2012-02-29

Let's Bridge The Gaps Between Sponsors and Causes

Pictured at left is a 2007 circular for Designerchecks.com from the Alden Keene Cause Marketing Database. It features two cause-related marketing efforts; one for the New York City police officers and firefighters who performed so bravely during 9-11, and the other for the Breast Cancer Research Foundation.

Ignore for the moment the weak and confusing “portion of the proceeds” language on the firefighter check and concentrate instead on what else is in play besides the transaction-based cause marketing.

Everyone who buys either of those checks is identifying themselves as someone who has so much affinity for the New York City firefighters and police officers of 9-11, or for breast cancer research that they’re willing to put a ‘bumper sticker’ on their checks saying as much!

Imagine the value to those two nonprofits to have the list of people who bought those checks. It would be the hottest kind of list.

While for-profits commonly approach non-profits for their lists, it’s less common for the lists to go the other direction. But how hard would it be for Designerchecks.com to provide lists to the respective charities as an element in their sponsorship/licensing agreement?

We’re basically 30 years into modern cause marketing and companies and nonprofits still don’t fully understand one another's needs.

That stems from the fact that on the nonprofit side cause marketers tend to be ‘siloed.’ At one of the big disease charities, for instance, a cause marketer might not even know a direct marketer in the firm. (Although at smaller charities the cause marketer and direct marketer are likely to be one and the same person).

On the corporate side few cause marketers fully realize how charities fundraise and where the money comes from.

Pop quiz for you sponsors. On average, how much of the funds raised by charities comes from individuals?

The answer is more than 75 percent.

A big chunk of that comes from major donors, but a lot of it comes courtesy of direct mail efforts. In other words, every charity needs a list. And lists with high affinity are much more valuable than those with low affinity. Duh, right?

On the nonprofit side, few cause marketers know how much pressure their for-profit colleagues are under to keep their brand out in front, even when the partner is a nonprofit.

It’s time we bridge these gaps, my friends.
2012-02-28

Banking on Cause Marketing

Open an account with ableBanking and the Internet-based bank will make a $25 donation to the cause of your choice. More, albeit still undefined, donations are promised in time.

It sounds a little like the bank promotions of yesteryear when a new account might bring you a toaster, a set of china, even a firearm!
Link
I don’t know exactly how ableBanking makes money, but its parent company, Maine-based Northeast Bancorp owns a lot of insurance agencies in the State. It could be that ableBanking will serve as a lead generator for Northeast’s insurance business.

In traditional ‘George Bailey’ style savings banks the bank pays an interest rate lower than the rate it is able to lend at. Savings banks made their money on the difference between the interest they’re paid and the interest they pay their depositors.

George Bailey, you’ll remember, is the main character in the classic Christmas movie ‘Its a Wonderful Life.’ George worked for a savings bank that had a liquidity crises caused by a venal big bank.

Costs in such institutions are key. Because ableBanking is basically Internet-only its cost structure ought to be pretty low. And so long as ableBanking keeps it simple and doesn’t get into 'warrants,' 'swaps,' 'forwards' or other complicated derivatives that helped to sink the banking sector in 2007-2008, it ought to be relatively low-risk.

ableBanking is Maine’s ninth largest public company, according to Wikipedia. It occupies the same market space as ally Bank and ING Direct. All three banks don’t offer mortgages, which because of their length can be enormously risky, credit cards, checking accounts, business banking or much else in the way of loans. Ally Bank, however, does offer auto loans.

ING Direct built deposits by offering large cash bonuses to new depositors. Ally used traditional TV advertising to drum up business.

Scotty Henderson’s fingerprints are all over the bank’s blog, so I suspect my fellow cause marketer and blogger has played some role in the campaign’s development.

I’m anxious to get a sense from him how well the promotion is working.
2012-02-27

50 Cent, Cause Marketer

Curtis Jackson, aka rapper 50 Cent visited the horn of Africa in September 2011 hosted by the United Nations and committed to provide 1 billion meals to the World Food Programme over the next five years, funded in part by several cause marketing efforts.

The Horn of Africa has a lot of problems right now, nonetheleast of which is that starvation there is rampant, long-term drought is endemic, and working institutions are few.

Since the UN's World Food Programme can manage to deliver a meal for about $0.10, Jackson has basically committed to donating $100 million (or 200 million 50 cent pieces). That's a very big number.

He gave his commitment a kick start with a donation of $350,000. Like him on Facebook, and when he reaches 1 million new likes, he’ll donate another $1 million.

50 Cent is also tying the sales of his Street King energy drink to the World Food Progamme (WFP). For every bottle sold, 50 Cent will donate one meal.

Street King competes with 5-Hour Energy Drink, a caffeine and B-vitamin concoction, which is nearly ubiquitous on store counters nationwide in the United States. But ubiquity doesn’t come easy or cheap.

The cause marketing baked into Street King coupled with 50 Cent’s celebrity is a way to help break through the clutter and grease the always-challenging distribution channels.

50 Cent brings not only celebrity and cause marketing juice to Street King, but direct sales experience. He grew up on the street in Queens, New York and was selling drugs at age 12 after his mother was murdered.

Later, after his rap career had skyrocketed, he worked with Glaceau to create the vitamin water drink called Formula 50. When Coke bought Glaceau for $4.1 billion in 2007, Forbes estimated that 50 Cent’s after-taxes take was $100 million.

He teamed up with Right Guard to produce Pure 50 RGX Body Spray. He also has cause marketing bona fides. His condom line was started with the intent to donate proceeds to HIV awareness.

But for all his business acumen and rags to riches success, 50 Cent is also a lightning rod. He’s a convicted felon who’s served time. He’s said to have ongoing ties to organized crime and he’s been involved in more lawsuits and legal disputes than Lindsay Lohan’s entire legal team.

In short, he’s an interesting choice for a partner of the World Food Programme. And when I say interesting I don’t necessarily mean that as a code word for bad.

Rather, 50 Cent is a complex and accomplished man with a checkered past. Jackson picked the name 50 Cent as his nom de rapper, he says, because it means 'change.'

