July 15, 2023

Moving Past Donations

Donations. Buying carbon credits. Paying to plant trees. These are yesterday's ways to do good. A new generation brands are leveraging impact investment to multiply the good they do. Let's explore that.

Attitudes towards sustainability are more mainstream than ever before. The world’s most successful companies are investing in impact-driven initiatives. Your customers are becoming increasingly aware of their impact on the environment and want to know that your brand cares about something other than making money (we know you do!). 

Today’s consumers feel empowered to choose socially responsible brands whose values reflect their own. Customers are more likely to choose a brand just because it benefits a cause they care about. For many, social impact is not just a purchasing factor but an expectation. 

Millennials, who are now the largest generation in the workforce, measure success by the social and environmental impact a company creates rather than just profitability. 

With that said, it should come as no surprise that brands that are actively invested in sustainability tend to have higher conversion rates and better customer loyalty. And (most importantly) brands who participate in impact programs are actively making the world a better place, as environmental concerns have reached an all-time high. As such, it seems that the choice is clear: invest in your values or risk tarnishing the image of your brand. 

Traditional Donation Methods

Though many of us recognize that sustainable businesses are better for people and the planet, traditional social impact programs can also come with a significant price tag. This means, any company offering a product or service that turns a profit would be putting a significant dent in their profit in exchange for helping to make the world a better place. That’s not a bad thing at all, but for many brands, it’s just not a viable option. These programs can require brands to make significant sacrifices to make them a reality.

What is impact investing?

Unprecedented interest in a brand's values has left many companies scrambling for ways to prove their commitment to causes beyond generating profit. Impact investing is an increasingly popular way for brands to participate in philanthropic initiatives while also making money. Impact investing, often called socially responsible investing, is a powerful way to align company values with financial priorities. It allows brands to use more of their resources to support what matters to them while having a positive impact on the world. With impact investing, brands can have the same kind of positive social impact as they would through traditional means while also turning a profit.

About +Purpose

+Purpose empowers you and your customers to do good by supporting high-impact organizations through impact investment (lending) rather than donation. 

We connect your brand with the world’s best causes and allow your customers to choose how you’ll make an impact by selecting their preferred cause at checkout. Our investment-based impact program creates change while simultaneously working as an effective marketing strategy. By sharing the positive impact that they’re making on social media, brands can further engage and attract LTV customers. As customers become directly aware of the impact their purchase is making, they’ll be more likely to see the purchase as something that’s worthwhile. By allowing shoppers to invest a portion of their purchase into a cause that represents their values, our brands have seen a significant increase in AOV, website traffic, and return visitors. Additionally, brands can get insight into what their customers are most passionate about through their data dashboard. In short, we help your customers get more value from their purchase and help you make the world a better place.

-The +Purpose Team