Cause-related marketing can help businesses set themselves apart from competitors with its powerful brand differentiator: customer loyalty. Successful cause-related campaigns rely heavily on measuring performance and adapting accordingly for maximum effect.
Businesses seeking success should include cause messaging as part of their overall marketing strategies, selecting causes which resonate with their audience while offering tangible and measurable benefits.
Cause-related marketing is a form of social marketing
Cause marketing is an emerging trend among for-profit businesses, and when done effectively it can be extremely effective. Companies that openly disclose their giving back initiatives tend to build customer loyalty while inspiring brand advocates; however, cause marketing can backfire if it comes off as fake or insincere.
Millennials and Gen Z consumers are especially concerned with how businesses impact social issues. Because of this, companies must exercise greater care when selecting causes. A mismatch could appear like a marketing ploy and should also fit with their brand identities seamlessly.
Uncommon Goods, a home products company, donates the proceeds from sales of certain items to environmental charities – aligning perfectly with its natural aesthetic and appealing to customers. Warby Parker offers eyeglasses to people in developing nations through its “Buy a Pair, Give a Pair” campaign; both initiatives provide great examples of companies integrating cause marketing into existing operations and forging long-term partnerships with nonprofit organizations.
It is a marketing strategy
Cause marketing is a form of corporate social responsibility in which companies work with non-profits to promote their products and services. Cause marketing partnerships help build customer trust while supporting charitable causes while meeting business objectives; for example, companies may partner with the Statue of Liberty Foundation to raise money to enhance its image and boost customer retention.
Step one in developing a cause marketing strategy for your company should be to identify which causes are supported, as well as choosing non-profits that align with your brand and are relevant. Doing this will prevent any perceptions that the cause being supported is being overshadowed by brand.
Red Nose Day was an effective cause-marketing initiative by Walgreens and NBC to combat child poverty. Warby Parker used its one-for-one model, providing one pair of glasses to a child in need for each pair purchased.
It is a marketing tool
Cause marketing can be an excellent way of reducing environmental footprint, supporting local community organizations or attracting younger customers. Before initiating any campaign, be sure that it fits with both your company values and customer expectations – otherwise it could appear like an unnecessary gimmick.
One such campaign was Red Nose Day, which helped raise money for children living in poverty. Partnered with Walgreens and other businesses to sell red noses at retail price and donate all proceeds directly to a foundation.
Cause marketing can do more than raise funds – it can also boost an organization’s image and foster consumer trust. A recent survey by Cone found that 9 out of 10 Americans would switch brands associated with good causes if it meant increasing sales revenue or strengthening customer loyalty; it can even help attract younger employees!
It is a marketing tactic
An effective cause marketing campaign can enhance your company’s image and draw new customers, as well as demonstrate its social responsibility commitment. Consumers increasingly prefer buying from companies who support worthy causes; some even willingly pay more for products and services from these organizations that share their beliefs.
American Diabetes Association (ADA) partners with businesses whose missions align with its. One such partnership is “Promotions That Give Back”, offering each partner participating a portion of revenue as compensation.
Light the Night Walk is an annual fundraising event sponsored by corporate sponsors of the American Diabetes Association that raises money for leukemia research, with events held nationwide each year. An increasing number of companies use cause marketing to promote their products or services; experts however caution against cause marketing as it could alter consumer perceptions about quality products or services offered.