Cause Marketing Offers Huge Payoffs, Study Finds
Oct. 7, 2008 - Cause-related marketing can drive double-digit sales growth for brands, according to a new consumer survey.
The behavioral study, conducted jointly by Cone Marketing and Duke University's Fuqua School of Management, examined consumer reactions to cause-related marketing campaigns, either in store or online. The big reveal? Sales of some products jumped as much as 74% when the product was associated with a particular social 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."
Additional research conducted by Cone identified the specific factors consumers consider important when deciding to support a company's cause efforts. For example:
- 84% would prefer to select the cause their purchase would support
- 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% 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, the report suggests. More than half (52%) of respondents say companies should maintain their level of financial support of causes and nonprofit organizations, despite current economic woes.
Yet marketers appear to be taking the opposite tack. According to another recent survey, also by Fuqua School of Management, 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 are clearly enjoying the benefits of cause marketing. Earlier this year, companies including Haagen Dazs, Sears, and Proctor & Gamble said they planned to expand their cause-related efforts, suggesting the programs were paying off better than other promotional programs.
For a copy of the report, Past. Present. Future. The 25th Anniversary of Cause Branding, click here.
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