Chitika

måndag 18 januari 2010

Meet the new givers - BOGO and B1G1

By David Anttony

Definitions of words often change quite quickly these days. In the distant past the meaning of words was often set in stone. Today the meaning can change in a blink. With new faster ways to communicate with wider and more culturally, socially and education

There is a growing global movement where consumers are asking businesses to take care of the things that they care about. The request is mainly tacit and despite it being an ironic request it non-the-less signals that we are in a time of change. Consumers these days want their 'goodies' but they don't want the environment to be destroyed in the creation of their 'goodies'. They want cheap products but they do not want workers to suffer to create those cheap products.

There may not seem an answer to this complex puzzle and yet one actually exists. It exists in the reforging of a simple single word - GET. Today there is a new movement of people wanting to get but give at the same time and they are reforging its meaning into the word GIVE.

Every day I receive a notice from Google Alerts for two words - B1G1 and BOGO. It tells me all the new places that these words are being used on the Internet. I can now see that the new meaning of these words is coming alive 'poco a poco' [Italian: poco, little + a, by + poco, little].

B1G1 and BOGO are acronyms for Buy One GET One free. You buy one and they give you an extra one for the same price.

If you look on Wikipedia you will find these definitions for BOGO (there isn't a definition yet for B1G1 - there will be soon when I write one!):

* An acronym in the retail industry that stands for Buy One Get One. For example, you could say "Buy 1 DVD, Get 1 FREE!

* An acronym in slang British that stands for Britons Of Greek Origin or Greek Britons.

* Bogo, Cebu, a city in central Philippines.

* An alternate name for the Bilen ethnic group of Ethiopia or their language, Blin.

* Norway, a village in Norway.

* The mascot of the ITESM CEM.

* BogoMips, an unscientific measurement of CPU speed

* Bogosort, an ineffective sorting algorithm

BOGO light

There's an entrepreneurial business in the USA called SunLight Solar which was founded by Mark Bent. They've created a special torch that's not only an amazing and sturdy solar-powered light; his company also gives a free torch to that in need in developing countries every time one is sold. If you look up their website you will learn more about their "BOGO light".

"The BoGo - our Buy one/Give one - program has successfully provided lights to many, many thousands of people in the developing world, changing lives because of your purchase and participation." - BOGOlight.com

Mark Bent has managed to flip the meaning of the BOGO acronym upside down. For Mark along with thousands of his customers, BOGO now means Buy One GIVE One. A light is given whenever one is sold. Now each sale supports people in remote parts of the world who don't have the benefit of electricity. They can now tap into solar power support themselves.

There are many other well known and less well know businesses now doing Buy One Give One giving or transactional giving as it is becoming known. Some of the famous ones are One-Laptop-Per-Child (OLPC) and TOM'S Shoes. Some of the less well-known ones (in the USA at least) are based in New Zealand, Australia and the UK - Earthstar Publishing, Maple Muesli, Blinds Couture, Figure 8 Body Chains, Sunsplash Homes, Honestly Women magazine and Thavibu Gallery based in Thailand are just a handful of special businesses that are heading the Buy One Give One movement.

Many Buy One Give One businesses are uniting under the common banner of Buy1GIVE1 run by a social enterprise based in Singapore. Buy1GIVE1 is the home of transaction-based giving. Any business based anywhere in the world can now start doing Buy One Give One giving with ease. It is becoming like a 'CSR plug-in' allowing a business to instantly start giving from each and every product or service sale, starting from just one cent. And it is no longer about giving an equivalent product to someone else; instead it is about contributing to a project that resonates with a company's activities. So for example a restaurant can feed a child, a TV manufacturer can give a cataract blind person the gift of sight (Get Vision-Give Vision), a magazine publisher can plant a tree for every subscription and a builder can build a low-cost family home for those in need (Buy1BUILD1) - the list is endless.

There is something very special happening these days as more and more people are switching to giving and what are known as 'citizen brands' as a part of their everyday experience. In the 2008 Goodpurpose study of global consumer attitudes it reveals that almost 68% of consumers would choose to remain loyal to a brand during an economic downturn if it supports a good cause. And 71% say that when they think about the economic downturn, they have either given the same or more time and money to good causes. This study also highlighted some other key points as well such as:

* 54% would promote a brand and its products if there was a good cause behind it.

* 52% of consumers globally are more likely to tell others of a brand when it supports a good charity cause over one that doesn't.

* Consumers are now voicing a clear desire for marketers to associate their brands to social causes. 42% say that if two products or services were of a similar quality and price, commitment to a cause outranks factors like innovation, design and brand loyalty when selecting one brand over another.

Transforming Getting into Giving

The new concept of Buy One GIVE One is starting to replace Buy One GET One as the global giving movement led by Buy1GIVE1 ripples out. Right now if you search for the terms B1G1 and BOGO you will find that websites that do Buy1-Give1 giving are on the first page of Google results. Certainly with the large consumer demand shown for products from companies like TOMS Shoes, BOGO lights and OLPC - One Laptop Per Child, this tide is set to continue and spread.

