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Cause Marketing Conference Wednesday, Aug. 3, 2011 Staples CenterLos Angeles #apcause
Cash donations totaled $4.9 billion last year, up 13% from 2009, according to figures provided by 113 companies (The Chronicle of Philanthropy and USA TODAY survey of 180 of the nation’s largest businesses July 2011) Eighty-six percent of consumers around the world believe that business needs to place at least equal weight on societal interests as on business interests (2010 Edelman goodpurpose) Two-thirds of brands now engage in cause marketing (up from 58% in 2009) and 97% of marketing executives believe it is a valid business strategy (2010 PRWeek/Barkley PR Cause Survey)
41% of Americans say they have bought a product because it was associated with a cause or issue in the last year – doubling since they first began measuring this in 1993 83% of Americans wish more of the products, services and retailers they use would support causes 90% of consumers want companies to tell them the ways they are supporting causes. Nearly two-thirds (61%) don’t think companies are giving them enough details about their efforts, including the amounts donated and the length of the promotions (2010 Cone Cause Evolution Study)
THE COMPANY WE KEEP 2011 2005 2006 2007 2008 2009 2010
Corporate Socialanthropy™: A New Approach to Cause Marketing Dawn Wilcox, GM, Social Impact Team Leader August 3, 2011 Follow me @dmwprgirl #apcause
Cause marketing – key definitions Cause Marketing:corporation and nonprofit benefit Social “Behavior Change” Marketing: only the cause/issue should benefit Public Education Campaign: primary purpose is to educate public on issue or program with a “call to action” (low-cost health insurance for kids, immunization, early cancer detection) Corporate Social Responsibility: a mind-set within a company; the way business is done and how customers and employees are treated in order to have a positive impact on society
A NEW APPROACH – FROM CSR TO… “A collective, for-profit entity” “Relating to matters affecting human welfare” From the Greek root “humankind” Corporate Social Anthropy Corporate Socialanthropy™ “Strategic platform on which corporations implement internal and external programs including corporate foundation giving, philanthropy, employee volunteerism, cause marketing, and nonprofit partnerships – designed for reputation management and brand loyalty in order to have a positive impact on individuals, the community and world.”
Corporate socialanthropy is a process CORPORATE SOCIALANTRHOPY is Ongoing support of various causes through cause marketing, foundation, sponsorships and community relations Employees, consumers and partners are engaged throughout It mirrors the brand’s core values and marketing focus
2011 CORPORATE SOCIAL IMPACT MARKETING STUDY Study Overview: Study of corporate executives who create, manage and/or contribute to their company’s social impact programs Social Impact: corporate philanthropy, community relations and/or cause marketing Cause Marketing: partnership(s) with a charity partner(s) in order to benefit both the company/brand as well as the charity Metrics: Allison & Partners spoke with or received emails responses from 35 corporate executives who provided feedback for this study
FACTORS CONTRIBUTING TO UNSUCCESSFUL CAMPAIGNS The cause was not a good fitfor the company’s core business, brand and / or target audience Lack of supportor engagement needed to execute the campaign successfully Not enough marketing and / or advertising support External factors, such as the financial crisis or natural disasters, that are out of the company’s control
CORPORATE QUOTES “CAUSE WAS NOT A GOOD FIT” “We had a bad experience with one non-profit who had chapters in many of our markets. There were not many volunteer opportunities, and it was tough to get them to return callsand get involved with our stores” “Minimum financial requirementfrom charities – this can really determine who you work with; it is great for them to have flexibility, as they should be looking more long-term at the partnership” “The personalities of the charities can be a barrier…” “…Charity (was) not sufficiently resourced to deliver” “…One where the non-profit was not vetted properly and advocacy groups had concerns with positions of the charity partner”
METRICS DETERMING UNSUCCESSFUL CAMPAIGNS Low sales results Lack of consumer participation Lack of measurement in place Subjective nature of the measurement
BARRIERS FACED IN CONDUCTING CAMPAIGNS Achieving internal alignmenton the business case/how to measure business impact for the campaign Lack of budget Store and/or regional field activation Lack of executive support Increasing product salesto match or exceed expectations CAUSE
CORPORATE QUOTES: TYPES OF BARRIERS FACED “CEO was the initial motivation for the campaign, however working with people below him has been difficult” “One of our biggest challenges is that we are national, but we don’t have enough moneyto support something really big nationally” “The focus is heavily on sales and business objectives, so sometimes the program is not as much of a priority, however that has started to change” “Any program must demonstrate an impact on sales” “Didn’t have buy in from the franchisees. They either support their own local cause or need to see a direct impact on sales in order to support (our program)”
Implication #1: The cause must be a good match for the company, brand and/or target audience, therefore more importance should be placed on employee and consumer feedback.
Implication #2: Internal alignment on the business case must be achieved before the campaign launches – this could begin by engaging senior leadership and employees earlier in the process through research. Cause Campaign Goals Cause Campaign Goals
Implication #3: Unsuccessful campaigns are hung up on low sales results, while successful campaigns used additional metrics to determine their achievements – be innovative when developing success metrics.
Education/Corporate Private Partnerships Panelists Dr. John Deasy, Superintendent, LAUSD Bill Bonner, Senior Director, External Relations, OfficeMax Carolina Martin, Vice President, West Region, DonorsChoose.org James Rosenberg, Founder, Adopt-A-Classroom Facilitator Scott Pansky, Partner and Co-founder, Allison & Partners
Maximizing the Entertainment Industry to Make a Difference Panelists Brad Jamison, Vice President, Corporate Initiatives, Disney/ABC Television Group Danielle Carrig, Senior Vice President, Advocacy and Public Affairs, A&E Networks Todd Krim, Founder, Give Back Hollywood Lysa Heslov, Founder, Children Mending Hearts Rene Jones, Director, The United Talent Agency Foundation Facilitator Jenni Luke, Executive Director, Step Up Women’s Network
Best Practices, Tools and Tips for Successful Campaigns Panelists Virginia Victorin, Vice President, Relationship Manager, Global Philanthropy, JPMorgan Chase Faye McClure, Vice President, Strategic Marketing, Farmers Insurance Jennifer Lynch, Senior Director, STAPLES Center Foundation Michael Kroll, Community Relations Manager, Corporate Communications, Toyota Olivia Eng, Cause Marketing Manager, Southwest Region, Macy’s Inc. Facilitator Ryan Scott, CEO, CauseCast