How much sense does it make to spend your marketing money on an issue that doesn’t impact your bottom line? As it turns out, a whole lot of sense. Cause marketing, defined by the Business Dictionary as, Joint funding and promotional strategy in which a firm’s sales are linked (and a percentage of the sales revenue is donated) to a charity or other public cause, is a very beneficial strategy that can ultimately be the difference between success and failure. In fact, it carries a variety of benefits:
1. Image Boost
The most obvious benefit of contributing to a charitable cause as part of your marketing efforts is the image boost it provides. To consumers, supporting a cause means that you stand for something other than your bottom line, humanizing your company in their eyes. That perception makes a difference: 80 percent of consumers would switch to a brand that supports a cause, while 41 percent have bought a product simply because it was associate with a cause.
2. Community Involvement
Cause marketing also gives you an opportunity to become more closely involved in your local community. Doing so raises the visibility of your company within your immediate draw area, and provides significant PR opportunities: Local newspapers and magazines love to write about companies that care which, when promoted right, gives you plenty of free media mentions. Of course, the inherent benefits of community involvement and becoming a “pillar of the community” are not to be forgotten. It simply feels good to help out, making a difference to the people around you.
3. Employee Satisfaction and Retention
That good feeling maybe intangible and difficult to measure, but it manifests itself in how your employees feel about working for you. Companies involved in cause marketing have reported higher employee satisfaction and, as a result, higher retention of their best people. It’s more fulfilling to work for a company that cares about people instead of just money. That manifests itself in the numbers: 79 percent of employees feel a stronger sense of loyalty towards companies that engage in cause marketing, while no less than 85 percent say they’d leave a job if their employer had negative social responsibility tactics.
In short, cause marketing carries multiple, tangible benefits for your company. It may be difficult to get “over the hump” and spend the extra money in your budget, but you won’t regret it if you do. Contact us to learn more about how your company can engage in cause marketing to increase exposure and involvement in the community.