How are brands utilizing cause marketing to not only help their community, but grow their business? A valuable guide, this will teach you the values of cause marketing, pointers to get started, and how to turn these efforts to results.

1. HotPotatoSocialMedia.com
How Brands Can Use
Cause
Marketing
For Results
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Hot Potato | How Brands can Use Cause Marketing for Results
HowBrands Can Use Cause Marketing for Results
Once a philanthropic tactic practiced by billion dollar mega-brands, cause marketing
has grown to be a key element in the marketing mix for companies and brands of
all types and sizes. Research shows 75% of consumers believe companies should
support charities and nonprofits with financial donations, while 61% say they will buy
a new brand if it supports a cause they care about1
.
This whitepaper will help you to understand what cause
marketing is, why it’s good for your business or brand,
and how you can implement it effectively. We’ll also share
some case studies, and an infographic presenting the
latest trends in cause marketing.
Whatis Cause Marketing?
Cause marketing allows companies the opportunity to succeed financially while
simultaneously doing something good for the community. Sometimes referred to as
cause-related marketing, the Cause Marketing Forum defines cause marketing as “a
strategic marketing partnership that pairs a company or brand with a social cause or
cause-related organization for mutual benefit2
.”
The benefits of these strategic partnerships are varied and include increased sales and
customer engagement, as well as brand differentiation in what are often over-crowded
markets. 95 percent of college students reported they were less likely to ignore an
ad that promotes a brand’s partnership with a cause3
.
Compared to other forms of marketing, cause marketing is a relatively cost-effective
way for a company to generate positive media coverage. Because cause marketing
leverages the assets of two brands (yours and the nonprofit’s), you increase your
resources to create shareholder value and broaden your constituency.
Cause Marketing

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Hot Potato | How Brands can Use Cause Marketing for Results
Types of Cause Marketing
Transactional campaigns are when a portion of the consumer’s purchase goes
towards a selected charity. Consumers may also be asked for an extra donation
after the transaction.
Events are probably the most recognizable of cause marketing campaigns.
Companies partner with a nonprofit to raise money or supplies for runs,
benefit concerts, clothing drives, etc. They also aim to increase awareness
and participation.
Code/coupon redemption requires consumers to either clip coupons
from sponsoring products or go online to enter in verification codes to trigger
the donation.
Pledge Drives ask consumers to publicly support a specific cause or nonprofit
organization. They’ll often be asked to sign a pledge and list themselves as a
public supporter.
Consumer Engagement gives consumers the ability to create “mini-campaigns”
where they nominate and vote for causes they believe should be supported
by the company.
1. Transactional Campaigns
2. Events
3. Code/coupon redemption
4. Pledge Drives
5. Consumer Bngagement

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Hot Potato | How Brands can Use Cause Marketing for Results
6Tips for Effective Cause Marketing:
1.) Pick your nonprofit partner wisely
It’s crucial to partner with a nonprofit that
understands the strategic nature behind your
partnership. There needs to be the understanding
that a successful cause marketing campaign
should ensure the mutual benefit of both sides.
Your company is more than simply a source of
funding and the nonprofit is more than just a way
to boost your image. If you both happen to share
the same target audience, that will go a long way
towards forming a meaningful collaboration.
2.) Integrate the cause into your company culture
The cause you’re supporting should tie in seamlessly with your company’s overall
mission and values. Consumers are not naïve enough to simply buy into your cause
marketing campaign without asking how the cause relates to your product or service.
Authenticity and a high level of commitment from the top down are key so talk to
your team and find a cause that everyone can feel truly happy about supporting.
If stakeholders see that you have fully integrated the values of that cause into your
company culture, you have a much higher chance of increasing returns related to
your company’s goals.
3.) Give more than just money
As mentioned previously, your company can and should give more than just dollars.
Think about what your company can offer in addition to financial support. Donating
relevant products or services will strengthen the association between your brand
and the cause. Another option is to offer a corporate volunteering program. These
programs allow employees to volunteer while on the company’s time and have been
shown to dramatically improve both employee engagement and satisfaction.
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Hot Potato | How Brands can Use Cause Marketing for Results
4.) Be transparent, demonstrate impact
So the consumer has purchased your product and a portion of the proceeds have gone
to your nonprofit partner. Is your interaction with that consumer done? Definitely
not. Savvy consumers want to know what you’ve done with their generous donation
and whom you’ve impacted. Avoid jargon that sounds like feel-good nonsense and
be as transparent as possible with your results (it’s great PR). Keeping a counter
on your website to track funds raised is a good option but you can also get more
creative by sharing stories about the campaign’s impact on the community.
5.) Leverage free PR
Make sure you’re strategic communications focus more on the cause you’re supporting
than your company. If you’ve created a strong connection between the two, this
should be enough to generate some fantastic PR. Because you’re associated with a
nonprofit, much of the PR you generate will be organic (free) and this buzz will add
authenticity and credibility to your campaign. We suggest first making good use of
this free publicity but there are also wire distribution sites that will send out your
press releases for a fee. PRWeb is a popular general distribution site while others
such as CSRwire and 3BLMedia focus exclusively on cause marketing news. Fees
range depending on the services you select.
6.) Harness the power of social media
Whether you’re just starting your cause marketing campaign or celebrating its
success, let the public know about it! Social media is ideal for promoting cause
marketing because it gives you the opportunity to connect with those passionate
about what you’re doing. Twitter, Facebook, and YouTube are just a few fantastic
platforms to reach your audience rather than wait for them to come to you. Create
videos that highlight your team’s quality work. Find prominent bloggers who are
already talking about this cause and would be excited to hear (and possibly write)
about your campaign. Also, don’t forget to connect with the nonprofit as well as their
staff and volunteers.

