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Here's how I responded:
I'd say that small businesses make 4 basic mistakes when it comes to cause-related marketing:
- They pick a charity that's a poor strategic fit. There's a lot of potential reasons for why a small business might undertake a cause-related marketing campaign for a cause. Maybe their customers are school-age kids so they pick a local school. A restaurant might choose a hunger cause. But if you're a local welding shop, you better have a pretty good reason to support the Susan G. Komen
Breast Cancer Research Foundations; a reason your customers will easily and
quickly understand. That's because research clearly demonstrates that both
parties get the most bang for the buck when there's a clear strategic fit.- They don't give the CRM campaign enough support. Times are tough right now
and the first impulse of plenty of businesses is to retrench. But if you're going to do a cause-related marketing campaign you need to give it proper resources. Transactional cause-related marketing (buy this and $x goes to the cause) is a promotion. And like any promotion it requires an appropriate amount of support, and I'm not talking just about money. There are ways to support a
CRM campaign using low-cost guerrilla marketing tactics. But even low-cost
efforts require a commitment of time and mental energy.- They're in the wrong kind of business to really do cause-related marketing.
While I see plenty of what I call 'B2B cause-related marketing,' research
suggests that companies that advertise are the ones most likely to benefit in
terms of increased profitability from a cause-related marketing campaign. If you run a small cabinet-making operation that doesn't advertise, cause-related
marketing isn't likely to help make your company more profitable. However, if
you run a salsa-making enterprise that does advertise, it might.- They pick a charity that's too big to be helpful. The biggest charities doing cause-related marketing bring in several hundred million dollars a year using just CRM. They run dozens of CRM campaigns a year using hundreds of staffers and volunteers. Some (but not all) won't be able to offer the kind of
recognition or help with a CRM campaign that a small business might want or
need. Now some small businesses might be OK being a minnow in a big lake. But small business owners that aren't OK with that should probably choose to support smaller charities.
Comments
For example, if the right cause for your small business is a social-service organization that works with children, how do you select an organization with which to partner? There are probably several in any given geographic market that would fit the criteria … and any number of those organizations could be 4-star partners … as well as being a 4-star nightmare.
Worth putting the effort – and possibly a good consultant in marketing & CRM – to work!
Kate
Kate Lee
http://www.qalias.com/view_profile/Kate/A/Lee/779/0/
For example, if the right cause for your small business is a social-service organization that works with children, how do you select an organization with which to partner? There are probably several in any given geographic market that would fit the criteria … and any number of those organizations could be 4-star partners … as well as being a 4-star nightmare.
Worth putting the effort – and possibly a good consultant in marketing & CRM – to work!
Kate
http://www.qalias.com/view_profile/Kate/A/Lee/779/0/
Joe Waters
You can also find me on linkedin, facebook and twitter/joewaters
In July 2008, I posted on the topic of why I think nonprofit cause marketers need to rethink their strategy about smaller cause marketing gifts... including those from small businesses.
http://causerelatedmarketing.blogspot.com/2008/07/stop-leaving-cause-related-marketing.html
Fundraisers are leaving money on the table when they only have ways to accept money from big businesses.