I genuinely hope he reaches his fundraising goal for the WFP.
2012-02-24

Does Jeremy Lin* Read the Cause Marketing Blog?

Or, How to Make your Company’s Facebook ‘Like’ Campaign a Little Less Gratuitous.

We all know how Facebook ‘Like’ campaigns go. Companies provide a little something-something, perhaps a donation to a cause, and people hit the ‘Like’ button and give up the crazy amount of data that Facebook collects on all of us.

But such promotions have already become pedestrian.

FlyBuys, Australia’s largest loyalty program with some 10 million cardholders and 5.5. million households, wanted to do something a little different.

FlyBuys knew that half of its members were on Facebook and it wanted to engage them there. But how to do it without resorting to a garden-variety ‘Like’ campaign?

FlyBuys created a promotion to ask members to donate 25 million points to Cancer Council Australia. That goal was met in 30 days.

The reason why has to do with the FlyBuys’ history. Since its inception in 1994, members of FlyBuys have been able to donate their points to charity partners, notably to Cancer Council Australia.

FlyBuys members knew therefore that this isn’t just a flash-in-the-pan relationship. The company has a history with the cause.

The result is that during the promotion more than 20,000 members have donated points and some 12,000 have liked the company’s Facebook page.

*I apologize for the gratuitous reference to the Linsational young point guard for the New York Knicks.
2012-02-23

Cause Marketing Lessons From Lord Stanley's Cup

As of today New York, Boston and Florida from the NHL’s Eastern Division have all clinched a spot in the playoffs, while Detroit, Vancouver, and San Jose from the Western Division are guaranteed a playoff berth. With 22 games remaining, my Phoenix Coyotes still have a distant shot at the Stanley Cup, the championship trophy now in its twelfth decade, that has four lessons for cause marketers.

The Stanley Cup is the most storied trophy in professional sport in North America, dating to 1893. Unlike other trophies it’s permanent. That is, a new trophy is not made for each championship. It’s also the only trophy that is engraved with the names of the players and management from each championship team.

How does the NHL manage that without making the trophy too ginormous to hoist?

Well the trophy itself stays the same size; about three-feet tall and 35 pounds. It features a cup at the top with graduated bands or rings below that. Beneath those are five larger bands of the same size. Each of those bands has space for 13 championships. As they fill, the band at the top is removed and displayed at Hockey Hall of Fame and a new blank band is added to the bottom. Using this method, the Stanley Cup trophy could still be around for another 120 years. Even longer.

In short, the Stanley Cup is built to scale up.

But this wasn’t always so. The modern shape of the Cup dates from 1958 or so and the decision to remove the topmost band as the trophy filled with names started only in 1991.

That raises some questions for cause marketers. Is your campaign built to scale up? And if not, what can you do to adjust on the fly, as the NHL has with the Stanley Cup Trophy?

Here’s four lessons from Lord Stanley’s trophy.

1). “Begin with the end in mind.” The original part of the Cup filled up quickly with engraved names and so the graduated bands were added beneath. As those filled, the first option considered was to continue to add graduated bands. But that would have eventually proved unwieldy. With the five large bands, they lit upon a system that could scale infinitely.

You can learn on the fly in your cause marketing too. But if you want your campaign to be able to grow you need to put in place systems that will enable that growth. Stephen R. Covey put it best, “begin with the end in mind.”

2). Give your campaign some personality. Babies have been baptized in the Cup. Dogs have taken their kibble from the Cup. By tradition winners of the Cup drink champagne from the bowl. The Governator Arnold Schwarzenegger hoisted the Cup high above his head in the classic style when the Anaheim Ducks won it back in 2007. So have countless other non-players. But professional hockey players have a superstition about even touching the trophy if their team didn’t win it.

Maybe you’ll invent the next great cause marketing promotion that will be copied forever after and maybe you won’t. But even if you’re just doing another label or paper icon campaign, you can and should give it some personality.

3). Pass on the lore. Lore is knowledge or teaching that’s passed on to succeeding generations. As it tours the Stanley Cup is accompanied by minders from the Hockey Hall of Fame. Their job is to protect the Cup, make travel arrangements, handle scheduling and the like. But of course they also are the ambassadors of the cup responsible for passing down the dos and don’ts. Charities and agencies both commonly suffer from horrendous turnover. But unless there’s a system for passing on the knowledge of how best to run your campaign, that knowledge could walk out the door forever when the key person leaves your firm.

4). Make your campaign transparent. Want to know who was on the Montreal Canadiens championship team with Henri Richard in 1970-71? It’s there on the Stanley Cup for all to see. Likewise your cause marketing campaign will scale better if it’s transparent. That is, if people easily and quickly understand the premise, if they know what will happen with the money and if they know the charity will be a good steward of the money, no matter the amount.
2012-02-22

Charity Donors Say They’d Keep Giving If Tax Deduction Went Away, But They’re Not So Sure About You

A new study, released yesterday, finds that Americans would keep giving, even if the tax deduction for charitable gifts went away. However, they’re certain that charitable donations would decline as a result.

As Congress and the President mull over how to make up ground against the burgeoning U.S. deficit, one idea that frequently comes up is eliminating tax deductibility for charitable donations.

The demographically representative study found that most Americans think that would lead to fewer donations to charitable causes. The survey, from Grey Matter Research of Phoenix, found:
  • 30% feel there would be no real change in giving in the U.S.
  • Six percent believe charitable donations would rise.
  • “Almost two-thirds of Americans say charitable giving in the U.S. would decrease, including 29% who believe it would decrease a little, and 36% who believe it would decrease a lot,” the survey found.
Even though the issue has become a kind of political football (See picture above), how Americans feel about the issue varies little between Independents, Republicans, and Democrats.

“Sixty-three percent of Republicans, 68% of independents, and 61% of Democrats believe charitable giving in this country will decrease if contributions are no longer tax deductible. Similarly, this is the perspective among 62% of those who identify themselves as politically conservative, 62% of self-described moderates, and 72% of political liberals. Whether they feel giving will decrease a lot or a little also shows no variation by party or perspective.”

