Cause-Related Marketing Can Be Good for Your Retail Business
Posted by Debra Neville
Six Benefits to Cause-Related Marketing (CRM)
There are lots of different ways to approach CRM; you need to decide which is best for your company and the charity you support. You walk a fine line with your altruism. Make sure you're authentic; then your efforts will be received in the way you intended: philanthropic first and foremost. Research, research, and more research for your CRM approach.
What is CRM? A definition you’ll see on many websites defines CRM as, "The association of a for-profit company with a nonprofit organization to raise money for the nonprofit while promoting the product and services of the for-profit."
It’s what I call a twin-win situation as both organizations can benefit.
The phrase, Cause-Related Marketing was coined in 1983 by American Express for a three-month campaign that donated one penny to the Statue of Liberty restoration project, each time anyone anywhere used their AMEX card. It was hugely successful. That year during the Statue of Liberty campaign, AMEX had a 45% increase in new users and a 28% increase in card use. More than 1.5 million dollars were raised.
Several years before the AMEX campaign, in the late 70s, Wally Amos became the national spokesperson for Literacy Volunteers of America (LVA); it brought attention to his Famous Amos brand of chocolate-chip cookies and LVA which sparked new LVA programs across the country. Other examples of cause-related marketing? Paul Newman and his line of Newman's Own cookies, spaghetti sauces etc. have raised more than 250 million for many charities. Of course, Ben & Jerry’s ice cream was an early adapter of cause marketing as a major contributor to a new charity each year.
In the 2010 Super Bowl, Pepsi sat out from the ad blitz for the first time in their 23-year ad spot history and donated 20 million from their ad budget, in the form of grants, to laid-off workers or setting up free community health clinics around the country. As a cautionary measure to Pepsi: (and all companies who use CRM as part of their marketing plan) they need to be perceived as doing the right thing versus trying to push more pop on an already-drowning-in-soda society.
Why Cause-Related Marketing?
It’s socially responsible for businesses and heightens the public awareness of both the company and the charity. It can be a significant boon for both. You want to pay attention so the charity you’re supporting doesn’t do anything to damage their reputation, therefore your reputation. Research well and choose wisely.
Alden Keene’s 6 business benefits to cause marketing:
Cause-Related Marketing:
- Can directly enhance sponsor sales and brand.
- Is respected and accepted business practice.
- Can heighten customer loyalty.
- Can boost a company's public image and helps distinguish it from the competition. I would add that it can also give corporate PR officers a new story to tell.
- Can help build employee morale and loyalty.
- Can improve employee productivity, skills and teamwork.
If your company isn't prepared to be philanthropic with or without CRM, try 'giving back' yourself. First figure out what spins your wheels. Then try to match up your passion or interest with what's needed in your community. My company, J.D. Associates, is committed to Habitat for Humanity North Central Massachusetts. I'm a Literacy Volunteer of the Montachusett Area.
It feels good to do something bigger than yourself. Most everything is.
