What is cause-related marketing?
Cause-related marketing is a promotional strategy that links a companys sales campaign directly to a nonprofit organization. It generally includes an offer by the company to make a donation to the cause with purchase of its product or service.
Does cause-related marketing work?
Boston-based Cone Inc. is a company with 20 years of experience tracking industry trends. It conducts ongoing research on consumer, employee, and corporate attitudes towards cause programs. Its series of Cone/Roper Reports distinguishes it as the pre-eminent leader in the field and serves as the definitive source of cause-related marketing information.
Findings from Cone/Roper include:
- 78 percent of adults said they would be more likely to buy a product associated with a cause they care about.
- 54 percent of adults said they would pay more for a product that supported a cause they care about. Thirty percent would pay 5 percent more and 24 percent would pay 10 percent more.
- 81 percent of adults said they would be likely to switch brands, and 76 percent would likely switch retailers to support a cause they care about (Cone/Roper 2001 Corporate Citizenship Study).
- Cause marketing has the strongest impact on people whom the pollster classifies as "influentials." Members of this group, about 20 million Americans strong, are opinion makers, usually have attended college and earn $30,000-plus annually. By a two-to-one margin (41 percent to 20 percent), influentials are more likely to have made a cause-marketing purchase than consumers at large.
- The poll also found that, after price and quality, one-third of Americans consider a company's responsible business practices the most important factor in deciding whether or not to buy a brand. Indeed, social responsibility was more influential than advertising, according to Roper.
- About one in five people, 58 million consumers, recalled making a conscious decision to buy products with a cause overlay in the past year.
- 88 percent of Americans say that during an economic downturn and period of tighter consumer spending, it is important for companies to continue supporting causes up from 71 percent in March 2001 (Cone/Roper 2001 Corporate Citizenship Study).
Unless otherwise noted, statistics are taken from the 1993 Cone/Roper Benchmark Survey on cause-related marketing.
How does cause-related marketing compare to traditional marketing efforts?
Through its extensive research, some of which is cited above, Cone Inc. has determined that cause-related marketing is one of the most effective marketing tools used by corporations. This year, American corporations will spend nearly $600 million on cause-related marketing efforts. In addition to generating awareness and driving traffic to your business, marketing your business in conjunction with a strong charity brand builds the relationship between your business and your customers, solidifies customer loyalty, and differentiates your business from other similar businesses in the community.
What does that mean for my business?
In short, cause-related marketing will drive traffic to your business and increase sales. While no marketing plan is going to sell carwashes to consumers without a car, an effective cause-marketing overlay will influence the purchasing decisions of 78 percent of American citizens. Imagine the effect that can have on your sales!
Why should I participate in this program?
To create a strong cause-related marketing campaign, a company must link itself to a strong nonprofit brand. The Make-A-Wish Foundation has enjoyed 94 percent name recognition among the American public. This makes the Foundation and its mission of granting the wishes of children with life-threatening medical conditions one of the most recognizable in the country. By combining the strength of the Make-A-Wish brand with the dedication of independent professional carwashes across the country, this program will serve to brand your business as a strong community partner.