Cause marketing meets common sense

Observation:   Today’s Springwise newsletter includes an overview of a project called “Cause.It.”  The effort is basically an app that brings a fresh approach to Cause Marketing.  Instead of (or in addition to) simply making donations to various charities, Cause.It is an app that allows the business to reward volunteers with discounts.  In doing so, giving is potentially more personal and fulfilling for the volunteer, and cause marketing dollars become more measurable for the sponsor.

Implications:   The app is very smart, but the principle is even smarter.  Instead of (or in addition to) giving money, free product, or other in-kind donations to an organization, this article suggests that you reward the people who fuel accomplishment.  What’s not to love?

The next time your approached by a worthwhile non-profit organization, you might ask whether—instead of or in addition to giving to the group—it might make sense to create a similar plan.  If you’re offering special discounts to folks who help clean up a park, walk or run in a charitable race, or volunteer to read aloud at an area school or library…  consider the goodwill that might be generated with this focused group of consumers.

This is the kind of smart marketing that stands a chance of building a bond with a new group of constituents.  It suggests that your company respects and appreciates the effort involved with volunteerism… and respects a cause that is close to the consumer’s heart. 

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Trend site recognizes increasing tendency to trade-in and trade-up

Trendwatching.com is a consistently reliable source for trends across a wide scope of business categories.  And the October Trendwatching newsletter holds a series of stories having to do with our desire to trade-in.  Click here to see it.

Implications:   Re-commerce is nothing new; you’ve probably traded-in a car to buy a new one, or sold one house to buy another.  But this story does a good job of pointing-out how consumers are more inclined, lately, to trade-in where a variety of new categories are concerned, and using a variety of tools.  Many local pawn shops are well stocked, Craig’s List is quite populated with goods for sale, and companies advertising that they’d like to buy your unwanted gold and silver are plentiful.  

Is there a way that folks are trading-in as a means of trading-up to your product or service?  How might you facilitate that move?  And besides discounting the price of a new purchase, what other benefits does the consumer receive by trading in?  (Are you messaging about those benefits?)

At our house, I recently enrolled in a class I wanted to take.  But before I did it (it has to do with a hobby of mine), I decided to sell some power tools and sports equipment I hadn’t been using.  It wasn’t just that I didn’t want to take the tuition out of our household budget; I built the goal of de-cluttering into the process… not wanting to go further with one interest until I off-loaded some of the things that had to do with other activities.

Also, respect that this isn't just about consumers who want to turn their possessions into cash; they simply recognize that their property now has a value... if not to them, then perhaps someone else.  I've recently seen furniture store ads asking people to trade-in their mattress, which is then donated to a shelter for the homeless.  And I've seen a department store campaign that invites shoppers to trade in their winter coats; their old coat goes to charity, and the consumer receives the reward of a discount toward their new jacket purchase.  Again... can you apply this principle in your company, and do good as you do well?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Social Responsibility: Making money is an important priority to most programs and all businesses

An interesting story in today’s New York Times reminds us that without making a profit and staying in business, few companies can win with their social responsibility initiatives.  That’s a difficult premise to argue with, isn’t it?  Click here to see the story.

Implications:    Do good for the people around you.  But do well, too, so that you can survive and thrive tomorrow, to do good again.

Profit is the responsible thing to do.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Just cause: Are your charitable tie-ins plausible?

According to findings from MSLGroup, only 37% of consumers have made a purchase in response to a company’s cause marketing efforts.  That’s according to an overview of the study offered in today’s Marketing Daily (click here to see it).

Implications:    The problem is not “Cause Marketing.”  The challenge is choosing a cause that has some kind of an authentic relationship to you, your company, and your consumers... and then helping that cause in a way that is verifiable.  

Companies who claim to be environmentally friendly are guilty of “green-washing.”  But likewise, any other cause-related marketing effort is likely to be met with skepticism (or worse) unless there is a bona fide, demonstrable benefit to the stated group or charity. 

Can you write a “deeds dossier” which explains, precisely, how you are helping advance the interests of any cause, charity or non-profit group you claim to support?  If you can, you should.  If you can’t, you should suspend those claims until you can.  (Before somebody calls you out on it.)

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Devastating storms continue to strain the south

Work-related projects had me spending most of last week in Atlanta, Georgia, not too far from some of the areas that were hit by the violent tornadoes that swept across the south.  From my vantage point, the coverage was more local than national… and I found myself checking-in on the story almost constantly.   

This morning, a story in the Wall Street Journal explores the path ahead for survivors, in terms of both the challenges they are facing and what the process of rebuilding might look like.  Click here to see the story.   