How then to reconcile the seemingly contradictory finding that those surveyed think their contributions would remain consistent, while they think other Americans would give markedly less?

Says Ron Sellers, president of Grey Matter Research, “It’s fascinating that so many people believe their own giving will remain stable even without the deduction, but that other people will give less. Obviously, both perspectives can’t be right for everyone. People are either being unnecessarily pessimistic about what other donors will do, or unreasonably optimistic about their own behavior.”

I suspect the pessimists are right about their peers and wrong about themselves.

Across the globe, the countries that allow a tax deduction for charitable donations have a more robust and healthy Third Sector than the countries that don’t.

Tax deductibility would have a severe effect on the charities in the United States if it was taken away or limited.
2012-02-21

Design It Yourself Cause Marketing

Liberty Bottleworks, concluded a fun cause marketing contest at midnight last night that allows the winner a unique ‘canvas’ to express themselves on, as a well as donation to the cause of their choice.

Here’s how the contest worked.

People were invited to submit an original design for Liberty’s Earth Day bottle, it ended yesterday, President's Day in the United States.

The contest took place on Liberty’s Facebook page. The winner will be determined based on who gets the most likes on Facebook. In addition, proceeds from the sale of the Earth Day bottle benefits the charity of the winner’s choosing.

Liberty Botttleworks are the only metal water bottles currently made in the United States. All of Liberty’s bottles are made of recycled aluminum using American-made machinery. Moreover, Liberty has the ability to print on its bottles basically anything a designer can imagine.

My Liberty bottle, whose sale benefits the charity called Big City Mountaineers, looks like urban graffiti. The Liberty bottle I bought for my brother-in-law has an apple pattern over a white background that looks for all the world like enamel.

With this contest, Liberty makes good use of its remarkable ability to print on its bottles. But given all of Liberty’s printing capabilities I was a little underwhelmed by the designs I saw.

Liberty is offering a canvas at least as interesting as what’s available to artists and designers at threadless.com. But none of the Liberty’s Earth Day contestants had design chops like TimShumate, who did the cool Lincoln illustration above for Threadless.

I hope Liberty keeps mashing together design and cause marketing. And I really hope it gets traction with talented designers and artists like TimShumate.


MARCH 2, 2012 UPDATE:

The Earth Day design contest was won by Angie Reed Jackson, who garnered more than 500 votes of the 1,100 or so cast.

Seven dollars from the sale of each bottle will go to the school in Tennessee that she choose as her cause.

Runner up Bentia Kim finished with about 30 fewer votes than Jackson.

Jackson's design is on the left.
2012-02-20

My Annual Defense of the Practice of Cause Marketing

Is cause marketing just a gimmick to induce people to buy or does it really benefit the needy?

That’s the tenor of a question posed recently by Bruce Bradley, fellow blogger, author of the forthcoming book ‘Fat Profits,’ and a food industry consultant.

Bradley concludes his blog post with this question: “What do you think of Big Food’s contributions to charities? Are they motivated by generosity, or is cause marketing just another way to manipulate consumers to get them eating more processed food?”

I suspect Bradley meant that as an either/or question. But my answer to it, as posed, is 'yes.'

There’s actually two points in Bradley’s critique/objection.

The first is subtle, but plain.

Bradley objects to capitalism; certainly as it’s practiced today, but also in general. Capitalism isn’t perfect. Too often it’s not even good. But no system of commerce and exchange has ever approached capitalism’s ability to lift humanity out of poverty.

What’s the difference between North and South Korea, after all? It’s one peninsula, one language, and one people divided arbitrarily at the end of World War Two along the 38th parallel. By the time the Korean War ended with the Armistice Agreement in 1953, Koreans on both sides of the 38th parallel were living in a third world country not much different than wide swaths of Africa today.

Now, 59 years later, North Korea… which pursued a course of collectivism and Communism… is still a part of the Developing World. South Korea…which opened its arms to capitalism and democracy…is more modern-looking than Los Angeles. It goes almost without saying that South Koreans enjoy a standard of living that is orders of magnitude better than North Koreans.

Do South Koreans have their complaints with capitalism and democracy? Of course.

Has capitalism proved to be uneven? Yup.

Would many South Koreans wish to trade places with their northern cousins? That’s doubtful.

A similar ‘natural experiment’ took place in Germany after WWII. While the East Germans… who like the North Koreans embraced Communism and collectivism… excelled at spying and political assassination, the West Germans excelled at capitalism.

As with the two Koreas, the two Germanys were one people, one language and one culture before the division of the East and West following WWII. While Dresden, in East Germany was particularly devastated, all of Germany was in ruins in those early post-war years.

At the war's end both sides begin to rebuild their countries and economies, each taking different approaches. The East Germans, it must be remembered, built the Berlin Wall in 1961 to keep its citizens from defecting to West Germany, which was manifestly more prosperous.

In other words, the East German approach could be seen as an obvious failure just 15 years after the war ended. During the 28 years the Berlin Wall stood, East Germany’s standard of living fell ever-further behind that of West Germany.

Are the hearts of every German gladdened by the way that capitalism is practiced? Hardly.

Would many Germans, from the East or West, voluntarily return to the sad old days of East Germany? Not many.

Bradley’s larger point isn’t just that modern capitalism, with all its powers can be vulgar and offensive. But also that cause marketing, a small sliver of capitalism, is unethical, unfair and manipulative.

“By using imagery of active, happy, and healthy people,” Bradley says, “Campbell’s successfully transforms its salty, canned soup into a cure-all for what ails you. Through the use of advertising and misleading cause marketing efforts, Campbell’s has created powerful messages that make people believe canned soup is good for you.”

‘Ed,’ who commented on Bradley’s post, writes: “This is more noticeable since the pink/Komen story came down the wire a couple weeks ago. I look at it from a cost/benefit angle and usually decide that I don’t want that product and I will support my charity directly. It’s interesting to see charities teaming with products that promote the problems that the charity is working to alleviate. Duh!”

