In response to the growing influence of cause-conscious consumers, Kula Causes and Connexions Loyalty have joined forces to offer millions of loyalty program members a way to give back to the causes of their choice. Through Kula’s global network of over 2 million causes, consumers can donate their unredeemed loyalty rewards to millions of nonprofits in every corner of the globe serving education, poverty elimination, human rights, food relief, healthcare, gender equality and hundreds of other humanitarian and social causes, allowing consumers to make a difference both abroad or close to home.
One third of online charitable donations occur during the month of December, and giving back has become an operational imperative for brands and businesses everywhere.
According to a recent Nielsen global survey, consumer sentiment toward socially responsible companies is growing. In the 18 months since Nielsen published its “Global, Socially Conscious Consumer” report, the percentage of global consumers willing to reward companies that give back to society rose 5%, jumping from 45% to 50%.
Mark Dority, Director of Business Development at Kula Causes, participated in a Q&A with Loyalty 360 to discuss his company’s partnership with Connexions Loyalty and program goals.
What prompted this partnership with Connexions Loyalty and what are your goals?
Kula’s goal is to provide an engaging online donation experience to allow more people to reach and donate to the causes they care about most and with that infuse additional dollars into the non-profit sector. We look to partner with companies that can help with that mission. Connexions Loyalty is a world-class organization with tens of millions of consumers enrolled in programs they manage. Connexions Loyalty’s experience and breadth of partnerships fit perfectly with our strategy to increase donations by offering an experience that is engaging, thoughtful, and relevant to each individual.
When did this launch and what has been the response?
The program is in the very early stages. At this time we are still building momentum with the multiple brands that are participating in the program. If history is any indication, we expect very good participation from the programs involved.
What makes this unique and attractive?
Kula is unique in that we are the world’s largest platform for online charitable giving. Our platform includes over 2 million causes operating around the world and more than 125,000 public and private schools in the United States. We all know charitable giving is a very personal experience. With access to virtually every cause in the world, Kula provides brands the opportunity to connect each individual in their program with the cause that means the most to them.
Who can participate?
Anyone that wants to give to charity can do so by going to Kula.com, create a profile and search for a cause to donate to. Members of Kula.com are able to upload cash to their account in a few different ways. Members can acquire a Giving Card from one of our channel partners as a redemption item or other incentive reward. Giving Cards are used just like any other gift card – there is a predetermined cash amount on the card and the Kula member redeems the code on the back of the card at Kula.com to put the cash value into their balance on the site. Second, members can upload cash via their credit or debit card to their account on Kula.com. Third, members can earn Kula dollars by making a purchase on the Kula Shops site. Kula Shops is our affiliate-shopping site that allows members to shop at popular online retailers and earn cash back to give to charity. The cash back will be automatically returned to the individual’s account balance and is available to give to any charity on our platform. Finally, members can get their friends and family involved by sending them a virtual Giving Card purchased on Kula.com. Virtual Giving Cards can be purchased in any denomination and are delivered via email to the recipient with the option for the sender to add a personal message.
How are brands working with customers to turn rewards into donations for causes? Do you have an example or two?
Brands that are socially responsible are resonating with consumers now more than ever before. In the loyalty space, rewards outside the core product offering need to become more relevant to members and not just another way for members to use points to stay active in programs. Kula gives brands the opportunity engage members in a more meaningful way by tapping into their individual affinity. Kula has two main products to help brands increase social consciousness. First, we have our Giving Card program that is easily implemented into a current reward offering. Kula seeks specific partnerships with companies that provide this option to their clients. In this model, members of a particular program redeem their points for Kula Giving Cards of predetermined value with the donation made on the Kula.com site. Our partner, JetBlue, is an example of fully custom branded experience. Members of JetBlue’s TrueBlue program can use the points they have banked to give as a cash donation to cause that means the most to them. Through this single-sign-on experience, on the branded True Giving site, members are able to search and donate to any of the over 2 million causes we provide.
What does this mean to brands from a customer engagement/customer retention standpoint?
Corporate Social Responsibility (CSR) is becoming more important to consumers. This is emphasized in the 2013 Cone Communications/Echo Global CSR study. The study revealed consumer preferences towards giving and supporting cause-conscious brands. The two stats that stand out are; 91% of global consumers are likely to switch brands to one associated with a good cause(s) given comparable price and quality, and 93% of global consumers say they want to see more of the products, services and retailers they frequent to support worthy social and environmental issues. This shows that consumers are now, more than ever, engaging with brands that are doing good and rewarding them with their patronage.
By offering our platform, brands are able to access a huge nonprofit database and allow program members to support the causes that mean the most to them whether it is a cause in their own neighborhood or across the globe. This keeps consumers participating in the program and the giving process meaning increased member engagement and increased retention and member acquisition.