Wednesday, October 28, 2009

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's a significant global movement happening where consumers are asking business to take care of the things they care about such as the less fortunate in society and the environment. The request is mainly tacit and despite it being an ironic request it by far indicates still that we are in a time of vast change. Consumers these days want their cake and eat it. They not only want cheap products, they also want the environment to be preserved and they want workers to be well looked after.

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 automated email notices arrive in my inbox from Google Alerts for two keywords - BOGO and B1G1. I see all the new places these words are turning up on the Internet. Little by little these two words are gaining a their new meaning as more and more people take up the Buy One Give One cause.

The B1G1 and BOGO acronyms both stand for Buy One GET One free. You buy one and you get given an extra one for free.

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.

* Norway, a village in Norway.

* 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 is an organisation in the USA called SunLight Solar founded by a gentleman called Mark Bent. He has created a special torch that not only is an amazing and robust solar-powered light; his company also gives a free torch to a family in need in developing nations for each one purchased. If you look on their website you will learn about their "BOGOlight".

BOGOlight.com. - "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."

Mark Bent turned the acronym upside down when he started to use the word as part of his product name. For him now and the thousands who buy his lights, BOGO now means Buy One GIVE One. Each person gets to give a light every time they buy one for themselves. So now with each sale, people who do not have the luxury of electricity can harness the power of the sun to support their lives.

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.

There are many Buy One Give One businesses now uniting under the common brand banner of Buy1GIVE1 managed by a Singapore based social enterprise which is becoming the home of transaction-based giving. Any business in the world can now integrate Buy One Give One giving with ease. It's like a 'CSR plug-in' allowing a business to instantaneously start giving from each and every sale, starting from just 1 cent. It's also no longer about giving an equivalent product to someone else. Instead it is about contributing to a project that resonates with a company's activity. For example a restaurant can feed a child, a television retailer can give a cataract blind person the gift of sight (Get Vision-Give Vision), a magazine publisher can plant a tree every time they sell a subscription and a property developer can build a low-cost family home for those in need (Buy1BUILD1) - the list is simply 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.

* 54% would sing the praises of a brand to promote their products if there was a good cause behind it.

* And going even further globally, consumers are voicing a strong desire for marketers to connect their brands to social causes or action. Forty-two percent say that if two products or services are of the same quality and price, commitment to a social purpose trumps factors like design, innovation and brand loyalty when choosing one product brand over another.

Turning Getting into Giving

In the minds of consumers, Buy One GIVE One is sure to replace Buy One GET One as the global giving movement led by Buy1GIVE1 ripples out. Certainly with the large consumer demand shown for products from companies like BOGOlights, TOMS Shoes and One Laptop Per Child (OLPC), this tide will continue to 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, shopping, pics, join, prose, photography, blogging, discount, boots, groups, music, dallas, togo themes, wallpapers, buy, applications, skins, values, coupon, gift, sharing, networking, African.

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 actual amount given from each and every sale is not the point of focus with Buy1GIVE1 transaction based giving. It is not about saying 10% is contributed or 5c from each sale - instead the focus is 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 not likely to make much of a difference think again and consider the following.

Coffee consumption has spread globally and Brazil is by far the largest coffee producer in the world producing on average 28% of all coffee grown. In 2006 Brazil grew enough coffee to brew 216,400,000,000 (216 billion 400 million) espresso coffees! If we were to make this calculation across global production amounts then we get an amazing number for the daily global consumption of around 2,117,416,830 (2 billion 117 million) cups of coffee - wow! The figures are not easy to find but if we guessed that around 40% of the world's coffee is purchased in coffee shops then we would find that 846 million 966,732 cups are sold commercially each day globally - almost 900 million. This would equate to about 185 million cups in the US alone 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.

Transaction-based giving is the story of a thousand-mile journey starting with a single step. Digging a well costs a few thousand dollars, however when you break the cost down it only takes the sale of a single cup of coffee to give clean water to a single person for a day1. This is the incredible and simple power of transactional giving. It is like the compound interest of giving - a little turns into a huge amount 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 and check Wikipedia.com today for the word BOGO you should find that a new definition has been added. It's time for a tide-change - a change from focusing on GETTING to working with GIVING. I added this small addition to Wikipedia's BOGO definition: "... 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 want to be part of.

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

References:

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

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

http://www.tesco.com/greenerliving/what_we_are_doing/ethical_clothing.page

http://www.tesco.com/greenerliving/what_we_are_doing/ethical_clothing.page

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

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

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

Footnotes: 1 Calculated by taking the average cost to dig a well, dividing it by its average expected life without major maintenance divided by the number of people in the community benefiting from the well on a daily basis.

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