Everywhere we turn we see businesses and non-profit organizations coming together to support the community. Whether it is a global initiative conducted by a major corporation or a sponsorship for a local fundraising event by a one-person shop, these endeavors serve to bond the business and the non-profit organization in a mutually beneficial relationship known as cause marketing.
Although businesses have long been givers to their communities, this concept of cause marketing — thought to be a flash in the pan in the early 80s — was actually a seismic shift as successful programs reaped benefits for both companies and non-profit organization.
From 1981 to 1984, American Express established the first cause marketing initiative to support 45 organizations around the country. They believed that by having local causes to rally around, existing and new card members would use their charge cards more.
Then-chairman Louis Gerstner, Jr. noted the extreme success of the of these cause promotions. “We now know we can do well by doing good,” he said.
Following these three successful years, American Express went on to launch a three-month national marketing campaign around the Statue of Liberty Restoration project promising one cent for every card transaction and one dollar for each new application. During those three months, they raised $1.7 million for the project, card use rose 27 percent and new card applications increased 45 percent from the previous year. This was the beginning of a new era for cause marketing.
I recently attended the 12th annual full-day cause marketing conference at University of San Diego — the largest on the West Coast — where my friend, Parker Pike, spoke on forging successful, sustainable partnerships between companies and non-profit organizations. Parker, a founder and organizer of this annual event, is a marketing manager for business, science and technology at UCSD Extension and an expert in Cause-Related Marketing, or CRM.
In his standing room only session, he stressed that for-profit companies are looking at the overall Return on Community Investment (ROCI) in their relationships. These returns include financial and social dividends as well as employee engagement.
He outlined some of the far-reaching benefits that both companies and non-profits can garner from ideal, successful cause marketing partnerships. For companies, the relationship should boost employee morale, differentiate and increase product awareness, effectively reach new markets, increase return on marketing investment and help expand the reach and database.
For non-profit organizations, the results should support fundraising, increase both the volunteer and membership/donor base, inspire the target audience to take action, find new funding sources and create media partnerships. The partners can help each other achieve their goals and reach new heights while benefiting the community.
Author Jocelyn Daws, another expert in this field observes that companies are pursuing results beyond the superficial. “It isn't enough for companies to do good; they want to be seen doing good and to obtain business and marketing benefits beyond just a halo effect,” she said.
All over the world, companies from the largest to the smallest are now benefiting from cause-related marketing. There are tremendous opportunities here in the Carlsbad area to bring together businesses and non-profits in mutually beneficial partnerships and you will certainly be hearing more about this in the months to come.
Although businesses have long been givers to their communities, this concept of cause marketing — thought to be a flash in the pan in the early 80s — was actually a seismic shift as successful programs reaped benefits for both companies and non-profit organization.
From 1981 to 1984, American Express established the first cause marketing initiative to support 45 organizations around the country. They believed that by having local causes to rally around, existing and new card members would use their charge cards more.
Then-chairman Louis Gerstner, Jr. noted the extreme success of the of these cause promotions. “We now know we can do well by doing good,” he said.
Following these three successful years, American Express went on to launch a three-month national marketing campaign around the Statue of Liberty Restoration project promising one cent for every card transaction and one dollar for each new application. During those three months, they raised $1.7 million for the project, card use rose 27 percent and new card applications increased 45 percent from the previous year. This was the beginning of a new era for cause marketing.
I recently attended the 12th annual full-day cause marketing conference at University of San Diego — the largest on the West Coast — where my friend, Parker Pike, spoke on forging successful, sustainable partnerships between companies and non-profit organizations. Parker, a founder and organizer of this annual event, is a marketing manager for business, science and technology at UCSD Extension and an expert in Cause-Related Marketing, or CRM.
In his standing room only session, he stressed that for-profit companies are looking at the overall Return on Community Investment (ROCI) in their relationships. These returns include financial and social dividends as well as employee engagement.
He outlined some of the far-reaching benefits that both companies and non-profits can garner from ideal, successful cause marketing partnerships. For companies, the relationship should boost employee morale, differentiate and increase product awareness, effectively reach new markets, increase return on marketing investment and help expand the reach and database.
For non-profit organizations, the results should support fundraising, increase both the volunteer and membership/donor base, inspire the target audience to take action, find new funding sources and create media partnerships. The partners can help each other achieve their goals and reach new heights while benefiting the community.
Author Jocelyn Daws, another expert in this field observes that companies are pursuing results beyond the superficial. “It isn't enough for companies to do good; they want to be seen doing good and to obtain business and marketing benefits beyond just a halo effect,” she said.
All over the world, companies from the largest to the smallest are now benefiting from cause-related marketing. There are tremendous opportunities here in the Carlsbad area to bring together businesses and non-profits in mutually beneficial partnerships and you will certainly be hearing more about this in the months to come.