I’ve had this conversation many times before. Cause marketing can be compelling. But nobody loses their will to choose when a company commits an act of cause marketing, as Ed ultimately points out.

Another responder to Bradley’s post, ‘Jessica,’ decries the use of mechanically-separated chicken in soups. “That’s soooo vile and shocking that its (sic) not illegal!,” she writes. Who among us believes that Jessica is unable to find commercial (or noncommercial) options for soup made with chickens that aren’t mechanically separated?

Bradley’s larger point is in the title of his post. Is “Cause Marketing Honest Help…?”

Maybe not. But does that matter?

Direct corporate donations to charities have been legal in the United States since 1952. And truly rigorous business cases for charitable giving have really only emerged in the last decade. That’s not to say that claims weren’t made about the business value of corporate philanthropy in prior years, only that "the discussions of the 'social responsibilities of business' are notable for their analytical looseness and lack of rigor," as Milton Friedman put it.

In short, for at least 50 years there was no really convincing business case to be made for corporate philanthropy. So if businesses weren't giving for mainly altruistic reasons, why were they giving?

But let’s ask Bradley’s question in another way: do a company’s motives matter when it comes to cause marketing?

My response is that any insistence that you, me or Campbell's give purely as an act of 'generosity' is in no small way cultural.

Under his entry for “tzedaka,” Rabbi Joseph Telushkin, in his book Jewish Literacy, recounts a hypothetical presented to thousands of Jewish and non-Jewish high school students.

It goes like this: Suppose a poor man approaches two men of equal wealth in desperate need of food and money for his family. The first person cries out in shared pain at the man’s situation and gives him $5. The second person does not respond emotionally. But because he feels obliged by his faith’s command to give 10 percent of his income he hands the man $100 before rushing off.

The students are then asked, who did the better thing? Rabbi Telushkin reports that between and 70 and 90 percent of high school students say that the man who gave from the heart did the better thing.

But that sensibility is largely foreign to Jews. Tzedaka literally translates to ‘justice,’ although it’s usually rendered as ‘charity.’ Jews, says Telushkin see tzedaka as “a form of self-taxation, rather than as a voluntary donation.”

Judaism says in effect, give ten percent. If the heart catches up, terrific. But whether it does or not, good has been done.

There's two sides in a charitable or cause marketing donation and if one still benefits, even if the other side is insincere, how is that wrong?

Interestingly, the Christian writer C.S. Lewis comes to a similar conclusion on the subject of charity in his book, Mere Christianity.

Charity has come to mean what used to be called alms, Lewis says. The reason is easy to tease out. If a man has charity, giving to the poor is one of the most obvious ways to act charitably. Just as rhyme is the most obvious thing about poetry, making it easy to confuse the two.

Instead, charity means love. Not the emotion, and not necessarily affection, but a state of will. “The rule for all of us is perfectly simple," says Lewis. "Do not waste your time bothering whether you ‘love’ your neighbor; act as if you did.” The result is a virtuous cycle. You do something out of love… this act of will… which then often leads to affection. The affection in turn makes it easier to perform other acts of charitable love.

So let's ask Bradley’s question again: Does it matter whether or not corporate cause marketing is ‘honest help’?

Not to the needy who ultimately benefit from it.
2012-02-17

Message QR Codes Better to Improve Market Penetration

A new study out suggests that people with smart phones and tablets would scan more QR codes, if only they knew that their mobile device could do it.

QR codes help companies and cause span the physical and online. I recommend to many of my cause clients that they use a QR code to help add urgency and emotion to their appeals.

The study released in February 2012, by JiWire found that 18 percent of those surveyed in the fourth quarter of 2011 had scanned a QR code in the prior 90 days. The more interesting number is that 53 percent of those who knew that their smart phone could scan QR codes had done so in the previous 90 days.

Basically all smart phones and tablets with a camera can scan QR codes if they have the right app, which is usually free and oftentimes already on the mobile device.

What this tells me is that any QR code needs two messages surrounding it. The first is that smart phones can read it and the second message explains why someone would want to point their mobile device at it in the first place.

Too often, marketers rely on the relative novelty of QR codes to help drive usage. This study demonstrates that messaging around the QR code has to be more plainspoken.

For causes in particular, QR codes are better directed at something besides the front-page of your website. If that’s all you’re going to do, why bother with a QR code in the first place when you could just publish your URL?

One of the first rules of journalism applies here. As you’re considering where to direct QR traffic ask, “Who will care? And why will they care?”

Companies will frequently use QR codes to send customers to special offers or coupons.

Charities should think hard about what is most appealing about their cause and direct QR traffic to a microsite, a video, contests, games, or their own special offer. Charities that sell stuff could also do coupons.

Give people a real reason to scan that QR code and you can effectively span the physical and online world in a way that benefits your cause.
2012-02-16

Activating Cause Marketing with PR

On Tuesday, Feb 14, 2012 in my post about activating cause marketing efforts, I wrote: Link
“...basically all cause marketing has a PR component whether or not there’s also any bought or owned media.”
So how does that work?

On the left is a newspaper clipping from earlier this month that tells the story of the donation from Firehouse Subs Public Safety Foundation to the local fire department. Firehouse Subs is a sandwich chain with more than 450 units in 20 or so states. Firehouse Subs Public Safety Foundation makes grants to public safety agencies within the service area of the chain.

The Foundation is public charity, meaning it can take donations from anyone. But a big chunk of the donations are generated when the Firehouse Subs stores sell 5-gallon plastic buckets for $2 each. All the buckets formerly held the pickles that Firehouse Subs puts on its sandwiches. Cool idea.

The article appeared in a community-style newspaper called the Sandy Journal, a freebie with a circulation of 36,600. In other words, it’s not exactly like getting your cause marketing story into the New York Times.

The story almost certainly had its start as a press release or maybe just a phone call to the editors at the Sandy Journal. The Sandy City Fire Department brought a wrecked car to demonstrate the donated equipment, a pneumatic prying tool called the ‘Jaws of Life.’ I recognize the background as being the Sandy Firehouse Subs location.

