Having a presence in your local community is a great thing for your brand, employees and your audience. One of the easiest ways to establish your brand as a community favorite is through cause marketing.
This tactic has quite a few unique elements that set it apart from other marketing strategies, but it's still easy to implement. Here's what you can expect from a cause marketing campaign, as well as unique ways to get involved with your community!
What Is Cause Marketing?
Cause marketing is when a company centers its advertising strategy around a charitable cause or organization. With cause marketing, there's less of a focus on your products and services. Instead, it underlines why supporting your brand is indirectly contributing to the greater good. Cause marketing can be incredibly beneficial for both big and small businesses.
A common example of cause marketing is when your brand sponsors a local charity in your area. This should be a charity that supports the company’s core values and something employees can get behind. This will help create authenticity.
Cause marketing has also been shown to bring retail success on a large scale. For example, Uber created the 'Restaurant Contribution' fund in 2020 to help local eateries that were negatively impacted by the pandemic. Generous customers donated a total of $3 million in donations, and Uber contributed $2 million of its own profits. In addition to promoting a good cause, this campaign helped raise the company's yearly revenue by nearly $7 billion!
Data shows that more customers want to support purpose-driven brands above all other companies. A consumer is four times more likely to buy from brands with cause marketing strategies. Cause marketing also increases customer loyalty: consumers are six times more likely to stick by a brand in times of financial difficulty!
The Benefits of Cause Marketing
Cause marketing is a winning strategy for all parties involved, particularly the business itself. It can be hard to effectively market your company without a unique brand image, especially for smaller businesses. Cause marketing gives your brand a friendly, warm character that is sure to attract compassionate and loyal customers.
Supporting a cause or organization also gives your brand something that the majority of companies don't offer. Customers believe only 37% of brands have a worthwhile mission. It proves that the majority of customers judge a brand's worth primarily by its purpose, not just its products!
When a company supports a good cause, its workers will likely also be more productive. When employees feel more motivated at work, they'll want to keep their positions for many years. Studies show a 40% boost in employee retention for purpose-driven brands, even if it means lower pay compared to other job options.
Having a company mission focused on community causes is particularly important to Gen Z workers. When searching for employment, 83% of them say that a company's purpose is what they consider first. If your company doesn't promote cause marketing, you're potentially missing out on a large portion of qualified talent.
The consumers themselves also benefit from cause marketing. Everyone likes knowing that their purchases can help enrich someone else's life or increase awareness about an important issue. The majority of customers also place a lot of trust in the quality of purpose-driven brands. This allows them to shop with confidence, without worrying about overpriced items or inaccurate product descriptions.
Cause Marketing Participation Tips
Many cause marketing initiatives are cost-effective, so any business can participate! For example, you can ask customers to round up their purchase amounts and donate some change to a local charity. Most customers are more than willing to donate, and it doesn't require any advertising dollars!
If you want to go the extra mile, you can hold an in-person or virtual charity event. These events can have fun activities like games, raffles, or even live entertainment. You can also offer branded merchandise as prizes for consumers who donate certain amounts of money. That's an extra incentive for customers who want to participate, plus it can indirectly increase your company's sales!
The Importance of Cause Marketing for All Businesses
The past few years have proven that the popularity of cause marketing is at an all-time high. It helps brands become more visible in their community and contributes to a thriving company culture. There are so many ways to get involved, and you don't need a huge advertising budget to participate! Any cause marketing technique keeps your brand relevant in your community for years, all while changing their lives for the better!