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Often, Cause-Marketing Beauty Is In The Eye Of The Beholder

In spite of my day job, I’m not an unabashed cheerleader for all programs positioned as doing well by doing good. I know that cause-marketing efforts run the gamut from lousy and flawed to good and even transformative.

The challenge lies in grading them. Just as beauty is in the eye of the beholder, there is no objective standard for evaluating cause-marketing programs (defining cause marketing as company-backed initiatives designed to deliver both commercial and social benefits.)

Week after week, I see critics make waves in the blogosphere by slamming cause-marketing programs as evil. The reality is far more nuanced. There are few saints and few devils in this game. Part of the problem is that when value and values are mixed, there are numerous variables to assess. Even our own personal filters color those analyses.

In 10 years of judging the Cause Marketing Halo Awards and digesting countless books, articles and speeches, I’ve witnessed well-intentioned, intelligent people come to dramatically different conclusions about programs that add Purpose to the traditional four Ps of marketing. Usually this happens because the judges are focused on different criteria. Four common examples:

Is the money going to the cause sufficient? 

There are no industry guidelines for the percentage of the sales price to be donated in a traditional transactional program nor for the ratio of resources given to the cause vs. spending to promote the program. I’ve seen judges swoon over a program that yielded a five- or six-figure sum for a cause and come down hard on campaigns that generated millions for charity.

Quite frankly, a blanket rule of thumb for giving doesn’t work in a field that involves marketers of everything from garbage bags to gold jewelry. That means we are left to rely on our own personal smell tests – do we sense that there is an appropriate relationship between the size of the sale or the scale of the program and the good that is being done?

Is the program adequately transparent?

In a crystal-clear world, every program would clearly disclose exactly how much it is designed to yield in cause support and any associated time limits, donation caps or other extenuating circumstances. In the real world, not every program lives up to that standard, sometimes for competitive reasons or due to complexity.

Obviously, a nontransparent program that tries to deceive consumers into thinking that it is generous is poorly conceived at best and potentially criminal at worst. But how about the Kohl’s Cause Merchandise Program which has raised more than $200 million for kids’ health and education initiatives since 2000 by donating “100% of the net profits” from plush animal and book sales? It’s not totally transparent, but the support it has provided to worthy causes speaks volumes about the integrity of the program.

Is there a strong fit between the company and cause?

In some industries, it is pretty easy to make an obvious connection between a company and a cause. Food and hunger. Women’s health and beauty products with women’s diseases or women’s empowerment. Airlines with transporting patients for treatment. Outdoor equipment makers with wildlife preservation.

But in other fields, the connections are not so obvious. Think appliances, furniture, banks, department stores, chocolate bars, beer, luxury goods, etc. In those and many other sectors, developing a meaningful linkage with a particular cause requires more analysis and creativity. Sometimes it lies in the company’s heritage.

For example, supporting small businesses might not be a great focal point for a huge multinational brewer, but it makes tremendous sense for the Boston Beer Company. Founder Jim Koch started the company in his home and had to go from bar to bar to sell his microbrew after he was turned down by traditional beer distributors. Check out Samuel Adams’ Brewing The American Dream to see the admirable job the company has done of building on that legacy to provide financial support and mentoring to start-up food and beverage businesses.

At the end of the day, when it comes to judging campaigns that are built on anything but a blindingly obvious connection, some folks will disagree on the strength of the fit. And some will reject programs out of hand because they are critical of a company’s core business (e.g., questioning whether a company that sells alcoholic beverages can be socially responsible.) Which brings us to the next issue…

Is the initiative in synch with my personal values?

When judging a program on social impact grounds, people often insert their own cause agenda into the equation. Either they are negative on the program because it supports a cause that is not one of their favorites (e.g., “Not another breast cancer program!”) or they are against the whole concept of cause marketing (e.g., “It relieves governments and corporations of their responsibilities for solving large-scale social problems…,” as social critic Mara Einstein, author of Compassion, Inc., recently wrote.)

I’d argue that those in the first camp should try to distance themselves a bit and examine the program’s impact regardless of where a particular cause falls in their hierarchy of social issues.

To those in the second camp, I say: Don’t throw the baby out with the bath water. By all means, take a good hard look at campaigns and critique their failings. But don’t try to shut down efforts to mix commerce and cause for mutual benefit. Wouldn’t you rather have companies encouraging consumers to join them in creating a better world than only appealing to their lusts, desires and insecurities?

 

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At the Register, Is Round-Up or Pin-Up More Effective?

We recently received this question from a large national nonprofit organization:

“We do a program with many of our retail partners where consumers can donate at-register through cut-outs or tear-offs. Now one of our partners is thinking of changing this format to do a round-up program, which we think may provide greater funds from consumers. Our thought is that many more will be willing to round-up vs. ‘buy’ a cut out at $1 or more.  Which can lead to more donations?”

In this post Clark Sweat, Chief Corporate Partnership Officer for CMN Hospitals, weighs in with his experience.  We’d love to hear your experience in the comments below.