That picture helps sell this story to both the editors and readers. But it’s visual enough that it could have been a TV news feature as well.

Sandy is part of the Salt Lake City market, which has two TV stations with reporters who specialize in zany stories/reporting for their respective morning news programs.

It would have been easy to put either of them in the wrecked car (with a bucket of pickles!) and demonstrate the Jaws of Life in use.
2012-02-15

Using Cause Marketing Money to Fund Your Charity’s Endowment

One criticism of cause marketing I often hear is that money raised that way is almost certain to be a pittance for most charities. But such criticisms overlook a crucial point about cause marketing funds.

Nationally syndicated author Cecil Adams, for instance, when addressing his “answer-man” column to the issue of pink ribbon cause marketing wondered why conscientious Yoplait eaters wouldn’t just send a $12 check to Susan G. Komen for the Cure rather than futz around with yogurt carton lids. More to the point, if your charity is not Komen or Children’s Miracle Network Hospitals, or St. Jude Children’s Research Hospital… each of which annually raise more than $75 million via cause marketing…what’s in it for your charity?

There’s two main answers; the second is that your sponsor-partner has a strong incentive to promote your cause as they promote their sponsorship. Charities shouldn’t settle for just brand-building or awareness-raising when they sign cause marketing deals, but it’s not an insignificant contribution.

The first main benefit of cause marketing for charities is the money. But it’s not just any money, it’s unrestricted money.

The very fact that donations come in pennies at a time from millions of supporters is part of the genius of cause marketing. If a generous donor gives your nonprofit hospital $2 million, you can be darn sure that you’re going to jump through some high hoops for that money. And naming rights are the least of it. The donation tail often wags the dog.

Remember when Joan Kroc left $1.5 billion to the Salvation Army? The gift was made contingent on the Salvation Army building some number of community centers. Before the gift the Sally Ann was explicitly NOT in the community center business.

But if self-same hospital raises $2 million through cause marketing efforts, often in $0.10 increments, the democratization of the donation leaves the charity free to utilize the money however it sees fit.

When I read the news item in Outdoor USA Magazine, a trade publication, above it occurred to me that one of the ways a charity could use cause marketing funds is to build an endowment. In the charity world an endowment is a self-perpetuating fund that pays a charity’s expenses in full or in part.

Now to be clear, cause marketing funds weren't used to fulfill The North Face's pledge of support to the Conservation Alliance’s endowment fund.

But they could have been.
2012-02-14

Using Earned, Owned and Bought Media to Activate Cause Marketing

Leading up to its Feb. 11, 2012 Romp to Stomp tour event in Utah, Tubbs Snowshoes bought local advertising. The day after the event, it garnered some earned media, in this case a story in one of the Salt Lake City dailies.

Both earned and bought media represent ways for a sponsor to activate or promote their cause marketing relationships. A third category, called owned media, is what General Mills has with its millions of box tops. Or what you have with your Facebook page and Twitter feed.

So how do they differ? And which is best for cause marketing?

As I’ve noted before, basically all cause marketing has a PR component whether or not there’s also any bought or owned media.

And even in a digital age where newspapers in North America are basically ‘old media,’ getting a story in the paper nonetheless brings with it a measure of credibility that owned and bought media don’t have.

That’s because when someone publishes or broadcasts a story about your cause marketing they are giving a kind of implied endorsement. Because you can’t really buy TV or newspaper coverage in the United States, it’s seen as more trustworthy.

Tubbs, the sponsor of Romp to Stomp, is half-glad to get this coverage (I looked, but it appears than none of the four TV stations in the Salt Lake City market covered the event).

Tubbs is glad to get the coverage and the implied endorsement. Salt Lake City has easy access to the great outdoors. So getting its name mentioned in a positive light among the very people who could use snowshoes is beneficial.

But Romp to Stomp is an event; a virtual live commercial for its products. Romp to Stomp benefits Susan G. Komen for the Cure in the United States. And quite naturally Tubbs wants people to come to the event both to test its snowshoes and generate money for Komen.

So getting newspaper coverage the day after the event is little like avocados and chips going on sale the day after the Super Bowl; thanks, but where were you yesterday?

Because TV and newspaper coverage depends on the whim of producers, editors, and reporters, Tubbs covered its best by buying ads in both local and national publications. The ad at the left was in a local outdoor sports journal.

The good news is that as long is your credit is good and space is available, you can buy electronic and print advertising. The bad news is that ads depend on capturing people’s attention. And who among us hasn’t skipped through TV ads thanks to DVRs, or blown past pages of advertising in print and online?

So which is best for activating your cause marketing?

The answer is, it depends.

Heinz uses earned and owned (ie, packaging) media almost exclusively for its cause marketing efforts, and does so effectively.

But RED really needs at least some bought media (some paid for by sponsors) to make its branding approach work.

One final anecdote: 10 years ago this month the Winter Olympics were held in Utah. My brother-in-law watched news and sports coverage of the curling events and became interested. After the Olympics were over, he picked up the sport.

I think it’s far to say that no amount of advertising that curling suppliers could have done for brooms, stones, shoes and sweaters would have compelled him to try the game some call ‘chess on ice.’

So in Tubbs’ case wherein part of their marketing goals has to include getting more people to try snowshoeing, earned media with its longer form and concentration on narrative, is probably more valuable.
2012-02-13

Seven Things You Can Do to Fight Childhood Slavery

In the March 2012 issue of Redbook magazine, writer Alison Storm lists seven things you can do to ‘Save a Child From Slavery.’

Back in November after reading the horrifying book “Half the Sky” by Nicholas Kristof and Sheryl WuDunn I committed to help the plight of girls and women in the developing world.

"Half the Sky" brilliantly drives home the point that in too much of the world girls and women are abused, trafficked, mutilated, enslaved, and even murdered for largely cultural reasons. Every bit of this is immoral and wrong. It must not be allowed to continue and none of us can sit idly by while it happens.

