thought is that many more will be willing to round-up vs. 'buy' a cut out at $1 or more. Which can lead to more donations?”
In this post Clark Sweat, Chief Corporate Partnership Officer for CMN Hospitals, weighs in with his experience. We'd love to hear your experience in the comments below.[/box]
The majority of the time I've seen people move from a tear-off or pin-up program to a round up format, it seems to work. Here's why: The idea of rounding up is typically an easier ask so you tend to get a higher conversion rate for customers going through the lines.
Retailer Traffic and Frequency is Critical
The success of these programs depends greatly on the retailer. High-traffic / high-frequency stores fare best such as grocery stores, mass, discount, dollar stores and restaurants. For higher end retailers with less-traffic / lower frequency I usually recommend an open-ended ask or at a minimum, multiple levels (e.g. $1, $5, $10). I have seen a few roundup programs where the customer was encouraged to round up to the nearest dollar, five dollars, ten dollars or even hundred. Those types tend to work best online because the customer/cashier education can get confusing.
When It Doesn't Work
It's not all rosy. I've seen some programs like this suffer greatly when changed. This happened a couple of times in the early days at Children's Miracle Network (CMN) when a retailer went from offering a pin-up with a coupon take-away to a round up ask. The coupon miracle balloons that CMN does remain the strongest I've seen anywhere because of the involvement gained by adding vendor coupons to the pin-up and the bounce back opportunity to drive more traffic. Cashiers tend to be more comfortable “selling” these type of pin-ups because they can point to the $5 in coupons you get back for a $1 contribution.
Cashiers Hold the Key
Speaking of cashiers…as with any “ask at the register” campaign it really comes down to how well you've been able to educate and motivate the cashier. If the cashier is comfortable making an ask, the money flows. If they get stumped by a single “where does this money go?” question, they'll never ask again. Ultimately, the vehicle doesn't matter as much getting that front line employee engaged and comfortable making the ask.
What is your experience with round-up versus pin-up? Have you made the move from one to another? What were your results? Share in the comments below!
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I agree with Clark! One of the most successful local programs we did with Ocean State Job Lots was a round-up program. The owner was convinced it was a better program.
I also agree with Clark on execution at the register. Doesn’t matter what the program is if there is no ask from cashiers.
Joe
@joewaters
Thanks, Joe – appreciate your experienced perspective!
Megan-
Great article about the pros and cons of these type of programs. I’m really interested in the matter because I run a site that does the opposite of this program. What we do is partner with retailers and they give back a percentage of the total sale.
Customers love it because they can support without having to round up their bill. Essentially they are doing more by doing the same amount of work.
Do you think these programs in general get people more involved with non-profits?
Hi Megan,
I agree that this should be a round-up rather than anything else but with a few caveats.
This may not be a popular comment, but I think these programs are risky for retailers (and I’m not talking about the commercial co-venturing aspect). If the ask is for a single cause, there is a high likelihood that the cause won’t resonate with the consumer. If that is the case, it may be a lose-lose. If I agree anyway – perhaps because I don’t want to look like a cheap, heartless loser – I don’t really feel good about it because I’ve got the wrong motive and if I don’t agree, I might feel (for a second at least), like I’m a cheap, heartless loser. After a few people reacting like that, the cashiers get sheepish about the ask and it becomes a rote process that may generate some donations but is doing little for the retailer’s relationship with its customers. Set people up with an account, let them set their preferences online so they can round-up any time they swipe their loyalty card or phone, let them pick the charities and have the retailer match to their strategic choices.
That’s a program that guarantees user resonance, let’s me get tax credit for my own money, may create switching costs and will invite sustainable investment by the retailer (not to mention bridging the off-line and online worlds for the retailer.)
This is a very interesting topic!