Community marketing, also known as cause marketing, is when a brand aligns itself with an important core belief or social issue. Brands like Walgreens use this tactic with their Red Nose Day campaign or JetBlue's Soar With Reading program. Companies that invest in improving society or their communities see a higher purchase intent from their customers.
The majority of people don't think most brands have meaningful messages. While this does represent an opportunity for you, community marketing isn't simply a tool to grow your business. Many consumers take it to heart because they want to buy products that contribute good to the world. Here are the key benefits of community or cause marketing.
Form Deeper Connections With Consumers
Consumers are emotionally driven, and that includes their purchasing decisions. Your prospects are more likely to give you their business if your company's mission resonates with them. When you pledge to dedicate a portion of your sales to helping breast cancer initiatives, it’s seen as a heartfelt gesture to survivors and people close to them. That positive contribution communicates that your company cares.
Community marketing can also win over consumers who aren’t affected by the cause you're supporting. After they do their part to support a more significant cause, many consumers sense fulfillment. Positive customer relations means more awareness for your brand.
Creating Loyalty and Trust
Consumers have become increasingly conscious about where they spend their money. They don't want to support a corporation that engages in potentially harmful practices, like child labor or animal testing. Since so much information is readily available on the internet, transparency in your business practices is crucial, especially for community marketing.
Because of that, your mission must be sincere and thoughtful to attract loyal customers and younger generations particularly. Sixty-nine percent of Gen Z consumers are more likely to support a brand that has a definite purpose. Consumers will see your brand as less of a faceless company and more like a community member they can trust.
Improved Employee Retention
Like consumers, employees tend to stay with companies that support a greater mission than meeting a bottom line. Millennials in particular are outspoken about their personal beliefs and want to work with well-meaning companies. They’re the fastest-growing sector of the workforce and will make up two-thirds of global workers by 2025.
More so than older generations, Millennials have a reputation for job-hopping. In part, that’s because Millennials are younger and settling into their careers, but also because they’re less likely to be emotionally engaged at work. Having a well-defined company purpose reduces the risk of losing quality talent. Salary isn't the most important thing on their minds. Instead, they want to feel that their work makes a difference.
Increased Bottom Line
Despite directing raised funds to another organization, community marketing increases your company's revenue. Today's consumers believe all companies must address current global issues. When choosing between two similar companies, a customer will likely support the one with more substantial cause marketing.
When your company has a reputation for supporting communities in need, brand loyalty, and market share increase. Brands that have defined their causes have four times more market share than similar companies. Consumers are more willing to trust companies that align with their goals, making them more likely to choose your products.
Differentiating Your Brand
Fresh competition pops up each year, making it challenging for your brand to stand out. Community marketing increases your success with your target audience. Seventy-one percent of Millennial consumers are willing to pay a premium for products from companies that support good causes. A positive corporate image is something Millennials value. They want to purchase from entities who reinforce positives in their worldview.
Purpose-driven community marketing can drive sales on all kinds of products and services. Seventy-five percent of consumers would buy a new product from a company that supports a good cause. The study also showed that 66% of consumers would switch from previous staples to similar products from purpose-driven companies.
We see the positive effects of community marketing all the time from companies like Starbucks. Each holiday season, the company donates ten cents from each drink purchase to the Global Fund to Fight Aids. This collection of small consumer contributions raised $14 million in eight years. Successful donations lead to even more successful revenue figures.
Community Marketing with a Media Partner
A cause or community-driven marketing campaign is proven to increase your company's profits while keeping both old and new customers happy. It can be hard to pinpoint what message will resonate most with your brand's customers. A media partner can help you develop a good marketing strategy backed by a worthy cause.