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Hot Potato | How Brands can Use Cause Marketing for Results
Case Studies
Below are some case studies of successful, and unsuccessful cause marketing campaigns.
JoinFITE - Kiva and Dermalogica
In 2011, a California skin-care producer called Dermalogica
partnered with Kiva, a nonprofit connecting donors with
microfinance institutions in developing countries to help
alleviate poverty. Dermalogica’s founder, Jane Wurwand,
created the joinFITE (Financial Independence Through
Entrepreneurship) campaign to provide micro loans to
women entrepreneurs in low-income areas all over the
world. The cause was close to her heart as she dedicated
much of her life to creating products to better the lives of
her clients - almost exclusively women.
Dermalogica worked with Kiva to develop the joinFITE website prompting consumers to
enter a code printed on some of Dermalogica’s top-selling products with Dermalogica
pledging to donate $1 for every code entered. Dermalogica strengthened the
association by branding the products with the joinFITE campaign colors and logo.
To date, the campaign has provided microfinance loans to nearly 30,000 female
entrepreneurs all around the globe.
For more information about joinFITE, visit here.
Lowe’s Toolbox for Education - Lowe’s Charitable
and Educational Foundation
Lowe’s Toolbox for Education is an initiative that provides
grants for K-12 public educational projects in the
communities where their stores are located. Funded
projects include library renovations, safety improvements,
playgrounds, and other outdoor facilities.
Lowe’s chose not to partner with a single nonprofit but instead formed the Lowe’s
Charitable and Educational Foundation to partner with several nonprofits including
Habitat for Humanity, Rebuilding Together and the American Red Cross. Forming a
foundation is an option for larger companies who have the time and resources to
manage the funds in addition to raising them.
Toolbox for Education has been successful in donating more than $34 million
in grants since its inception in 2006. The campaign fits well with Lowe’s overall
corporate mission of “being a good neighbor” and bettering the communities it
serves.
For more information about Lowe’s Toolbox for Education, visit here.

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Hot Potato | How Brands can Use Cause Marketing for Results
Buckets for the Cure - KFC and Susan G. Komen
for the Cure
In 2010, Kentucky Fried Chicken partnered with the Susan
G. Komen for the Cure, a nonprofit organization focused
on funding community initiatives and research for breast
cancer. “Buckets for the Cure” pledged to donate 50 cents
for every pink bucket of chicken sold in the US with the
ultimate goal of reaching $8 million.
Within days of launching, the campaign received criticism
for creating an association between breast cancer research
and something as unhealthy as fried chicken. Many argued
that maintaining a healthy diet was crucial for those battling
cancer and the campaign was sending a mixed message
to consumers. Termed “pinkwashing”, KFC was accused
of trying to slap a pink ribbon on something unhealthy to
increase sales.
In the end, KFC donated millions to Susan G. Komen for the Cure but both brands
had damage done to their reputations. Rather than focusing on the purpose of
the campaign, KFC spent more time defending their menu of high-calorie fried
foods while Komen was viewed as failing to partner with an organization that
complemented their overall mission.

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Hot Potato | How Brands can Use Cause Marketing for Results
The Infographic to the right
presents the latest trends
in cause marketing including
what issues consumers
think companies should
address, and the percentage
of companies that are
partaking in cause marketing.
click to enlarge

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Hot Potato | How Brands can Use Cause Marketing for Results
A BrightFuture
Cause marketing is arguably a growth market of great potential, with even small and
midsize businesses embracing it. Now that you have been supplied with information
on what cause marketing is, how to manage it effectively, and what it can do for
your business, it’s important to note that cause marketing is not an option for
every company. It should certainly never be used as a “last resort” for a company
struggling with poor brand image. If stakeholders don’t believe your company is truly
committed to the cause you’re supporting, it can actually harm your reputation more
than help it. Authenticity is the key here and without it, a cause marketing campaign
is ineffective.
Additional Resources:
1
Do Well Do Good
2
Cause Marketing Forum
3
Alloy Media + Marketing
About Hot Potato
Based in Naperville, IL outside of Chicago, Hot Potato Social Media is a full service
social media marketing agency that helps companies and brands implement and
manage social media and other inbound marketing programs for measurable, and
often profound sales results. For more information, check out the website at
www.HotPotatoSocialMedia.com, or call 630-868-5062.