Cause And Effect: It's How You Give, Not How Much
Sydney Morning Herald
Saturday August 30, 2003
While there is a growing expectation for companies to be good corporate citizens supporting worthy causes, it is more important to promote the difference they make to their cause rather than simply the size of their donations.
Companies should also make a long-term commitment to a cause and widely publicise their involvement, according to Hailey Cavill, managing director of Cavill + Co, a Port Melbourne consultancy specialising in cause-related marketing (CRM).
Cavill, who since 1997 has commissioned three studies into consumer and corporate attitudes to corporate giving, says there is an growing shift from pure philanthropy to CRM.
She defines CRM as alignment with a cause or a not-for-profit organisation that achieves social and marketing objectives.
``Organisations are recognising they need to be seen as a good corporate citizen. It's the being seen that's critical here. They know that's what consumers are demanding, and they know there's a benefit for them if they can get this message across," she says. ``There is also a great deal of pressure now for accountability, particularly if you are a public company with shareholders who want to know where you are spending hard-earned dollars. If you are just handing it to various charities for the feel-good factor, that doesn't cut it."
When consumers participating in the Cavill ``Heart and Sold" study were asked what would convince them a company was truly committed to its cause, 37 per cent said visible benefits or statistical evidence that the company had made a difference.
Seventeen per cent nominated a long-term involvement, and 16 per cent said the relationship should be made public through official statements and publicity. The amount of money given was important to 16 per cent, while participation of the company and its staff, and an indication of how the money was spent, were significant to 13 per cent.
Cavill emphasises the difference made by the relationship is more than twice as important as the size of the investment.
``You don't have to throw $500,000 at it. It's about picking something you know you can make a difference with, then giving your resources, your energy, your creativity and your money to go about achieving that goal."
Causes must be relevant to the company's target markets and fit the brand personality.
When companies engage in CRM, typical reasons are a need for differentiation or a desire to give substance to a hollow mission statement.
They may also want to reach the 18-to-35-year-old market, which Cavill says has been ``over-marketed to" and no longer believes what major companies say.
``This younger market is just so cynical. They are looking for evidence. Its no good any more just to have the rhetoric and say we are a great company. They want to see the physical demonstration."
But poorly conceived and managed CRM can be ``dangerous".
``They'll crucify you if you get it wrong, they won't engage with you and they won't buy your product," Cavill says.
``If you are aiming at young people, don't do something that helps old people. Go for the real issues, like homelessness and drugs, the issues that might be unsavoury. They'll admire you for tackling them.
``Be really clear about what you are doing. Don't focus on how much money you are giving, focus on the outcome you are playing for. Back it up with a web program, because they want to go to the web and find out more. And give them ways to involve themselves."
Cavill says many studies show the younger market feels powerless and is seeking a sense of belonging and of inspiration. It wants two-way involvement, it would rather volunteer time than give money and it respects brands with a mission.
One organisation that tackled this creatively is the online recruitment firm Seek.com.au. It added a volunteer section to its website through which people could contact organisations needing help for charitable projects.
Greater cut-through in a crowded market can be achieved by joining a lesser-known cause.
Many companies want to assist cancer causes because this disease affects so many people. But with areas such as breast cancer becoming ``cluttered" because of the very large organisations involved, Cavill advised the Jigsaw fashion label to differentiate itself by throwing its support behind ovarian cancer.
Sales can lift quite quickly where companies get CRM right, although changing consumer attitudes will take longer.
In the Heart and Sold study, 77 per cent of respondents said they would probably or definitely buy a product associated with a cause, and 54 per cent would consider switching to one. Fifty-six per cent would be likely to switch to a retailer associated with a cause.
pam@kershaw.com.au
© 2003 Sydney Morning Herald