Cause-Related Marketing was a term that was first coined by American Express. In 1983 they launched a campaign to raise funds for the Statue of Liberty Restoration project. They donated a penny each time a card holder used their charge card. The campaign raised $2 million dollars in just 4 months!
But you don’t have to be a corporate giant to benefit from a cause marketing campaign. Here is why.
The connection between entrepreneurship and giving has never been stronger. One survey reports that 87% of consumers would switch to another brand if it was associated with a good cause. Savvy marketers – big or small – are using cause marketing to reinforce their brand.
The challenge – regardless of business size – is to make your cause marketing campaign a WIN, WIN, WIN. The effort must be a beneficial for the nonprofit group, the community and for your business.
Step one is to choose a cause that you truly believe in. If you’re not giving from the heart, it will show.
- Next, find a cause that is in some way related to your business. This strengthens the emotional bond you have for the nonprofit while extending your brand.
- Start small with a local charity. Make it personal by donating time or products in addition to dollars.
- Integrate your efforts into every facet of your business. Include all employees, all marketing and do it every day and every way.
- Don’t expect immediate ROI from the efforts. Do expect this to differentiate your business and set you apart from the competition.
Finally, use all the tools for generating direct marketing success. The American Express effort was not directly measurable to the campaign. Target your market with a call to action that encourages measured response. Don’t forget to include one or more emotional hooks. Make it fun and highly visible to create buzz.
The benefits from cause marketing are many. You’ll receive positive PR, better customer relations and the satisfaction that your marketing has a multi-purpose.
Paul Simister
July 27, 2011
Interesting statistic about customers switching to businesses with a cause. While I’m cynical of surveys, I do think cause related marketing is an effective way to differentiate your business.
It’s what I call the “why factor of differentiation” as in why you have a business doing what you do. Some businesses naturally follow a strong cause without having to be linked to a charity or similar organisation but others can borrow a cause.
JEFF VEESENMEYER
August 1, 2011
Yes Paul – Cause marketing can be the differentiation that a business needs to stand out from the competition. Many businesses struggle to find a Unique Selling Proposition (USP) when a simple difference maker – a cause – could be the answer.