We are living in a socially-conscious world where customers are demanding more and more from the brands to disclose if their production processes follow ethical guidelines. Therefore, today the brands are not just about products and services. They are about values, beliefs, and making a difference. Owing to this need, cause-related marketing (CRM) has emerged as a powerful strategy that allows brands to align with social causes, creating a win-win situation for both businesses and society.
Let us look at how cause-related marketing works for brands:
Understanding Cause-Related Marketing
Cause-related marketing is a collaboration between a for-profit business and a non-profit organisation in a way that the business provides the finances and the NGO takes care of implementation. It involves marketing campaigns that promote a social cause while simultaneously driving business objectives. For example, a cab-service provider may tie up with an NGO like ours to run a campaign around women’s safety. This way, the business will be able to showcase itself as a safe travel service provider for women while also spreading awareness on the issue. This strategy not only enhances brand image but also fosters customer loyalty and trust.
CRM works well because customers are becoming increasingly aware of social issues and expect their favourite brands to invest in those causes. In fact, customers are also open to changing their brand loyalty based on which business invests its resources in such campaigns. According to a study by Cone Communications, 87% of consumers said they would purchase a product because a company advocated for an issue they cared about. This demonstrates the potential of CRM to influence purchasing decisions and build a loyal customer base.
Benefits of Cause-Related Marketing
The biggest benefit of CRM is that it builds trust and loyalty for the brand. At the same time, it also pushes the brands to invest in causes in which it otherwise may not have invested in. For example, brands like shoe-manufacturing companies have run campaigns where they would donate one pair of shoes to a child in need for every pair bought by the customers. Such campaigns create a positive image of the brand in the minds of the people and drive growth. Think of CRM as planting seeds of goodwill. As these seeds grow, they cultivate a garden of loyal customers who trust and support the brand.
Another benefit of CRM is that it differentiates the brand from others in a competitive market. For example, brands like Body Shop have presented themselves as ethical beauty products manufacturers by running campaigns against animal testing. This has positioned the brand as an ethical brand which customers can rely on. Today there are many other brands which use similar techniques to set them apart from their competitors. CRM acts like a spotlight, highlighting a brand’s commitment to social responsibility and setting it apart in a crowded market.
Lastly, it can also drive growth for the brands by increasing sales as customers prefer to buy products from a brand which seems to be investing its money in good causes. One such example is that of P&G’s Shiksha campaign under which a portion of sales from certain products is donated for the education of underprivileged children. Thus, buying these products gives customers the impression that they are contributing to a noble cause. This drives the sale of the products too. CRM is like a magnet, attracting socially conscious consumers and driving sales while making a positive impact.
Successful Campaigns
While we have already looked at some examples above, let us go through a few more case studies to understand how CRM works.
First example is the College Achievement Plan run by Starbucks in partnership with Arizona State University in the United States. Under the campaign, Starbucks offers tuition fees for education of its employees, improving access to college education for students coming from less-privileged backgrounds. Another example from the US is that of Nike’s equality campaign through which it promotes inclusion. The brand has created a positive image of Nike for its customers.
In India, similar campaigns have been run by multiple brands and there is no dearth of such examples. One of the unique campaigns was run by Vistara where it partnered with us to provide children from low-income families their first flight experience. This made for a positive campaign that brought smiles on many faces and created a good image of the brand. Similarly, Johnson Tiles also ran a campaign to make public places accessible for the differently-abled. These examples show us that CRM is used prominently by brands of different sizes operating in diverse industries.
Implementing Cause-Related Marketing
If you are a business that is looking to implement CRM in its approach, then there are a few things that you should keep in mind. First, you should choose causes that resonate with your brand values and target audience. Authenticity is key to building trust and credibility. For example, a beauty brand might align with environmental causes, while a tech company could support digital literacy initiatives.
Second, your focus should be on engaging and educating the audiences rather than just increasing business for your brand. Use storytelling to connect with your audience emotionally. Share stories of impact and progress to keep them engaged. For example, share testimonials from beneficiaries or behind-the-scenes content of your initiatives.
Third, you should always establish mechanisms to measure the impact of your campaigns and refine it according to the needs. Track the impact of your campaigns and communicate the results transparently. This builds trust and encourages continued support. Lastly, you should always ensure that you collaborate with reliable partners like reputable non-profits to ensure the effectiveness and credibility of your campaigns.
Cause-related marketing is a powerful tool for brands to make a meaningful impact on society while driving business success. By aligning with social causes, brands can build loyalty, enhance their image and drive growth. As we move towards a more socially conscious world, the power of cause-related marketing will only continue to grow.
Partner with us for your first or next cause marketing campaign here.