A while back I saw a whole page ad in the paper.
It was for Marks & Spencer.
It said, for every item of used clothing you donate to Oxfam, Oxfam will give you a free £5 Marks & Spencer voucher.
This voucher entitles you to £5 off any purchase over £20.
Now why would M&S do that?
Why would they give all those vouchers to Oxfam, for free?
Sure it makes them look like a nicer, more caring company.
So it’s good for PR.
But is that all there is to it?
Is it pure altruism?
Well not quite.
In order to donate used clothing to Oxfam you need to get rid of some clothing.

If the offer of free vouchers appeals to you, maybe you’ll get rid of a few things.
Things that might normally be too good to throw away.
But things definitely worth donating to the needy.
Especially when you get a £5 voucher back.
This is great for Oxfam.
They’re not only getting more clothing donations, the clothes are a better level than usual.
And what’s in it for Marks & Spencers?
Well, where else can you spend those vouchers?
Only one store takes them.
And then only with purchases of £20 or more.
So you have to spend at least £15 of your own money to get the value of the voucher.
And while you’re in the shop, you may see more things that you want.
The voucher gets you to the store.
It encourages you to look around.
It encourages you to spend.
In truth, M&S would probably give those vouchers away free anyway.
Just to encourage store traffic.
But this way, they don’t have all the cost of distribution.
And advertising the voucher is synonymous with advertising their support of Oxfam.
Their caring credentials.
This is very smart all around.
M&S creates a gap in the wardrobe that needs filling.
But it can only be filled with vouchers for M&S purchases.
And it’s for a good cause.
IMHO they’ve ticked just about every box on the behavioural economics checklist.
Or, in old money, they’ve been very smart.
Because Oxfam benefits.
The needy benefit.
The consumer benefits.
And Marks & Spencer benefits.

Win-win marketing.