Expanding the definition of Return in your ROI

I was chatting with a local coffee shop manager about the latest social responsibility initiatives he was organizing out of his store.  He expressed the benefits in terms of customer relations, where it clearly strengthened the bonds of loyal customers, but also provided a great venue to attract new customers into the fold.  So I asked him what kind of return on investment he was getting from his corporate philanthropy.  With the expense of monetary donations, volunteer hours, and gifts in kind, he clearly stated he was still getting a positive return.  But this is where the conversation had its key point.

Return is about more than the money coming into the cash register and to limit our value of cause marketing to this one quantity is highly inaccurate and sells these initiatives short.  As his team built a Habitat for Humanity home, it was not with the intent of marketing to the new homeowners in order to persuade them to patronize the shop.  Honestly, he acknowledged he wasn't likely to see anything more in the cash register as a direct result of customer growth in that neighborhood.  So where was the positive return?

As companies take on cause marketing initiatives the benefits are greater then the external result that rewards an organization, community, or individuals.  There is also a very real internal benefit.  Experience shows that the staff increases their own job satisfaction and loyalty, which decreases employee turnover and the resulting HR training and administrative costs.  Furthermore, the bonds between fellow employees strengthens and leaves the workforce working more efficiently and effectively, reducing lost productivity due to personality conflicts, absenteeism, and low morale.

This in no way discounts any return that does come in a cash form from increased customer traffic, but we must have the awareness to account for all the benefits incorporated in order to accurately determine the value of each cause marketing initiative.

Obligatory Super Bowl Ad Recap

Well, they warned us that the ads would be more subdued.  After checking the O.E.D. I realized what they were saying was that subdued should be interpreted as a lack of effort and creativity, lame regurgitation of every cliche known to advertising, and a general disregard for the current economic times.  Anyone who can blow 3 million on 30 seconds with nothing to show for it should feel obliged to donate their paycheck to someone who could find better ways to spend it.  In any regard, what it is, is what it is and chat about a few that did create some buzz.

COLA WARS

I guess I'd give the nod to Pepsi here.  They have really done a great job in the relaunch of their rebranded beverage.  This ad makes it appear as a natural continuation in an evolution of the brand.  Coke had the Mean Troy ad, which was a clever retake (some scene for scene) from the Mean Joe Green spot.  But my favorite from Coke was the "Avatar" commercial for its captured nuances and recognizing the need for human connection in an increasingly electronically disconnected society.

WHERE THE MEDIUM IS THE MESSAGE

I have to give some credit to Miller and SoBe for creating some real definition from the mass in their innovative presentation of the material.  These two excelled in getting people talking and creating mentions of the brand.  The tie beaker for Miller is the ROI.  When comparing the production costs for a 1 second product shot with a 3-D cinematography special requiring the distribution of millions of glasses, it becomes quite clear.  Not to mention the loss of the effort for those who never actually picked up their set of 3-D glasses, free or not.

FINALLY, THE FLAKES

Sugar intake aside, Frosted Flakes of all, came through and saw the light.  Their "Plant a Seed" campaign created a virtuous message in front of the largest ad focused audience of the year.  The spot conveyed a great message and utilized the website to continue the dialogue online.  You can see nominated fields near you, nominate your own, and vote for a final location.  To further the brand, you might even download the positive tune that played in the ad.

What's your favorite cause marketing book?

I recently finished Cause Marketing for Nonprofits by Jocelyne Daw and found it a great read.  While written from the perspective of the nonprofit, it had so much that could relate to the corporate side as well.  It would have to rank up there as one of my top choices.  I had also finished Stephen Adler's Cause For Concern, but found it to be too much like an extended advertisment for the author.

What book would you recommend if you could only give one?

Does Cause Marketing Violate The Primary Goal of the Firm?

Cause Marketing vs. the Primary Goal of the Firm

One of the biggest selling points for a company to take on a cause marketing program is the boost the campaign can have in the company's public image.  The alliance may have that effect, but is that worth the campaign?  For those who may be unfamiliar with the PGF, it has been defined as such: The primary goal of the firm is shareholder wealth maximization, which translates into stock price maximization.  Furthermore, the firm should not presume it knows how to spend the owner's money better than the owner does.  Any investment in a company is solely there to earn the greatest return possible.

In light of this, can cause marketing be justified?  Yes, and it is a result of the way the campaign is defined.  I may not score any points with the non-profits out there for this, but there is no place for corporate philanthropy.  Giving grants away may be a worth while endeavor, but it should be left to the individual, not the firm.  Cause marketing differs in that it should be a gift from the consumer.  Consider the following types of cause related endeavors:

purchase plus - Round Up: Customer has the option to round up their purchase to the next dollar by donating the excess change to the cause. OR Optional Flat Rate - Upon making a purchase a customer has the option to donate a predetermined amount (let's say $1) to a cause.

product sales - In this case, the $1 donation per purchase is worked into the retail price of the item (cost + donation).

Other options could be cobranded events, programs, or certain licensing agreements.  These different campaigns are fully explained and illustrated in a book I highly recommend to anyone looking to consider cause marketing, Jocelyne Daw's Cause Marketing for Nonprofits: Partner for Purpose, Passion, and Profits.

Cause related marketing has shown to raise sales and influence buyer behavior, but we as marketers can not fall to violate the primary goal of the firm.  We are after all in the business to make money.

So the latest addition to the Product (Red) portfolio is Starbucks (RED). May I suggest Me (RED)?

(RED) has always been a favorite of mine in the sense that it is, in the words of Bono, commerce, not charity.  Results show the positive impact cause marketing can have through building brand relationships with charitable causes, but less often is "the cause" turned into "the business."  Such an adaptable business model can work anywhere though, even on a personal level.  From the perspective of Chris Anderson's The Long Tail eventually marketing efforts become less and less about ties to companies and more and more about personalized messages to each individual. If this is the case, can we take the next step and create personalized Product (RED)?  What if there was a national database for pre-tax direct deposit distributions out of someone's paycheck?  Someone could give around $5 a week out of their check between the 401(k) and health insurance withdrawals without missing it, and in turn provide life to someone in Africa.  Talk about making a difference.

That time of year again...

It has come to the time of year when ad agencies everywhere break out Carol of the Bells to soundtrack the latest brands and products looking to make an impact during the shopping season.  Here are a list of some you may have seen:

While these may be cute and even successful in marketing terms, there is also a huge market in this season for cause related marketing.  Consider this video to the tune of...you guessed it:

Still, we have yet to see an ad set to my personal favorite, George Winston's version of Carol of the Bells.  Maybe this is an opportunity for your cause.

Cause Marketing Can Give Sales a Boost

In these tough economic times, companies are looking for any edge.  This study shows that cause marketing can do more than create emotional warm fuzzies for the consumer.  It can actually help the bottom line of companies.  A well run campaign makes real financial results that benefit all involved.  While broad popular causes like the Susan G. Komen breast cancer organization can be popular ways to lift sales, consumers are looking for ways to customize their giving.  As companies develop more personal customer experiences, the giving in a cause campaign also needs to be customizable.  Consider GOOD magazine for those "who want to live well and do good."  This media company serves as a forum for organizations, people, and causes that create a better community.  As consumers pay for their subscription, 100% of the fee can be sent to the charitable organization of their choice.  These types of customized and innovative transactions can be just what companies need to help survive these tough economic times.