Skip to main content

When to End a Cause-Related Marketing Relationship

Breaking Up the Band

Normally, when it comes to cause-related marketing I would say that longer relationships are better for sponsor and charity. Think Rolling Stones and U2 not Cream or Soft Cell. That’s because cause marketing is a form of co-branding and like any branding endeavor it takes years to for brands to achieve high customer awareness. Frequently changing partners confuses your customers.

For instance, I guarantee you that even after more than 10 plus years of deep association, in a test of unaided recall remarkably few people would be able to identify that Subway Sandwiches and the American Heart Association are co-branded partners.

I’ve written before that lasting corporate-cause relationships are like marriages that require persistent maintenance. Or like bank accounts whereto you must make frequent deposits to cover the inevitable withdrawals.

But there are times when it makes sense to end cause-marketing relationships.

For causes it’s probably more so a dollars and cents issue than it is even for companies.

In the United States and Canada where charities are granted tax exempt status by the IRS and Canada Revenue Agency and in England and Scotland with the status conferred to Registered Charities, it’s all but immoral for charities to remain involved with something that costs more than it generates. And any charity that remains in a relationship that is “unprofitable” will be second-guessed by the board, the press and the public.

But there are other reasons for charities or sponsors to “break up the band.”

Scandal. When news emerged about the nature of the deal between
the American Medical Association and Sunbeam, members of the AMA demanded that the deal be scotched even though doing so eventually cost the AMA
some $16 million
. The scandal of a bad deal was greater than the money.

Bankruptcy. If you’ve got a sponsor that has declared bankruptcy it’s potentially an opportunity for a nonprofit partner. After all, in bankruptcy cost-cutting is only one-half of the way out. Companies must also sell their way out and cause-related marketing may have a role to play in such a scenario. But when a sponsor declares bankruptcy the charity must go to the sponsor and offer to let them out of their contract.

Doesn’t work. What if you try every sort of permutation and still the campaign
or relationship doesn’t work? Chances are it’s a bad fit (see below) but even if
it just doesn’t work, you may need to end the deal.

Bad
match. Sometimes customers respond in ways you can’t predict and what
seemed like a good fit really isn’t. For instance, it may seem like good deal
linking a BBQ grill company with a safety charity. But if customers don’t get
the connection, or the cause doesn’t, by itself, have enough affinity, you may
have a bad match.

Colliding cultures. The sponsor might be too bleeding edge and the charity too staid. Or vice versa. I’ve seen both. Regardless if the cultures of sponsors and charity don’t share some common ground, then the relationship may be doomed.

If you have other reasons to break up the band, please weigh in.

Comments

Popular posts from this blog

Batting Your Eyelashes at Prescription Drug Cause Marketing

I’m a little chary about making sweeping pronouncements, but I believe I've just seen the first cause marketing promotion in the U.S. involving a prescription drug. The drug is from Allergan and it’s called Latisse , “the first and only FDA-approved prescription treatment for inadequate or not enough eyelashes.” The medical name for this condition is hypotrichosis. Latisse is lifestyle drug the way Viagra or Propecia are. That is, no one’s going to die (except, perhaps, of embarrassment) if their erectile dysfunction or male pattern baldness or thin eyelashes go untreated. Which means the positioning for a product like Latisse is a little tricky. Allergan could have gone with the sexy route as with Viagra or Cialis and showed lovely women batting their new longer, thicker, darker eyelashes. But I’ll bet that approach didn’t test well with women. (I’m reminded of a joke about the Cialis ads from a comedian whose name I can’t recall. He said, “Hey if my erection lasts longer than ...

Cause Marketing: The All Packaging Edition

One way to activate a cause marketing campaign when the sponsor sells a physical product is on the packaging. I started my career in cause marketing on the charity side and I can tell you that back in the day we were thrilled to get a logo on pack of a consumer packaged good (CPG) or even just a mention. Since then, there’s been a welcome evolution of what sponsors are willing and able to do with their packaging in order to activate their cause sponsorships. That said, even today some sponsors don’t seem to have gotten the memo that when it comes to explaining your cause campaign, more really is more, even on something as small as a can or bottle. The savviest sponsors realize that their only guaranteed means of reaching actual customers with a cause marketing message is by putting it on packaging. And the reach and frequency of the media on packaging for certain high-volume CPG items is almost certainly greater than radio, print or outdoor advertising, and, in many cases, TV. More to ...

Chili’s and St. Jude Children’s Research Hospital

I was in Chili’s today and I ordered their “Triple-Dipper,” a three appetizer combo. While I waited for the food, I noticed another kind of combo. Chili’s is doing a full-featured cause-related marketing campaign for St. Jude Children’s Research Hospital. There was a four-sided laminated table tent outlining the campaign on the table. When the waitress brought the drinks she slapped down Chili’s trademark square paper beverage coasters and on them was a call to action for an element of the campaign called ‘Create-A-Pepper,’ a kind of paper icon campaign. The wait staff was all attired in black shirts co-branded with Chili’s and St. Jude. The Create-A-Pepper paper icon could be found in a stack behind the hostess area. The Peppers are outlines of Chili’s iconic logo meant to be colored. I paid $1 for mine, but they would have taken $5, $10, or more. The crayons, too, were co-branded with the ‘Create-A-Pepper’ and St. Jude’s logos. There’s also creatapepper.com, a microsite, but again wi...