Cause Marketing: Doing Good is Good for your Business
We live in a consumer culture where customers expect more from the companies they frequent. It’s not enough to provide an exceptional product or service, it’s now integral to be a positive influence in the world and give back. Americans expect companies to lead with purpose. In fact, 78% of Americans believe companies must do more than just make money; they must positively impact society as well (2018 Cone/Porter Novelli Purpose Study). Therefore, it’s important to prioritize corporate social responsibility.
It’s clear customers seek out companies with a focus outside of their own bottom-line. Seventy-two percent of Americans say they feel it is more important than ever that the companies they buy from reflect their values. It’s a good business decision to give your customers the opportunity to support something beyond your product or service. Charitable giving is a way to create a positive ripple effect that carries through to your customers. Research shows 76% of Americans say supporting companies that are addressing social and environmental issues helps them feel they are doing their part (2019 Porter Novelli/Cone Purpose Biometrics Study).
"76% of Americans say supporting companies that are addressing social and environmental issues helps them feel they are doing their part. "
2019 Porter Novelli/Cone Purpose Biometrics Study
Cause marketing is a great way for companies and nonprofits to symbiotically create a better future for us all. Cause marketing helps you champion a cause, be a force for good, and do good for your business.
What is cause marketing?
Benefits of cause marketing
Cause marketing provides more exposure for your business and the non-profit organization. Some benefits include:
- Increase in brand loyalty – Studies show customers would switch to a company if it gave money to a cause they liked, and people are more likely to recommend brands that support good causes. In fact, nearly nine-in-ten consumers say they’re likely to purchase from purpose-driven companies (2019 Porter Novelli/Cone Purpose Biometrics Study).
- Increase in sales – Research found that 71% of millennials would pay more for a product if they knew some of the proceeds went to charity (5WPR 2020 Consumer Culture Report).
- Boost in employee morale – This benefit shouldn’t be overlooked. Most employees would rather work for a company that prioritizes giving back which makes you a more attractive employer and helps you allure top talent. A recent study found that 88% of employees believe working for a company with a strong purpose is more important now than ever before (Porter Novelli 2020 Employee Perspectives on Responsible Leadership During Crisis).
"71% of millennials would pay more for a product if they knew some of the proceeds went to charity. "
5WPR 2020 Consumer Culture Report
- Positive reputation – Once your business prioritizes charitable giving, your public reputation will become more favorable. Accenture’s 2018 Global Consumer Pulse Research found that 64% of consumers find brands that actively communicate their purpose more attractive.
- Competitive advantage – Research shows that if two businesses are otherwise equal, the consumer will choose the one that gives back to charitable causes. Eighty-nine percent of executives say companies that lead with purpose have a competitive advantage in today’s marketplace (Porter Novelli’s 2020 Executive Purpose Study).