Making News

(May 17, 2007)

CAUSE RELATED MARKETING CREATES BRAND EVANGELISTS

Cause-related marketing (CRM) is the public association or connection of a for-profit company with a nonprofit organization. A powerful marketing tool that businesses are relying on to build brand loyalty, CRM has the dual benefit of promoting the company’s product or service as well as raise money for the nonprofit.   

Kleber & Associates is one such company, dedicated to improving our community through numerous volunteer activities. From donating to charitable organizations to the team pulling together in an upcoming project to build homes for less fortunate families, K&A is lending a helping hand.

According to a recent report published by onPhilanthropy, CRM sponsorships by American businesses continue to be on the rise. An IEG, Inc. study found that CRM spending increased from $1.11 billion in 2005 to $1.34 billion in 2006.  This number is expected to increase even further during 2007.  The positive differentiation CRM can include the tangible benefits of increased sales, visibility, customer loyalty, enhanced company image, and positive media exposure.

The 2004 Cone Corporate Citizenship Study showed that eight out of 10 Americans will trust a company that has demonstrated corporate support of causes… a 21 percent increase since 1997.  Americans are quick to punish unethical or socially uncommitted companies by boycotting those they believe to be unethical. Nearly 86 percent of those surveyed reported that they are very likely to switch from one brand to another if the new brand is associated with a cause.

Online philanthropy and communication about CRM efforts by companies involved is a big part of the CRM movement. Companies are leveraging online marketing channels to get their charitable connections and messages aligned with more traditional marketing tools to engage consumers on a more personal level.  Shedd’s Country Crock launched a new Web site that encourages consumers to share a story of a special time they shared with someone. In return, they will donate a meal to a family in need through America’s Second Harvest.  Another example launched in 2006, Project Red, has become one of the largest CRM campaigns to date given the number of companies and organizations involved including Apple, Motorola, Giorgio Armani, and The Gap.

CRM is an invaluable and compelling marketing tool emphasizing the benefit of a marketing program that focuses on community partnerships.  Potentially one of the key options for a company to consider as part of a comprehensive marketing program is selecting a cause that will generate interest with your target market. By creating an emotional connection with your key audiences can be the number one factor in motivating customers to become brand evangelists.  


<< Newer                                                                                                                                       Older >>