Cause marketing typically involves partnering with a nonprofit organization in order to draw awareness to that organization's mission. A portion of your sales may be donated to that nonprofit, but you'll get to experience several more benefits in return.
Here's how a cause marketing strategy can help grow your business:
1. Increased Sales
No matter the size of your industry, customers have a lot of options when it comes to the products that they purchase. Oftentimes, a strong purpose can be the defining factor that earns their support. 87% of consumers only want to buy products from a company if it promotes the causes that they care about.
In addition to actively participating in charity events, consumers are more likely to support your brand if you share a common goal with the nonprofit in question. This should be outlined in your company's mission statement or mentioned in your advertisements.
2. Enhanced Brand Reputation
In the U.S. alone, 51% of consumers believe that their favorite brands should speak up about social issues.
The same applies to environmental issues, such as global warming and plastic pollution. That's because companies have large audiences on social media. When you use your platform to promote meaningful causes, it boosts your brand image significantly over time.
3. Increased Customer Loyalty
Other promotional campaigns, such as a sale or similar limited-time offerings, don't always promote long-term customer loyalty. Many consumers want their hard-earned dollars to go towards causes that they support, while still benefiting from a quality product.
If portions of your sales are consistently donated to charities in need, that encourages your customers to keep choosing your company instead of the competition. Customers enjoy the feeling of contributing to a good cause, even by simply buying a product that donates to that cause.
4. Employee Engagement
One of the biggest sources of motivation for any employee is the chance to make a difference through their actions at the workplace. However, the promise of supporting the company itself may not be enough incentive for the majority of workers.
Additionally, even if an employee wants to support a cause that's near and dear to them, it can feel daunting for one person to spark change.
Companies have the influence and the revenue to make great strides toward global improvement. Your employees will realize that they're already contributing to meaningful causes just by coming to work each day. It inspires them to work harder and advocate for your company, which will likely attract more motivated jobseekers.
5. Positive Impact on Society
Cause marketing calls attention to societal and environmental factors that are impacting our world. By addressing these issues and doing what you can to improve the situation, you're making the world better for everyone.
In addition to making positive changes worldwide, cause marketing benefits local causes. A smaller charity often doesn't have the following or the reach necessary to secure funds for those it wants to support. Your help directly uplifts those organizations and attracts more interest from your neighbors.
Remember that as many as 82% of Americans prefer to support local businesses! With the added incentive of giving back to the community, you'll likely attract more leads compared to rivals in your area.
6. Differentiation from Competitors
Attracting like-minded customers that share your brand's mission sets your business apart from rivals. Even if those brands offer similar products and services, conscious consumers will prefer the brand with the strongest set of values.
Your company can stand out from the rest by having a cause marketing campaign. It shows that you have compassion and caring qualities for your community.
7. Cost-Effective Marketing
Companies that utilize cause marketing often don't spend as much of their advertising budgets because the strategy can be paired with low-cost marketing methods. Cause marketing can save you money while bringing in revenue.
To drum up interest, all it takes is an announcement on social media or your website. The charity that you're supporting will also mention your brand in its own advertisements.
8. Partnership Opportunities
Your support of one charity is bound to attract more like-minded nonprofits and even other companies to work with yours. So, if the company in question isn't a direct competitor, a partnership is a mutually beneficial way to gain an even bigger audience.
Cause marketing is an open door for many networking opportunities. It allows you to work with many different nonprofit companies to make a difference in the world. You expose your company to a wide range of audiences allowing you opportunities to grow.
9. Improved Customer Insights
Cause marketing often reveals your audience's strongest values, allowing you to gain a better understanding of their needs.
With this information, you can make more relevant ad copy and products. Consumers are much more likely to support a brand that will listen to them and takes their feedback seriously.
10. Increased Employee Retention
A company that uses too many of the planet's resources or avoids societal issues can be seen as irresponsible in the eyes of employees. At the very least, this leads to decreased productivity. In the worst-case scenario, too many demotivated employees can increase your company's turnover.
However, when you support a cause that resonates with your employees, it earns their respect and urges them to stay with your company.
Create Your Cause Marketing Strategy with Mid-West Family South Bend
Cause marketing is proven to boost your company's sales while retaining both loyal customers and your most dedicated workers. Through this strategy, you can also highlight your brand's dedication to improving the world and making life easier for those in need.
A trusted media partner like Mid-West Family South Bend can help you succeed to the fullest by connecting you with local nonprofits. We'll also help you refine your brand's mission statement to reflect your company's core values or create a new one if needed.
Simply visit our website to learn more about how Mid-West Family can help you create a cause marketing strategy!
