How businesses are using Loyalty Software to fulfil Corporate Social Responsibility objectives
Corporate Social Responsibility (CSR) is not a new phenomenon. It was favoured by large brands with big budgets to give back to society and make a difference. In today’s climate where social media has allowed the public to put much higher expectations of social responsibility on corporations big and small, CSR is an important part of branding and customer loyalty.
Today’s consumers have growing expectations for companies to act responsibly—and they are rewarding companies whose services and products are both good for them and good for society. They also have a better understanding of their ability to make a positive impact through their purchase behaviour.
The Millennial generation in particular—the fastest-growing force in the marketplace and expected to control 24 trillion dollars of wealth by 2020—is highly motivated to associate with companies that are aligned with their values and authentically “walk the talk” of their higher purpose. According to Horizon Media’s Finger on the Pulse study, more than eight in ten Millennials expect companies to make a public commitment to good corporate citizenship.
For businesses, CSR campaigns contribute to the creation of customer loyalty (Arıkan and Güner, 2013). As customers are happy to think they provide social benefit by purchasing the products and services of a company. This makes them loyal to that brand.
Using a loyalty program to implement a CSR campaign can be an effective way for businesses to implement a CSR strategy and in turn, build trust and brand loyalty, raise awareness, engage and retain customers, and strengthen reputation. Which all boost customer loyalty.
A prime example of how a brand might use loyalty software to help achieve its Corporate Social Responsibility is Circle K (formerly, Topaz) “Cash for Clubs” initiative.
Circle K (formerly Topaz) Cash for Clubs gives customers the chance to win thousands of Euro for their local club. The great thing about Cash for Clubs is that it is open to all clubs and all communities. All club types and sizes can enter the draw and every club that meets the threshold will be rewarded.
Circle K (formerly Topaz) leveraged customer data and integrated loyalty software to create Cash for Clubs. Cash for Clubs was launched to further engage their customer base, attract new customers, encourage spend in-store, increase purchase frequency and footfall in-store, while giving back to local communities.
The Cash for Clubs initiative displayed Topaz deep understanding of their customer’s values and in return resulted in huge engagement throughout the country.
You can read more about Azpiral’s role and the processes involved in the Cash For Clubs strategy here.