Cause marketing makes a winning business strategy
Corporate social initiatives combine profit and purpose
Canadian Tire celebrated a significant milestone this fall with the 10year anniversary of its Jumpstart charity, a program that helps kids in financial need get involved in sports. Beyond good corporate citizenship, there are sound business reasons for the national retailer to invest a decade of time and money in the campaign: Cause marketing, as it’s called, can help boost brand loyalty, increase sales and, ultimately, increase profits.
“Corporate social initiatives can help build businesses and a better world,” says David Hessekiel, founder and president of the U.S.-based Cause Marketing Forum and host of last month’s second-annual Companies & Causes Canada Conference at the Toronto Board of Trade.
“There are plenty of examples of brands in the marketplace that are achieving good results,” he adds. “Frankly, they wouldn’t continue these programs if they weren’t working.” Canadian trailblazers Take the example of Tim Hortons. Since 1974, the coffee chain has sent more than 215,000 children to camp through its non-profit Tim Horton Children’s Foundation. This year alone, its annual Camp Day fundraiser raised $12.4 million, with 100 per cent of the proceeds going to the company’s charity.
Does this type of giving resonate with consumers? Definitely. According to just-released poll results from Ipsos Marketing Canada, 84 per cent of Canadians say they would likely switch to a brand affiliated with a good cause if price and quality were similar. Canadian Tire and Tim Hortons ranked first and second in the Ipsos poll as the two companies that are most top-of-mind to consumers for their support of good causes. But they’re not alone.
“There’s a lot of impressive work being done in Canada,” remarks Hessekiel, whether it’s CIBC pro-
“Find something that’s going to touch people’s hearts and make them want to get involved.” DAVID HESSEKIEL CAUSE MARKETING FORUM
moting breast-cancer awareness, Shoppers Drug Mart with women’s health or WestJet’s viral campaign that sent a dad from one Canadian city to another to spend a week with his sick child in hospital. “People may say that an airplane ticket is an airplane ticket. But if you build the sense that, ‘Wow, WestJet is a company that really cares and gives back’ — that can really do a lot for your brand,” Hessekiel says.
How to engage For a business looking to join the ranks of Canada’s givers, you first need to find the right fit.
“If you’re an industrial-equipment manufacturer, I don’t know that supporting the local opera company makes a lot of sense,” says Hessekiel.
Authenticity and transparency are key to fostering the goodwill that’s crucial to successful cause-marketing campaigns.
Hessekiel suggests finding a partner, ideally a non-profit organization, that can contribute to the campaign, be it through brand recognition or by creating volunteering opportunities f or employees. Developing strong creative is also key.
“Find something that’s going to touch people’s hearts and make them want to get involved — that’s the art and the science of this type of corporate citizenship activity,” says Hessekiel. As with any marketing program, you need to constantly measure your efforts against your goals.
“This is not a freebie,” warns Hes- sekiel. “You should take this seriously and not just look at it as naive do-gooding: it’s informed do-gooding. Do your homework, give in the right way and you shall receive.”