Linking your brand to a good cause can increase sales of your products by as much as 74% according to the 2008 Cone/Duke University Behavioral Cause Study. To gain the increase, the cause must be linked to what the brand and company stand for as a business, as well as the target consumer’s preferences.

Researchers tested this by having volunteers read magazines in which some saw the brand’s advertising linked to the good cause, and others saw a normal advertisement. Those volunteers who saw the cause-related advertising were 28% more likely to purchase the product than those who had not. (64% of those who saw the cause ads chose the target brand vs. 50% who viewed the generic corporate advertisement)

“Qualitative consumer responses showed that the issue, the nonprofit and the inherent nature of products were key factors in making cause-related purchasing decisions” states Environmental Leader.com, noting that some categories showed little response, while shampoos and toothpaste showed considerably more.

The study was replicated online – and demonstrated that people spend almost twice as long reading cause-related ads as they do on standard advertisements, and that this leads to higher sales. Closer analysis of the purchasers highlighted that women (the target audience) increased cause-related purchases more than men.

The study further found that consumers:

• want to select their own cause – 84%
• say the cause must have personal relevance – 83%
• care about which nonprofit the campaign is linked to – 80%
• say practical rationales for involvement, such as saving money or time, are important – 77%
• find emotional incentives for involvement, such as feeling good or alleviating guilt, important – 65%

The study focussed on Americans, and found that there was a strong desire that companies address growing domestic and global needs. Companies were seen to have the scale and resources to have an important impact. The issues include:

• Education – 80%
• Economic development (i.e.: job creation, income generation, wealth accumulation) – 80%
• Health and disease – 79%
• Access to clean water – 79%
• Environment – 77%
• Disaster relief – 77%
• Hunger – 77%

So, leveraging a cause for sales can work – if you do it right. To do it right you have to target your consumer, target your cause, and ensure it’s linked to your product. Otherwise you have done little for the cause, and even less for your shareholders.

Source: Environmental Leader and causerelatedmarketing

To determine which causes could help boost your sales, contact ren-new.