As society grapples with a
pandemic, a recession
and the fallout of these events, many corporations are struggling to grow
profits — while others are struggling to even stay afloat. At the same time,
companies are also processing the global movement in support of racial and
social justice, which has catalyzed their commitments and
contributions
to organizations striving to eliminate institutional
racism
and create a more equitable
future.
Now, executives are faced with two urgent tasks: setting their firm’s social
impact strategy and ensuring the company has a profitable blueprint for
navigating these economically uncertain times. While the majority of companies
recognize that social impact is valuable, few have managed to successfully
integrate it into one of the most mission-critical activities: their sales
strategy. Rather than operating in separate silos, here’s a look at how
companies can leverage social impact as a tool and unique differentiator in
their sales process.
Social impact as a unique sales tool
All sales teams leverage negotiation tactics in order to help close new deals
and retain existing customers. Yet traditionally, these methods — such as free
shipping, rebates or cash discounts — benefit the buyer at the seller’s expense.
Moreover, companies spend roughly 12 percent of their company
revenue
on marketing, which is used to generate awareness and educate prospects on the
virtues and benefits of their product or service.
However, what Givewith has discovered is that social
impact applied as a unique sales tool can help sellers differentiate themselves
from the competition to close more deals, retain existing clients, and deliver
significant business value to their buyers. In fact, using social impact as a
sales incentive can actually decrease a company’s customer acquisition costs,
considering it’s 13 times more valuable than traditional incentives such as free
shipping or cash discounts, according to
research
by Boston Consulting Group.
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Best of all, by offering to underwrite social impact as part of your proposal or
renewal, sales teams can deepen relationships with buyers by coming together to
generate entirely new sources of funding for the meaningful work of nonprofits,
social enterprises, and NGOs.
The value of social impact
Not only does social impact help sales teams improve win rates and customer
retention, but the act of sharing the social impact with employees, consumers,
investors, and other key stakeholders can generate value for various departments
within both organizations. For instance, Human Resources can share the impact
with employees to enhance engagement and increase retention by showing how the
company is putting its money where its mouth is. The same is true for marketing
departments, which are increasingly pressured to demonstrate how their company
is walking the talk when it comes to social
impact.
In addition to supplementing communication efforts, companies can derive value
in the form of positive environmental, social and governance ESG ratings. This
can help companies engage the socially responsible
investment
community, since these scores are often used to guide critical investment
decisions.
A smarter way to do business
Considering the immense gravity of our impending social challenges, the private
sector must identify ways to improve the quality of life of the communities
around them. Yet we cannot ignore the fact that the very companies that society
relies on are hurting from the fallout of the pandemic, too.
In a time when businesses are struggling to drive profitability, truly
innovative companies are leveraging social impact sales to sell more, improve
margins, and also deliver more business value to their buyers and customers —
all while helping individuals and communities most in need. As we’ve seen from
previous economic crises, which have shown to
stunt
sustainability initiatives, social impact can only be sustainable if it drives
profitability. The beauty of social impact as a sales tool is that it generates
shared value, which benefits all parties involved in the transaction.
The good news is that a majority of business leaders have acknowledged the fact
that their company must play a bigger role in addressing the world’s most
pressing challenges. At the same time, driving sales and profits will always be
mission critical. That’s why the most forward-looking companies are implementing
strategies to ensure impact and profits go hand in hand in a post-pandemic
world.
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Published Jul 8, 2020 2pm EDT / 11am PDT / 7pm BST / 8pm CEST