Cause Marketing: Why It's Kind of a Big Deal

Janet Calvo

Janet Calvo About The Author

Oct 12, 2021 9:40:00 AM

Cause Marketing: Why It's Kind of a Big Deal

Having a presence in your local community is a great thing for businesses of any size. One way to gain the support of loyal customers in your community is through cause marketing. How can brands implement this strategy into their campaigns, and what benefits can they expect to enjoy?  

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What Is Cause Marketing? 

Cause marketing is when a brand allocates some of its profits and resources toward giving back to its community. This could be through generous charity donations, sponsoring local events, or promoting awareness about local organizations. By aligning your business with a meaningful mission, you're cementing your brand as a figure in the community. 

Many successful brands use cause marketing, such as Walgreens with its Red Nose Day. By purchasing a red rubber nose, customers know that they're donating money to children in poverty. This campaign has raised $200 million as of 2019, gaining more awareness for an important cause and the company itself. 

Purpose-driven brands see higher ROI on their marketing campaigns as well as more support from their audiences. Customers are over four times more likely to trust a brand with a defined purpose. And 89% of customers believe that their favorite brands should create products for important causes. 

Brands with cause marketing also have an easier time finding and retaining loyal employees. Thirty-five percent of employees have considered resigning due to their employer's lukewarm stance on important issues, and 88% of employees are invested in the purpose of the brands that employ them. With labor shortages at an all-time high, it's more important than ever to keep your business thriving with enthusiastic workers. 

The Benefits of Cause Marketing for Businesses 

Screen Shot 2021-10-07 at 9.36.43 AMA meaningful cause shows your customers that you're dedicated to promoting a positive change in the world. This allows you to stand out among other competitors that don't emphasize important issues. It also increases your brand loyalty and improves your brand's image as a whole.  

Additionally, it earns the respect of your employees and increases their morale. Your brand's purpose can also impact its ability to make successful partnerships and attract investors. Forty-eight percent of investors won't work with a brand based on a negative stance about important issues.  

You may also get the opportunity to have your brand showcased on local television if your support certain causes or charities. The station will often place that segment on its social media page, which can be shared throughout the internet. This increases your brand's reach even outside the local community. 

The Benefits of Cause Marketing for Consumers 

Seventy percent of customers want to be informed on how businesses are supporting environmental and social issues. They appreciate transparency and are more likely to trust companies that divulge where their revenue is going. Most importantly, the knowledge that they've contributed to the greater good gives them a warm feeling. That positive association will increase the lifetime value of your customers. 

How to Get Involved With Cause Marketing 

To get started, choose a cause that lines up with your brand's current image. While not required, it makes your cause marketing efforts appear more genuine in the eyes of your customers. Take the time to analyze your audience or ask them directly how your brand can contribute to important causes. 

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With a cause in mind, look for charities and local organizations in your area seeking to raise awareness. One of the most direct cause marketing tactics is asking your customers for donations after a purchase. Many people are more than willing to round up their totals, especially when the change is going to a good cause. However, some customers prefer to donate to the organization directly, especially newcomers who are less familiar with your brand. 

To gain consumers' trust, you can bring awareness to important issues through email marketing and social media. You can also help an organization by providing your video advertising or event planning services. Consider donating some of your products to a charity or organization of your choosing. The organization benefits from more resources, and your brand wins the respect of potential consumers. 

If your chosen charity is having an event in your area, offer to sponsor them or offer groups of volunteer employees. Customers that see more friendly faces participating in important events become inspired to get involved as well! You can also hold virtual events and charity drives to draw attention to important issues.  

The Importance of Cause Marketing 

Because purpose-driven brands are more popular among consumers, the need for cause marketing is at an all-time high. Brands that use cause marketing enjoy more loyal customers and stand out in increasingly competitive markets. For more cause marketing tips, consult a media partner about the perfect message for your brand. 

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