The growth and success of online retail stores is a recent phenomenon. Shoppers have begun to trust online purchases and brick and mortar companies are selling the same offerings online sold in stores. Today shoppers can browse the web easier than walking through a shopping mall. With affinity programs, people can shop at stores such as Macy's, Target, and even Expedia while contributing to a nonprofit without spending any more money than shopping on that same company's regular .com site.
About 10 years ago, a marketing phenomenon errupted known as affinity marketing. I learned about it firsthand when I was hired by a faith-based credit card company to write news releases and copy for their new Web site. A percentage of each purchase made by credit card holders went to a school, charity or mission each month that had been selected by the card holder.
A client recently asked me to share a little more about affinity marketing. She wanted to know more about how affinity marketing could be a win for their company, nonprofits and online shoppers.
Affinity Marketing...
- Promotes a brand’s products or services to a niche audience;
- Leverages other companies and individuals to promote or build awareness;
- Partners a company, buyers and an organization with a common “affinity”;
- Is as simple as an endorsement from one firm for another firm’s products or services in exchange for compensation or value;
- Means purchases result in revenue for a company and a cause;
- Means companies are cheerful givers to the community; and
- Everyone wins!
- Finding the right audience;
- Thoroughly exploring affinity group unique dynamics;
- Time to develop, test, monitor, and measure messages, offers and pricing;
- Impressing buyers to shift purchasing behavior;
- Working with the benefactor to spread the word through their communication channels; and
- Database tracking of purchases through different partners for causes.
- Target audiences have a stronger inclination to purchase;
- Buyers are interested in receiving benefits;
- Results are measureable;
- Messages can continually be massaged;
- Partners get paid through small percentages;
- Feedback and information flows in from participants and buyers;
- Buyers feel good about purchases that make a difference;
- Can be a low cost way to improve customer retention; and
- Customers may receive perk discounts or offers to use for another purchase.
- Naming the program to strengthen the brand;
- Focusing on unique ideas and concepts that may not fit mass marketing;
- In a slow economy, consumers spend more easily when a purchase helps something they care about;
- Beneficiaries receive revenue without asking for donations or hosting fundraisers;
- Sales commissions are “pay as you go” rather than upfront advertising or salaries; and
- Creating interest by giving back to the community.
- Credit card companies offer custom credit cards and a percentage of each purchase is donated to a particular organization. The organization and the credit card company may promote the credit card opportunity through advertising, Web sites, brochures, signage and direct mail.
- A grocery store chain donates a percentage of purchases to a registered charity. Customers registered with the store present an identification card or phone number at the time of their purchase and a contribution is made to the charity. The grocery store may promote the donation opportunity through store signage, news releases and advertising. The charity could spread the word at meetings, through news releases, newsletters, flyers and online.
- A restaurant holds a promotion and portion of an evening's proceeds goes to a supporter. The customer knows to identify themselves with the supporter when ordering. The supporter promotes the restaurant to their members in newsletters, meetings, flyers, through public relations and on their Web site.
- A service company offers a discount and cash donation to an association when someone in the association uses their service. In return, the association promotes the service to their members though various marketing channels such as newsletters, direct mail, and on their Web site.
- A retailer offers to donate a percent of online purchases to the benefactor of a fundraising event (bike race, run, walk fundraiser). The participants hear the offer when registering, receive a coupon or flyer in their goody bag and see the offer on event signage.
1. Establish rules of engagement;
2. Determine the mutual win for everyone involved;
3. Determine the management process and proceedure;
4. Establish non-compete agreements;
5. Ensure all partners are on the team;
6. Brand the program;
7. Spread the word; and
8. Watch it work!
Done right, affinity marketing can be a very powerful marketing tool to amplify a brand's awareness by attracting new customers, enhancing the company's community relations and boosting sales. Want to set up a success affinity marketing plan? I'll help you build sales through kinship connections, so call me at 407-341-9866 or send me an email at mmonte@hotmail.com.
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