Cause Marketing Opportunities for your Business

By Kathy Kelley, Professor of Horticultural Marketing and Business Management    
 
It is October and many of us think a bit more about charities and cause marketing this month.  Over the past couple of years, Dana has written a couple of blogs about building a cause marketing program for your business: charitable activities and cause marketing products. I wanted to add a bit more to this important discussion.

It is suggested that consumers “feel good” about spending their money on goods that support a cause.  With so many local, national, and international causes already being supported by your customers’ generosity, how can you compete with them and the businesses that sponsor them?  Consider the following which could help bolster your cause marketing program:

• Make sure that the donation process is transparent.   For each dollar that you collect you need to show how and where these funds were distributed.  Consumers who do not see any progress associated with the money they donated may very well choose not to donate anymore.  Be sure to indicate on your website, in your promotional activities, and in-store that money collected helps to do great things. 
• Consider a cause that has a natural connection with your business.  Perhaps a member of the business has suffered from a disease that could benefit from a donation.   Or, if fruit and vegetables are your primary product why not support a cause that helps eliminate hunger?

  

  Here is an example of cause marketing.  This local baker will
  donate a portion of the proceeds from these cookie
  sales to Traci's Hope, an organization that provides
  financial support to breast cancer patients

Promote that you are accepting donations in addition to selling a product or two where the proceeds go directly to support the cause.  You, as the business owner, may assume that consumers would automatically understand that there is more than one way to support a cause; however, it may not occur to consumers that they can make a donation in place of making a purchase.              

Finally, involve employees in more than just the process of collecting donations or indicating to customers what purchases support the cause.  Involve them in the process of selecting the cause and associated administration needed to support events or activities.  The more employees support the effort the more likely they are to alert customers that your business is involved in collecting donations to help those in difficult situations.

Marketing Your Products With Charity Donations

In April of 2010, I wrote a post about charity donations. I thought I'd follow up with some more research on what charities customers prefer. Take a look in your refrigerator and pantry. Do you have any products that mention a charity donation? In my kitchen, I've got cereal, granola bars, and yogurt like that. Not all donation advertisements are equal, though. According to a study by The Integer Group and M/A/R/C Research, 43% of women choose brands that donate with every purchase over brands that donate a set amount.

Does the type of charity make a difference to shoppers? The research says 'yes' (the study results can be found at www.shopperculture.com). Women are attracted to causes that invoke an emotional or personal response like disease prevention, faith-based, animal welfare, and child welfare. Men, on the other hand, seem to be attracted to causes of a social nature where money is a fix as compared to an emotional tie.



"Brands need to appeal to men's rationale side, delivering a more rational benefit for their participation in a cause program, which can lead to higher engagement. Men are more likely to support organizations like The Salvation Army or Goodwill, with women saying they support disease prevention causes such as breast cancer awareness," said Craig Elston, SVP, The Integer Group. "If you're targeting women, focus on the messaging as a means to evoke emotion."

As an ag entrepreneur, have you advertised charity donations with the sale of your products? If so, have you seen an increase in sales? If you have tried different charities, have you seen significant differences in the sales of one charity product over another?

Adding charitable activities to your marketing plan

Your marketing plan is a living document. Customers' wants and needs from the businesses they purchase from is constantly changing, so you as a business owner will need to accommodate these changes or risk being left in the dust by your competition. Many customers are now looking beyond price and selection in choosing a business to meet their shopping needs. The values of a business can make or break a sale.

Customers are looking for businesses who regularly participate in charitable giving. This can be through product donations or money. Why is charitable giving a hot topic for buyers? It may be because of recent economic problems like corporate bailouts. The thought of employees losing their jobs while CEOs pull in million dollar paychecks has left a sour taste in the mouths of many consumers. Consumers are looking to spend their money at businesses that are not just out for profit, but are instead looking to help their community. Some examples:
1. As a jelly maker, you advertise that 30% of the profits from your newest flavor will be donated to a local animal shelter.
2. At your farm market, you advertise that on Tuesdays, 10% of all profits will be donated to pediatric cancer research.
3. At your bakery, you advertise that any unsold bread will be donated to your local food bank.

To help alert charity-conscious consumers about your giving, try using social media. Twitter and Facebook are great outlets for this. Post regularly about what will be donated and the charities that will benefit from your giving. Also, ask the charity that you are giving to to also post about your business's charitable activities. There are even services available to advertise charitable businesses, like HelpOT (www.helpot.com). HelpOT's mission is to bring together businesses and advertise their charitable activities using social media. Each city has a Twitter account and posts about local businesses. (Right now, HelpOT is only available in Austin, Chicago, New York City, San Francisco, Orange County, Dallas, and Los Angeles, but check back often for info about your city.) All participating businesses can post to this Twitter account and talk about their charitable activities. Customers can then see all of the charitable activities taking place in their city.



As a business owner, has your business participated in any charitable activities? If so, has this increased sales? How did you advertise?