Moving From Win-Win to Win-Win-Win with Cause Marketing Steve Drake President, Drake & Company April 30, 2009 © 2009 Drake & Company

About Steve Drake AKA “Causeaholic” Owner of accredited association management company Manages award-winning cause marketing programs Founder of three national organizations Varsity ice hockey at Ohio State Reported from Neil Armstrong’s parents during 1969 moon walk Started woman’s college basketball team Bio

AKA “Causeaholic”

Owner of accredited association management company

Manages award-winning cause marketing programs

Founder of three national organizations

Varsity ice hockey at Ohio State

Reported from Neil Armstrong’s parents during 1969 moon walk

Started woman’s college basketball team

Today’s Agenda Quick pulse & summary of research Basics about Cause Marketing for associations Examples & Case Study Getting Started Q&A

Quick pulse & summary of research

Basics about Cause Marketing for associations

Examples & Case Study

Getting Started

Q&A

Cause Marketing - Associations 2008 Survey Based on 86 respondents (representing about 250 associations) (AMCs represent 32.6% of responses) Round up

Do you have a foundation or charitable organization? Round up

% of Budget on Cause Marketing Round up

Why are you NOT involved in a Cause Marketing program? Round up

Quick Pulse Who is here? Non-profit (charity) Association (trade or professional) AMC For-profit Company Communications (Ad, PR) Agency Other Familiarity with Cause Marketing? Not sure what it is Heard about it but no direct experience Some direct experience Substantial experience

Who is here?

Non-profit (charity)

Association (trade or professional)

AMC

For-profit Company

Communications (Ad, PR) Agency

Other

Familiarity with Cause Marketing?

Not sure what it is

Heard about it but no direct experience

Some direct experience

Substantial experience

Basics

What? Non-Profit Corporate Partner A for profit and a not-for-profit combining efforts for purpose, passion and profit. $ Basics

A for profit and a not-for-profit combining efforts for purpose, passion and profit.

Expanding Cause Cause Non-Profit Corporate Partners Association Partner Associations – both professional & trade – can serve as a valuable additional partner. $ Basics

Associations – both professional & trade – can serve as a valuable additional partner.

Examples

Bread Art Project Digital campaign Milling & Baking Industry Donated $50,000 to Feeding America + $1 per submission up to $50,000 Examples

Digital campaign

Colgate & RIF $800,000 + 58,000 books since 2004 Examples

Sam’s, Aquafina & KAB 37 Million bottles; $300,000; 100,000 fleece jackets! Examples

Make A Wish $250,000 donation = 12 wishes in 12 weeks Examples

Target & St. Jude 200,000 items purchased; $300,000 to St. Jude Examples

National Geographic Kids – Cotton Inc Guinness record by turning old jeans into home insulation. Examples

“ Regifting” Supports Women Local store – local cause – Increasing sales Examples

Thoughts on Examples Cause marketing is marketing, NOT philanthropy All cause is local … even national programs Connecting the unconnected Can have multiple partners (for profit or NFP) within the alliance Other? Examples

Cause marketing is marketing, NOT philanthropy

All cause is local … even national programs

Connecting the unconnected

Can have multiple partners (for profit or NFP) within the alliance

Other?

Basics

Why? Create awareness to advance your mission Generate funding for your organization and/or cause Create local advocates, engage members and donors For Associations & Non-Profits: Provide tangible member benefit Basics

Create awareness to advance your mission

Generate funding for your organization and/or cause

Create local advocates, engage members and donors

For Associations & Non-Profits:

Provide tangible member benefit

Benefits Create awareness to advance your strategy Increase customer loyalty and sales Engage employees and stakeholders For Companies: Basics

Create awareness to advance your strategy

Increase customer loyalty and sales

Engage employees and stakeholders

For Companies:

Why? 85% of Americans more positive 79% would likely switch brands 79% want to work for a company that cares Increased Sales, Profits & Funding: Source: 2008 Cone/Duke University Behavioral Cause Study Basics

85% of Americans more positive

79% would likely switch brands

79% want to work for a company that cares

Increased Sales, Profits & Funding:

Why? Trying to reach Generation Y? Source: 2008 Cone/Duke University Behavioral Cause Study Basics

Why? Top “issues” for causes: education economic development health & disease access to clean water Basics