I did a recent Google search to find the top 25 keywords associated with the keywords BOGO and B1G1. The results were interesting indeed seeing none of them contained the word Give. You can see the results below. It will be interested to repeat this experiment in 12 months time to see what changes. Consumers are now starting to drive significant change and despite them wanting to receive free gifts (as in traditional BOGO/B1G1), they equally want to help others and the environment. This feeling is validated by 2008's Goodpurpose global study.

Here are the search results:

Free, networking, boots, groups, music, dallas, togo themes, wallpapers, buy, applications, skins, values, coupon, African, gift, photography, blogging, discount, sharing, shopping, pics, join, prose

Transactional or transaction based giving

Unlike normal charitable giving Buy One Give One giving is transactional. What is meant by that is: every time you buy something you give something. In the case of SunNight Solar they give a physical light for every light sold. In most cases, businesses that become part of this special form of transaction-based giving, give in a different way. At Buy1GIVE1, giving can start from just USD 1c contribution per sale. At this amount no business in the world can say they cannot give and 100% contributed goes to the cause.

The amount contributed from each sale is not the point of focus with Buy1GIVE1 transaction based giving. The focus is instead on the story and sharing the simple joy of giving. In the end, if you think that 1c is not a lot to contribute and is unlikely to make much of a difference think again and consider the following idea.

From its origins in Ethiopia, where the main coffee production is still from wild coffee tree forests, coffee consumption has spread globally. Brazil is still by far the largest coffee producer in the world producing on average 28% of the world's total coffee. In 2006 Brazil produced enough coffee to make 216,400,000,000 (216 billion four hundred million) espresso coffees. If we were to calculate across global production then we get a daily global consumption of around 2,117,416,830 cups of coffee - wow. The figures are somewhat hard to track down but let's guess that 40% of the world's coffee is sold and consumed in coffee shops then we would get that 846,966,732 cups are sold commercially each day globally - nearly 900 million. This would equate to about'5,485,714 cups in the US on its own seeing they purchase around 21% of the world's coffee.

Imagine now that for every cup of coffee sold a child in a developing region like Africa received drinking water from its own well and it costing only one US cent per person per day. Now any coffee shop could afford to contribute this amount from the sale of a single cup of coffee because it has a high profit margin sale. Imagine the different that this alone would make in the world.

Transactional giving is the story of the thousand-mile journey starting with that first single step. Digging a well costs a few thousand dollars so it's a big barrier for communities in developing nations. However if you break the cost down it only takes the sale of a cup of coffee to give clean water to a single person for a day1. This is the power of transactional giving. It is like the compound interest of giving - a little turns into a lot very quickly.

So many companies are used to doing things on their own. Doing transactional giving is no different. A company can go out find a cause and start doing Buy One Give One giving. And yet they are missing the point when they do this. Buy1GIVE1 giving is about sharing the joy of giving and not trying to change the world. As soon as you step up and say you are going to change the world then the world will step up and challenge you. Within a heartbeat a company would experience the sharp scrutiny of the media inspecting their every move. And yet when a company steps up and says it is supporting what its customer want and joins with others in its industry to do that in a win-win way, the story is different. When companies choose to join together under a commonly recognised banner/brand they can have a powerful joint effect. The ripple that a single company creates is added to that of another and the ripple grows into a tidal wave that benefits so many. This is the power of giving and doing things together.

Everyone wins with Buy-One-Give-One transaction-based giving. The consumer wins - at no extra cost to themselves they've made a difference to the lives of others through their purchasing choices. The business also wins in so many tangible and intangible ways. And of course the charity partner wins because they are now able to receive small amounts from numerous sources aggregated and paid in a lump sum on a regular basis allowing them to focus on what they do rather than raising funds.

A new start - a new world - new thinking

If you go right now and check Wikipedia.com for the word BOGO you should find that a new definition has been added. And soon B1G1 will be added. It is time for a sea-change - a change from the focus on GETTING to focusing on GIVING. I personally added a small addition to Wikipedia's BOGO definition that says this: "... an acronym in the marketing industry that stands for Buy One GIVE One."

Just imagine our world where every time you shopped and bought something you gave something - automatically and seamlessly. This is the simple joyful magic of transaction based giving.

This is the world I choose to be a part of.

And remember - you don't 'get' giving till you get giving.

References:

http://simple.wikipedia.org/wiki/Coffee

http://www.goodpurposecommunity.com/

http://www.scfnw.org.uk/site/article183.html

http://www.coffeepoet.com/2007/09/

http://www.scfnw.org.uk/site/article183.html

http://www.dep.org.uk/globalexpress/13/page1.htm

http://www.dep.org.uk/globalexpress/13/page1.htm

Footnotes: 1 The daily cost for clean well water per person is calculated by taking the average cost to dig a well then dividing that amount by its average expected life without major maintenance then divided it by the number of people in the community benefiting from the well on a daily basis.

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