A Call to Innovate: Co-Branding

Could there be a better example of Cause Branding than the Nike partnership with Live Strong? Read more at Cone.

Per my last post, here is another follow-up to my “Hey, Nonprofits! Wake up! You can innovate or you can die” article.

Can you add more value to your sponsorships by exploring co-branding?

Just take a look at corporate giving over the past 6 months.

If you are not considering ways to give your sponsors more return on their investment – more marketing bang for their philanthropic buck – you are on the wrong side of a quickening trend away from hand-outs and towards hand-in-hand partnerships.

One of the greatest and yet untapped assets within your organization is its brand: more specifically, the relationships that customers have to your brand.

Leveraging these relationships can be an incredibly valuable opportunity for any corporation. Your organization should consider how it can deliver customers to a corporation, and then offer that opportunity at a hefty price:

-          The supporters of animal organizations are likely strong prospects for everything from Kibbles ‘n Bits to the local perky-poodle salon. Your pet shelter has great access and strong brand recognition among some core users of those products: monetize it!

-          The parents who send their kids to your summer camp are buying everything from super-safe Volvos to Kumon Math and Reading Centers’ tutoring. Gaining access to those parents is worth a fine penny to those corporations.

-          The hundreds of people who drive their cars to your museum are all in need of oil changes, car washes, gasoline, etc. What would one of these companies be willing to pay for their flyer to go on every windshield (or, better yet, handed to them by the parking lot attendant when they drive in)?

-          The side of your food pantry’s warehouse faces a highway. That’s a billboard just waiting to earn money for you!

Think about all of the ways that you engage clients, volunteers, donors and the general community.

Now, think of all of the sponsors whom you solicit throughout the year.

Sure, they might like buying a table at your event. But in this economy, how much more confident would they be in the value of that table sponsorship if it also included the opportunity to put one of their coupons at every seat? Or if their sponsorship were bundled with one of the opportunities above?

Do not limit yourself to the silos of your revenue streams: think creatively about ways to bundle your various “assets” together into a package for your sponsors, and work with them to understand their goals.

Read more about co-branding with a corporate partner -- cause branding -- at the site of the people who invented the term... Cone:

http://www.coneinc.com/cause-branding

What are the opportunities that you see at your organization?

[where: 75223]

Turning Your Brand into Dollars

Cone Study on Cause Marketing challenges Nonprofits to Explore Ways to Monetize their Brand

Thanks to The NonProfit Times for citing this powerful new study on cause marketing from Cone. 

One of our most valuable assets that we have as nonprofits is our brand; learning how to capitalize on that brand through cause marketing partnerships and licensing can be a phenomenal way to increase your unrestricted revenues... even in the current market.

Donors ... Loyalty to brand a thing of the past

Compared to the average adult (79 percent), Millennials (88 percent) are more likely to switch from one brand to another, given similar price and quality, if the other is associated with a good cause, according to a recent survey. More than half of the Millennials surveyed bought a cause-related product or service in the past year, compared to 38 percent for all adults.

Cone LLC, a Boston-based brand consultancy specializing in cause marketing, marked its 25th anniversary with the recent release of the 2008 Cone Cause Evolution Study and the Cone/Duke University Behavioral Cause Study with Duke’s Fuqua School of Business.

The percentages for Millennials (those ages 18-24) were higher than the average adult in nearly every category. More than 40 percent said they prefer the message that a percentage of the purchase of each product goes to support the nonprofit, compared to 28 percent for all adults. Also, 45 percent are more likely to donate money to the related charity compared with 36 percent for all adults; 36 percent are more likely to participate in the charity’s programs and events versus 29 percent for all adults, and 32 percent are more likely to volunteer, compared with 23 percent.

The overall 79 percent who would be more likely to switch is up from 66 percent in a similar study 15 years ago.

