Earning Customer Loyalty with Cause Marketing

The ecommerce world continues to erupt with entrepreneurs clamoring to break into the online retail market.

Despite the surge in popularity to create successful brands for the virtual marketplace, there’s still plenty of room for more competition.

So many brands out there are copying each other, which is unethical and lazy. Don’t add your company to that list.

Within a saturated industry you can still absolutely set yourself apart with consistent marketing, an authoritative voice and authentic brand that resonates with consumers.

You can penetrate the market simply by being genuine.

Whether you’re an established brand or just starting out, partnering with a worthwhile organization that shares your company’s core values can be a symbiotic relationship.

It comes down to earning customer loyalty, which you can develop using strategy. One great area to focus your ecommerce business on is cause marketing. When executed properly, consumers feel like they’ve contributed to society and made a difference. It also helps create brand recognition.

If you’re looking for a way to diversify your brand, establish trust with your audience or just give back, cause marketing is a great place to start.

 

WHAT IS CAUSE MARKETING?

Cause marketing is a strategy where a for-profit business creates a partnership with another business, which increases sales for your business and gives exposure to the other with the purpose of societal betterment.

At the corporate level, many companies seek to achieve this social responsibility by including an environmental or human rights element within advertisement for its product or service.

Implementing a company culture that includes such an idea empowers consumers to be part of something that makes the world a better place.

 

CAUSE MARKETING AND ECOMMERCE

While there is no single recipe for cause marketing, there are basic parameters. As a company you should select a charity or nonprofit (as an example) that’s relevant to your brand. It should also be a cause that you’re personally passionate about.

Ideas include eco-sustainability, civil or human rights activism, social or systemic injustice issues. The list is endless really.

Whatever you choose, this is what you create your cause marketing campaign around. Businesses get brownie points for donating a percentage of profits to the cause!

Cause marketing is a business strategy that your brand can commit to with the same brand or a different one each month, seasonally or every year.

Just figure out what matters to you and how it aligns to your brand’s image, then go from there.

FINDING THE RIGHT MARKET TO TARGET

If there’s a generation most willing to give to a noble cause and share with others they’re doing it, it’s the younger generations.

Millennials, also known as Generation Y (born between 1980 and the mid-90s), as well as its successors Generation Z, are your main target for cause marketing.

Why? Because they truly care!

It’s the individuals and groups from these generations that are having the conversations and engaging in action to champion a better future for their children. They continue to openly place expectations on businesses to take on social responsibility as part of their brand’s identity.

In true support of supporting altruistic causes, Millennials often back up their call for accountability by investing in these businesses as consumers.

Be a competitive brand by investing in the greater good while increasing your profit, creating loyal customers and making a difference. The market is there for the taking.

 

NO BETTER TIME THAN NOW

After a year of lasting effects from the COVID-19 pandemic, the resounding message is: We’re all in this together.

The past 12 months have revealed stories of loved ones, neighbors and strangers working with, not against each other.

While 2020 was a year defined by global social and economic disruption, 2021 is proving to be the year that fights back.

This year represents one of hope and rebuilding, as well as common ground. Capitalize on this momentum by catering to people’s emotions with cause marketing and embracing the collective theme of inclusivity and greater good.

Become the brand that people can trust by investing your money, time and effort into consumers that support where you’re coming from.

Once you create that relationship, you’re likely to have lifelong support for your brand, not to mention referrals, positive reviews and increased revenue for your business.

 

HOW TO BE VIEWED AS AUTHENTIC

Nothing’s worse than feeling like you’ve been duped. Taking a shortcut, false advertising or being misleading is no way to establish a genuine brand or following.

When beginning the journey of cause marketing, engage customers in backing your cause through authenticity.

Remember, cause marketing is for the greater good, not just your bottom line. In the end a shotty cause marketing scheme can not only ruin consumer relationships and your brand’s identity, but destroy your credibility and integrity, along with any success for your business.

 

COMPLIANCE IN CAUSE MARKETING

Before launching your cause marketing campaign it’s a good idea to check compliance.
If as a for-profit business you decide to get involved with a charity, this is called a “commercial co-venture agreement.” Many states require businesses to register as co-ventures and submit a relevant agreement that outlines the details of the partnership.
Since specific rules vary make sure you double check regulations. The National Council of Nonprofits is a good resource on state laws for charitable organizations.

TRANSPARENCY

Once you figure out the details as far as what percentage is donated within the partnership, you’ll need to craft the right language for your consumers.

The Better Business Bureau (BBB) provides standards for this provision that states a company must disclose the following to the public at checkout:

Any guaranteed minimum or maximum contribution
Either the actual or anticipated donation amount per sale
The duration of the campaign

This information not only protects the customer by revealing how much of their purchase goes to charity, but it also shows transparency on behalf of the business.

Permission to use Intellectual Property
Charities such as nonprofits invest a lot of time and money into name recognition and association with particular causes. To protect themselves and their brand they may use name use restrictions such as a copyright or trademark.

Once in place, your partnership must respect this image as well. This means you don’t use their names or logos without permission from the nonprofit.

 

HOW TO CHOOSE A CAUSE MARKETING PARTNER

Launching a successful campaign means a relationship with the charity that best fits your brand’s image and values.

Not putting investing the research upfront to learn about the organization could end up harming everyone involved ethically and financially.

ShoppingGives is a social commerce platform that helps ecommerce businesses make charitable donations through customer purchases at checkout.
The platform also manages all reporting and donations for you.

Your ecommerce business can also take advantage of a cause marketing campaign during holidays in general, not just the holiday season.

Promote the partnership between your company and organization as an opportunity to give on Valentine’s Day, Easter, Memorial Day and Labor Day and Thanksgiving.

Often it’s during these holidays and Christmas that consumers have giving on the brain.

Help them direct that generosity toward others or the planet while they’re thinking of loved ones and friends.

Customer loyalty is gold and you can gain it with effective cause marketing. So, go ahead and try the strategy while making a positive impact. Remember to be authentic and relevant and let those Millennials do what they’re best at-consume!

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