Cause marketing has been defined as "a type of marketing a company participates in with a non-profit organization to boost business and profits while bettering society through supporting the non-profit's cause."
Modern consumers are very interested in which causes their preferred brands are supporting. In fact, one study found that 75% of American consumers want to purchase from businesses that share their values.
Have you already incorporated cause marketing into your overall business plan? If not, consider the following 10 benefits associated with having a cause marketing campaign:
1. Increased Sales
It's no surprise that consumers are often more willing to buy from companies that support or promote a cause they're passionate about. If you position your brand as an avid supporter of a particular cause, then you can expect that other supporters of that cause will be motivated to do business with you — and even purchase your products or services at a premium rate.
For the customer, it justifies their purchases, knowing their proceeds are going to an important cause or towards a business that supports a particular cause.
2. Enhanced Brand Reputation
The public typically views companies committed to social and environmental issues in a more positive light vs. companies that are not.
When your brand is associated with a good cause, people are more inclined to purchase your products or use your services, feeling good about the purchase they made. Cause marketing is an excellent way to boost your brand's reputation in the local community, regionally, and even nationally.
3. Customer Loyalty
Supporting a specific cause may not be the primary reason why customers stay loyal to your brand. But it certainly is a key factor in their decision-making.
Buyers are much more likely to stick with a company that supports causes they care about. They will see your business supports meaningful causes and want to continue business with you continually.
4. Employee Engagement
Your reputation and values matter in terms of employee engagement. Interestingly, 67% of men and 86% of women would refuse to join a company with a bad reputation, according to one survey.
On the other hand, a good brand reputation attracts top talent. When employees come to work every day knowing that their efforts are helping make a positive impact in the world, they're more productive, happier, and less likely to leave for another job. This creates a happy and healthy working environment.
5. Positive Impact on Society
On a macro level, cause marketing campaigns can generate a positive impact on society as a whole — e.g., by raising awareness and funding for important social and environmental issues.
Your business will make a difference by supporting a cause and spreading awareness of that particular cause to a larger audience. This can help address important challenges and create a better future for everyone.
6. Stand Out from Competitors
Modern companies have to stand out in a crowded marketplace in order to achieve sustainable success.
Aligning with a unique cause or issue can help you to do just that. Taking such a stand will attract consumers who share similar values and give your brand perception an edge over that of your competitors. Supporting a cause makes your company stand out to your competitors because it shows compassion and caring.
7. Cost-effective Marketing
Cause marketing is one of the more cost-effective marketing solutions in play today. In many cases, brands can support and contribute to specific causes within relatively low budget thresholds. For example, generating publicity for a cause typically costs little to the company doing the PR work, saving you money in the end.
8. Partnership Opportunities
Using a cause marketing campaign can open the door to several partnership opportunities with other organizations and businesses.
For example, your brand may be able to sponsor a non-profit organization and benefit from the favorable publicity that the organization generates. By working together towards a common cause, companies can strengthen relationships with one another, and even reach new audiences that would be largely inaccessible otherwise.
9. Improved Customer Insights
By engaging with customers around social and environmental issues, companies can gain a better understanding of their needs and preferences. For example, you can leverage your cause marketing campaigns to engage directly with customers on social media. Ask questions and look for genuine feedback from your followers.
You'll be in a much better position to understand your target customers' interests, concerns, and sensibilities — and then craft compelling content from those insights.
10. Increased Employee Retention
A high employee turnover rate can mean a lot of extra costs for any company. On the other hand, retaining valuable employees leads to a smoother workflow, more efficient operations, and ultimately more profits.
How does cause marketing come into the picture? When employees feel that their work is making a positive impact on the community (or even the world), they'll be more likely to stay with your company long-term. And that's a win for everyone.
Continue to use cause marketing to grow your brand
In summary, there are several compelling reasons why any business should consider investing in cause marketing. These include its positive impact on your reputation, its ability to create or enhance customer loyalty, and its effect on your workforce.
If you'd like some assistance in developing and implementing a winning cause marketing campaign, be sure to contact our team of friendly experts at Mid-West Family today!