Top “issues” for causes:

education

economic development

health & disease

access to clean water

Finding Partners? “ Frame” your search: “ Size” “ Geographic scope” “ Product” or “Service” “ Philosophy” Look for non-profits with a parallel cause Look for companies and/or associations that fit mission of your non-profit Look for cause that will motivate & engage your association’s members Basics

“ Frame” your search:

“ Size”

“ Geographic scope”

“ Product” or “Service”

“ Philosophy”

Look for non-profits with a parallel cause

Look for companies and/or associations that fit mission of your non-profit

Look for cause that will motivate & engage your association’s members

How – Cause Types What “tools” can be used to implement the cause? Social/Public Service marketing Purchase Plus Product sales Product licensing Promotional campaign Co-branded program Co-branded events (runs, rides, auctions, golf, etc.) Basics

What “tools” can be used to implement the cause?

Social/Public Service marketing

Purchase Plus

Product sales

Product licensing

Promotional campaign

Co-branded program

Co-branded events (runs, rides, auctions, golf, etc.)

Measurement & Metrics Use same measurement tools as other marketing: Media impressions Customer Loyalty Index Memberships and/or product sales Numbers engaged in programs Dollars generated Basics

Use same measurement tools as other marketing:

Media impressions

Customer Loyalty Index

Memberships and/or product sales

Numbers engaged in programs

Dollars generated

Measurement & Evaluation Basics

Questions? What is Cause Marketing? What are benefits? Why are companies/charities doing Cause Marketing? How do you measure Cause Marketing? Other? Basics

What is Cause Marketing?

What are benefits?

Why are companies/charities doing Cause Marketing?

How do you measure Cause Marketing?

Other?

Practice

Case Study

The Challenge Trees to troops Practice

Who? Cause: Military families Practice

The Program – 2005 & 2006 290 – 650 farms 4,300 - 11,854 trees Local media Coordination & Fund-raising Fed Ex : 5,000 – 13,650 miles + 10,000 air miles + volunteers 5 - 17 bases 2 – 4 branches 4,300-11,854 families Practice

290 – 650 farms

4,300 - 11,854 trees

Local media

2005 Trees for Troops: By the Numbers 3 routes 5 bases + overseas 17 states 290 donors 4,300 trees 4,600 miles

3 routes

5 bases

+ overseas

17 states

290 donors

4,300 trees

4,600 miles

Refreshing the Program Consumers: “How can we be involved”? Solution: Trees for Troops Weekend Retailers: Pay participation fee Receive T4T “tool kit” Get FedEx trailer on site for weekend Consumers buy and donate tree to service member Foundation receives cash to support programs Practice

Consumers: “How can we be involved”?

Retailers:

Pay participation fee

Receive T4T “tool kit”

Get FedEx trailer on site for weekend

The Program – 2007 & 2008 600 – 800 farms 12,346 - 12,428 trees Local media Coordination & Fund-raising 4,500 – 4,654 trees from consumers & retailers Fed Ex : 59,000+ miles + 10,000 air miles + volunteers 4 - 5 branches 49-53 bases 16,846-17,082 families Practice

600 – 800 farms

12,346 - 12,428 trees

Local media

Power of Cause Marketing http://www.msnbc.msn.com/id/3032619/#2821063

During the past holiday season, did you read, see, or hear anything about the Trees for Troops program though which Christmas trees were being donated to troops and their families and being delivered to military bases by FedEx? Reach & Impact Practice

During the past holiday season, did you read, see, or hear anything about the Trees for Troops program though which Christmas trees were being donated to troops and their families and being delivered to military bases by FedEx?

23.4 MILLION households said they saw, read or heard about Trees for Troops Reach & Impact 2008 Trees for Troops 3.4 MILLION households said T4T “influenced” their decision to purchase a Real Tree in 2008 Practice

50,554 military families received farm-grown Christmas trees 53 military locations 17 countries international media coverage Summary Practice

50,554 military families received farm-grown Christmas trees

53 military locations

17 countries

international media coverage

Evaluating (CSF perspective) Delivered fresh, farm-grown trees to 50,554 families Created millions of media impressions Reached 23 million U.S. households Engaged 71% of organization’s members Generated $1 million (cash & in-kind) per year Cost: 1,200 - 1,400 staff hours and $10,000 ± expenses What other program could generate this much local and national (positive) media coverage? Practice

Delivered fresh, farm-grown trees to 50,554 families

Created millions of media impressions

Reached 23 million U.S. households

Engaged 71% of organization’s members

Generated $1 million (cash & in-kind) per year

Cost: 1,200 - 1,400 staff hours and $10,000 ± expenses

Thoughts on Case Study All cause is local! Plan & coordinate Be Flexible Refresh Financial model Other? Practice

All cause is local!

