Posted by Debra Neville on Mon, May 10, 2010 @ 03:02 PM
Six Benefits to Cause-Related Marketing (CRM)
There are lots of different ways to approach CRM; you need to decide which is best for your company and the charity you support. You walk a fine line with your altruism. Make sure you're authentic; then your efforts will be received in the way you intended: philanthropic first and foremost. Research, research, and more research for your CRM approach.
What is CRM? A definition you’ll see on many websites defines CRM as, "The association of a for-profit company with a nonprofit organization to raise money for the nonprofit while promoting the product and services of the for-profit."
It’s what I call a twin-win situation as both organizations can benefit.
The phrase, Cause-Related Marketing was coined in 1983 by American Express for a three-month campaign that donated one penny to the Statue of Liberty restoration project, each time anyone anywhere used their AMEX card. It was hugely successful. That year during the Statue of Liberty campaign, AMEX had a 45% increase in new users and a 28% increase in card use. More than 1.5 million dollars were raised.
Several years before the AMEX campaign, in the late 70s, Wally Amos became the national spokesperson for Literacy Volunteers of America (LVA); it brought attention to his Famous Amos brand of chocolate-chip cookies and LVA which sparked new LVA programs across the country. Other examples of cause-related marketing? Paul Newman and his line of Newman's Own cookies, spaghetti sauces etc. have raised more than 250 million for many charities. Of course, Ben & Jerry’s ice cream was an early adapter of cause marketing as a major contributor to a new charity each year.
In the 2010 Super Bowl, Pepsi sat out from the ad blitz for the first time in their 23-year ad spot history and donated 20 million from their ad budget, in the form of grants, to laid-off workers or setting up free community health clinics around the country. As a cautionary measure to Pepsi: (and all companies who use CRM as part of their marketing plan) they need to be perceived as doing the right thing versus trying to push more pop on an already-drowning-in-soda society.
Why Cause-Related Marketing?
It’s socially responsible for businesses and heightens the public awareness of both the company and the charity. It can be a significant boon for both. You want to pay attention so the charity you’re supporting doesn’t do anything to damage their reputation, therefore your reputation. Research well and choose wisely.
Alden Keene’s 6 business benefits to cause marketing:
Cause-Related Marketing:
- Can directly enhance sponsor sales and brand.
- Is respected and accepted business practice.
- Can heighten customer loyalty.
- Can boost a company's public image and helps distinguish it from the competition. I would add that it can also give corporate PR officers a new story to tell.
- Can help build employee morale and loyalty.
- Can improve employee productivity, skills and teamwork.
If your company isn't prepared to be philanthropic with or without CRM, try 'giving back' yourself. First figure out what spins your wheels. Then try to match up your passion or interest with what's needed in your community. My company, J.D. Associates, is committed to Habitat for Humanity North Central Massachusetts. I'm a Literacy Volunteer of the Montachusett Area.
It feels good to do something bigger than yourself. Most everything is.
Posted by Don Capman on Tue, Jan 26, 2010 @ 12:00 PM
|
 Giving Back Many ordinary people in this world view most large corporations as nothing more than self-serving, greedy entities with insatiable appetites for making huge profits. Well, for two hours last Saturday night, that perception was altered by most major television networks when they aired the commercial-free "Hope for Haiti Now" Concert. To date, and still counting, those two commercial-free hours have raised over 57 million dollars for the Haitian-relief effort. Those two "prime time" hours could have generated millions of dollars in advertising revenue for the networks, but, for whatever reasons, the network execs saw fit to give something back to the people who are going through an unthinkable tragedy. If you watched this program of painful mourning and steadfast hope, did you notice that the performers were not introduced and there was no applause? Humbling humility was the name of the game that night as it should have been. The Cause rose above all self-centered egos and concerns.
So, how does this relate to retail? In spite of living through an extremely difficult retail climate, we still have our businesses, and we are still part of the community. The question is how much do we as retailers give back to the communities who help put food on our tables by being our customers? Do we sponsor a local or national charity and support it throughout the year or do we donate a few bucks around the holidays? 
Although customers like to shop stores that carry the merchandise they want, they also like to feel good about the stores where they shop. A hot topic in retail these days is "customer loyalty." Most good POS systems have customer loyalty add-ons which track customer purchases and provide rewards. But customer loyalty is more than accumulating points; it also has to be earned. Customers keep coming back to a store because they want to come back. They get what they need, and they feel good about the customer experience. Customers feel good about doing business with stores which embrace social responsibility. Why don't you think about adopting a Cause that you truly believe in or expanding your involvement with a Cause you already support. Customer loyalty will follow. |