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In Tumultuous Times Can Cause Marketing Save The Day?
By Shanna Schiavon, MORE Marketing
Every time I read the paper or turn on the television I hear grim reviews of the economy and the state of business in both the for-profit and not-for-profit sectors. There are stories of charities closing their doors; companies either laying people off or filing for bankruptcy or both; while others are being rescued by the government. As a result, many non-profit agencies are finding that the need is greater than ever before, whether it’s homelessness, hunger, or families without healthcare; yet the revenue stream is drying up one donor at a time. One can see why the experts tell us to brace for the worst.
How will your organization navigate through these tumultuous times? I am sure you have been grappling with this very question for months now. Contrary to the belief of many, I believe there is a way out – Cause Marketing. What exactly does this mean, how can it help non-profits increase revenue, and how can this strategy work in today’s economy? This article will explain how a successful Cause Marketing program can help you.
Wikipedia’s definition of Cause Marketing or cause-related marketing “refers to a type of marketing involving the cooperative efforts of a for-profit business and a non-profit organization for mutual benefit.”
Many of you are experiencing the pain of corporate reductions. It’s no longer as simple as Corporate America making a “donation”, as many can no longer afford to support charities as they have supported in the past. The key to successfully partnering with Corporate America is developing programs that meet both the for-profit and not-for-profit’s needs. Corporate America is struggling just like you. They need to deliver more, with less, in a fierce marketplace. Consumers have many options and companies need to find a way to separate their product from the pack.
They are desperately looking for that next big idea, hot promotion, or partnership that will allow them to meet, and hopefully exceed, customer expectations and last year’s sales numbers. Adding a strategic Cause Marketing program or expanding an existing program/partnership can be a low cost and low risk way to deliver improved ROI, consumer loyalty, brand experience, and improve employee morale.
Let’s look at it from the consumer’s perspective for a moment. I’m standing in the shampoo aisle and have many compelling options. Which shall I choose? Then I see the “Pink Ribbon” logo on the bottle. Maybe the one with the pink ribbon is a little more expensive, but I’m willing to pay the difference. The choice has all of a sudden become easy for me. The shampoo company gets something, they were chosen amongst many options, and the consumer feels better about the brand because the company gives back. The cause now has created awareness with one more person, and generated new revenue. In the end everyone wins. As a consumer, although I may not have an extra $50 to give to my favorite charity, I can afford to help out in this little way. It makes me feel good.
AdWeek and BrandWeek solidified the belief that consumers reward companies/brand that give back when they ran a story in the October 1, 2008 issue titled, “Cause Marketing Increases Sales.” This article was based on a research study in which consumers were exposed to Cause Marketing messaging, and then put in a test store to see if they would purchase the cause marketing item over the non-cause marketing items. Not surprisingly the results were staggering. In some categories there was an increase of up to 74 percent for the brand associated with a cause.
In my experience, Cause Marketing is as close to a “magic bullet” as you can get in marketing. It’s a low cost, low risk, feel-good program, in which consumers reward you immediately with a purchase, followed by an improved view of the company or brand that may lead to improved loyalty. In marketing speak; it doesn’t get much better than this! Corporate America needs you just as much as you need them. Cause Marketing is no longer just a nice “feel good” thing to do. In our times of economic recession, it has become an intelligent, cost-effective strategy that can be pulled out of the marketing tool box just like running a promotion or ad.
As I talk with non-profit executives, I have learned that few are aggressively pursuing new and expanded Cause Marketing partnerships. Most are instead bracing for the worst. Although I respect the forethought, I would challenge you to instead, balance your conservative plan with an aggressive plan to forge new partnerships that will provide long-term growth in both revenue and awareness.
Shanna Schiavon is the owner of MORE Marketing, LLC, a marketing consulting agency that specializes in Cause Marketing programs. In her nearly 20 years of marketing experience, she has worked on numerous cause marketing programs, partnering with small non-profits to billion dollar charities. Programs that she created and/or worked on rose over $1.3 million for varying non-profits in 2008 and over $3 million for breast cancer awareness over the past 5 years.
Client Spotlight - Magnificat Center/NaNa's House
Magnificat Center is a faith-based, 501(c)(3) not-for-profit organization that was founded by Erin Weyerich in 1999 in response to the needs of children in the South City area of St. Louis. Magnificat Center's primary service area lies in zip code 63118. This zip code has the second highest population in the city and the highest rate of child abuse in the state. This area is home to more registered sex offenders than any other St. Louis zip code and has one of the highest rates of homicide and non-motor vehicle accidental death.