Plan & coordinate

Be Flexible

Refresh

Financial model

Other?

Key Learnings Make it personal Make it relevant Make it local If you are the charity, own “the brand” Create partnerships/alliances Seek other non-competing partners Continuously refresh and update Share the passion Make it transparent Practice

Make it personal

Make it relevant

Make it local

If you are the charity, own “the brand”

Create partnerships/alliances

Seek other non-competing partners

Continuously refresh and update

Share the passion

Make it transparent

Getting Started 1) Select cause Harmony (with mission) is key Make it personal Make it local For donors, members, employees 3) Decide on partner(s) Big or small pond? Basics

1) Select cause

Harmony (with mission) is key

Make it personal

Make it local

For donors, members, employees

3) Decide on partner(s)

Big or small pond?

Getting Started 4) Understand each other You own your brand 5) Disclose special arrangements Transparency Who is doing the PR? 6) Determine which form (See slide 26) See list of types of cause programs Basics

4) Understand each other

You own your brand

5) Disclose special arrangements

Transparency

Who is doing the PR?

6) Determine which form (See slide 26)

See list of types of cause programs

Getting Started Develop PR support plan Get recognized for doing good Establish metrics Measure your marketing Refresh & update Continuous improvement Basics

Develop PR support plan

Get recognized for doing good

Establish metrics

Measure your marketing

Refresh & update

Continuous improvement

Getting Started Be flexible Change on fly if needed Review & evaluate Set a date on when you will review and renew Take time to celebrate Build celebration into your campaign Include volunteers, partners, staff, etc. Basics

Be flexible

Change on fly if needed

Review & evaluate

Set a date on when you will review and renew

Take time to celebrate

Build celebration into your campaign

Include volunteers, partners, staff, etc.

12 Steps to Cause Marketing Select cause Harmony (with mission) is key Make it personal Make it local for donors, members, employees Decide on partner(s) Big or small pond? Understand each other You own your brand Disclose special arrangements Transparency Who is doing the PR? Determine which form See list of types of cause programs Develop PR support plan Get recognized for doing good Establish metrics Measure your marketing Refresh & update Continuous improvement Be flexible Change on fly if needed Review & evaluate Set a date on when you will review and renew Take time to celebrate Build celebration into your campaign Include volunteers, partners, staff, etc. Basics

Select cause

Harmony (with mission) is key

Make it personal

Make it local for donors, members, employees

Decide on partner(s)

Big or small pond?

Understand each other

You own your brand

Disclose special arrangements

Transparency

Who is doing the PR?

Determine which form

See list of types of cause programs

Develop PR support plan

Get recognized for doing good

Establish metrics

Measure your marketing

Refresh & update

Continuous improvement

Be flexible

Change on fly if needed

Review & evaluate

Set a date on when you will review and renew

Take time to celebrate

Build celebration into your campaign

Include volunteers, partners, staff, etc.

Resources : 12 Steps to Successful Cause Marketing http://blog.drakeco.com/2008_06_01_archive.html Cone-Duke Research http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20081001005317&newsLang=en 2008 Cause Study, PR Week http://barkleyus.com/articles/show/43-pr_week_cause_survey_2008# Highlights & case studies http://www.causeaholic.com

12 Steps to Successful Cause Marketing http://blog.drakeco.com/2008_06_01_archive.html

Cone-Duke Research http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20081001005317&newsLang=en

2008 Cause Study, PR Week http://barkleyus.com/articles/show/43-pr_week_cause_survey_2008#

Highlights & case studies http://www.causeaholic.com

Contact Information: Steve Drake President, Drake & Company Phone: 636-449-5050 E-mail: [email_address] Twitter: http://twitter.com/causeaholic Website: www.drakeco.com Blog: http://www.causeaholic.com

Contact Information:

Steve Drake

President, Drake & Company

Phone: 636-449-5050

E-mail: [email_address]

Twitter: http://twitter.com/causeaholic

Website: www.drakeco.com

Blog: http://www.causeaholic.com