The modern-day consumer expects more from their product and service providers, including shared values. 86% of consumers will likely buy from purpose-driven businesses–especially if the businesses share in their values and beliefs.
This is an important element known as cause marketing–which is the practice of using your platform/ business to make the world a better place. Cause marketing can give businesses a competitive advantage while also increasing profits and social conditions.
Cause-related marketing can benefit an organization's bottom line. Below are some if cause marketing is right for your business.
What is Cause Marketing?
Cause marketing allows businesses to promote a social cause to display social responsibility and humanity to their customer base. It involves providing customers with additional value by supporting causes that are dear and important to customers and the brand.
Consequently, this fosters brand loyalty, a greater sense of purpose, and social responsibility beyond ordinary consumerism. Cause marketing is a marketing form that businesses engage in locally, nationally, or globally.
Ideally, a business engaging in cause marketing may choose to:
- Give charitably whenever a customer purchases from them; or
- Build their brand story to support ongoing charity, or both.
Is cause marketing right for your business?
Benefits of Cause-Related Marketing
There are frequent tangible benefits for incorporating cause-related marketing into your brand strategy. Some reasons to consider cause marketing for your business include:
- Brand loyalty. Customers are likelier to use a particular brand if they give money or charity to a positive cause they support.
- Product differentiation. Each brand strives to sell a unique product, and having a socially purposeful product can drive that distinction. When product quality and prices are equivalent, social purpose can be the deciding factor for shoppers.
- Employee retention. One valuable way to keep top talent in your workplace is with "social purpose," especially if you have millennial employees. 6 out of 10 millennials are confident that a sense of purpose motivates their choice of current employers.
- Increase in sales. Customers may pay more for a product if they know some of the proceeds go to charity.
- Positive reputation. Charitable giving and cause marketing campaigns favor your brand’s public perception.
- Competitive advantage. If two businesses are equal in every other way, consumers are more likely to choose the option that displays social responsibility.
Is Cause Marketing Right for Your Business?
Deciding whether cause marketing is right for your business depends on several factors, like your business’s goals, values, and target audience. Here are practical questions to ask yourself when deciding if cause-related marketing belongs in your brand strategy.
- What are your business goals?
Among other things, cause marketing supports brand awareness, expansion to new markets, improving employee and customer retention, and increasing sales. If any of these goals align with your plan for your business, cause marketing may be worth exploring.
- What causes align with your business value?
Cause marketing is most effective when you support a movement that aligns with your values and mission. For instance, if you're a sustainable clothing brand, supporting environmentalism clearly aligns with your mission and would be a natural fit.
- Who is your target audience?
Cause marketing can be highly effective if you target a socially conscious audience that values brands supporting causes they believe in, but that might not describe your target buyer. If your audience isn't interested in cause marketing, it may not be worth pursuing.
- How will you measure success?
Like any other marketing strategy, you should develop clear goals and metrics to measure the success of your cause-related campaigns. Such metrics to track include public brand recognition, sales revenue associated with that campaign, and customer perception and loyalty.
- Can you make a meaningful impact?
Cause marketing can be highly effective when your campaign makes a meaningful impact on the cause your business supports. This may require a considerable investment of your team’s time, money, and resources.
How Businesses Grow with Cause Marketing
Having a socially conscious image in the modern consumer market is increasingly becoming important. Cause marketing allows your business to embrace social responsibility while retaining key benefits such as increased brand loyalty, sales, and a competitive edge.
Whether or not cause marketing is right for your business depends on your unique situation and goals. Considering these factors and evaluating the potential benefits and setbacks of cause marketing can help you decide whether cause marketing is right for your business.
Working with an experienced marketing agency can help you implement an effective cause-related marketing strategy. At Mid-West Family La Crosse, we take a unique personalized approach to help businesses create and implement the best marketing strategies, including cause-related campaigns. Contact us to learn more about creating your business' cause marketing campaign.