Cause marketing is not new, but given the extremely wide reach that businesses now have with social media, it is gaining ground as a profitable marketing approach. When you support a cause, most often by partnering up with a non-profit organisation, it is easier than ever before to let the world know about your goodwill. Facebook, Twitter, and Instagram are extremely popular and your cause-related content is easily shareable, meaning that you can build awareness around your cause-related marketing campaign in a short amount of time.
Cause-related marketing creates a mutually beneficial relationship between a business and a cause. Essentially, a business donates some of its proceeds towards a specific cause, which helps the growth of both the cause and the supporting business. Consider shoe manufacturer TOMS. When you buy a pair of TOMS shoes, an in-kind donation is made to non-profit humanitarian organisations, which relay the donation to those in need. The working principle beyond cause marketing is people helping people, and it is highly effective.
Cause marketing relates to Corporate Social Responsibility, which refers to the incorporation of efforts in a company’s campaign to improve their social and environmental impact. By being socially responsible, your business not only grows in profits but also in customer trust and appreciation.
How Can Cause-Related Marketing Benefit My Business?
The Halo Effect
In a global study, Cone reported that given a choice between two products of similar price and quality, 91 percent of consumers said they would choose the business that supports a good cause. Cause-related marketing benefits your business by creating a halo effect. Consumers value social equality and justice now more than ever, so when your businesses demonstrate care and compassion for those in need of support, it looks great!
Sales are Positively Impacted
When a business is open about supporting a cause, the customer is usually left with a good impression of that business. Consumers today are becoming increasingly interested in social responsibility, so when businesses demonstrate tier compassion and social attunement, customers are more likely to align with that business and support it long-term. As mentioned above, cause marketing improves word-of-mouth marketing, which makes a significant positive impact on your sales.
Customer Loyalty and Trust
Cause-related marketing encourages feelings of compassion and goodwill in the customer. People feel good about themselves and about the businesses they engage with when they know they are supporting a worthwhile cause. This feeling is an enjoyable one and makes a customer want to return to your business in the future.
Attracts a Specific Audience
The cause you choose to support may attract a certain demographic or audience segment more than others. For example, your cause may be related to homelessness or domestic violence, or it could be related to animal conservation. While cause marketing is about the cause, it is also about the growth of your business. You can figure which causes will be most profitable by gaining insight into your audience and segmenting them. When you consider their general age, background, even financial status, you may better understand the causes they are most likely to support.
Over time you may choose to support multiple causes as part of your marketing efforts. Be prepared for a rise in different audience segments depending on the cause you choose to associate with.
Stand Out From Your Competitors
The global marketplace is becoming increasingly competitive. Standing out among your competitors is harder than ever before among all the noise. When it comes to a decision between your business and a similar competitor, your supported cause can make a big difference.