Here then is Alison Storm’s list:
  1. Face the Facts.’ By this she means that slavery and forced labor is more prevalent now than at any time in human history. Perhaps 5.7 million children worldwide are forced to work in factories, fields and brothels. The charity Love146 fights child sex slavery and exploitation specifically.
  2. Shop for Fair Trade Jewelery and Handbags at store.madebysurvivors.com.' The cause offers economic opportunity to poor Indian girls and women who might otherwise be drawn into the brothels.
  3. Find Out How Many Slaves Work for You by Answering 11 Questions at Slaveryfootprint.org.' I’ve profiled the site/app in the past and was dismayed that my number was 65, something I’m working on.
  4. Educate a Freed Child Slave in East India for One Year.’ For about $160 a year Mercy 29 can educate a child freed from slave labor. And education, especially of girls, is the strongest card to play in the fight against poverty and enslavement. Mercy 29 also works in Africa.
  5. Scan the Barcodes of Your Favorite Products Using the Free2Work Smartphone App to Find Out Which Companies Are Working to Eliminate Forced Labor From Their Supply Chains.’ The app, which is still forthcoming, comes from the nonprofit called Not for Sale and grades some 300 brands.
  6. Give Whatever You Can to Save the Children.’ I second that sentiment.
  7. Report a Potential Trafficking Situation.’ Resources include the National Human Trafficking Resource Center (888-373-7888) or online at polarisproject.org/report-a-tip. Human trafficking, especially of women and children, is a shame anywhere and dark stain on any society that tolerates it. But it simply cannot be countenanced anywhere in the developed world where the laws are clear and enforcement has real teeth. If you see it, report it.
2012-02-10

Get Sponsored By Following the Lead of OK-GO and Others

The youngest person ever to attempt a solo crossing trip to the South Pole on snowshoes, the bass player for Kanye West’s touring band, Tony Stewart’s left side tire changer, a participant at a Susan G. Komen Race for the Cure event and OK-GO all share something in common; they want to be or are being sponsored.

Each of these examples offers lessons for a charity that wants their cause marketing to get sponsored, too.

OK-GO is sponsored because it brings a wild amount of creativity to its music and music videos. Chevrolet sponsors OK-GO’s latest music video of its song, x, because the band consistently turns out the most downloaded music videos on the Internet. And we all go to watch their videos because of OK-GO’s wonderful power-pop sensibility and a visual approach to music videos that you can’t find anywhere else. These guys are both rock and roll and nerds. The result is that their videos are the craziest kind of eye candy you’ve ever seen in a music video. And all of us respond. The video was released to YouTube on Feb 5, 2012 and it has already passed 10 million views.

Tony Stewart’s left side tire changer is sponsored because he has unusual media access. As of this writing Stewart is in first place in the NASCAR standings, so every time he heads to the pits during a race the TV crew is there. In NASCAR racing, the left tires wear faster, so the tires on that side get changed more often. Moreover it’s easier and safer to put a TV camera on the left side of the pits. So the left side tire changer shows up more often in NASCAR TV coverage.

Kanye West’s bass player is sponsored because he performs in front of thousands of people every night of the tour. But it’s not the number of people that counts so much as it is the concentration of the fans. While Kanye sells millions, only the most hard-core and passionate fans come to his live shows. For the right kind of sponsor Kanye West’s audience is hard to get anywhere else. By sponsoring Kanye’s bass player they can tap into West’s authenticity without having to pay the price that the star himself would garner.

A participant in a Susan G. Komen Race for the Cure event is sponsored because of emotional connections. When your sister, who beat breast cancer, asks you to sponsor her, it’s all but impossible to say no.

And the teenager soloing across the Antarctic landscape? Well I made that up. Or rather, I don’t know of such a person. But what a story it would be! Such a person would get sponsored because a successful assault on the South Pole would be inherently inspirational and almost certainly harrowing.

Inspiration, emotion, carefully targeted audiences, access to the media, and unusual creativity are all smart ways to ensure that your cause marketing gets sponsored.
2012-02-09

Small Biz Cause Marketing

I saw a job description the other day for one of the chief marketers at Macy’s, the giant retailer. Among the listed job responsibilities was cause marketing, something Macy’s does well with sophisticated efforts for Make-A-Wish and the American Heart Association.

Big companies and big charities tend to suck all the oxygen of the room when we speak of cause marketing. But small companies and causes can do it effectively too.

Case in point is this wrapper at the left for a chocolate bar from the Big Island in Hawaii.

It couldn’t be more homey and local. The paper wrapper feels like copy paper and the foil wrapper it came in seemed home-wrapped. The printing looks like it came from an inkjet paper and the design is so rudimentary it might have been done in Word. The chocolate bar itself was a little thicker at one end than the other.

The place of origin is Pepeekeo a tiny town on the opposite side of the Big Island where the bar was purchased at an ABC Store. ABC Stores are home-grown in Hawaii also and are something like 7-11s, only more ubiquitous.

The benefiting cause is Hawksbill Turtle Recovery in Hawaii and the paper wrapper includes a 90-word description of the turtle, its struggles to reproduce, and how you can help.

This is cause marketing at its most grassroots level and further evidence that small concerns can profit from it too.
2012-02-08

Gamifying Cause Marketing

On the heels of my posts on games and cause marketing in this space and at MediaPost.com, people have been asking me about how so-called 'gamification' can be used in cause marketing.

Part of the answer has already been provided by Joe Waters (and others) in their coverage of Foursquare, which can be easily utilized in cause marketing.

Zynga and its suite of games have done meaningful cause marketing, notably for disaster relief in Haiti and Japan.

A handful of sites including Gamesthatgive.net (whose revenue model is based on advertising) offer donations to nonprofits based on how long you play standard faire.

Plus 3, a social networking site for people increasing their physical fitness does much the same, albeit with fewer gamified elements.

Big brands like Coke and General Mills have built games into their cause marketing strategies.

Even still, gamification and cause marketing are still basically at the Atari stage in their co-development. Pong was the start of video/computer games, not the finish. There is plenty of room for the growth of gamified cause marketing.

