Small Business Charitable Giving Builds Customer Loyalty

Posted by in Customer Service


According to the U.S. Small Business Association, there isn’t anything “small” about small- and medium-size businesses.  They may only have one employee, or start up in someone’s garage (think Microsoft), but they have and continue to have a huge impact on employment and jobs in America. 

 

Just consider these statistics:

 

  • 23 million small businesses account for 54 percent of sales.
     
  • Small businesses provide 55 percent of jobs and 66 percent of all net new jobs since the 1970’s.
     
  • The number of small businesses has increased by 49 percent In the U.S. since 1982.
     
  • While big businesses eliminated 4 million jobs since 1990, small businesses have created 8 million jobs.

 

Small and medium-sized businesses are a huge asset to the American economy. All those new businesses springing up create a lot of competition for market share and customers. No matter what the business, gaining and winning customers depends on a number of factors including filling a need, having a unique product or service, or giving outstanding customer service for a basic service, like grocery stores, dry cleaners and gas stations.

 

Small- and medium-sized businesses (SMBs) run by entrepreneurs and established companies alike, are finding that another type of customer service is winning and retaining customers. It’s a type of service that doesn’t impact the end user of the product as much as others in the global community. It is also helping businesses in the form of tax breaks. An article in Forbes, “How Your Business Can Give Back And Win Customers,” explores what small- and medium-sized businesses are doing to give back to their communities.

 

An American Express survey reported that 75 percent of SMBs contribute to charities, averaging six percent of profits. The more cynical would attribute that to a good financial strategy to reduce the company’s tax burden. While that does happen, more businesses are making charitable giving part of their business model and brand.

 

From giving a dollar amount to a charity for each sale, to giving merchandise, like Tom’s shoes, small- to medium-sized businesses are giving back in a big way. Companies find it’s a way to grow the company. Another study found that 85 percent of consumers feel positively about companies who give to charities, and a whopping 90 percent of those surveyed want to hear about charities that companies support. Just click on the Tom’s Shoes website, and you’ll see faces of happy children, the recipient of those free shoes they give away for every pair sold. Good for the children, for the global community and for the company.

 

With so much interest in charitable giving by SMBs, there is an equal amount of demand. One small business owner of a gourmet food shop in Chicago finds himself inundated with requests for charitable giving. Greg O’Neill, co-owner of Pastoral Artisan Cheese, Bread & Wine in Chicago, funnels the many requests through a portal on the company’s website and has a staff member review them. The company’s giving is in line with their brand and culture—charities that provide healthy food and support sustainable agriculture. Their donations help these causes and repay the company in publicity and customer loyalty.

 

Charitable giving may become a part of a company’s customer service, just like an 800-number service line or online chat option. It’s a win for customers, the community and the company. Who can argue with that?  

 

Photo Source: Morguefile.com

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  • Marcus P
    Marcus P
    A response to customer loyalty. I helps when businesses, can offer the charity. Customers are more involved with the continuing business improvements: charitable appreciations, events, and sponsors. S, with the statistics of the twice decade numbers on the construction of small business, and the obvious standings of commercial chains, It helps for businesses to ponder the possible charity for the community. It has gotten so usual over the years, that people of the community plan for upcoming events, and plan to be part of the organizations in some way.

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