Testing Green Promotional Benefits to Drive Acquisition

Testing Green Promotional Benefits to Drive Acquisition

Promotional benefits are a popular marketing tactic used across almost every industry to acquire new customers.   Marketers like offering such benefits as they can greatly increase acquisition rates or drive repeat purchases over time.  

It should come as no surprise, therefore, that the use of promotional benefits has been extended to the green space.  Using "green" promotional benefits - that is, incentives that have environmental benefit - to drive acquisition, however, is unchartered territory as there are few benchmarks to validate their use or their effectiveness.

Nonetheless, such green benefits are increasingly being offered across a variety of product categories.  Here are just a few examples:

Autos: Volkswagen of America announced its "Carbon Neutral Project", a campaign that offers to offset the carbon emissions for one year.  This promotional benefit is being offered on a trial basis and expires on January 2, 2008.

Banking: Several banks offer discounts on auto and home-equity loans that pay for environmentally-friendly goods. One of the most generous is the Carolina Postal Credit Union, which serves US Postal Employees and Federal Employees in North Carolina, which offers a 1% discount on auto loans when purchasing a hybrid.

Credit cards: Today, it is common for credit card companies to offer one-time bonus miles for signing up for an airline affinity card.  The latest entrant into the green card market, Metabank, puts a different spin on this promotional benefit: bonus carbon credits.  Every new applicant receives the equivalent of 10,000 lbs of CO2 offsets - the average annual CO2 emission of a car in the US - when they sign up for their green card.