Cause marketing. We see it everywhere. It goes like this: For every bacon cheeseburger you buy, Big Joe’s Burgerama will donate a goat to a Tibetan village. Buy your groceries at the HipsterMart and they will plant a yucca plant in some third world rainforest. One recent survey indicates that 30% of consumers would even pay a bit more for a brand that was linked to a worthwhile charity. But cause marketing can be tricky. Here are a few pros and cons that marketers and their advertising agencies should consider.
In the pro column: Increased Sales?
According to Cone’s 2010 Cause Evolution Study, 80% of consumers are willing to switch from one brand to another if it is associated with a good cause. In addition, the study also revealed that 61% of American consumers are willing to try a brand they’ve never heard of if it’s associated with a charity. So far, so good.
Improved Corporate Image
No doubt about it––it’s great PR. The positive buzz generated from a cause marketing campaign leads consumers to view your company as more trustworthy. Having a good corporate image will help when trying to acquire new talent and retain your employees. For example, you can use your commitment to a good cause as a selling point to potential employees.
Better Company Morale
Employees often feel that manufacturing a better low-cost widget is not the world’s most noble pursuit. Let them feel a part of fighting breast cancer or feeding the poor, suddenly burning the midnight oil seems more worthwhile. You might even allow employees to submit nominations for causes they would like the company to get involved with.
So what are the cons that you and your branding agency should be aware of? Suspect Motives
Sometimes cause marketing can backfire. A company’s motives can appear suspect. For example, say a company like BP pollutes the gulf coast with their summer spill-fest then they suddenly get all ecological-minded, supporting Save the Llama. People aren’t stupid. This is probably just going to pour more crude oil on the fire. Rather than producing positive PR the brand comes across as craven and manipulative.
Bad PR by Association?
Choose your charity wisely. Once their name is attached to yours the association has long-lasting consequences. It is no different than when your wholesome, boy-next-door celebrity athlete shows up on the front page of the newspaper face down in a mountain of cocaine. Likewise, a legitimate charity can also have its little scandals. Take the time that the president of the United Way was caught with his fat little mitt in the cookie jar. Keep your friends close and your charities closer.
Good is Relative
Exotic, faraway causes are not seen by most consumers as being as significant as local causes. The Cone study confirmed that 46% of Americans believe companies should prioritize support based on issues that affect the quality of life locally. Focusing on a local issue will help your company get involved with your community and build relationships.
Cause marketing can be very effective. But make sure the fit is right. And then, the most important step: cross your fingers.
