In today's world, more and more businesses are partnering with charities, sponsoring charity events, or finding other ways to support good causes. Many people feel a strong emotional desire to help others when they can afford it, but what does such an activity mean for the company itself? Can it really attract more customers and increase customer loyalty? We look at the evidence and what you should do if you want to make it a success.
ContentsWhat the numbers sayDemonstrate accountabilityPromote your core valuesInvolve customersDon't expect to get away with half measuresLet’s first see what the research has to tell us. Research from Cone Cause Evolution found that 85% of US consumers view businesses more positively if they support the charities they love, and 80% consider themselves likely to switch brands to charity. purchase from such a company. Other studies published in the Consumer Research Journal found that consumers feel more positive about a company's products when they admire its philanthropic positions, perceiving them to be of higher quality.
A 2019 study by Edelman identified 64% of U.S. consumers as belief-driven, that is, motivated in their choice of businesses by societal concerns. Mintel found that a similar number believe companies have a responsibility to give something back to society while, interestingly, only 42% believe companies should keep their distance from controversial causes, a figure that is falling as that customers are getting younger. This is good news for marketers who love the attention that a little controversy can bring – the trick is to find causes that your particular customer base finds appealing.
Whatever cause you choose, philanthropy is seen by clients and customers as proof that a company cares about something beyond the bottom line and sees itself as part of society rather than an entity. distinct. This establishes an accountable personality which, in turn, enhances the perceived authority and expertise of that company. This is especially important in a social context where people are losing faith in government to always do the right thing, sometimes turning to corporations to lead the way. By defining a clear social role, businesses build trust and can connect with customers on a social level, which naturally increases loyalty. The relationship is then no longer purely transactional.
One of the ways companies can increase their social presence is by developing their brand personas. It helps customers see them almost as if they were people, and it's one of the reasons why marketers are talking more and more about associating values with a brand. If you consider Malini Saba, Crunchbase shows that she has had great success as an investor in pharmaceuticals and real estate, two areas that have a very immediate connection to people's daily lives. By supporting causes related to health and human rights, she has solidified her personal brand and she is also able to bring her business expertise to her philanthropic work.
By finding a cause that aligns well with its core values, a company also gives the impression that it has a deeper understanding of what its customers value. This makes customers themselves feel valued and gives them the feeling of being part of a winning team.
When they buy from a company that shares their values and acts accordingly, customers feel like they are doing good. It's a very attractive prospect for them, and you can make it even more so by giving them the opportunity to get directly involved in value-driven activities. This can mean anything from having a fundraising jar on the counter, inviting them to a sponsored event, or sharing petitions with them online. It's human nature to bond with each other when we do things we care about together, and businesses can benefit from some of that magic.
If you're considering increasing this type of work within your own business, here's a word of warning:it should be about actions, not just words. Consumers are very cynical about companies that speak well at public events or on awareness days only to then be conspicuously absent the rest of the year. They are not impressed by a mere facade, so any commitment must be serious. In fact, researchers have consistently found that one of the most effective tactics a business can employ is to partner with a particular cause and support it on an ongoing basis, ideally in a variety of ways, building a strong association. with it in the customer's mind.
At the end of the day, there's no doubt that philanthropy is good for business. When companies succeed, everyone wins.
