We are huge fans of CRM... not customer management systems, Cause Related Marketing! Keep reading this blog post to learn why you should be too and a breakdown of how to implement these strategies at your company.
Cause-related marketing is when a business works with a charity or non-profit organization to promote one or more of its shared values. A company that donates 10% of its profits to an animal rights organization is utilizing CRM.
Corporate social responsibility is when a corporation invests in actions that benefit society. Many businesses practice CSR because it helps gain consumer trust and employee satisfaction.
Companies committing to corporate social responsibility impact their community, environment, and surrounding economy. These actions help meet a business's social obligations and financial goals.
Corporate social responsibility has taken on increasing importance since the late 20th century. Consumers and businesses have become aware of the need to protect our environment and society as a whole.
Companies must contribute to the community in addition to generating profits. They must also consider how their activities affect others in their operational areas. Businesses must guarantee that their goods and services are consumer safe and don't harm the environment.
Corporate social responsibility is a business attempt to improve humanity whereas cause-related marketing is a business partnership with a charity to achieve mutual goals.
In comparison, CSR focuses on a company's internal processes and policies while CRM involves collaborating with charities or nonprofits to achieve a worthwhile goal. These two visions share an overlap—helping people or communities in ways that don't relate to making products or selling services.
Consumers are more mindful of their purchases than ever before. This awareness extends to your products and your company's values, reputation, and ethical practices. As a result, you need to maintain a positive public image to survive.
Your product's perceived value depends on a variety of factors. These include its quality, features, and usefulness; price is only one contributing factor. With cause-related marketing, consumers can also perceive value in how the sale of one product helps support another cause.
For example, suppose 10% of your organic yogurt sales go to fresh fruit for school children and 10% go to support an organic farm. For consumers interested in these causes, purchasing this yogurt will help to create a more sustainable society.
NielsonIQ found that almost half of consumers globally say they're willing to pay more for products containing all-natural or organic ingredients.
Cause-related marketing is an effective way for your company to increase the perceived value of its product or service. It can also help to differentiate your brand from competitors. CRM provides the benefits of social welfare organizations for both society and your business.