The study also found at least a modest increase in the actual purchase of four product categories -- shampoo, toothpaste, chips and light bulbs -- as a function of the cause message, as well as a high brand recall. In the toothpaste category, 64 percent of participants who saw the cause message chose the target brand versus 50 percent who viewed the control advertisement. For shampoo, 47 percent of those who saw the cause-related message chose the brand compared to 27 percent who saw a generic message.

More than half of those surveyed said companies should maintain their level of financial support of social and environmental causes and nonprofits, despite the economic downturn. More than a quarter of respondents expect corporations to give more during difficult times.

Among issues deemed “very important” by consumers were education (55 percent), access to clean water (55 percent), hunger (54 percent), health and disease (52 percent), environment (52 percent), economic development (51 percent), and disaster relief (46 percent).

Almost two out of five people have purchased a product associated with a cause in the last 12 months, compared with one out of five people 15 years ago. In 1993, two-thirds of respondents said it’s acceptable for companies to involve a cause in their marketing, a figure that’s up to 85 percent this year.

Cause marketing doesn’t stop at just products. Among those surveyed, nearly a third said it was “very important” for employers to provide matching grants, paid time off to volunteer and company-sponsored volunteer days. Prior to purchasing a cause-related product, 80 percent of respondents said it’s important that companies have a significant impact on the cause and 75 percent consider whether they stand to make a difference themselves.

The belief that companies should prioritize support of issues that affect quality of life in local communities was down slightly, from 55 percent in 1993 to 49 percent. Meanwhile, prioritizing quality of life nationally went from 30 percent in 1993 to 36 percent this year, while the quality of life globally came in at 15 percent this year, up from 10 percent 15 years ago.

[where: 75223]

Consumer Behavior Study Confirms Cause-Related Marketing Can Exponentially Increase Sales

Cone releases a new Consumer Behavior Study that Confirms Cause-Related Marketing Can Exponentially Increase Sales

Cone releases a new Consumer Behavior Study that Confirms Cause-Related Marketing Can Exponentially Increase Sales:

Cone/Duke University Study Also Reveals Consumers Spend Twice as Long Viewing Cause-Related Advertisments
http://www.csrwire.com/News/13326.html
(CSRwire) Boston, MA - (October 1, 2008) - As the term "cause-related marketing" reaches its 25th anniversary and a sea of pink ribbons washes over the U.S. this month, a new consumer behavior study confirms that cause-related marketing can exponentially increase sales, in one case as much as 74 percent, resulting in millions of dollars in potential revenue for brands. The 2008 Cone/Duke University Behavioral Cause Study, released today by Cone and Duke University's Fuqua School of Business, validates for the first time that cause-related marketing can significantly drive actual consumer choice.

During the first phase of the study at Duke University, 182 participants evaluated a new regional magazine and were exposed to either a cause-related or generic corporate advertisement for one of four focus brands. Afterward, they entered a mock convenience store with nearly 150 SKUs and were given real money to purchase a product in each of the four categories. Results revealed:

Substantial cause-related sales lift for two of the four consumer packaged goods categories tested:

•74% increase in actual purchase for a shampoo brand when associated with a cause
•(47% of participants who saw the cause-related message chose the brand while only 27% of those who saw the generic corporate advertisement chose the brand)
•28% increase in actual purchase for a toothpaste brand when associated with a cause
•(64% of participants who saw the cause message chose the target brand vs. 50% who viewed the generic corporate advertisement)
•Modest increases in the other two product categories tested (chips and light bulbs) – Qualitative consumer responses showed that the issue, the nonprofit and the inherent nature of products were key factors in making cause-related purchasing decisions and helped explain why movement in these categories was not significant.

In the second phase of the research, Cone and Duke validated the sales increases for shampoo and toothpaste by replicating the study online among a nationally projectable sample of more than 1,000 adults. The results revealed that participants spent nearly twice as long reviewing cause-related ads versus the general corporate advertisements. This resulted in a sales increase (19 percent) similar to the lab study for the target toothpaste brand. And although the shampoo brand increased only by a modest 5 percent, sales among its target audience of women increased by nearly 14 percent.

