BRAND MANAGEMENT
CAUSES ATTRACT CUSTOMERS
Brands can boost loyalty by supporting great causes – Dr. Muneer Muhamed
Amid the COVID-19 pandemic, a survey has revealed an interesting twist: as many as 65 percent of urban customers are likely to switch brands to support a cause when price and quality are comparable.
A cause-related marketing programme must demonstrate and communicate genuine support for an issue if an organisation wants to optimise on customer loyalty.
This concept of cause-related marketing was introduced in 1983 with American Express’ programme to help restore the Statue of Liberty.
In a three month campaign, Amex raised US$ 1.7 million for the restoration project, which was generated through a combination of a percentage of card purchases, a share of traveller’s cheques and vacations sold, and a dollar amount for new credit card customers.
The results were so impressive that its card usage rose 28 percent and new applications increased by 17 percent in that period.
Today, there are countless cause-related marketing programmes conducted by various brands. Remember the Burger King ad requesting its patrons to buy from McDonald’s and others also, to save jobs that are affected by pandemic induced lockdowns?
For a business, the benefits include building brand and customer loyalties. However, there have been many cause-related marketing failures too –and the primary reason is the public’s perception that a business is not genuine.
McDonald’s faced the ire of the black community despite its supportive ads during the #BlackLivesMatter movement. Remember a few brands that supported the ‘Save Tigers Now’ campaign? I don’t… and do you think it benefitted those brands in any manner?
Key factors that increase customer loyalty with a cause-related marketing programme include aligning purpose with the social responsibility statement of a business. Equally important is a nonprofit partnership that’s effectively developed and managed. Finally, a long-term partnership shows more commitment to an issue than a short-term promo does, and can also help build loyalty.
When developing these programmes, a brand needs to understand the partnership’s relevance, which is communicated when the business chooses a programme that aligns with its CSR plans. The CSR statement corroborates a business’ social values and why it supports a particular cause.
This communiqué needs to be used in programme communications so that stakeholders understand its validity. Support of a specific cause needs to make sense to customers. Once one has been defined by a business’ social responsibility statement, executives can evaluate prospective nonprofit partners who align with the vision.
The following guidelines may be applied…
VALUES Start by evaluating whether the nonprofit’s mission and values fit the business’ social responsibility statement. Organisations will generally create an employee volunteer team to review a nonprofit’s financial stability, board governance, operational effectiveness, administrative capabilities and success with other partnerships.
This research is critical to the success of a cause-related marketing programme. Partnering with a nonprofit is different from a traditional business partnership since the former is generally understaffed but passionate about its mission.
EXPECTATIONS A successful cause-related marketing programme begins with measurable expectations, a measurement process and defined responsibilities for both parties. A poorly managed partnership can produce dismal results.
Customers are savvy; and if they think a business is using a nonprofit to benefit themselves, they will speak out and act against it by boycotting their products and services. Though McDonald’s supported the Black Lives Matter campaign, customers were upset because of the poor safety protocols in place for its African-American employees during lockdowns.
GENUINENESS The last important step in a cause-related marketing plan is to develop an integrated employee volunteer programme that demonstrates genuine support of the cause. Without visible employee involvement and executive commitment, customers won’t perceive the business as being fully committed to the issue.
When developing such a programme, the project team must include representatives from the human resources department who should drive the creation, management and implementation of an employee volunteer programme.
It must develop and measure specific volunteer goals during the cause-related marketing programme – such as the number of employees involved in specific activities who provide visibility for the business.
Businesses should realise that no longer will lower prices or offers alone attract the loyalty results they seek.
Customers will overwhelmingly respond to causerelated marketing campaigns that have senior level management support and demonstrate the organisation’s genuine commitment to the cause by integrating visible employee volunteer efforts, and are part of a long-term partnership.
