American Express was among the first few organizations to launch a successful cause related marketing campaign and raise funds about $1.7 million for the Statute of Liberty restoration project. In a competitive market, where every organization is working hard towards winning their customer’s loyalty and employee’s morale, Cause-related marketing (CRM) help organizations gear up towards building a differentiating image.
According to a study (Varadarajan & Menon) published, CRM is a marketing program created to achieve two objectives - improve corporate performance and help worthy causes - by linking fund raising to the firm’s product sales. This philanthropic view of “Doing better by doing good” was considered as a WIN-WIN-WIN situation for all parties – Corporates develop a socially responsible image with better bottom-lines; Non-profits receive funds with cause awareness and Customers feel …show more content…
o 61 % of the global consumers are using social media to address or engage in CSR o 84% of the global consumers seek out responsible products wherever possible.
• According to (2016 Cone Communications Millennial Employee Engagement Study , 2016), o 64% of Millennial consider a company’s social and environmental commitments when deciding where to work (Appendix D) o 83% would be more loyal to a company that helps them contribute to social and environmental issues (vs. 70% U.S. average) (Appendix D)
Recommendations/Conclusion
Doing good could cost an organization money as well as tarnished reputation. But when leveraged, this synergistic bond, between the organization and non-profits, has the power to create brand reputation, customer loyalty and preference, along with very high return on investments.
For successful cause marketing strategy, I recommend the following key