The Importance of Cause Marketing

There have been enormous changes in the world of marketing since social media took over the internet. A full 84 percent of US adults aged 18 to 29 use social media regularly, and for adults aged 30 to 49, 81 percent using social media regularly.

This is essential information for companies working towards deeper customer relationships, and not just because marketing is most successful when it is most visible. The rise of social media has influenced consumer expectations. The messaging that worked 20 years ago is far less effective today.

With nearly 50 percent of consumers carefully monitoring the actions taken by businesses, cause marketing has become a critical tool for bringing in new customers and earning their loyalty.

Shared Values Creates Customer Loyalty

Social media is about building relationships, engaging with individuals and businesses, and establishing connections with others who share the same values. That search for shared values carries over to online and offline purchasing decisions.

Today’s consumers are far more likely to seek out businesses with compatible values, both online and through traditional marketing channels. More importantly, once they locate such businesses, they are loyal to the brand – and they are willing to spend more in support of the causes that matter.

Research shows that 82 percent of surveyed consumers would pay more for a brand aligned with their values. Of that number, 43 percent said they would pay up to twice as much based on values, and 31 percent said that they would support a value-aligned brand regardless of the price premium.

The big question is, how can marketing successfully communicate company values in a way that persuades consumers that the sentiment is genuine and sincere?

Creating Deeper Relationships Through Cause Marketing

The most effective way to convey values is through cause marketing. This method is persuasive because consumers don’t have to question the authenticity of the message. They see it in the company’s actions.

Cause marketing involves developing non-profit partnerships that are mutually beneficial. For the business, there is an opportunity to demonstrate corporate social responsibility and establish alignment with customer and employee values. For the non-profit, there is often a financial benefit, as well as increased visibility and improved awareness of the organization and the cause.

Examples include campaigns in which some or all of the profits from a specific product are donated to the non-profit. There are also campaigns in which customers are invited to round up their purchases or make a donation to the non-profit during checkout.

The Importance of Cause Marketing

Marketing interactions were nearly always one-way until social media changed how consumers and businesses communicate. Now, branding depends as much on the user experiences shared through social media as it does on the carefully curated image developed by marketing professionals.

That means businesses must meet consumers’ changing expectations to compete, and those expectations include aligning with certain core values. So much so that Millennial and Gen Z consumers are likely to avoid misaligned companies altogether, according to a survey by Deloitte.

Cause marketing doesn’t have to be complicated, but it does have to be authentic. That requires a certain amount of experience and expertise. If you need help creating a solid cause marketing strategy, contact Major today.