Cause Marketing – An absolute essential for your business
May 2, 2016
In this time and age, seeing a brand or a product associated to a cause is not rare. In India, social and environmental awareness amongst consumers has led brands in participating in social giving and hence, cause marketing. No matter what size of your business, or what year of operations (from being a start-up to a well recognized brand), everyone can benefit from cause marketing; here’s how
Building Customer Loyalty
In a world where trust in corporations is low and differentiation between brands is negligible, the power of purpose is driving consumer preference and loyalty. According to the Edelman Good Purpose study conducted in 2012, it was found that 53% of consumers believe “When quality and price are equal, social purpose ranks as most important factor in selecting a brand globally”. Narrowing down to the Indian market, the study also suggests that 71% (38% higher than the global average) of Indian consumers are willing to pay a premium to purchase products that support a cause.
Creating Brand Advocates
For any business in any industry, it is crucial to build a strong relationship for customer retention. Once you business aligns with a suitable cause sand establishes a partnership with an NGO, it creates curiosity among its consumers. This gives your organization the opportunity to interact with them on a personal level. If done right, working for a cause with a global appeal can create authentic brand advocates who are more likely to spread your cause marketing efforts through word of mouth/social media which in turn equals to reputable exposure.
Expanding your Market by NGO Partnership
Partnering with a reputable NGO gives your business the opportunity to connect with the supporters of the charity. Apart from advertising the cause-related campaign to their followers, most non-profits go the extra mile to market your product or service on their behalf, provided there is no conflict of interest.
Since the assets of two brands, i.e. yours and the Non-profits’ are leveraged by the partnership for a cause marketing campaign, there are increased resources to create shareholder value and broaden the constituency of your business.
Connecting with Gen Y Customers
According to a study conducted by Cone Inc. and AMP Insights to measure how 13-25 year olds reacted to social responsibility, these are some of the conclusions they found:
61% of them felt personally responsible for making a difference in the world.
81% have volunteered in the past year.
69% consider a company’s social and environmental commitment when deciding where to shop.
83% will trust a company more if it is socially or environmentally responsible.
Overall, the study indicated that Gen Y is the most socially conscious consumer till date. So if this is your target market, participating in social giving and creating a cause marketing campaign is absolutely essential for your company’s success.
Looking for a cause-marketing agency to strategize and
execute your next cause-related initiative flawlessly?