By Michael Morris and Laura Tyson
Cause-Related Marketing is based on a very simple and honourable practice, which is partnering your campaign or product with a charitable cause. This might seem straightforward or easy to do, but it’s hard to get right and it comes with considerable demand for expertise on a number of fronts.
We are living in a time of conscientious consumers — people are caring more and more about their social impact on the world.
How effective is CRM?
A recent study found that Cause-related marketing is exceptionally effective and becoming more critical. Millennials and Gen Zer’s may respond especially strongly to marketing for a cause.*
• Earn more. Brands that people believe are making the world better earn more and have higher purchase intent;
• Avoid losing customers. Sixty-four percent of people avoid brands that they don’t believe have an excellent social responsibility;
• Attract new customers, especially among young people. Sixty-nine percent of Gen Z is more likely to buy from a brand that contributes to a cause;
• Take a stand. Sixty-six percent of consumers think that brands should take stands on political and social issues; and
• Embody what North Americans think is important. Seventy-two percent believe that it is important to buy from companies that reflect their values.
Benefits of cause-related marketing
CRM has wide range of benefits. Practically any business can take advantage of this form of marketing. Cause-related marketing may have a special meaning for online retailers, eCommerce of all kinds, and any other company that may be lacking in natural attention-getting.
From boosting service and product sales to improving the public’s impression of your business’ dedication to social responsibility, there are many reasons to team up with a great non-profit organization.
Get attention and build credibility
Statistics state show that millennials make over half of their purchases online, however, only 6 percent of them think that online advertising is credible. Cause-related marketing is another way to reach clients online without directly advertising their product or service.
By promoting ethically responsible initiatives, your company can build brand awareness and loyalty. This is especially important for companies that operate entirely online.
Millennials are more receptive to relevant online advertising, Which involve their current values. Sixty-six percent of young consumers view a brand more positively, if it is associated with a cause, and fifty-eight percent are more likely to buy from that brand, according to DoSomething Strategic.
A well-targeted social media campaign that can explain how your business WILL help the good cause that your consumers already care about can get a lot of positive attention for your business, quickly and inexpensively.
Win the race for loyal customers
ALL businesses want more customers. Loyal customers bring in more loyal customers by telling friends and family about a company, displaying brands, and supporting each Cause-related marketing campaign.
You may not want to wait around in the race for loyal customers. Corporate giving has increased by 15 percent in two years. Cause-related marketing is growing, and you don’t want to be left behind. Brands win out with each customer. (Yotpo 2019) If you want to be in the handful of companies that have a customer’s loyalty, you need an edge over the competition.
A third of customers have already stopped purchasing favourite brands by 2019 because they lost trust in the brand. You want your customers to trust YOU more thanks to your commitment to a cause, not to change brand loyalty because they lost confidence in your brand.
Stable revenue growth
Cause-related marketing doesn’t just raise awareness for your cause and business — it increases income. 71 percent of Millennials are willing to pay more for something if they know some profits will go to charity.
Furthermore, sixty-seven percent of people are happy to pay more to have a great experience. The satisfaction of contributing to a good cause can aid customers’ experiences and will make them even more willing to pay more.
Cause-related marketing can dramatically improve customer loyalty. Customers are more likely to be loyal to a brand that they believe is committed to a nonprofit organization or cause. Increasing a customer’s loyalty by just 7 percent can increase lifetime profits per customer as much as eighty-five percent.
Loyal customers are more likely to keep purchasing from a brand. Increasing retention of as few as five percent of customers can result in an increase in revenue from twenty-five to ninety-five percent.
Starting a campaign
If you’re ready to start a campaign, your motivation can include helping your business stick in the minds of your customers, building trust and loyalty, but most of all by doing something good in the world. A campaign built around a cause is a great choice. Find a partner who will ensure your campaign will work to successfully raise money for your charitable cause and incorporate powerful marketing campaigns for your business.
Laura Tyson is Director of Communications of Social Strategy Group and Michael Morris is Founder of Social Strategy Group. https://www.socialstrategygroup.com/ (*contact us for details about these statistics)
Michael Morris was born in Manchester England in 1945. He joined his family owned Ladies fashion retail-business in 1961. After 30 years as a successful manufacturer/retailer in both the UK and Canada, Michael realized that to be successful in the fashion industry, one had to change the way they conduct their business. In 1993, Casually Yours, was formed as a workplace-fashion fundraising program which benefitted over 50 hospitals across Southern Ontario. This successful fund raising initiative lasted until 2003, when the SARS outbreak forced a shutdown of all hospital events. The epidemic closed Casually Yours down for over 12 months. It was during this period, Michael Morris collaborated with Angelo Mantenuto, president of Stix Brands International, a company that manufactured quality soap products. Together, they created Clean Freak Patrol, to help educate children and parents with the importance of hand sanitation and hygiene.
“Spread the word not the germs” was the campaign in support of Sick Kids Hospital, which was distributed nationally through Shopper’s Drug Mart.