Cause Marketing Gets Hotter!

EMarketer and The Chronicle of Philanthropy are reporting new research done by Cone Inc., indicating that cause marketing is not only gaining ground, it is a force to be reckoned with. According to Cone, "forty-one percent of Americans say they have purchased a product in the past year because it was associated with a social or environmental cause (41%), a two-fold increase since Cone first began measuring in 1993 (20%)."

If your organization has been working to develop strategy on how to attract millennials, you should know that Cone's research shows "millennials (18-24 years old) ... shop with an eye toward the greater good. Ninety-four percent find cause marketing acceptable (vs. 88% average) and more than half (53%) have bought a product benefiting a cause this year (vs. 41% average)." Millennials wield about $200 billion in annual purchasing power.

And, the news gets better. Across the full spectrum of demographics, "A full 83 percent of consumers want more of the products, services and retailers they use to benefit causes."

So, what does this mean to a charity or nonprofit? It's not just charities and nonprofits that want to link with millennials, women, and other strategic demographics. Retailers, manufacturers, the service industries, and others ALL want a piece of the "hot" demographics. So what brand characteristics does your organization have that would allow you to partner with a retailer or manufacturer?

The benefits can be significant:

• A new revenue (or gifts-in-kind) stream from the corporation.
• A robust public education campaign, raising awareness of your organization and the need addressed.
• Additional revenue from consumers who want to support your organization through purchases.

A few whiteboard ideas...
First of all, you don't have to be big. It may seem that national charities with well-known brands have an easier sell for cause marketing. But there are factors in brand management that make cause marketing problematic at all levels.?Here are three hypothetical scenarios from which a case for a cause marketing relationship could be made:

• Local provider of Pre-K care and education in a town dominated by a multi-shift manufacturing plant.
• Regional cancer research and prevention organization, as National Breast Cancer Awareness Month approaches.
• City-wide housing provider, when new home sales are good - or bad.

Each of these scenarios offers an opportunity for cause marketing. The manufacturing plant might want to donate a room at the Pre-K facility, in exchange for displaying your logo in the plant or on their products. Or they may want to bring your organization into the plant, as a service provider. The manufacturer knows this can lead to greater employee satisfaction, which improves employee morale and production. And, as the word spreads, the community will be inclined to support the product - and your organization.

The regional cancer research organization should think about partnering with a regional convenience store chain, or speak with the regional manager of a national chain. Hang cut-out pink ribbons in the store for a donation, or sell car magnet pink ribbons, with all proceeds benefiting the charity. The retailer knows that a hungry, thirsty family driving back from the soccer game, the family is more likely to stop at the convenience store that is involved in the community.

Organizations providing housing and shelter know the power of local builders. And the builders know the benefit of having their company name associated with a good cause. Whether they donate materials, time and labor, or a complete building will depend upon how housing sales are doing. Builders understand, though, that marketing when the economy is down is crucial to creating a rebound in sales when the market turns around. 

And there are few less expensive ways to market in a community than volunteering or donating unused materials.

Still, making a cause marketing pitch can be a delicate operation. The discussion calls for diplomacy and timing. If you'd like help making the case, CauseWare.Net can help. Contact Rick Gondella by email at RGondella@CauseWare.Net, or by phone at 571-209-7772.