Updated: Sep 3
The majority of customers reported enjoying it when a retailer asks them to donate to charity at checkout. Should you be asking your customers to do the same?
How does a customer donation work?
It's very simple, and likely something that you have come across in the past. As part of the checkout process, a retailer can ask a customer if they would like to donate some extra money to charity.
It is a preferred process for many retailers as the store does not directly put any money into the charity themselves (and it's perfect for smaller shops with thinner profit margins)
Just think of the last time that you were in the checkout and you were asked if you wanted to give to charity. Chances are you rounded up or added an extra £1 to the purchase, and if not, no harm no foul.
Now, this is not the case for all consumers. It has been found that everyone has a different reason for donating. Many will give when they recognize the charity, others will give because the process is simple.
Here are some of the charities currently partnered with Pledger that your customers can donate to.
What does the Research Show?
According to a study by Good Scout:
- 70% of Gen Y (Millenials) like being asked to give to charity
- 57% of Gen X like being asked to give a donation
- 59% of consumers will give between $1-$5 at checkout
- 15% of consumers will donate $5 or more at each checkout
Based on the data, it seems like a no-brainer. Raise money for charity while making your customers happy.
Unfortunately, it's not that simple.
Adding extra steps to the online checkout process can come with extra risks.
What are the Risks of Customer Donation?
A study by Forrester found that $18B of online items were left in carts in 2020.
As you already know, the online checkout process is very delicate, and adding in any extra steps could be the difference between a successful order and an abandoned cart.
So the big question ... is there a way to have customers donate without risking the delicate checkout process?
Yes (with Virtue)
What is the Best Option?
It depends on what you are looking for. Some brands like One Water will prefer to ask for donations after the purchase has been made. Other brands like to ask for customer donations as part of the checkout process.