The majority of the time I’ve seen people move from a tear-off or pin-up program to a round up format, it seems to work. Here’s why: The idea of rounding up is typically an easier ask so you tend to get a higher conversion rate for customers going through the lines.

Retailer Traffic and Frequency is Critical
The success of these programs depends greatly on the retailer. High-traffic / high-frequency stores fare best such as grocery stores, mass, discount, dollar stores and restaurants. For higher end retailers with less-traffic / lower frequency I usually recommend an open-ended ask or at a minimum, multiple levels (e.g. $1, $5, $10). I have seen a few roundup programs where the customer was encouraged to round up to the nearest dollar, five dollars, ten dollars or even hundred. Those types tend to work best online because the customer/cashier education can get confusing.

When It Doesn’t Work
It’s not all rosy. I’ve seen some programs like this suffer greatly when changed. This happened a couple of times in the early days at Children’s Miracle Network (CMN) when a retailer went from offering a pin-up with a coupon take-away to a round up ask. The coupon miracle balloons that CMN does remain the strongest I’ve seen anywhere because of the involvement gained by adding vendor coupons to the pin-up and the bounce back opportunity to drive more traffic. Cashiers tend to be more comfortable “selling” these type of pin-ups because they can point to the $5 in coupons you get back for a $1 contribution.

Cashiers Hold the Key
Speaking of cashiers…as with any “ask at the register” campaign it really comes down to how well you’ve been able to educate and motivate the cashier. If the cashier is comfortable making an ask, the money flows. If they get stumped by a single “where does this money go?” question, they’ll never ask again. Ultimately, the vehicle doesn’t matter as much getting that front line employee engaged and comfortable making the ask.

What is your experience with round-up versus pin-up?  Have you made the move from one to another?  What were your results?  Share in the comments below!

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4 Things to Expect from Cause Campaigns on Facebook: Lesson #4 – Invest Effort in Working with Partners

This post is the second in a series about cause marketing on Facebook, taken from our new whitepaper:  Cause Marketing on Facebook:  Truths, Tips and Trends from Pioneers.  You may download the Executive Summary of this report for free or purchase the report and corresponding webinar for $99.  You can read the first post here,second post here and the third post here.

All good cause marketing partnerships require companies and causes to get on the same page.  This is doubly true when your efforts involve a rapidly evolving medium such as Facebook.  Here are five helpful tips on getting along to get ahead:

TIP:  Choose Your Partners Carefully

Cause campaigns on Facebook tend to be short-lived but this doesn’t mean you can skimp on the due diligence needed to vet a potential partner.  Be careful about who you’re choosing to affiliate with in this very public medium where the power of the crowd leaves no stone unturned.  Carie Lewis, director of emerging media for The Humane Society of the United States (HSUS) shares how her team learned this lesson the hard way.

“The feedback loop on Facebook is almost instantaneous and we’ve learned we need to be prepared.  A while ago, we decided to enter a voting contest offering a $10,000 prize to the most vote-getting organization.  As we ramped up, all it took was one comment from a member of our Facebook community asking if we were aware that the sponsoring company profited from bull fighting.  We immediately responded that we would look into the situation.  When it turned out to be accurate, we apologized to our community and withdrew from the contest.  Based on that experience, we now do in-depth research on any company we plan to promote through social media.  Because if we don’t, our fans certainly will.” Continue Reading →

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4 Things to Expect from Cause Campaigns on Facebook Lesson #3: To Relinquish Control

This post is the second in a series about cause marketing on Facebook, taken from our new whitepaper:  Cause Marketing on Facebook:  Truths, Tips and Trends from Pioneers.  You may download the Executive Summary of this report for free or purchase the report and corresponding webinar for $99.  You can read the first post here and the second post here.

The biggest way companies and causes are challenged on Facebook?  Control.  Many are accustomed to traditional push-based messaging.  This simply is not an effective strategy on a medium such as Facebook.  Geoff Livingston, co-founder of Zoetica, explains, “So many of these organizations are bent on controlling the way their Facebook presence looks that they short the conversation.   They don’t interact, they don’t participate, they don’t treat it like the community it should be.” Continue Reading →

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4 Things to Expect from Cause Campaigns on Facebook Lesson #2: Experimentation

This post is the second in a series about cause marketing on Facebook, taken from our new whitepaper:  Cause Marketing on Facebook:  Truths, Tips and Trends from Pioneers.  You may download the Executive Summary of this report for free or purchase the report and corresponding November 15th webinar for $99.  You can read the first post here.

Charles Porch of Facebook’s consumer marketing division says many cause marketers make the mistake of “thinking of Facebook too traditionally.  It’s really critical to experiment to see what works with your constituents.”

Testing New Cause Waters
Experimentation is precisely what Specialized Bicycles did when they tested the waters with their “Likes for Bikes” cause campaign on Facebook, explained Simon Dunne, Specialized’s manager of global advocacy.  After years of giving a little to a lot of different causes, Specialized opted to focus on one basic cause:  getting kids on bikes.   The team knew a comprehensive initiative would take some time to roll out but were eager to present the idea to their existing customers. Continue Reading →

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