Citizen Brand

Cause keeps on ticking

The 2009 edition of the PRWeek/Barkley Cause Survey released this week sends a clear message that cause branding programs work even in tough economic times.

That's good news for all of us who believe that cause programs are one of the single best ways for a brand to create permanent connections with their customers. And good for non-profits who are hit hard by the economy and need new, effective ways to gain dollars and volunteers for their missions.

You can download a copy of the 2009 survey at the Barkley website. We would love to hear your comments on the findings and the accompanying article featuring some of the most successful cause marketers today.

Cause a Survivor

AdAge asked me to write a column about cause marketing and branding in a tough economy.  Here it is. Please join the discussion.

Marketing's True Survivor

Why Advertisers Should Turn to Cause Strategies When Times Are Tough

Posted by Mike Swenson on 07.29.09 @ 11:45 AM

       

Mike Swenson

When times are tough, cause marketing can make all the difference in a client's marketing strategy. Mike Swenson, exec VP-chief marketing officer of Kansas City, Mo.-based Barkley, tells why.

If you compare our current economic abyss to a game of "Survivor," with marketing programs vying to avoid being voted off the island, it appears we have a winner. Cause-related marketing might just be the true survivor in this economy.

Anecdotal evidence is everywhere. Entire ad campaigns by major brands range from simple hints about the good they are doing for society to entire campaigns centered on causes and giving back. At Barkley, we have two clients that made cuts in their marketing budgets but did not stop the development of cause programs set to launch later this year.

The primary reason is consumer demand. Giving back is part of the consumer mind-set now. A perfect example is a study from Opinion Research Corp. telling us that 76% of consumers are willing to pay more at the cash register for environmentally friendly products. This debunks the perception that consumers will buy green only if it doesn't cost them.

Our most recent Barkley cause survey, done in partnership with PR Week, brings consumer support for cause marketing into even sharper focus when you consider the female consumer. Since women are responsible for more than 80% of all spending, what women want matters to marketers. Two of three women have purchased a brand because it supports a cause they believe in, and three of four have recommended a brand to others for the same reason.

The headlines tell us that philanthropic giving is down during the economic slump. So why is cause marketing surviving? It's simple: As a person's disposable income drops, his or her ability to make philanthropic donations drops as well. Cause marketing provides outlets for consumers of all financial means to give back, since most programs carry a modest level of donation.

Simply stated, cause marketing is surviving in this economy because consumers not only want to give back but also can afford to do it through cause-marketing programs. And since we see the mountain of evidence telling us consumers will reward companies that offer cause-marketing programs, the reasons not to make cause a part of the marketing mix are dwindling.

The benefits are numerous for a brand that commits itself to cause marketing. One of the most important is the internal impact of support for a cause. When consumers put on their employee hats, they want to work for companies that care. Two out of three CMOs Barkley surveyed in late 2008 said their cause programs resulted in improved employee morale and retention. That was especially true for employees in their 20s and 30s.

A second benefit is directly linked to the troubled economy. We all know that value pricing has its limits. A competitor can always undercut a price point. Think of value a different way. A brand can hold steady on some prices when it adds value to the purchase, such as support for a cause. Consumers will be willing to pay a bit more if they know the product they purchased will support a good cause.

With consumers living their lives more and more online today, marketers can offer a year-round cause-marketing presence, thus reinforcing their status as brands that care. It also makes it easier for consumers to engage with the brand. Our client Lee Jeans has experienced this firsthand through Lee National Denim Day, which supports the fight against breast cancer. Denim Day began 14 years ago as a workplace program using traditional methods of marketing and communication to spread the word. Today, the entire program exists online atdenimday.com, where anyone can form a team, make donations and learn new ways to get engaged in this grass-roots cause program.

Finally, brands engaging in cause marketing can fill a big need in today's economy. Nonprofits are being hit hard right now, which means the people they serve are being hit harder. Nonprofits are being squeezed from all sides. They have less help from government, foundations, direct donations and volunteers.

