5.5 Cause-related marketing

Cause-related marketing (CRM) is a powerful strategy that combines corporate and social goals. It involves partnerships between businesses and non-profits, where companies support causes while promoting their products. This approach benefits both parties, enhancing brand loyalty and providing resources for social initiatives.

CRM campaigns can take various forms, from transactional donations to promotional efforts and licensing agreements. Successful initiatives require authentic alignment, clear messaging, and transparency. As consumer awareness grows, companies must navigate challenges like skepticism and balancing commercial interests with social impact.

Definition of cause-related marketing

• Cause-related marketing (CRM) is a strategic partnership between a for-profit business and a non-profit organization to promote a social cause while also promoting the company's products or services
• CRM campaigns involve the corporation donating a portion of proceeds from product sales to the non-profit partner (Susan G. Komen and Yoplait)
• CRM allows companies to demonstrate social responsibility and connect with consumers on a deeper level by aligning with causes they care about

Benefits for corporations

Increased brand loyalty

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• Consumers are more likely to choose and remain loyal to brands that support causes they believe in
• CRM campaigns can create an emotional connection between the brand and its customers, leading to increased loyalty and advocacy
• 64% of consumers say they feel a stronger connection to purpose-driven brands (2018 Cone/Porter Novelli Purpose Study)

Positive brand associations

• Partnering with respected non-profit organizations can enhance the company's reputation and create positive associations in the minds of consumers
• CRM campaigns can generate positive media coverage and social media buzz, further strengthening brand image
• 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)

Differentiation from competitors

• In crowded markets, CRM can help a brand stand out by demonstrating its unique values and commitment to social responsibility
• Consumers are more likely to choose a brand that supports a cause over a competitor that does not, all other factors being equal
• CRM can be a key differentiator, especially for Millennial and Gen Z consumers who prioritize purpose-driven brands

Benefits for non-profit organizations

Increased funding and resources

• CRM campaigns provide a significant source of funding for non-profit partners, often through a percentage of product sales or direct donations from the corporation
• Partnerships with businesses can also provide access to valuable resources such as marketing expertise, employee volunteers, and in-kind donations
• American Express has raised over $60 million for various causes through its CRM campaigns since 1983

Expanded reach and awareness

• Collaborating with well-known brands can greatly increase a non-profit's visibility and reach new audiences
• CRM campaigns often include joint marketing efforts, such as product packaging, advertising, and social media promotion, which can significantly boost awareness of the cause
• Smaller or lesser-known non-profits can benefit from the marketing resources and customer base of their corporate partners

Key elements of successful campaigns

Alignment of cause and brand

• The selected cause should be a natural fit with the company's brand identity, values, and target audience
• Authentic alignment helps the campaign feel credible and resonant with consumers, rather than opportunistic
• Nike's partnership with the Challenged Athletes Foundation aligns with its brand identity of athleticism and perseverance

Clear and compelling messaging

• Successful CRM campaigns communicate the purpose and impact of the partnership in a clear, concise, and emotionally engaging way
• Messaging should convey the specific benefits to the cause and inspire consumers to participate
• Warby Parker's "Buy a Pair, Give a Pair" campaign clearly communicates the one-for-one donation model and impact on global vision care

Authentic and transparent partnerships

• CRM campaigns are most effective when the corporate-nonprofit partnership is genuine, transparent, and mutually beneficial
• Both parties should have a shared commitment to the cause and a long-term view of the collaboration
• Transparency about donation amounts, impact, and any potential conflicts of interest is crucial for building trust with consumers

Types of cause-related marketing

Transactional campaigns

• Transactional CRM involves a company donating a portion of proceeds from product sales to a non-profit partner
• Donations are typically tied to a specific product, timeframe, or consumer action (such as using a designated hashtag)
• Examples include Yoplait's "Save Lids to Save Lives" campaign, which donated 10 cents to Susan G. Komen for each pink yogurt lid redeemed

Promotional campaigns

• Promotional CRM campaigns focus on raising awareness and engagement for a cause through joint marketing efforts
• These campaigns may include co-branded advertising, social media activations, or employee engagement initiatives
• Starbucks' "Race Together" campaign aimed to spark conversations about racial inequality through coffee cup messages and employee training

Licensing agreements

• Licensing CRM involves a company paying royalties to a non-profit for the right to use its name, logo, or other intellectual property in connection with a product or service
• The non-profit typically receives a percentage of sales revenue or a flat fee, and the company benefits from the association with the cause
• World Wildlife Fund (WWF) has licensing agreements with various companies, such as Coca-Cola's "Arctic Home" campaign featuring WWF's polar bear logo

Challenges and considerations

Potential for skepticism or backlash

• Consumers may be skeptical of CRM campaigns that appear inauthentic, opportunistic, or misaligned with the company's actions or values
• Backlash can occur if the campaign is perceived as exploitative, insensitive, or contradictory to the company's business practices
• Pepsi's 2017 ad featuring Kendall Jenner was criticized for trivializing the Black Lives Matter movement and social justice activism

