🤲Strategic Corporate Philanthropy Unit 8 – Cause-Related Marketing Strategies
Cause-related marketing pairs businesses with non-profits to promote products while supporting social causes. Companies typically donate a portion of sales to a chosen charity when customers buy specific items. This strategy aims to boost sales, enhance brand image, and create positive social impact.
CRM has evolved since the 1980s, with social media transforming engagement and transparency. Recent trends include long-term non-profit partnerships and employee-driven initiatives. The COVID-19 pandemic has highlighted CRM's importance as companies support communities in need and demonstrate social responsibility.
Cause-related marketing (CRM) involves a partnership between a for-profit business and a non-profit organization to promote a product or service while supporting a social or environmental cause
CRM campaigns typically involve a company donating a portion of its sales revenue to a chosen cause or charity when customers purchase specific products or services
Transactional CRM occurs when a company donates a fixed amount or percentage of sales to a cause, while non-transactional CRM involves other forms of support such as sponsorships, employee volunteering, or in-kind donations
Cause-brand fit refers to the perceived alignment between the company's brand image and the chosen cause, which can impact the effectiveness and credibility of the CRM campaign
Social impact encompasses the positive changes and benefits generated by the CRM campaign for the targeted cause or community, such as increased awareness, funds raised, or tangible improvements
Return on investment (ROI) in CRM includes both financial returns for the company (increased sales, customer loyalty) and social returns for the cause (funds raised, increased visibility)
Cause washing describes situations where companies engage in CRM primarily for marketing purposes without a genuine commitment to the cause, leading to skepticism and backlash from consumers
Historical Context and Evolution
CRM emerged in the 1980s as a way for companies to differentiate themselves and appeal to socially conscious consumers, with early examples including American Express' campaign to restore the Statue of Liberty
In the 1990s, CRM gained popularity as more companies recognized the potential benefits of aligning with social causes, such as increased brand loyalty, positive publicity, and employee engagement
The advent of social media in the 2000s has transformed CRM by enabling companies to engage directly with consumers and causes, as well as increasing transparency and accountability
Recent trends in CRM include a focus on long-term, strategic partnerships with non-profits, as well as the rise of employee-driven initiatives and corporate volunteering programs
The COVID-19 pandemic has highlighted the importance of CRM as companies seek to support communities in need and demonstrate their social responsibility
Many companies have pivoted their CRM efforts to address urgent issues such as healthcare, food insecurity, and economic relief
Virtual and digital CRM campaigns have become more prevalent due to social distancing restrictions
Types of Cause-Related Marketing
Product-linked donations involve a company donating a portion of sales from a specific product to a designated cause (Warby Parker donating a pair of glasses for each pair sold)
Point-of-sale campaigns prompt customers to make a donation to a cause at checkout, often by rounding up their purchase or adding a fixed amount (McDonald's asking customers to donate to Ronald McDonald House Charities)
Licensing agreements allow companies to use a non-profit's logo or branding on their products in exchange for a donation or royalty fee (World Wildlife Fund logo on Coca-Cola polar bear cans)
Social media campaigns leverage platforms like Facebook, Twitter, and Instagram to raise awareness and funds for a cause, often through hashtags, challenges, or user-generated content (ALS Ice Bucket Challenge)
Employee engagement programs encourage staff to volunteer, fundraise, or donate to a cause, often with matching contributions from the company (Microsoft's annual Employee Giving Campaign)
Sponsorships involve a company providing financial or in-kind support for a non-profit's event, program, or initiative in exchange for brand visibility and recognition (Bank of America sponsoring the Susan G. Komen Race for the Cure)
Collaborative product development involves a company working with a non-profit to create a new product or service that generates revenue for the cause (TOMS shoes designed by local artisans in developing countries)
Planning a Cause-Related Marketing Campaign
Define campaign objectives, such as raising funds, increasing brand awareness, or driving sales, to guide strategy and tactics
Select a cause that aligns with the company's values, target audience, and business objectives, considering factors such as relevance, credibility, and potential impact
Develop a compelling campaign message and creative concept that resonates with consumers and clearly communicates the link between the purchase and the donation
Choose appropriate channels and tactics for reaching target audiences, such as social media, email marketing, in-store promotions, or events
Set a donation structure, such as a percentage of sales, fixed amount per purchase, or matching customer donations, and communicate it transparently
Consider setting a minimum or maximum donation amount to manage budget and expectations
Ensure the donation structure is simple and easy for customers to understand
Establish a timeline for the campaign, including launch date, duration, and key milestones, and align with relevant events or holidays if applicable
Create a budget that accounts for all campaign expenses, such as marketing materials, advertising, and any fees associated with the cause partnership
Develop a measurement and evaluation plan to track campaign performance and impact, using metrics such as sales, donations, social media engagement, and customer feedback
