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Authentic gestures of goodwill increasingly resonate with consumers, according to marketing pros, in particular a younger generation that looks to buy from retailers who act to improve their communities.
“We’ve seen up to 30 percent revenue growth for companies when they integrate social impact into the DNA of their company,” said James Citron, CEO of Pledgeling, a tech firm that helps businesses connect with nonprofits. “Making a donation to a nonprofit with every product sold empowers the customer with the knowledge that they’re doing something good for the world. In turn, they become more loyal customers.”
Cause marketing—sometimes termed “selfish giving”—positions your products in a favorable light, said Krista Fabregas, a retail analyst at New York-based FitSmallBusiness.com.
“This can be a direct connection to the production of the goods themselves—such as sustainable sourcing—or a give-back campaign, such as sponsoring clean-water programs in areas where raw materials originate,” Fabregas said. “It can even be as simple as dedicating a percentage of sales to a local-interest charity or program, like a food bank, animal shelter or green spaces project.”
Maria Bailey’s marketing firm BSM Media specializes in reaching millennial mothers, a demographic with $23 billion to spend each year, she said.
“Our research illustrates 84 percent of millennial moms have purchased a product or shopped at a retailer because of cause relationships,” Bailey said. “They also appreciate authenticity, so it’s imperative for retailers who engage in cause marketing to align themselves with organizations that make sense. It’s even better if the company or its employees have a reason for partnering with a nonprofit and they can tell the story via digital content or on their website or in point of purchase.”
Sustainably sourced manufactured goods present a relatively simple way to make use of cause marketing, with products that tell a story, according to Fabregas.
“Visit any buyers’ market in High Point, Atlanta, Dallas, Chicago, or Los Angeles, and you’ll find plenty of furnishings and home accessories manufacturers that market sustainable, eco-focused goods,” Fabregas said. “The materials tend to be on-trend, which is a sales plus, and these manufacturers already have a cause-focused storyline that retailers can easily adopt and promote themselves. Retailers can take this a step further and dedicate a percentage of sales on these goods to specific local or broader eco-related programs.”
Selling products from artisans in the developing world is another trend in cause marketing, Fabregas said. “These goods are produced through cooperatives in developing countries and the programs are designed to bring economic advantages to these areas. Often, these focus on giving opportunities to communities, and especially to women, in impoverished areas. The Fair Trade Federation [https://www.fairtradefederation.org/] has listings for these types of suppliers.”
Fabregas also recommends charity add-on charges and donation boxes at checkout. She points to a recent Harris poll that looked at which causes resonated best with consumers. “Retailers dipping their toe into cause marketing can participate in these causes,” she said, “and easily create and market in-store promotions around them, too.”
Get more marketing insights and actionable ideas when you attend the NEXT Conference Sept. 24-26, 2018 in Austin, Texas. For more information and to register now, visit www.pbmnext.com.
