Many local residents couldn’t contain themselves recently when The Container Store opened a new store in our area. There was a big buzz about their grand opening, and it wasn’t entirely due to that fancy elfa system. They generated a lot of positive publicity promoting the fact that 10% of sales for the entire grand opening weekend would be donated to Interfaith of The Woodlands, a local nonprofit organization.
Being a large corporation, one of The Container Store’s major challenges is to avoid being seen as just another big box store. So they figured out a way to combat the stereotype – by getting involved in their local communities. Each location goes out of its way to partner with local nonprofits, specifically those that promote women’s and children’s health and well-being.
Based on past results, their approach is effective and a great way to introduce a new store to the community. It brings key community leaders to their “VIP” events, and ensures shoppers feel good about their purchases – after all, it IS going to a good cause (I have to admit I’ve used that line as justification a few times myself).
Of course the concept of partnering with nonprofits is not new, and it’s just as important for small businesses to align themselves with local nonprofits. An effective partnership can be mutually beneficial and grant access to an entirely new set of prospective customers. It promotes positive PR, and can be a great way to engage employees by getting them involved in volunteer days or other community events.
But just as The Container Store did their research to choose a nonprofit that closely aligns with its community missions, small businesses need to do their homework before teaming up with an organization. There are tons of great nonprofits out there, but not all are the right fit for your company.
So how do you choose? First, look at the basics – does the organization share a similar vision to your business? Are there mutual interests? Similar clientele? Are their key leaders influential or highly respected in the community? Just because your sons play little league together and their president is the nicest guy in the world doesn’t mean his organization is the best strategic alignment. Of course, there are some things you support just because it’s the right thing to do. But I’m talking about long-term, planned, strategic partnerships with key nonprofits.
One example of an effective small business/nonprofit partnership is the relationship between Couture House Rentals and The Giving Gown Foundation. Couture House Rentals is a local boutique that specializes in rentals of high-end couture for formal events such as galas, weddings, special events and proms. The Giving Gown Foundation is a nonprofit organization that collects new and like-new formal dresses and provides them to high school girls who might otherwise not be able to afford to attend their prom.
Last spring, Couture House Rentals donated many high-end dresses, shoes and accessories to The Giving Gown Foundation. They also became a donation drop-off site where anyone in the community could come to donate dresses. By doing this, they drew new, potential customers into their showroom that may otherwise never have known about their location. They also benefited from The Giving Gown Foundation’s large database of volunteers and partners, not to mention had something to promote on their website and Facebook page.
Before long, the local press ran a story on The Giving Gown Foundation accompanied by a large picture of the owner of Couture House with the dresses they collected. It was a great article and the kind of positive PR every small business owner loves. Talk about a win-win. Actually a win-win-win. Couture House Rentals benefited from the partnership. The Giving Gown Foundation grew from the relationship. But the real winners were the hundreds of high school girls who got to attend their prom looking and feeling beautiful.
Though vastly different in size and industry, The Contatiner Store and Couture House Rentals are two excellent examples of companies that effectively aligned themselves with local nonprofit organizations and positively promoted their image. The partnership gave them access to an entirely new set of potential customers and created goodwill toward their business, all while making positive contributions to their community.
Power to the People
by michele on January 17, 2012
2011 was an amazing year when you look back and see all that was accomplished through the power of the people using social media.
Netflix
In July Netflix announced that it would increase its pricing on its movie plan, splitting off DVD rentals and streaming videos into two different companies with two different charges. As news spread through Facebook, Twitter and other social media, clients collectively vented their anger and dumped Netflix in record numbers. Netflix heard the outcry and rescinded its decision to split the company in two. Prices are still higher but at least we don’t have to put up with two separate bills and two web sites and registrations.
Bank of America
In September Bank of America announced that it would begin charging customers $5 a month to use their debit cards. People used Twitter and Facebook to organize a Bank Transfer Day – encouraging Bank of America and other banking company customers to leave banks that planned to charge for using debit cards. Bank of America promptly changed their mind, cancelling their plans to charge the fees, and many banks followed suit, announcing that they would not charge fees for using debit cards.
GoDaddy
In December GoDaddy angered customers by backing the controversial SOPA legislation which proposes giving power to the Department of Justice to seek court orders against websites accused of enabling or facilitating copyright infringement, shutting down the websites, barring online advertising networks and payment processing companies from doing business with the websites and barring search engines from linking to these websites.
Many were angered by GoDaddy’s stance on the legislation because it would drastically change the internet, many people believing that it would destroy the current freedom that is foundational to the way it operates. Through a single call to action on Reddit, in one day GoDaddy lost over 20,00 domains as people moved them to other registration companies.
GoDaddy listened to the public and reversed its position, publishing its new policy on the SOPA legislation just days after the public backlash started.
Verizon
Verizon announced in late December that it planned to charge a $2 fee for online and phone payments. Due to public outcry, in less than a week Verizon issued a statement that they were not going forward with the proposed fee.
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