If you're new to cause marketing and all it has to offer, one of your first questions might be, "Is cause marketing profitable?" In short, cause marketing is potentially highly profitable with properly developed campaigns.
Consider that 72% of consumers in the U.S. believe it's important for a brand they buy from to reflect their values. If you want your brand to stand apart and appeal to audiences, cause marketing is an invaluable asset to have behind your business.
To help you better understand the value of cause marketing, the following is a brief guide to cause marketing and how you can profit from these campaigns.
What Is Cause Marketing?
Cause marketing is a great way for businesses and not-for-profit causes to connect and benefit both parties. Through cause marketing, companies can effectively show that they share the same values as their audiences. In turn, these audiences are far more likely to trust these brands when dedicated to a particular social cause. Not only can good cause marketing campaigns win over audiences, but they can also generate profits for businesses in several ways.
The Benefits of Cause Marketing
Wondering what specific benefits you can enjoy with a cause marketing campaign for your company? Some of the ways your business can profit from these campaigns include at least the following.
One of the main advantages of cause marketing is the ability to gain more customers. As a growing number of consumers perceive your brand as an ally that shares the same values, they'll come to trust you. You won't seem like a disconnected entity merely interested in generating a sale. Instead, audiences will see you as a team of value-driven professionals interested in making a difference. In turn, they're much more likely to trust you and become customers.
Warby Parker is a popular example of a company engaging in successful cause marketing to connect with new audiences across the globe. The eyewear manufacturer has teamed with many medical and healthcare organizations to donate eyeglasses to people in need. The company has reached over 50 countries because of these partnerships, helping people in need while increasing brand awareness on an international level.
You'll also drive more sales from the new customers you've gained through your efforts and your existing customers. People want to purchase products or services that are directly tied to a cause. One study found that 61% of consumers are willing to try a product if it's associated with a particular cause. This is because people will feel more like they're directly or indirectly supporting the cause with their own funds.
Improved Customer Loyalty
Cause marketing can also drive more engagement and trust from existing customers who've already purchased from you. By working to make a difference, your current customer base is likely to perceive you even more positively than they had.
This is particularly critical for attracting customers who've disengaged from your brand and haven't returned for additional purchases. If they become aware that your brand supports a cause they also care about, they'll be far more likely to return. In the process, you'll be able to maximize the customer lifetime value (CLV) of these audiences as they make repeat purchases.
With a cause marketing campaign behind your brand, you'll gain the competitive edge you need to thrive in your industry. A popular campaign will draw attention to your business in a way that less engaged competitors won't. Not only will your brand remain top-of-mind among your audiences, but it will become infinitely more popular among audiences with shared values.
People may even turn away from the brand they've been buying from if they see that you're more aligned with their values. Subsequently, you can both get and stay ahead of the competition. According to the results of one study, 64% of international consumers will choose, avoid, switch, or boycott brands depending on their stance on the issues they're passionate about.
Whether you want to recruit new employees or keep your current staff, cause marketing can help with these efforts. Many people care about a company's ethics and values, so if you're aligned with your employees' or candidates' values, they'll be far more willing to work for you. This will help reduce turnover and increase productivity while attracting more top talent and new hires to your company. As a result, you'll be able to further increase profitability.
Connect With a Media Partner to Develop Strong Cause Marketing Campaigns
Cause marketing offers many advantages that can supplement the rest of your marketing plans. By aligning your brand with a particular cause, you'll appeal to new audiences while increasing the loyalty of your existing customers.
To get the results you want from your campaigns, you need to have the time and resources to devote to them. To make sure your campaigns have the chance to succeed, consider working with a media partner with experience in cause marketing. By partnering with the right media agency, you'll be able to flourish with your cause marketing and other efforts.