One of our primary methods of promotion is Cause Marketing, a term that describes the cooperative efforts of business and non-profits for mutual benefit. This can describe any arrangement in which a portion of proceeds is dedicated to a charitable cause.
Cause Marketing is not the same as corporate philanthropy because the money raised is not an outright gift to a nonprofit organization, so they are not treated as tax-deductible charitable contributions. It is a marketing expenditure which seeks to increase fundraising and exposure for a cause. Businesses that are socially involved generally benefit from an increase in customer loyalty.
Cause Marketing By The Numbers
Numerous studies show consumers will often factor in the company’s image and reputation when making a purchase, and Cause Marketing seeks to utilize this fact.
- 47% of consumers say they buy from a business that supports a charitable cause at least once a month.
- 39% of consumers say they recommended a business to others due to their support of a charitable cause.
- 34% of consumers say they actively promote businesses online that support a charitable cause.
As further proof of the value in cause related marketing, a recent study showed that 89% of consumers said they would switch brands from one company to another if it was associated with a good cause.
Purchase.org – Cause Marketing at the Local Level
Brainsell Developments built a platform to promote local cause-based marketing in the Detroit area. The goal of Purchase.org is to enable local businesses to offer special online promotions, while raising money for local charities. Customers sign up to receive deals via email. When they purchase a deal they are able to select a local charity which will receive 10% of their purchase price at no additional cost to the consumer.
The donation is made possible by the business which offers a discounted price on goods or services bought through Purchase.org. The 10% donation is therefore built into the discount and the customer is able to effectively make a donation to their favorite cause at no additional cost.
The goal of this business model is to do 3 things:
- Help local consumers save money by providing discounted deals to local businesses
- Help local businesses gain loyal customers with the connection of a charity to their business
- Help local charities raise additional money and increase awareness
There are various approaches similar to this that can be used to benefit all parties involved, and we can customize a solution that works for you. Contact us for a free consultation to discuss your needs, and allow us to provide the perfect solution for you.