Cause marketing is when a company utilizes a philanthropic cause to market itself more effectively. For example, if you decide that 10% of all profits in a specific month will go to the American Red Cross, that’s a form of cause marketing. However, cause marketing can also definitely go wrong, and that backfire can bring both social and legal repercussions. Here are 4 things your company needs to consider before you start a cause marketing campaign.
1. Make Sure Your Campaign Aligns With Your Company’s History and Values
First and foremost, you need to avoid hopping on any cause just because it seems trendy. It’s best to make sure that your company’s history and values come through in a cause marketing campaign. For example, if your company produces eyeglasses, it makes sense to donate to a worldwide health organization, but it may not make sense to donate to an ocean rescue organization. Choosing a seemingly random charitable cause can raise suspicion in your customer base.
2. Think About Your Company’s Standards
If you’re campaigning for a cause that your company’s standards don’t meet, you’re going to receive some backlash. For example, if you decide to support a cause that’s all about empowering women, but you don’t have any women on your company’s Board of Directors, people may understandably be suspicious of your sincerity. Make sure that your company truly backs up what you’re aiming to support.
3. Make Sure Your Finances Are Transparent and Public
If you just state that “a percentage of proceeds” go to a specific charity, that’s not enough to let people really know what they’re supporting. For a short-term cause marketing campaign, it’s best to directly let people know how much money is going to go to a charity, then release the actual donation numbers once the marketing campaign is completed. Transparent finances help people feel like their money is being used wisely. If you just state that “a percentage of proceeds” go to a specific charity, that’s not enough to let people really know what they’re supporting. For a short-term cause marketing campaign, it’s best to directly let people know how much money is going to go to a charity, then release the actual donation numbers once the marketing campaign is completed. Transparent finances help people feel like their money is being used wisely.
4. Look Into the Legal Elements of Donation
Some states have certain legal guards around cause marketing. You may need to register in certain states so that the government can be sure you’re not claiming something for marketing reasons, then refusing to actually go through with the charitable donation. Your company’s legal team should look over any cause marketing campaigns you’re planning to do, regardless of where you’re based, so they can give you recommendations for managing the campaign without any issues.
Conclusion
Cause marketing can be extremely helpful for a company. It can make a difference in the world and positively impact your customer base. However, if you don’t do it properly, it can have the complete opposite effect. If you want to make sure you’re creating new customers and making a positive impact on the world, these are the four important things you need to consider. As long as you’ve covered your bases with these things, you’ll be much more likely to run your cause marketing campaign as smoothly as possible. Cause marketing can be extremely helpful for a company. It can make a difference in the world and positively impact your customer base. However, if you don’t do it properly, it can have the complete opposite effect. If you want to make sure you’re creating new customers and making a positive impact on the world, these are the four important things you need to consider. As long as you’ve covered your bases with these things, you’ll be much more likely to run your cause marketing campaign as smoothly as possible.
