New survey breaks down donation behavior of retail consumers
According to the study, people who donate visit the store almost twice as much as those who do not make any sort of contribution.
A new survey carried out by FGV’s São Paulo School of Business Administration (EAESP), GPA, and Movimento Arredondar mapped the donation behavior of retail consumers last year. Thousands of customers of Minuto Pão de Açúcar in São Paulo added a few cents to the final price of their purchases (under BRL 1), and donated the change to causes and nonprofit institutions related to the environment and education.
Surveyed data revealed three main scenarios in which donations are more frequent, the first being consumer attendance: loyal customers donate more. According to the study, people who donate visit the store almost twice as much as those who do not make any sort of contribution.
The second shows a direct link between total purchase price and likelihood to donate: the more a customer spends at the market, the greater their chance to donate a few cents. The third shows a connection between donation likelihood and amount. When the change is less than BRL 0.10, a significant number of transactions (38.6%) is converted into donations. On the other hand, this rate drops to 5.7% when the change is greater than BRL 0.90.
The survey also mapped three distinct consumer profiles: engaged consumers, accounting for 49% of total donations; occasional consumers, and a third group formed by rare and non-donor consumers. “Engagement strategies can be devised based on each group’s characteristics in order to increase donations,” said Tânia Veludo, EAESP professor and coordinator of the study.
Although GPA is the first retail food company to join the program, Movimento Arredondar is already working with several partners – approximately 20 retail brands – and benefits 23 small, mid-sized, and large social organizations.
According to Nina Valentini, president of Movimento Arredondar, “the survey gives us a closer look on donor behavior, allowing us to promote the donation culture in Brazil, based on donor profiles and demands.”
Laura Pires, director of sustainability at GPA, points out that “by supporting initiatives such as Arredondar, we are encouraging conscious consumption actions and engagement with the community.” According to Pires, the initiative also shortens cashier lines, as it makes giving change easier.
The survey is supported by Fundação Getulio Vargas’ Knowledge and Applied Research Network and São Paulo Research Foundation (FAPESP, process number 2015/16217-4).
Go to the website to view the complete study.
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