3 Reasons Every Business Needs a Cause Marketing Strategy
What does the red iPhone 7, Tom shoes and Susan G. Komen’s Race for the Cure all have in common? The answer — they were all created to support a cause marketing campaign.
Cause marketing happens when a for-profit and a nonprofit brand come together to raise money or drive awareness for a cause or an organization. This year alone, cause marketing and cause-related sponsorships are expected to reach $2.06 billion, and it’s for good reason. Cause marketing is a significant win for both brands involved because it not only tugs at heartstrings, but it connects consumers with these campaigns and compels them to open their wallets.
If you want to create a fresh narrative for your business, a co-branded cause marketing campaign could be a great option. However, if you still need a little convincing, read on for three benefits that just might nudge you to give cause marketing a go.
1. Engage with a larger youthful audience
Maintaining longevity for a business is a key factor for any marketer. To do that, you have to ensure your brand remains relevant to the consumers with the most buying power. Right now, this demographic includes Do-Good-Millennials and the emerging Generation Z who both love to support brands who support social causes. In fact, Millennials care so much about socially responsible companies that 75% have stated they would take a pay cut to work for one. So you’re not only reaching your consumer base but also engaging your current and future employees.
They say two heads are better than one.
Well, in the case of cause marketing, two diverse audiences are definitely better than one. Think about it — you decide to partner with a non-profit who has an audience that is vastly different from yours, but through your co-branded marketing and advertising efforts, your business is introduced to their audience and vice versa. As the cause marketing campaign continues to evolve, their audience gets to know your business – now you’re talking to people you may not have been able to reach before.
2. Increase customer loyalty
Partnering with other reputable brands gives you access to a wider audience while reeling them in to build loyalty towards your brand. According to a Unilever study, 33% of consumers choose to buy from brands they believe are doing social or environmental good. So if your brand aligns with organizations or causes that your customers have an interest in, then they’re going to feel that they are making an impact when they buy from you.
Cause marketing can be a great way to hone in on your existing audience even further. Take Dove’s Real Beauty campaign and Avon’s Breast Cancer Walk for examples. Both brands aligned with causes that affect mainly women because their consumers are majority women.
Likewise, in partnership with United Way, Toyota recently formed the Collin County Mobility Collaborative. The worldwide manufacturer known for its quality automobiles set out to empower mobility. “This holistic program aims to empower homeless women and their children to overcome crisis and poverty, helping them gain both physical and upward mobility,” says Al Smith, Group Vice President, Social Innovation, Toyota Motor North America.
The grant will serve as a formal announcement to their North Texas marketplace that they are dedicated to solving the local community challenges many overlook from the comfort of their driver seat. Initiatives like this one contribute to why Toyota continues to make the list of top places to work. Not only do they provide a pillar for customer support, they create a platform their employees are proud to stand behind.
By choosing causes that target their current audiences, a brand can show their consumers that they care about the health and well-being of their community, and in turn, their consumers buy their products to show their support.
3. Give your image a boost
A positive brand perception amongst consumers is gold. And in a world where a few negative reviews can wreak havoc on a brand, a well-executed cause marketing campaign can drive positive reviews your direction. By starting or joining a cause marketing initiative, you can steer the online narrative in a positive light, help boost your corporate image and increase profits.
Cause marketing is a great way to help a good cause while also deriving significant benefits for your brand. How can cause marketing and sponsorships work to create a long-lasting effect on your brand?