Loyalty programs are a fantastic way for SMB retailers to boost customer sales. You'll need to let your customers know their value. Adding a charitable giving component to your loyalty program would work well. It will appeal to socially conscious customers and provide instant gratification a key element in any loyalty program.

Here, we will discuss crafting a loyalty program that drives sales.

The key metric used here for this loyalty program is 5 points for every dollar spent in the shop, $1.50 off for every 100 points, or $10 off for every 500 points. The customer can instantly convert any number of points to your nominated charity at $10 for every 500 points, so it says they have 12 points. So you will donate 12/500 x $10 = 24 cents. Remember, you are getting the tax deduction here. Plus, donations are non-refundable.

Now, your nominated charity must be a strictly non-political charity that no one would complain about, e.g. the Heart Foundation.

Setting the Stage, the message

These messages introduce your loyalty program and ensure customers understand its benefits while highlighting any charitable options.

Your message should grab attention and clearly explain how your loyalty program works, including any charity options.

Subject line: Big News! [Your Store Name] Rewards are Here!

Body: We're thrilled to introduce our new loyalty program designed to reward you, our valued customer! Earn 5 points for every $1 you spend and DOUBLE points on selected items. Redeem points for discounts: 100 points = $1.50 off 500 points = $10 off! Or donate your points to [Heart Foundation] instantly! Join now and enjoy exclusive perks, savings, and the chance to make a difference. [Sign up today →]"

Part of the sign-up is their email address. Remember, you can send emails for nothing.

Why It Works

• Combines excitement with precise program details.
• The charity options upfront, appealing to socially conscious people.
• You need a strong call-to-action (CTA) to encourage immediate sign-ups.

Welcome Email: Make a Great First Impression

Once someone joins your program, follow up with a warm welcome email that makes them feel appreciated and highlights personal rewards and donation opportunities.

Subject Line: Welcome to [Your Store Name] Rewards!
Body: Thank you for joining our loyalty program! You'll earn 5 points for every $1 spent as a member. Would you prefer to give back? Transform your points for [Heart Foundation] instantly! Redeem your points for fantastic rewards now: You get $1.50 off for every 100 points or $10 off for every 500 points!

Why It Works

• Personalised tone strengthens connection with customers.
• Introduces donation mechanics clearly and early.

Social Impact Strategy: Loyalty Programs That Give Back

I confess it's not the reason why my company donates to charity, but I certainly let people know about it.

Adding charitable giving options to your loyalty program drives customer engagement and builds goodwill for your business. Here's how to position this effectively in your emails:

Why instant Charity Options work.

Customers who buy from you irregularly will think they will never get enough points, so they do not bother; now, they know they get something if they buy. Many customers like businesses to support social causes. A study showed Australian consumers are more likely to buy from companies that support charities.

Incorporating charity into your loyalty program can enhance emotional connections with customers and encourage contributions by showing the direct impact of their actions on others.

Email Example: Promote Charitable Giving

Subject Line: We Make a Difference with Your Points
Body: Your rewards can do more than save you money—they can save lives! Donating your points to [Heart Foundation] at checkout. Together, we can fund lifesaving research and support those in need."

Highlight the impact with progress bars: *"Thanks to members like you, we've donated $2,340 to the Heart Foundation → Goal: $5,000!

Do not forget to celebrate a goal. For instance:

"We hit our goal! Thanks to you, we raised $5,000 for the Heart Foundation."

Keeping Customers Interested

Once customers are in your program, you need to send emails so they remember you. You can also keep them engaged with enticing offers to encourage repeat purchases.

Lotto is great for this as it has regular super draws. Also, do not forget holidays. For example, it was just Valentine's Day; you could have sent out an email stating that you have great gifts for Valentine's Day and maybe added a note of double points on these gifts.

Limited-Time Offers with a Social Twist

Time-sensitive promotions combined with charity appeals are highly effective at driving action.

Subject Line: Double Points + Double Donations This Week Only!
Body: Earn DOUBLE points on selected items this week AND double the impact of your donations —this week only!"

Relationship Builders

Every email nurtures long-term relationships

Final Thoughts

A well-designed loyalty strategy can transform an occasional shoppers into loyal customers. Use clear communication Urgency-driven offers Personalised touches

Include the current donation amount and milestone.

Cause Marketing is simple to set up with our point of sale system and something you might want to try. What you are trying to do is leverage a charity to help your business. I do suggest though if you are trying to do something like this that you do mean it, people are not fools. If they talk to you, it will not take long for them to see through you if it is false. Besides, it will mean something more to you if it is real. 

I would suggest that the best and easiest way to do this is to piggyback on a charity collection day. This has the additional advantage in that it is temporary on a set day only as this makes going to take several shots to get it bedded down in your shop and the last thing you want in your shop is a long time commitment just yet. 

Now pick a charity local has the advantage of bringing in, locals, if you think of yourself as a local, it is a big plus. On the other hand, a large national charity would probably supply you with better signage and mainstream advertising.

Make sure what you pick is a remarkably uncontroversial choice, eg heart, cancer or children suicide, etc. Try and selection one applicable to your business or person if possible. For example, we had a terrible night when my wife, who is a teacher got an email about 11 pm from one of her students that he was going to commit suicide. It took a dozen telephone calls to the police and the school and many hours till the student was tracked down and questioned by the police. After that, I assure you, I meant it when I said it was an issue that needed to be addressed by the community. 

Here is an example that might surprise you how many people can be turned off by a charity, for example, this was a result of a study done by the research firm Roy Morgan on people views on the environment.

Now if in your shop you pushed the environment issue, you would have about 62% in favour and about 25% of the population in Australia in 2016 against you.  I am sure the figure today would be more negative.  Plus about 68% would think your product is overpriced. These are not good figures to cause marketing. I do believe that business is not an appropriate forum to push politics.

Now the next point you need to decide is how you are going to do it. 

What I suggest and what works out well in practice is you offer to give an amount for a purchase of a product, eg $1 goes to charity for every purchase of this soap. A bonus here is if people do not like the charity they could buy a different soap in your shop and not have any issues. Some people put a cap on the total amount say only on the first 300 sales this money gets paid, but I would suggest not doing this. 

Here are some more advantages

• Most consumers have a more positive image of a company then supports a charity
• Studies show that people tend to go ahead more with the proposed purchase by as much as a third if a charity they approve of is involved that is partly why companies like Amazon do it
• Customers faced by two alternatives which one has a charity they agree will pick the company or product that supports their charity. Studies have shown up to 26% more purchases.
•  It helps people to become more aware of your shop and build a good image in the community.
• A bonus with cause marketing is that you can advertise before and the event how it went by showing your certificate etc.
• These donations are tax deductible 

Try it and see what happens.

If you want to read more about it, click a case study here.