Gamifying something isn’t necessarily about technology. Pokemon and Yu-Gi-Oh can be ‘played’ on paper trading cards, for instance. Instead gamification relies on five basic elements according to Josh Bersin: Progression; Achievement and Rewards; Cascading Information; Countdown; Levels and Quests. Read Bersin’s intriguing column here.

What follows are some early thoughts.

One likely place for growth is in the arena of personal development software. Because of the ubiquity and power of small portable computers (aka smartphones) a raft of personal development software has emerged; Epic Win, Chore Wars, Super Better, and physical training apps like Nike+.

How would this work? Suppose you make a goal to give some combination of 10 percent of your time and money to good causes during the year. An app sponsored by the University of Phoenix, Gold’s Gym or the like would offer rewards to your favored cause as you meet and record your goals.

It would be a kind of matching donation.

Such an approach could be used within companies as well. As employees achieve certain milestones…sales results, training completion, customer satisfaction scores, and more… they might garner rewards not only for themselves but for a cause.

Bersin, for instance, notes that the Cheesecake Factory restaurant chain has an iPhone game that teaches its chefs how to assemble a hamburger. The elements of a proper burger start at the top of the screen and collapse to the bottom if you don’t stack them before the timer goes off. As you gain proficiency the game speeds up. Imagine, then, that as you pass levels in the chef’s game that a donation is triggered for Feeding America, one the company’s favored causes.

In the past TOMS Shoes has invited customers (at their own expense) to help it pass out shoes to needy children in the developing world.

Imagine a series of levels that such people can achieve as they go on TOMS Shoe trips, post pictures of the trips on Facebook, buy shoes, etc. I could conceive of a game whereby whenever certain of TOMS super-fans buy a pair, they trigger a donation of multiple pairs of shoes instead of the usual one pair.

In a like way, it would be possible to gamify customer retention efforts. The shopper card from your local supermarket could be a game that benefits, in part, a cause. Same with MyCokeRewards and its peers.

Certainly causes that have a strong promotional element like Movember could be gamified. Get your Movember Tweet retweeted to more than to more than 10,000 people and you get a special Movember badge, for instance. Certainly many variants are possible.

I can imagine, for example, that getting your Movember whiskers on local TV might be worth a special ‘Ron Burgandy’ badge (see above).
2012-02-07

Must... Somehow... Work Super Bowl Advertising and Cause Marketing Into This Headline

In the moments and hours after the Super Bowl advertising executives appear like earthworms after a rainstorm to grade and critique the television ads. Never mind that very few of these experts have ever actually produced a Super Bowl ad, much less one that would pass muster with their equally critical peers!

So not one more word on the 2012 Super Bowl ads, at least from me.

Instead I want to raise the banner for a kind of cause marketing I’d like to see actually develop.

The idea was prompted by a trip to Walgreens when I purchased a paper icon benefiting the Juvenile Diabetes Research Foundation.

At the bottom of the Walgreen receipt there was a website toll-free phone number. Dial the number, answer some questions and you’re entered into a drawing for $10,000. Other companies that do this direct you to a website URL.

I don’t know what their response rate is, but the $10,000 amount suggests that it’s pretty low.

Taco Bell’s survey gives out $1,000 per week. At a regional seafood restaurant they give me a code that garners a free dessert when you complete their survey.

Finish Home Depot’s survey and you’re entered to win a $5,000 gift card good at the retailer.

As I left the store I thought, ‘they know I just bought a JDRF paper icon. Instead of offering me the chance to win $10,000, why wouldn’t they offer to donate $5 (or more!) to JDRF when I complete their survey?’

If that seems like a stretch, take a step back. Encouraging certain human behaviors in exchange for making a donation of some kind to a charity is a defining factor in most cause marketing.

My purchase of the JDRF paper icon demonstrates that I have some affinity for the Juvenile Diabetes Research Foundation. It’s not a big sweaty ordeal to write a couple of lines of code in order to change the pitch at the bottom of the receipt when I've purchased a JDRF icon. Heck they could even get JDRF’s logo on it, too.

For that matter Walgreens could even offer some sort of sliding scale whereby the sooner you call, the greater the donation, since time is of the essence in these things. It might look like this:
  • Answer the survey within 24 hours and the donation is $10.
  • Answer the survey within 48 hours and the donation is $7.
  • Answer the survey within 72 hours and the donation is $5, etc.
Maybe the only real challenge would be explaining it simply enough in 30 words or less.

Most of these surveys can also be completed online, too. That represents another chance to do some cause marketing and some marketing for JDRF.

For people who choose the JDRF donation option, when the survey ends they could be linked to the JDRF site or maybe some interim microsite that would offer thanks and reinforce their core message. The microsite could also offer subscriptions to one or more of JDRF’s e-newsletters.

I think it's worth considering.
2012-02-06

Buy One, Give One Cause Marketing for Services

I’ve highlighted numerous products that utilize Buy One Give One; shoes, baby blankets, fruit snacks, watches, neckties, fragrances, wine, and eyeglasses, to name a few. I’ve certainly seen services that use cause marketing; including law firms, hotel chains and vacation companies. Now a video production company in Belgium is using BOGO to cause market their service.

For each travel video Timbooktwo produces, the company will make a video for a charity.

Here’s how it works; when the company is in a region of the world shooting for a paying client, they will contact a charity in the region and shoot for a day. The company says: “In our experience, most charity projects fit into this time frame.”

In that way, what Timbooktwo is doing is similar to companies that pay employees for certain volunteer work.

But, of course, that analogy is incomplete since the shooting of a video is only the start. At the very least it requires many more hours of both pre and post-production time.

I should also point out that the paying client can’t choose the charity that Timbooktwo (fun name, BTW) creates the video for, although they say they’re open to suggestions.

I spent part of my early career writing, producing and selling corporate video, which was very expensive in those days. There were crews to pay, expensive cameras and editing equipment, and you’d have to futz around with the lighting and sound.

I feel like such an old guy for pointing this out, but Timbooktwo’s promotion is enabled by digital technology. Back in the old days there were consumables when you shot video. You’d shoot on Betamax or ¾” tape and then have, usually, no less than two editing cycles.

