Today’s savvy customers clearly prefer to do business with brands that shout pro-social messages and follow sustainable manufacturing methods and ethical business practices. In all my business classes we are discussing cause marketing – what is it and will it really improve the world? Many of my for-profit clients are discussing how choosing a signature cause has shifted from a “nice-to-do” to a “must-do.”
Cause marketing is generally described as a mutually beneficial business and nonprofit partnership that sees a for-profit company put the power of its brand and marketing behind the cause to generate profits for both.
Many brands are now embracing cause marketing – Unilever/Dove’s “Real Beauty Campaign” is a well-known case study as is Bell’s “Let’s Talk”. Coca-Cola and WWF’s long-standing partnership has produced a number of successful campaigns and brands are now investing in true partnerships. Take P&G/Pampers and Unicef as another example. (RED) took a fresh approach to transactional programs when it launched in 2006 and has had a recent resurgence of brands engaging in 2017. Brands like Heiniken are tackling social issues – check out its very successful Worlds Apart 2017 campaign if you didn’t come across it in your social feeds. By comparison, Starbucks’ “Race Together” campaign attempt received significant criticism.
So if you are thinking about investing in a cause campaign in 2018, here are the top 5 trends to consider.
1. To be successful today campaigns need to take leadership and infuse values-based social purpose into both the company’s brand strategy and culture. Companies are not only engaging customers with their campaigns – but looking to retain top talent. Holding businesses accountable for how they manage the triple bottom line (people, profits, planet) has reached beyond just a niche audience to a worldwide movement.
“51% won’t work for a company that doesn’t have strong social and environmental commitments and 74% say their job is more fulfilling when they are provided opportunities to make a positive impact at work.” Cone Communications Employee Engagement Study
2. Focus on driving impact first – before maximizing profits. Today’s customers will criticize anything that isn’t perceived as authentic and tangible results motivate new donors. As any well-run charity will advise, today’s companies also need to be transparent – reporting exactly how much money the charity will receive. It is also often recommended a company focus on the broader cause, not just the charity to engage customers. Reports show the majority of younger volunteers and philanthropists care more about causes and issues than about particular organizations.
87% will purchase a product because a company advocated for an issue they cared about and 76% will refuse to purchase a company’s products or services upon learning it supported an issue contrary to their beliefs”. 2017 Cone Communications Study
Nielsen’s 2014 Global Survey on Corporate Social Responsibility is often also quoted as it “shows that 55 percent of global online consumers across 60 countries are willing to pay more for products and services from companies that are committed to positive social and environmental impact.”
3. Take a long-term partnership approach even though what customers may see most is a short-term campaign. Do the research upfront to choose the cause that best aligns with your company as changing causes will just confuse customers – when clarity around their role in helping you achieve key goals is going to be a critical component of your communication efforts. Like any brand-building strategy the payoff may not be immediate but putting in place key metrics will clearly demonstrate your ROI.
A recent study reported that doing good can
– Increase revenue by up to 20%
– Increase price premium by up to 20%
– Increase customer commitment by 20-60%
– Reduce the company’s staff turnover rate by up to 50%
– Increase productivity by up to 13% and employee engagement up to 7.5%
Forbes.com
4. What to test the waters first? Consider spending on a corporate cause sponsorship as a way of determining what your customers might value most. IEG reported that cause sponsorships represent 9% of the North American sponsorship market and will grow 4.5% percent in 2017 to $62.8 billion from the $60.1 billion spent in 2016.
5. And of course, a cluttered landscape is the biggest trend of 2018. Planning any cause campaign needs to be well thought out to create meaningful impact. Rushing into a partnership without discussing how teams will work well together can create unforeseen barriers to implementation. Our experts can often bridge these gaps and ensure both business objectives and mission impact are in alignment. If you are thinking about a cause marketing campaign your checklist should include:
– Start with a list of authentic cause partnership possibilities. Those that could be a mutually beneficial, collaborative relationship – an intersection of societal needs and corporate goals. Ensure the values and brand positioning of potential partners are in alignment. Openly discuss reputations and potential risks/rewards.
– Where is there employee engagement and interest? Do we have similar target audiences? Will they care about the collective impact we want to make? Is this a cause your prospective customers would be passionate about? Are people excited about how we could combine our assets and strengths to make a difference?
– As you select a partner ensure you set meaningful social impact and business goals together. Are they clear / transparent? Do we know how we will measure success?
Is your call-to-action easy to understand? Can you co-create a conversation with your consumers about the collective impact you will be making?
– And finally, can our teams work collaboratively together? NFP’s tend to have a much more collaborative process. Are teams clear on roles and responsibilities? Is it clear how decisions will be made?
Do you have any other lessons learned we can share? Any critical questions you wish your team had asked as you planned your cause campaign? We’d love to hear about your experience.