More than ever, consumers want the companies they patronize and the places they shop to have similar charitable or social responsibility goals or at least not have opposite outlooks. Consumers show by their spending who they will support or ignore. Does your company support Planned Parenthood? Stock Ivanka Trump items? Donate proceeds to climate change proponents? These actions are important to customers. In fact, boycotts have become an increasingly common way for consumers to react either pro-actively (as in letters to management, social media posts) or passively (as in avoiding purchases from the offending parties). And websites such as Grab Your Wallet sprout organically as resources. So, what exactly is cause marketing?
Cause-related marketing, also called social responsibility marketing is a company’s public effort to support a charitable organization, a worthwhile cause or even a community event. Sometimes companies donate their advertising for a commercial for the non-profit. Sometimes they provide volunteer workers, donate money, donate proceeds from sales, have cashiers ask customers for donations, etc.
The term was coined by American Express in 1983 for a campaign they initiated to raise money to help restore the Statue of Liberty. For a certain period, they advertised their commitment to donate money for each new card member and for each American Express transaction. Their other goal was to get new customers and more frequent use of the card from existing customers, presumably fueled by people who were impressed with their pledge to Lady Liberty. The campaign raised $1.7 million for the restoration project.
But cause marketing by any other name has been around long before American Express. Think of local restaurants who sponsor the neighborhood Little League teams; companies who give scholarships to high school students headed to college; stores that allow the Salvation Army to ring their bells at entrances; companies that sponsor community service days with employees.
Not all causes are controversial – who could find fault by donations to a children’s hospital? But whatever cause or non-profit group you support, know that it matters to your customers. This is particularly true for millennials, many of whom will put in the extra time to do research for reviews and social responsibility issues.
Buying decisions are complicated and cause-related marketing is a big part of the mix along with price, convenience and customer service.
Leisa Chester Weir
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