Cause Marketing
Leveraging cause marketing successfully
Cause marketing has grown from an occasionally used marketing strategy to the
foundation of many marketing plans. Research has shown that corporate giving can
directly affect the bottom line in a positive way. However, cause marketing is not the
same as philanthropy. Cause marketing is the marketing of a for-profit product or
business which benefits a non-profit charity or supports a social cause in some way.
Cause marketing is not simply a campaign, it’s an intricate part of an overall
business strategy that is repeated over and over. It involves active consumer research
and engagement, product differentiation, purchasing influencers and effective
communication.
So how does a brand decide to enter this arena? They must recognize the benefits
which include; an increase in brand loyalty, a boost in employee morale, an increase
in sales, positive media coverage and company reviews and differentiation from the
competition. Then they must choose the right cause for their organization and
commit to it. It is not a one-off commitment but rather ingrained into the brand’s
identity and values.
Cause marketing does raise a lot of questions for brands. How do you measure it?
Does it actually encourage consumers to make a purchase? Will it increase the
bottom line? Cause marketing works because of the consumers. Consumers tend to
be more loyal to brands whose values align with their own. Cause marketing is a
way to demonstrate those corporate values to consumers in a way that, done right,
can be both meaningful as well as engaging.
But sometimes brands may evolve their cause marketing strategies. TOMS shoe
company started with a commitment of “One For One.” For every pair of shoes a
customer buys, TOMS will donate a pair of shoes to a needy child. Last year, TOMS
announced that it was officially dropping the one-for-one giving model for something
more flexible. While TOMS will continue to distribute shoes, as well as other items
like eyeglasses and water to those in need, it may only use the one-for-one model for
certain shoe collections. Its new giving model is now for every $3 the company
makes, it will give $1 away. TOMS now employs a giving team to help identify how
TOMS can give back most effectively and through which organizations and they used
consumer insights to ensure that the issues it focuses on align with the ones its
customers are passionate about.
The Body Shop, long known for its cause marketing efforts, wanted to thank
healthcare workers for their dedication during the Coronavirus pandemic. They
recently launched a campaign called “Time To Care”. This initiative supports health,
wellness, and kindness. The Body Shop’s North American teams partnered with
shelters and assisted living communities to donate cleansing products such as body
and hand soaps. The company promotes practicing self-care, so they wanted to
ensure this experience was accessible to everyone. To date, The Body Shop has
donated over 4 million dollars’ worth of their products around the world. Care
packages with shampoo, conditioner and body wash support healthcare workers,
volunteers, and those that require assisted living. The brand is using their global
presence and product offerings to make a difference.
Aligning with a worthwhile cause can create a lasting impact if it’s done well. It can
elicit a positive feeling among consumers who will feel good about the brand while
increasing loyalty between consumers. However, brands need to be cautious and
they must be authentically aligned with the cause. Consumers are smart and will
not be easily manipulated. They will notice any discrepancies between what a
company says and what it actually does.
When brands leverage cause marketing, it is essential that they are transparent.
They must demonstrate a genuine commitment to the cause they are supporting,
and this commitment needs to be observed throughout the entire company. Today,
consumers have more information at their fingertips than ever before, and they are
not afraid to share good or bad news about brands on social media.
The most important thing for brands to do in order to measure success in cause
marketing is to establish a clear business objective from the very beginning. Brands
that don’t have a business justification for executing a cause program are doing it
wrong. Whether it’s increased sales, online engagement, brand loyalty, employee
engagement or retention, market penetration or opening in new markets, that
business piece is critical to the continued success and sustainability of these efforts.
