Give & Take...

I was counseling a client about discounting. They were tempted to fight an aggressive competitor with huge price discounts.

"What if they lower their prices?" I asked. "Are you ready for a price war? You won't build loyalty. Customers could lose sight of value and buy on price alone. It may even cast doubt about the quality of your services. And what if the competitor can sell below your cost? They could put you out of business!"

"And you suggest I do nothing?" he responded.

"No. I suggest you use giving as your marketing advantage'" I said.

"So don't discount my services -- just give them away?" he looked in my eyes to see if I was kidding. "Are you nuts?"

"Not giving away your services," I clarified. "I'm suggesting you align yourself with a non-profit that connects with your customers and give donations to them. We could advertise that customer purchases are helping support the Children and Puppies Charity -- or whatever. Then we'll work with the non-profit to get the word out."

Most consumers are swayed by cause-centered marketing. Given the choice between two brands of competitive price and quality, 76% of consumers would buy the one that supports a worthy cause, says a study by Cone Communications and Roper Starch Worldwide. The study also found 76% would switch brand loyalty for a cause -- and 54% would pay more to support a meaningful cause.

The key is finding an organization that fits your business, is meaningful to your target market and will work with you. A book store supporting a literacy program seems an obvious fit. But the program needs to be willing to lend their name or work with you.

If you can't find a cause to work with, consider starting your own. One of my clients started a scholarship program. Another sponsored a non-profit event in return for a plug in the promotional materials and the program.

Consider how giving can help you take the upper hand in a tough competitive market.

-Phil Sasso