What is cause marketing?
Cause marketing involves a partnership between a business and a non-profit group to benefit both parties. The business generates more sales and kudos for assisting the non-profit and the non-profit usually benefits from an increase in donations - either as a result of the business donating directly, or the increased exposure provided by the business for the cause.
What is a social conscience?
When you mention the word “corporate” to many folks, they often equate it with the words “greed”, “destruction” or “evil”. In order to help balance these connotations associated with larger companies, many public and large scale companies choose to become involved in cause marketing efforts to promote their concern with causes.
It’s about giving back to the community and minimizing negative impact in operations. The concept is also known as Corporate Social Responsibility (CSR); where business decisions are not based solely on dollars; but social and environmental consequences of business activities.
• 79% of Americans would switch from one brand to another brand of a comparable product (and price) if the latter brand was associated with “good cause”. The same study also indicated that a significant percentage surveyed would prefer to work for a company that was considered socially responsible.
• Over 66% of Americans consider a company’s business practices when deciding what to buy.
• 92% state they have a more positive image of a company that supports a cause they care about.
• 30% of Americans have recommended a product or company after hearing about a company’s commitment to social issues.
• 22% have used the Internet or other technologies to engage in grassroots activism.
• 66% of investors look at what a company is doing in the community when deciding where to invest.
• 86% of survey respondents said they want to have businesses in their communities that are committed to social issues.
Proven Benefits of Cause Marketing
• Differentiates the company from its competitors
• Lower employee turnover rate
• Assists in developing a closer relationship with current and potential customers
• Enhances the company’s positive image and visibility to its customers
• Showcases current, new and upcoming products and services
• Assists in unloading obsolete inventory
• Allows a company to compete more effectively against bigger firms that have larger advertising budgets
• Promotes loyalty to doing ‘good will’ within the community
• Both long term and short term sales see boosted figures
• Ability to capture ongoing media attention for cause marketing campaign (pre-campaign, during the campaign and post campaign—heightening sales opportunities and brand awareness)
• Halo Effect
• Yearly tax write off benefits
“There is a sense that consumers are waking up to the need for social responsibility. Marketers say they believe cause initiatives help them stand out. Some also say cause marketing adds another layer of value for customers, who get the product they want and make the charitable donation they want, in a sort of two-for-one deal.” - Jim Stengel of Procter & Gamble