"It's much easier to make a purchase by clicking a button than it is to pick up and experience a brand in the richer store environment; the results of our study likely lie between the impulsive online shopper and the deliberate in-store shopper," says Gavan Fitzsimons, Duke marketing professor and lead researcher on the study. "One thing we know for sure - consumers are paying more attention to cause messages, and as a result, are more likely to purchase. This is clearly great news for brand managers, as every percentage increase can translate to millions of dollars in revenue."

2008 Cone Cause Evolution Study

Cone first began measuring the attitudes of Americans 15 years ago, and today, expectations of companies continue to grow. To complement the behavioral study, Cone conducted the 2008 Cause Evolution Study, to better identify what drove substantial product sales for only two of the four brands. The results found that consumers consider the following factors to be important when deciding to support a company's cause efforts:

•84% want to select their own cause

•83% say personal relevance is key

•80% believe the specific nonprofit associated with the campaign matters

•77% say practical incentives for involvement, such as saving money or time, are important

•65% find emotional incentives for involvement, such as it making them feel good or alleviating shopping guilt, important

"The findings of the 2008 Cone Cause Evolution Survey help reinforce why two of the categories in our behavioral research did not show significant increases in sales. Consumers want to feel a connection to the issue and the nonprofit while fulfilling their personal needs," says Alison DaSilva, executive vice president, Knowledge Leadership and Insights, Cone. "While this is a tall order for companies, it provides great opportunity for continued innovation and business growth."

Consumers Set Bar High for Companies, Even During Poor Economic Climate

The 2008 Cone Cause Evolution Study also revealed that consumers continue to have high philanthropic expectations for companies struggling amid the current economic crisis. More than half (52 percent) of Americans feel companies should maintain their level of financial support of causes and nonprofit organizations. Another quarter (26 percent) expects companies to give even more.

Fortunately for marketers, consumers are also more receptive to cause messages than ever before. They will reward companies that give back both with their goodwill and their wallets:

•85% of Americans say they have a more positive image of a product or company when it supports a cause they care about (remains unchanged from 1993)
85% feel it is acceptable for companies to involve a cause in their marketing (compared to 66% in 1993)

•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 (compared to 66% in 1993)

•38% percent have bought a product associated with a cause in the last 12 months (compared to 20% in 1993)

Priority Issues for Business and Society
The leading issues that Americans want companies to address in their cause programs are consistent with growing domestic and global needs. These are also issues in which companies can use their business scale and resources to have the greatest impact. The issues include:

•Education – 80%

•Economic development (i.e.: job creation, income generation, wealth accumulation) – 80%

•Health and disease – 79%

•Access to clean water – 79%

•Environment – 77%

•Disaster relief – 77%

•Hunger – 77%


Americans also acknowledge that to truly drive change, there needs to be widespread collaboration among sectors. Nearly nine in 10 Americans (89 percent) say it is important that business, government and nonprofits collaborate to solve pressing social and environmental issues.

Communication Disconnect

Almost uniformly (91 percent), Americans believe companies should tell them how they are supporting causes, but many do not feel they are getting sufficient information. Only 58 percent of Americans believe companies are providing enough details about their cause efforts. Half also think the government or other third parties should regulate cause marketing by companies.

"Progressive organizations are moving away from 'assembly-line cause' - simply picking an issue and a partner off the shelf - as they evaluate how societal needs and business growth are intrinsically linked," says DaSilva. "In today's highly transparent society, consumers are seeking more information about the details of the program, the issue and the impact that they and the company are having. Companies must not only answer, 'What do you stand for?' but also 'What do you do?'"

For a copy of the complete report, "Past. Present. Future. The 25th Anniversary of Cause Branding," please contact skerkian@coneinc.com or visit www.coneinc.com/research.

[where: 75223]