What’s on Your Cause-Related Marketing Calendar for 2010?

Posted by Heidi on December 29th, 2009

Cause-Related Marketing (CRM) is a partnership between a nonprofit organization and a for-profit company formed to market a service or product for mutual benefit.

With the end of the year close at hand, now is a perfect time to begin planning your cause-related marketing campaign for 2010. A well-planned CRM campaign can reap many benefits. In addition to raising awareness and funds for both partners, finding the right partner can build a company’s image in the community. CRM partnerships can get lots of press, providing the company has a distinct marketing edge. Employees feel proud to work for a company that supports a cause, which can give the company an edge in hiring and retention of qualified individuals.

Cause-Related Marketing can boost sales. A CRM partnership with a good cause can distinguish a company’s products and services from the competition. Several studies over the past few years have shown that consumers are attracted to companies that associate themselves with a social cause or issue. One survey discovered that when quality and price are equal: two-thirds of consumers would be likely to switch retailers or brands to one who associated with a good cause. For many companies it has helped them create an alternative approach to brand advertising and has helped companies distinguish themselves from their market by giving consumers the opportunity to contribute to something greater than just the company’s bottom line. CRM can give your marketing campaign a personality making it difficult for the competition to duplicate.

“The company that gives, over time can achieve high esteem and success in the community, within their company and in the hearts of the Cause they adopt or partner with.” – Heidi Richards Mooney

Cause-Related marketing can reinforce the company’s mission and commitment to social responsibility. It can also help the company connect with specific geographic or demographic markets. Targeting specific populations through CRM is an effective way to reach and engage specific markets in using their products and services. It is becoming increasingly accepted as an effective marketing strategy in the global marketplace.

Ø Did you know that Wally’s “Famous Amos” built his chain of cookie stores without paid advertising? Instead he got media coverage by donating a percentage of his revenues to literacy programs.

Ø Nabisco partnered with the World Wildlife Fund by changing the shapes of their cookies to portray endangered species. They then donated 5 cents of every sale to WWF for a total of $100,000.

Ø Companies such as Starbucks and Earvin Magic Johnson have formed alliances to increase economic prosperity in underserved neighborhoods through a joint venture known as Urban Coffee Opportunities.

Ø Ben & Jerry’s Phish Food ice crème was created to honor the band and it’s Vermont Roots and proceeds go towards the restoration of Lake Champlain.

Ø Estee Lauder Company donates a portion of their profits from sales of special products to the Breast Cancer Research Foundation. And on and on…

So what type of self-marketing campaign could a small business participate in to support a good cause?
Ø Ask Victoria Villalba of Victoria and Associates in Miramar, Florida. She and her staff are the founders of the Preparing Youth for Industry Program in partnership with Miramar High School and Turner Vocational Technical Arts High School Annual Connections Program. These programs give students the opportunity to learn about business and industry with the help of local businesspersons and the staff of Victoria & Associates.

Ø And then there’s Thomas Whatley, CEO of American Ophthalmic in Winter Park, Florida, who partners with a local chapter of Meals on Wheels to serve the elderly. During visits to Meals on Wheels centers, his company’s certified technicians check vision and the doctors make presentations about the aging eye. He says that his efforts in the community have accounted for at least 25% of his income each year for several years.

Ø Or how about Dr. Dora Vilk-Shapiro who manages a very successful dental practice in Coral Springs, Florida, while serving the needs of several community organizations. She has been involved in the Race for Education, collected food for Thanksgiving Drives and Toys for Christmas to help the needy and less fortunate. With the help of her able staff, has visited several schools to promote dental health including Jack & Jill Children’s Center in Fort Lauderdale, a program for low-income, underserved youth in her community.

How do you get started?

Choose the Charity or Non-profit Association you would like to work with. Find out what is needed in your community. Identifying the right issue or cause is key to local success. It is important that both the nonprofit and the company understand each other’s mission, goals and objectives. What causes is your company currently involved with? Do your employees volunteer their time and give money to a particular cause?

Determine your company’s goals in supporting the cause. Is it to increase sales, community awareness, image, employee involvement, morale or a combination of these?

Have a written agreement between the company and the organization which outlines the goals of both parties, what services/products are to be offered, the geographic area to be covered, starting and ending dates of campaign, use of trademarked logos, images and names. Collection and distribution of funds should also be outlined in the agreement including dates, tracking, amount to be raised, % given to organization, etc.

It is also important to consider the following:

1. The organization’s reputation and public perception

2. The organization operates in a professional manner

3. The organization’s potential to become involved in controversial social or political issues, which may adversely affect the company

4. The organization’s financial management and leadership

5. The organization’s ability to reach the intended audience

6. The organization’s legal standing (with watchdog groups, taxing authorities)

7. Any legal issue that may arise from the partnership. Do you need a formal document to use the organization’s name? Is your company in any danger legally in the event of any wrongdoing by the organization? Does the promotion meet all local and national regulations and laws?

Once you have done your due diligence in forming the partnership, you must monitor the effectiveness of your strategies. How will you know if you are reaching your goals? Is it by the number of units sold, the amount of monies raised, the amount of media exposure you receive? The criteria you use to track your results will help you determine if and when you have achieved your marketing goals for the CRM Campaign. The company that supports a cause can stand apart from the competition creating brand loyalty and support, build value and open the minds of the consumer. The results should create a win-win-win for the company, the organization and the consumer.

One final thought: Remember to celebrate your success with the charity, with your customers, your staff and other key stakeholders. Thank everyone involved in the campaign for their contributions and commitment. Thank the organization for the opportunity to help them fulfill their mission.