Balancing commercial and social goals

• Companies must navigate the challenges of balancing their commercial objectives with the social impact goals of the cause
• Overemphasis on sales or marketing can undermine the credibility and effectiveness of the campaign
• Careful planning, open communication, and a genuine commitment to the cause can help strike the right balance

Measuring and communicating impact

• Measuring and communicating the tangible impact of CRM campaigns is crucial for demonstrating authenticity and accountability
• Companies should work with their non-profit partners to establish clear metrics, track progress, and share results with stakeholders
• Transparency about impact helps build trust with consumers and reinforces the value of the campaign beyond marketing

Best practices for implementation

Selecting the right cause and partner

• Companies should carefully research and select causes and non-profit partners that align with their brand values, target audience, and business objectives
• Authentic passion for the cause and a shared vision for impact are key factors in successful partnerships
• Due diligence on the non-profit's reputation, financial stability, and track record is essential

Engaging employees and stakeholders

• Engaging employees in CRM campaigns can boost internal morale, retention, and brand advocacy
• Providing opportunities for employee volunteering, fundraising, and skill-based support can deepen the impact and authenticity of the partnership
• Communicating the purpose and impact of the campaign to all stakeholders, including investors, suppliers, and customers, can amplify its reach and effectiveness

Integrating across marketing mix

• Successful CRM campaigns integrate the cause into multiple touchpoints across the marketing mix, including product, price, promotion, and place
• Consistent messaging and visual identity across all channels reinforces the campaign's credibility and impact
• Examples include co-branded packaging, point-of-sale donations, cause-related events, and employee engagement initiatives

Case studies of effective campaigns

Product Red by Apple and Nike

• Product Red is a licensed brand that partners with companies to create Red-branded products, with a portion of proceeds donated to the Global Fund to fight AIDS, tuberculosis, and malaria
• Apple has been a partner since 2006, offering Red versions of its iPhone, iPad, and Apple Watch, raising over $250 million for the Global Fund
• Nike has also partnered with Product Red, creating limited-edition Red sneakers and apparel, with proceeds supporting the cause

Yoplait's Save Lids to Save Lives

• Yoplait's "Save Lids to Save Lives" campaign, launched in 1998, donated 10 cents to Susan G. Komen for each pink yogurt lid redeemed by consumers
• The campaign raised over $50 million for breast cancer research and awareness over its 20-year run
• The campaign's success stemmed from its simplicity, clear messaging, and alignment with Yoplait's primarily female target audience

Dove's Campaign for Real Beauty

• Dove's "Campaign for Real Beauty," launched in 2004, aimed to challenge narrow beauty standards and celebrate women of all ages, shapes, and sizes
• The campaign included thought-provoking ads, social media engagement, and partnerships with organizations promoting body positivity and self-esteem
• While not a traditional CRM campaign, Dove's initiative demonstrated the power of aligning a brand with a social cause and sparking meaningful conversations

Ethical considerations and criticisms

Potential for exploitation or "cause-washing"

• Critics argue that some companies engage in CRM primarily for marketing purposes, without a genuine commitment to the cause or meaningful impact
• "Cause-washing" refers to the practice of using social causes as a superficial marketing ploy, similar to greenwashing in the environmental space
• Companies must be careful not to exploit sensitive issues or vulnerable populations for commercial gain

Accountability and transparency

• CRM campaigns can face criticism if there is a lack of transparency about the amount and impact of donations, or if the company's business practices contradict the cause
• Clear, transparent communication about the terms of the partnership, donation amounts, and measurable impact is essential for building trust with consumers
• Third-party certifications, such as B Corp status, can help validate a company's social and environmental performance

Long-term commitment vs short-term gains

• CRM campaigns are most effective when they represent a long-term, strategic commitment to a cause, rather than a one-off promotional effort
• Short-term campaigns can be criticized as opportunistic or lacking in authentic impact
• Companies should aim to build lasting partnerships with non-profits and integrate the cause into their core business strategy and values

Future trends and innovations

Digital and social media integration

• The rise of digital and social media platforms offers new opportunities for CRM campaigns to engage consumers and drive impact
• Social media challenges, hashtag campaigns, and user-generated content can increase participation and awareness for the cause
• Digital tools can also facilitate more direct, transparent communication about the campaign's progress and impact

Emphasis on authenticity and purpose

• As consumers become more socially conscious and skeptical of corporate motives, authenticity and purpose-driven branding will be increasingly important in CRM
• Companies will need to demonstrate a genuine, long-term commitment to the causes they support, and align their business practices with their stated values
• Partnerships with grassroots organizations and local communities can help build credibility and impact

Collaborations across sectors and industries

• The future of CRM may involve more cross-sector collaborations, bringing together corporations, non-profits, government agencies, and academic institutions to tackle complex social issues
• Collaborative initiatives can pool resources, expertise, and networks to drive systemic change and maximize impact
• Examples may include multi-company partnerships focused on specific Sustainable Development Goals or industry-wide efforts to address issues like diversity and inclusion