Brands and marketers are becoming more and more socially conscious, it’s no longer business as usual. Brands have to stand up for something and be more purpose driven. Today’s consumers especially the Millennials and Generation Z are not willing to support brands that are not purpose driven. We are in a new era of social responsibility where consumers support brands that prove that they care about making the world a better place. This is where cause marketing comes in, on this post we would be talking about cause marketing. We would define cause marketing and talk about why it is important to every modern business.
What is Cause Marketing?
Cause marketing is defined as the mutual cooperation between a for-profit and a nonprofit business. They work together to raise money or awareness for a particular cause or organization, while simultaneously supporting their own brand. It is basically when a commercial business runs a marketing or sales campaign that would mutually benefit the business and a charity. Cause marketing can be anything from donating a percentage of sales or profits to a charity, to incorporating fundraising elements or events into your sales and marketing campaigns.
Why is Cause Marketing Important?
It is very important because today’s consumers want to see that brands care about real issues. According to a study by consumer authority Mintel, 56% of Americans will stop buying from brands that they believe are unethical. Another study shows that 91% of consumers reported they were likely to switch to a brand that supports a good cause, As long as they have similar price and quality. This shows that if a brand isn’t more purpose-driven they may become irrelevant in today’s market. When a brand associates itself with a like-minded nonprofit business, it shows its customers that it cares about a cause. It proves that they are willing to spend time and money as a business to make the world a better place.
Apart from giving businesses the satisfaction of helping the world become a better place. Cause marketing helps a business improve brand reputation and it helps to increase brand awareness. It also helps to increase customer and employee loyalty. It has the potential to increase your sales while giving you positive media exposure.
Cause marketing isn’t the latest “business trend”, so it can’t be employed as the newest marketing strategy. Businesses have to be genuine, sincere and authentic when employing purpose-driven marketing. They have to pick causes that are closely aligned with their type of business. They also have to walk the talk, because consumers can see right through them if they don’t.