Nowadays because you can shoot, edit and distribute digitally, you squeeze out a lot of those old costs.

Never mind that you can get a very high-quality image even in bad and low light with low-cost equipment. It’s all very disruptive. Very Joseph Schumpetery. It’s like a redo of desktop publishing revolution again. Only with a slamming audio track!

What does it mean at a bottom-line level?

It means you could shoot a video with an $800 DSLR, edit it on a $2,000 computer with $500 worth of software and put the results on TV.

Doubters sometimes portray cause marketing as the last refuge of scoundrel companies trying to preserve pricing power by linking up with a respected cause.

But this effort from Timbooktwo makes it clear that cause marketing can also better enable disruptors to better play their role in the circle that is creative destruction.
2012-02-03

Join Causemarketing.Biz Google Newsgroup, Get a Cool Tool You Can Use Today

Kind Readers:

Shawn T. from San Diego, California is the latest to join the Causemarketing.biz Google Newsgroup.

It couldn’t be easier to subscribe. Simply send me your name and your email address to aldenkeene at gmail dot com.

When you subscribe each new post comes directly to your email, usually every business day.

And like Shawn, when you join I’ll also send you a PDF copy of the "Five Flavors of Cause Marketing" which explains Cause Marketing in an easy-to-follow matrix that includes examples.

It's a great brainstorming tool and helps ensure that your campaign has all the components appropriate for the flavor of Cause Marketing you’re considering.

Rest assured that I will never sell your name or contact information.

So join today.


Warm regards,

Paul Jones
Aldenkeene at gmail dot com
2012-02-02

Has Subaru's 'Share the Love' Cause Marketing Promotion Boosted its Net Promoter Score?

A new consumer opinion survey shows that among the major car makers, Subaru enjoys the highest net promoter score. By a lot; eight percentage points better than second-place finisher Toyota.

Could it be that Subaru’s score started catching fire just as it’s cause marketing effort called ‘Share the Love’ started to gain momentum.

The Net Promoter Score, as you’ll recall is a super-simple measure of customer satisfaction. The Net Promoter Score is measured with an eight word question: “would you recommend this product/business to a friend?”

The Net Promoter scores are based on a 0-10 scale and the measure the degree to which someone is genuinely pleased with your product, company or service and why.

Here’s the scale:

9-10 Net Promoter
7-8 Neutral
0-6 Detractor

Subaru launched the ‘Share the Love’ promotion in 2008. In it Subaru donates $250 to several causes when you buy or lease a new Subaru between the middle of November and the first week in January. There’s also a Facebook ‘like’ campaign that generates another donation. In four years Subaru has donated more than $15 million to about 15 charities.

Here from BIGInsight are the Net Promoter Scores totals for the major automobile manufacturers over the last three years.

JAN 2010 JAN 2011 JAN 2012
Subaru: 42.3% 52.2% 56.8%
Toyota: 51.6% 41.3% 48.9%
Honda: 49.7% 49.7% 43.9%
Lexus: 65.0% 55.3% 43.2%
Volkswag: 26.5% 43.2% 40.7%

GMC (0.1%) (3.6%) 27.9%
Cadillac 11.8% 23.7% 19.8%
Ford 5.4% 7.9% 15.7%
Chevy 12.6% 11.3% 12.3%
Buick 17.0% 4.8% 6.2%
Chrysler (7.2%) 1.5% 0.3%

Of course it’s hard to draw a direct line of causation from ‘Share the Love’ cause marketing efforts to Subaru’s higher scores based only on this information. Although Subaru’s sales are also up since 2008 and the company now enjoys 2.3 percent of U.S. market share, its highest level ever.

Throwing all caution aside, the argument could be made that Subaru owners are responding not only to the automobiles the company makes, but how it makes them feel to see their company give back.
2012-02-01

Fictional Cause Marketing From DC and Time Warner

For the next two years, says the press release, Time Warner Entertainment and Time Warner businesses will be supporting the work of the International Rescue Committee, Save the Children and Mercy Corps in the horn of Africa, which is in the throes of a deadly drought made worse by wholesale political instability in Somalia in particular.

Called ‘We Can Be Heroes’ the face of the campaign will be DC Comics superheroes Superman, Batman, Wonder Woman, Green Lantern, Aquaman, The Flash, and Cyborg. When you make a donation at We Can Be Heroes website, DC Entertainment will match your donation up to $1 million. DC Entertainment is owned by Time Warner.

Time Warner also sells T-shirts, mugs, i-Phone cases and stainless steel water bottles emblazoned with the silhouette of the Justice League superheroes in front of an outline of the African continent. Fifty percent of the purchase price of the merchandise goes to the cause.

This is where I say something really catty like Time Warner cares so much about the tragedy in Somalia that it’s sending the crème de le crème of its stable of fictional characters. Apparently other beloved Time-Warner fictional characters like Elmer Fudd and Foghorn Leghorn didn’t test as well with audiences as did Cyborg.

Now I know that the Superman and Batman franchises are worth hundreds of millions to Time Warner and in putting these characters behind this cause, the company is showing real commitment.

But, seriously, the fictional Justice League supporting the all-too-real need in the Horn of Africa? It’s worse than a non-sequitur. It’s insulting.

Time Warner has taken on causes in a very public way before. The company sent reporters from Fortune, Money, Essence, and Sports Illustrated to Detroit for year-long in-depth coverage of that troubled city from every possible angle. Called Assignment Detroit, Time Warner even bought a house in Detroit for its reporters to crash at.

I think it’s fair to say that if Time Warner sent a phalanx of reporters to Somalia and the refugee camps in Kenya to undertake blanket coverage for a year, that progress would be made in the Horn of Africa.

Or, if Time Warner is super-attached to the DC Entertainment angle how about of the company donates a 1 percent share of total gross generated by Christopher Nolan’s new Batman pic, the Dark Knight Rises, set to release this Summer? If that movie follows form, such a donation would be worth a cool $10 million.