Stakeholder Engagement and Partnerships
Identify and prioritize key stakeholders, such as customers, employees, investors, and community members, who have an interest in or influence on the CRM campaign
Engage stakeholders throughout the campaign planning and execution process to gather input, build support, and address concerns or questions
Collaborate with the non-profit partner to ensure alignment on campaign goals, messaging, and execution, and establish clear roles and responsibilities
Develop a formal partnership agreement outlining terms, expectations, and deliverables
Maintain open and regular communication with the non-profit partner to monitor progress and make any necessary adjustments
Leverage the non-profit partner's expertise, networks, and resources to enhance the campaign's credibility, reach, and impact (American Red Cross providing disaster relief expertise for a company's CRM campaign)
Engage employees as ambassadors and advocates for the campaign, providing opportunities for them to volunteer, fundraise, or share their personal stories
Partner with influencers, celebrities, or other brands to amplify the campaign's message and reach new audiences (Subaru partnering with ASPCA and influencers for its "Share the Love" campaign)
Seek feedback and input from stakeholders throughout the campaign to identify areas for improvement and ensure ongoing engagement and support
Measuring Impact and ROI
Set clear, measurable goals and key performance indicators (KPIs) for the campaign, such as total donations raised, number of customers engaged, or increase in brand awareness
Track sales data to measure the impact of the CRM campaign on product or service purchases, comparing performance to a baseline or control group
Monitor social media metrics, such as likes, shares, comments, and hashtag usage, to gauge consumer engagement and sentiment around the campaign
Conduct surveys or focus groups with customers and employees to gather qualitative feedback on the campaign's effectiveness, message resonance, and overall impact
Analyze website traffic and conversion rates to assess the campaign's impact on online engagement and e-commerce sales
Calculate the total funds raised for the cause and the impact of those funds on the non-profit's programs or initiatives (e.g., number of meals provided, animals rescued, or scholarships funded)
Measure any changes in brand perception, loyalty, or customer lifetime value resulting from the CRM campaign, using tools such as Net Promoter Score (NPS) or customer satisfaction surveys
Evaluate the ROI of the campaign by comparing total costs (marketing expenses, donation amounts) to total benefits (increased sales, brand value, employee engagement), and identify areas for optimization in future campaigns
Ethical Considerations and Challenges
Ensure transparency and honesty in all campaign communications, clearly disclosing donation amounts, limitations, and any potential conflicts of interest
Avoid cause washing by ensuring a genuine, long-term commitment to the cause and aligning the campaign with the company's core values and actions
Consider the potential unintended consequences or backlash of the campaign, such as the perception of exploiting a sensitive issue or overshadowing the non-profit's own messaging
Navigate legal and regulatory requirements related to charitable giving, such as tax deductions, disclosure statements, and commercial co-venture laws
Balance the need for brand visibility with the importance of centering the cause and the non-profit's mission in campaign messaging and execution
Address any concerns or criticisms from stakeholders promptly and transparently, demonstrating a willingness to listen and adapt as needed
Ensure the campaign does not reinforce stereotypes, perpetuate harm, or exploit vulnerable populations, and seek input from diverse perspectives to avoid blind spots
Consider the long-term sustainability and impact of the campaign, and plan for ongoing support and engagement beyond the initial activation
Case Studies and Best Practices
TOMS Shoes' "One for One" model, donating a pair of shoes to a child in need for every pair purchased, has inspired numerous other buy-one-give-one CRM campaigns (Warby Parker, Bombas)
Challenges: ensuring sustainable impact; adapting to changing needs; balancing brand and cause
Patagonia's "1% for the Planet" initiative, donating 1% of sales to environmental causes, demonstrates a deep integration of CRM into the company's core values and operations
Best practices: authentic alignment with brand; transparent reporting; employee activism; long-term partnerships
Challenges: balancing business growth with environmental impact; advocating for systemic change
Dove's "Real Beauty" campaign, celebrating women's diversity and challenging beauty stereotypes, has successfully combined brand messaging with social impact over the past 15+ years
Best practices: consistent messaging; diverse representation; partnerships with non-profits and experts; measurable impact on self-esteem
Challenges: avoiding tokenism or appropriation; addressing intersectional issues; measuring long-term impact on beauty standards
(Product) RED's partnerships with major brands like Apple, Nike, and Starbucks have raised over $600 million for the Global Fund to fight AIDS, tuberculosis, and malaria since 2006
Best practices: high-profile partnerships; clear donation messaging; engaging influencers and celebrities; adapting to changing global health needs
Challenges: maintaining momentum and visibility; ensuring transparency and accountability; balancing multiple stakeholders and agendas
Key best practices across successful CRM campaigns include:
Authentic, long-term commitment to the cause
Clear, transparent messaging and donation structures
Engaging multiple stakeholders, including employees, customers, and non-profit partners
Measuring and communicating impact on both brand and cause
Adapting and innovating to address evolving social and business needs