At the time Magnificat Center became active in the community in late 1999, administrators at elementary schools such as Froebel in Gravois Park were reporting incidences of small children crying on the school doorstep as darkness fell because their parents failed to pick them up. Chronic neglect of children was observed by neighborhood residents, and school staff witnessed children who were being sent to school dirty and hungry, in soiled clothing, who were often too tired to keep from falling asleep in class.
Another problem with this area is the high incidence of homelessness. On any given day in the City of St. Louis, 3,200 people are homeless. 1,460 of them are children under age 17. Each year over 4,000 children in the City of St. Louis are homeless for some period of time. 90% of the homeless population has experienced domestic violence, which includes child abuse. Families staying in a homeless shelter are usually required to leave the shelter after breakfast and cannot return until after 5:00 p.m. While older children can spend the day in school, homeless mothers are forced to carry their babies and preschoolers with them as they travel from place to place seeking employment and permanent housing.
Magnificat Center helps to address all of these issues for the families in the areas they serve. Their vision is to develop programs that reach and assist children who are orphaned or abandoned, abused, homeless, hungry, neglected or otherwise at risk. Our programs seek to help both the children and their parents, and include 24-hour respite care, group activities for neighborhood children and distribution of humanitarian aid to distressed families and not-for-profit agencies serving children.
One main aspect of the Magnificat Center is their safe house known as NaNa’s House (Not Alone – Not Afraid). Through this location, the Magnificat Center is able to provide temporary daytime and overnight care for infants and small children when there is a crisis in their home. The children they serve live in low income, inner-city families suffering from loss of employment, loss of housing, or even illness, addiction, hospitalization, incarceration, divorce or the death of a parent.
The Magnificat Center’s goal is to help keep the family together by caring for the children while their parents work to resolve the issues causing turmoil and loss. Children are referred to NaNa's House by teachers, social workers, homeless shelters and other agencies. Infants and toddlers stay with them a few hours during the day while their moms seek housing, employment or attend to a family crisis. The children who stay at NaNa’s House overnight are usually with them a few days because their mothers are ill, in the hospital, or need help during a very stressful time.
In addition to the respite care, NaNa’s house also offers a safe place for children in the neighborhood to go after school. NaNa’s house provides snacks and tutoring to these children of the families in the neighborhood. They also offer enrichment programs teaching various life skills for the families and children in the neighborhood on a regular basis. Lastly, NaNa’s house also serves as a visitation center where foster children can have private visits with their birth parents in a safe environment.
Paradigm Shift Studio, llc first got involved with the Magnificat Center when they applied for a Philanthropy Grant from our Giving Back Program. We were happy to award them a partial grant which allowed us to come facilitate their bi-annual board retreat and identify some critical strategic needs of the organization. Erin commented on the work Paradigm provided to the Magnificat Center by saying, “Having Paradigm facilitate brought renewed strength and integrity to our board and left the board better prepared to address the agency’s needs.”
Currently all of the Magnificat Center’s programs are provided at no cost to the over 250 children and families they serve every month, and that number is only increasing. If you would like more information on the Magnificat Center and NaNa’s House, or if you would like to get involved with the organization, we encourage you to visit their website here.
Changes coming to Framework for Success
New Monthly Conference Calls
Paradigm Shift Studio, llc is proud to announce the introduction of monthly Q&A conference calls beginning in May, 2009. Once a month Paradigm plans to hold a conference call on one of the modules found in the Framework for Success resource. Current and future customers of Framework will receive a local dial-in number to connect to the call. These calls will consist of a short review of the topic for that month provided by Paradigm, and then the line will be opened to the audience to share their thoughts on that topic. Paradigm professionals will be on-hand to help you work through any difficulties you may be experiencing or any questions you may have. The topic for the month of May will be Development Plans. Watch your inbox for more information as the date of the first conference call approaches!
Don't Miss Your Last Chance to Purchase a Framework for Success at the Introductory Rate of $299*
Framework for Success is rapidly approaching it's 6 month anniversary, and the introductory rate of $299* will soon expire. After March 31st the price for a complete Framework for Success will increase to $349.00. So if you have been considering making the purchase of Framework for your organization, now may be the best time to do so. If you would like more information about a Framework for Success resource, or to place an order, please visit our website.
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