Combine that with the fact that companies today are searching for any edge they can find to drive business and grow their brands, and it will bring you to a simple conclusion: Cause marketing will give a brand the edge it is looking for and will help the nonprofits collect much-needed dollars to support their missions.

Brand marketers need to ask themselves a question right now: If your best customer asks you what you stand for, do you have an answer? Cause marketing will help give you that answer.

Moms love causes

The 2008 edition of the PRWeek/Barkley Cause Survey is published and any company who is not involved in cause branding today should take notice.  Why?  Because moms, who are responsible for more than $2.1 trillion in consumer spending this year like to spend with companies that support good causes.

The survey revealed that moms demand companies use their power for good, with 85.6 percent saying it’s important for companies to support a cause. With regard to their purchasing decisions, 58 percent say they would pay more for a brand that supports a cause, 69.2 percent say they would try a brand because it supports a cause, and 76.8 percent say they would recommend a brand that supports a cause. Overall, 66 percent of moms say they have purchased a brand because it supports a cause.

You can download a pdf of the survey and article along with a transcript of our 2008 Cause Roundtable by going to this link at the Barkley website.

And here is a link to a column on cause written by PRWeek's Erica Iacono who we work with each year to develop the survey.

In this economy, the companies that have established cause programs will benefit from the special relationship they are developing with their customers.  And those companies that don't have them, now is a fine time to consider starting one.  It could prove to be the point of differentiation that separates a company from its competitors.  And when the economy does improve, the difference will be even greater.

2007 PRWeek/Barkley Cause Survey

This week's edition of PRWeek has the 2007 edition of the Barkley Cause Survey.  This is the third year of our partnership with PRWeek to add to the conversation about cause branding and its growing influence in the world today.  This year, we conducted a roundtable discussion featuring cause leaders from agencies, corporations, non-profits and the media.

You can download a pdf of the PRWeek/Barkley Cause Survey here or if that doesn't work, go to the Barkley website.

I'm on the road this week, but will comment more in the coming days on what we learned and what we think it means.  One thing we know for sure is that cause is not going away.  It continues to gain stature as an authentic way for companies to give back; for non-profits to grow their missions; and, for we as consumers to get engaged in the things that make a difference to us.

PRWeek/Barkley Cause Survey

There is much going on at our company these days.  We simplified our name; added a rocket to our logo; and we are getting ready to move into new digs in a building that Howard Hughes once roamed around in when he owned Trans World Airlines.

We are now simply known as Barkley.  It's the name most people have referred to us for years.  And in mid-November, we move into our new offices in the Crossroads Arts District of Kansas City in a building that was once TWA's world headquarters.  Howard Hughes put a rocket on top of the building to signify his dream that someday TWA would take passengers into outer space.  We have put the rocket back on the building as we bring this classic retro modern building back to life.

For us the rocket signifies our company's desire to explore and discover new ways to help our clients succeed.  One of the growing ways we are doing that is through cause branding.  And for the second consecutive year, Barkley Public Relations has partnered with PRWeek Magazine to sponsor a survey on the state of cause branding.  If you have not seen it yet. you can read it or download it at our website - www.beappr.com.

This year, we tried something new.  We conducted a consumer survey, PRWeek's first ever.  We talked with members of three different generations - Gen Y; Gen X; and, the Boomers.  We learned that all generations continue to see the growing importance of corporations partnering with non profits to further causes through education, awareness and funding.  There are differences as you would suspect there would be.

Boomers are more trusting of companies in general while the Gen X'ers (30-41 years old) are the most skeptical and trust corporate motivations the least.  Two thirds of all respondents said it is important to know why a company has chosen to support a particular cause.  And by almost a three to one margin, all respondents said a company should support a variety of causes as opposed to supporting only a single cause.

Almost two thirds (64%) of all respondents said they have purchased a branded product because it supports a cause they believe in.  And almost nine out of ten said it is important for companies to support causes or charitable organizations.

I encourage you to take a look at the entire survey and accompanying article in the October 23 edition of PRWeek.  Please let us know what you think of the data and give us feedback so we can make the 2007 survey even better.