Retailers during last year’s holiday shopping season seemed to more than ever appeal to consumers’ desire to funnel some of their buying dollars to worthwhile causes. Given that a study by Boston-based Cone Communications showed that more than half of Americans planned to buy from retailers associated with good causes, chances are this year will be no different.
Cause-related marketing isn’t necessarily the sole province of large retailers and manufacturers who are able to donate substantial amounts to various causes because their sales volume is so high. Smaller businesses can make an impact in their own way by going about their marketing efforts in a strategic manner.
Florist Craig Wambolt went beyond cause-related marketing when he established a floral wire service apart from his business. The program, 800-OUR-GIFT donates 10 percent of each order to a charity designated by the customer. The principals do not draw income from OUR GIFT or even use any profits to reimburse their expenses.
Wambolt, co-owner of Frugal Flower in Sudbury, Mass., wanted to apply his knowledge of the floral industry to create a non-profit business to support charities. He created 800-OUR-GIFT, but the IRS denied the program non-profit status because it used an 800 number to compete against other florists.
Wambolt decided to go ahead with the plans, anyway, offering flowers and other gifts at competitive prices. After the florist and the wire service company are paid, the remaining profit for OUR GIFT is split between overhead and an organization which the customer chooses from a list of approved charities. OUR GIFT currently has 50 charities on its list.
The flowers arrive with a card noting the charity that benefited by the order.
“At the end of the day we want to be able to pay our basic overhead and then sent the rest to charity,” Wambolt said. “When they place the order everyone wins -- Mom gets the flowers and a research program or a homeless shelter gets another small infusion of funds. It keeps adding up.”
Wambolt’s program may be too ambitious for most small-business owners. However, an effective cause-related marketing campaign is a proven way to build goodwill with the customers while contributing to a deserving cause.
An academic study recently looked at why some marketing campaigns are effective and some aren’t. The study examined 22 marketing campaigns, 11 of which were associated with a social cause. The research, which was published in the “Journal of Marketing,” and reported by The Boston College Center for Corporate Community’s Relations after last year’s holiday shopping season, found that:
• Long-term commitments are best.
• Indirect links between the cause and the company’s core business work best. Consumers find campaigns that are too closely related are exploitative or opportunistic.
• Close involvement between the cause and the company positively affect consumers and employees, suppliers and partners.
• It’s better for the company to focus narrowly on a cause.
• The cause must be integrated into the company’s programs internally as well as externally.
• The company must use long-term non-economic measures to evaluate the achievement of objectives.
• Ending affiliations with causes can have negative effects, not only with those directly involved with the cause but also with key company constituents.
These days, consumers want their dollars to do more than line some someone’s already padded pockets. They want their money to feed the hungry, advance medical research, ease suffering. As a business owner vying for those dollars, you help yourself by sharing the wealth.
