ActiveCause

The following information is excerpted from Why “cause” is the new black as appearing in the September 2009 Luxury Marketing Council Newsletter.

According to a 2009 Cone Communications survey, 85 percent of Americans say they have a more positive image of a product or company when it supports a cause they care about.  More than half (52 percent) of Americans feel companies should maintain their level of financial support of causes and nonprofit organizations. Twenty-six percent of consumers revealed they continue to have high philanthropic expectations for companies, despite the current economic crisis; and they expect companies to give even more.

The Web continues to change how companies and people communicate.  Blogs, texting, social networks and word of mouth empower consumers to publicly share opinions and experiences.  These consumers, in turn, become influential opinion leaders who form niche communities and openly share their own perceptions of brands. Online consumer dialogue can build and strengthen brand reputations – or weaken and render them vulnerable. With so many people searching for information online, proactive management of a company’s online reputation is no longer elective: It’s imperative.

In general, as consumers move online, buying decisions happen online — ironically, this is true even if the purchase location is a brick-and-mortar store. That’s because consumers are increasingly taking advantage of user-friendly online applications to make purchases, review products and now facilitate charitable giving. As a result 0nline giving is exploding – reaching more than $15 billion in 2008, up from $4 billion in 2005. A 2008 study by Blackbaud reported the following key information:

• Online giving continues to grow rapidly, even in the absence of major [natural] disasters.
• Online donors are younger and have higher incomes than traditional direct mail donors.
• Over the past few years, online giving has become an increasingly significant source of new donor acquisition.
• Online donors give much larger gifts than offline donors.

So what can we glean from the study findings?  Online donors are younger, have higher incomes and give larger gifts. They may also be more engaged and involved in a particular cause, because they can access information about — and stay connected to — a cause more readily than can a once-a-year direct-mail donor.  And nonprofits are learning this lesson quickly.  They’re seeking new ways and numerous channels to activate. And in turn, they are benefiting from embracing the digital space. They have enhanced their online reputation, created greater awareness and increased overall donations – even in a down economy.

Marketers can leverage their current philanthropic efforts in the digital space by aligning with these principles:

Principle 1 – Be transparent

Brand research and comparison, due diligence and brand socializing happens on the Web. Corporate ethos and cause alignment ought to be overtly available to the consumer. It is important to be transparent with consumers to establish credibility with the brand.

Principle 2 – Save money, increase the bottom line

As corporate marketing and philanthropy budgets decrease, it is critical to look for efficiencies.  Moving more traditional charitable programs, or certain aspects of those programs, to the Web can create incredible cost savings.  By going digital, companies can ensure that more funding is available to the recipients of their charitable work.

Principle 3 – Be in it for the long haul. And make sure your nonprofit partner is, too!

Long-term program continuity is vital.  It’s important to shepherd our charitable giving for an appropriate length of time, in order to ensure its ongoing effectiveness.  After all, an inefficient program can’t be sustained.  Don’t be afraid to try new things, but be prepared to course-correct if your corporate expectations aren’t being met.

So what’s the opportunity?

Top marketers are streamlining giving and pursuing a strategic philanthropy approach, which often includes aligning with smaller, local nonprofits and activating employees as brand and cause ambassadors. Current tools — like Twitter and Facebook — are too broad.  Most industry specific tools, such as Network for Good, are focused on the top 1 percent of nonprofits and provide partial “consumer-only” solutions.  The vast majority of smaller nonprofits are left without adequate communication and operations tools, which creates an opportunity– one that a smart marketer can leverage and control.

Nonprofit partner “fit,” and the manner in which the nonprofit communicates, helps to drive program success.  By strengthening our nonprofit partners — and by growing and retaining their constituents — we can strengthen our investment of time, energy and finances.  And we can also reap the benefit of the ripple effect — more awareness, more media, more customers and increased loyalty.

Tags: Brand, Business, company, Facebook, Marketing, Non-profit organization, philanthropy, Social network

This entry was posted on Tuesday, December 8th, 2009 at 2:41 pm and is filed under Blogpost. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.