Issue
21
CAUSE
RELATED MARKETING
An
Eye on Profits and the Community
Cause related marketing can mean big business for commercial organisations
and charities. Pip Frankish, General Manager, Corporate Marketing & Communication,
3M UK, looks at how companies are becoming increasingly innovative when including
such campaigns in their marketing strategies.
As
companies strive to build their corporate reputation and increase customer loyalty,
many are turning to cause related marketing (CRM) replicating the success of numerous
campaigns that have to date delivered benefits for brands and the wider community.
Research
conducted for Business in the Community by Research International and evidence
from UK and international campaigns clearly show success for many CRM programmes.
Faced with a bewildering choice in a crowded marketplace, such a programme may
be the crucial decider for a consumer. They may perceive little difference in
price or quality in the goods or services on offer - but a link to a worthy cause
may be just the thing to tip the scales in favour of a purchasing decision.
Business
in the Community defines CRM as "a commercial activity by which businesses
and charities or causes form a partnership with each other to market an image,
product or service for mutual benefit".
The concept is not new. Commercial organisations in developed countries around
the world have a long history of donating money to charities. However, these started
out as philanthropic gestures with few looking for a payback; often the only recognition
was a mention at the back of the chosen charity's annual report. In the late 1970s,
companies began to be less shy about such donations. They recognised that the
contributions could enhance their corporate image, providing a significant return.
For example, Procter & Gamble teamed with the Special Olympics in 1981 for
what has become an annual event. Other companies followed, and in 1983, the phrase
'cause related marketing' was coined by American Express.
American Express pledged to donate one cent to the renovation of the Statue of
Liberty for every use of its card and a US$1 for every new card issued. The campaign
raised more than US$1.7 million for the Statue of Liberty fund. Over the three-month
period American Express had a 28% increase in card usage compared with the previous
year and new card applications rose by 48%1.
What
is new is the growth in volume of such programmes, the breadth of causes and the
growing number of organisations seeking out corporate cause-related programmes
to build their corporate brand. Tesco's Computers for Schools, Persil's
link with Comic Relief's Red Nose Day and the Cooperative Bank's Customers
Who Care programme (Winner of BITC's Cause Related Marketing Award for Excellence
2003) are all good examples of fully fledged campaigns which have delivered benefits
all round.
As more companies climb on the CRM bandwagon, so consumers become more knowledgeable
and discerning. Increasingly, consumers are demanding products from socially responsible
corporate organisations. This means that:
- There
is a huge opportunity for companies to make CRM activities an integral part not
just of their marketing strategy but also of their corporate social responsibility
strategy - and where appropriate to involve employees.
-
Companies whose reputations have suffered have an opportunity to rebuild trust
through aligning themselves with the charity sector. However, charities will be
choosy about who they align themselves with and need to be convinced that they
are not risking their own reputation.
- Companies
need to be ever more creative in developing CRM programmes; programmes have to
be different (not 'me-too').
- The
programmes need to demonstrate sustainable results rather than just cash into
a cause or charity's coffers.
- Specific
brand CRM campaigns have to show a clear link to the product to be credible. If
the 'fit' isn't right consumers will be confused about the brand message.
One
opportunity for 3M UK that was an obvious fit was a programme with Guide
Dogs for the Blind Association .
As
one of the largest voluntary funders of ophthalmic (eye care) research, Guide
Dogs is committed to eye care. The charity has run successive eye health campaigns
over the last three years to raise awareness about the importance of individual's
looking after their eyes.
One
area the charity has focused on is eye care for computer users, and the importance
of taking regular breaks from the screen. While there is no evidence to suggest
that computer use can cause long-term visual problems, it can lead to tired and
watering eyes, eyestrain and even temporary double vision. One very significant
problem is Computer Vision Syndrome (CVS), a condition that can cause headaches
and eyestrain for people who use computers for even a few hours a day. It is estimated
that as many as 75 per cent of computer users suffer from these types of ailments
at some time.
3M
is also concerned about eye care. We are using our technology to look after computer
users' eyes. CVS is partly caused by high levels of monitor glare, and 3M's Executive
Computer Filters reduce that glare by up to 99 per cent, while also significantly
reducing radiation by up to 99.9 per cent. 3M filters are the only ones in the
world to have achieved ISO's anti-glare standard.
3M
was approached by Guide Dogs for the Blind in 2002 to help in supporting their
eye care campaign for computer users. As a result, 3M agreed to sponsor a screensaver
called the EyeKon. The EyeKon is available free via the charity's website. When
installed on a PC, the EyeKon flashes up every 60 minutes of keyboard use, inviting
the user to 'Take a Break' and rest their eyes. 3M also committed to donate £1
to Guide Dogs for every computer filter sold between July 2002 and the end of
2004.
One
year into the programme, 3M has helped to raise a substantial sum for the charity.
We believe such campaigns represent a better investment than above the line advertising.
In this case, not only is the campaign raising the product's profile, to date
it has provided substantial support for a charity that carries out quality research
into the causes and treatment of eye-related problems. This, coupled with the
excellent synergy between 3M's and Guide Dog's missions to look after people's
eyes, makes for a great partnership.
It
is also a good example of how charities looking to link to cause related marketing
programmes are becoming more innovative and resourceful.
Providing companies and charities / causes are both creative in their approach
to CRM programmes and innovative in taking these forward, they are likely to continue
to be a 'win win' for some time. They represent a proven way of differentiating
a corporate name and building brands as consumers want to buy from companies that
are seen to be doing good. In a recent survey, 70% of European consumers said
that a company's commitment to social responsibility is important when buying
a product or service2. Companies that doubt this have only to look at the converse
to understand the power of consumers who are prepared to boycott a company's products
simply on ethical grounds.
1
'The Wider Benefits of Backing a Good Cause', Sue Adkins, Marketing, 2
September 1999
2 CSR Europe/MORI, 2000
About the author
Pip Frankish is General Manager, Corporate Marketing & Communication at 3M
UK plc, where she leads a team of in-house consultants, providing specialist communications
and strategic marketing expertise to 3M business units. 3M is a $16 billion diversified
technology company providing innovative solutions to customers in health care,
safety, electronics, telecommunications, industrial, consumer and office supplies,
and other markets.
For further information
on innovation at 3M see www.3M.com/uk or contact
pfrankish1@mmm.com or call 08705 360036
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