By: Caroline Berryman, CMMP—Editor-in-Chief
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.