 Oct. 7, 2008 - Cause-related marketing can drive double-digit sales growth for brands, according to a new consumer survey.
In the survey, conducted jointly by Cone Marketing and Duke University’s Fuqua School of Management, researchers looked at the behaviors of consumers when exposed to cause related marketing campaigns either in store or online. The results showed that there was a 74% increase in purchase for some products associated with a cause.
"Consumers are paying more attention to cause messages, and as a result, are more likely to purchase,"says Gavan Fitzsimons, Duke marketing professor and lead researcher on the study. "This is clearly great news for brand managers, as every percentage increase can translate to millions of dollars in revenue."
To complement this behavioral study, Cone conducted further research which found that consumers continue to have high expectations for companies even during the economic crisis, but consider specific factors important when deciding to support a company's cause efforts. Some of the results conclude that:
- 84% want to select their own cause
- 83% say personal relevance is key
- 80% believe the specific nonprofit associated with the campaign matters
- 79% say they would be likely to switch from one brand to another, when price and quality are about equal, if the other brand is associated with a good cause
- 85% of Americans say they have a more positive image of a product or company when it supports a cause they care about
Consumers are more receptive to cause messages than ever before, according to the report. More than half (52%) of Americans feel companies should maintain their level of financial support of causes and nonprofit organizations, it says.
Ironically, this is not what marketers are picking up. According to an earlier survey also released by Duke last month, chief marketing officers from Fortune 1000 companies predict that more marketers will be shifting away from their cause-related messages over the next year, as a result of the souring economy.
Some companies’ actions, however, look to be responding to consumers’ demands for more philanthropy. Earlier this year, companies such as Haagen Dazs, Sears, and Proctor & Gamble reported that they would be expanding their cause marketing efforts, suggesting the programs were paying off better than other promotional efforts.
For a copy of the complete report, "Past. Present. Future. The 25th Anniversary of Cause Branding," click here. |
