Smart CMOs are turning to a concept that has been around for 25 years, but that is just now gaining traction as a valid business strategy—cause branding. Cause branding introduces the customer to the soul of the brand, and in this troubled economy, philanthropic activity is proving to be one of the best relationship and business builders out there. 

A mother of two stands in the grocery store looking at the sea of diaper brands from which to choose. They all tout the same benefits at virtually the same cost. Later she drives down the street and tries to decide whether to turn left or right into a convenience store—each one offers the same price of gas.

Sameness abounds and consumers aren't making purchasing decisions based on just price and quality anymore. More so than ever, consumers want to know the values behind the company. They ask themselves, "Do I trust this company? Does it deserve my business?" The unstable economy has caused consumers to think long and hard about every dollar they spend, and they actually consider their patronage a vote for that company.

For companies, this is a tough situation. The CMOs of the world can't just ask themselves how their brands can stand out. They need to find ways to connect with their customers beyond the sale, in a more meaningful and relevant way.

The 2008 PRWeek/Barkley survey verifies this corporate interest in giving back.
•    67% of companies today have a cause program.
•    97.3% of CMOs surveyed said they view cause as a valid business strategy.

Moreover, cause branding is driving sales, trial and traffic. When CMOs were asked about the benefits of executing a cause program, 40% cited an increase in sales/retail traffic to the business due to their brand's association with a philanthropic initiative.

Cause branding also seems to hit home with a specific consumer segment who is more interested than ever in giving back and leaving a meaningful legacy—moms. And it just so happens moms are one of the most coveted demographics.

Among the 83 million American moms, 82% say they drive the household purchasing decisions, representing over $2.1 trillion in annual spending.*  As the CEO of the household, each mom has been hit hard by the volatile economy. Her personal charitable giving has decreased, yet she still desires the ability to give back. Companies engaged in cause branding can give her that opportunity, and she is appreciative.

•    85.6% of moms surveyed say it is important for companies to support a cause.
•    58% of moms say they would actually pay more for a brand that supports a cause.
•    69.2% say they would try a brand because it supports a cause.
•    76.8% say they would recommend a brand that supports a cause.

More than half of the moms surveyed said they have purchased a brand because it supports a cause. In fact, the cause efforts that stand out to a mom the most are the programs that include a product she can buy to support a cause she cares about.

She is interested not only in leaving a legacy but also in setting a good example for her children. When she can partner with a company that supports a cause she cares about, it gives her an easy and impactful way to do both and make the world a better place. And she does want to make an impact. Transparency is critical to her, and it is important that companies follow up with her to communicate how her hard-earned dollar has helped. Once that connection is made, she becomes a believer in the brand and their partnership makes the brand an irreplaceable part of her life.

Women in general respond positively to cause branding. Like moms, they believe companies need to give back, and they are rewarding the companies that do with their purchasing dollars.

The one area of difference is in the causes moms tend to support versus non-moms. They are both most likely to support health-related issues that affect women, but moms are also very interested in supporting causes that affect children, such as education, whereas non-moms are compelled to support animal welfare-related causes.

As marketers embark on cause branding initiatives, they would be wise to learn from the pioneers of cause. Twenty-five years ago, American Express partnered with its cardholders to restore the Statue of Liberty, but ended up doing much more. They inspired many to come together and do something great, something meaningful to each and every donor, and in the process raised millions to make the restoration a reality. In the world of cause, the key elements of personal connection and impact still remain essential.

The cause programs that women are most familiar with today impact and engage a woman personally—programs that help her local schools, such as the General Mills Box Tops program; programs that help her sister or friend fighting breast cancer, such as the Yoplait Save Lids Save Lives campaign; and programs that help her daughter feel good about herself, like the Dove Campaign for Real Beauty.

Consumers are always being asked to do something—try this, buy that. In the end, cause branding is asking consumers to give, but what they are getting in return is so much more. And as a consumer and mom myself, I am hopeful that giving back will continue to be part of corporate America's identity, that companies will think less about what they can get from consumers and more about what they can give.


*Mintel 2007 “Marketing to Moms” Report