Implications:   For dozens of communities and thousands of families, recovering from last week’s tragic storms will be a years-long process.  If appropriate for your company, product or service, consider this an opportunity to do something really great, whether through a financial donation, an in-kind contribution, or other means of support.  (If you don’t know where to start, consider contacting the American Red Cross.)

Please note:  The genuine need for help is likely to far outlive the national headlines granted to this story.  (Just this morning, another major global news event has bumped the topic from the front page of many national news websites.)  Don’t focus simply on the ideas you can execute quickly or which are in the public eye; consider the long haul.  The secret to a well-received cause marketing effort is not to do it just because it's fashionable or hip... but because it heartfelt and it actually helps.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Volunteering: It's increasingly tough to find the time

Charitable giving was one casualty of the recession: When times were tough, it was tough to write a check as big as when incomes were stable and the economy was robust. But according to a story in today’s USA Today, it isn’t just charitable giving that has taken a hit, charitable actions have also fallen on tough times as families are busy tending to their own needs.

See the complete story in today’s USA Today by clicking here.

Implications: It’s not that people don’t want to give of their money, time or other resources. It’s that many consumers continue to have all of their resources stretched. That might lead to great Cause Marketing opportunities in the coming year… if you can think of ways for people to affordably do something nice for a charity that concerns your company and your target consumers.

Think of experiential philanthropy: Are there causes you can tie into that help consumers multi-task (i.e., satisfying a need they have, and supporting a cause they believe in)?

Mike Anderson

A new twist on "Experiential Philanthropy?"

Over the past several years, I have noted frequent examples of something we refer to as Experiential Philanthropy: When someone gives of their time or talents, rather than (or in addition to) making a financial donation to a worthy charity.

In this week’s Springwise.com newsletter, I saw what might be another example of this hands-on contact with worthwhile causes: Tours of London… conducted by the homeless. Click here to see the complete article.

Implications: Move over, tourist attractions. People’s move toward authenticity in response to the recent recession could have an impact on destinations from Big Ben to Mickey Mouse.
Consumers are increasingly in touch with reality.

Are you?

Can you contribute to the realism consumers are increasingly after?

Mike Anderson

Benevolence is nice, but benefits are even better

In case you missed it, there was an interesting story in the New York Times last week explaining all the perks received by early-adopters of the Nissan Leaf electric vehicle. Click here to read the story.

Implications: On a personal level, I would describe myself—personally—as a little more environmentally aware and active than most. Even so, my “green” pursuits know a limit. I do not have solar panels on my roof, nor a wind turbine in my back yard.

Nissan has demonstrated an understanding that “green” is not a black and white issue. There are shades of green… that might help illustrate the degree to which different people consider themselves, “environmentalists.”

Do we all want to save the planet? Of course. But it helps if there is a consumer benefit or payoff that is more immediately gratifying. Few families consider themselves non-profit organizations.

As you plan your next environmentally-friendly campaign... it might be a good idea to include very specific ideas about why the product or service offering is also "consumer-friendly."

Mike Anderson

Taking the social muse out of museums

Once upon a time, it could have been easy to think of museums as a little bit “high-brow”—if not downright snooty—centers of culture. But according to a story in today’s Wall Street Journal, museums are starting to look at themselves the way Mr. and Ms. Middle America might… and it’s leading to some cultural change in the category. Click here to read the WSJ.com version of the story.

Implications: Whether attributable to the advance of Gen X and Gen Y, or perhaps in response to the changing economic climate… it just makes sense that “Cathedrals of Culture” become a little more main-stream in their approach to woo visitors and supporters.

I suspect that museums will not be the last category to benefit from a little down-to-earth self-evaluation.

Mike Anderson

Cashing-on on the oil spill, or doing some genuine good?

I heard an ad for a political candidate recently that said something like, “It’s not enough to clean-up the oil spill. It’s time to clean-up our act.” The message went on to explain how this candidate supported alternative and sustainable energy sources like wind, solar, etc. You’ll understand why I’ve chosen not to name the candidate here.

In another example of tying-in to the environmental tragedy that is happening in the Gulf right now, I read a story last week about Kenneth Cole selling t-shirts to help raise money for clean-up efforts. The company has started a Facebook store to facilitate the project, according to this story from Marketing Daily.

Implications: The ongoing oil spill off the coast of Louisiana has already earned the title of being the biggest environmental catastrophe in U.S. history, so it is understandable (and appreciated) that marketers would want to tie-in to the cause. But proceed with caution, by asking this question: Are you tying-in to benefit communities, lands or wildlife affected by the spill? Or are you tying in for your own benefit? Without doing a lot of the former, I’d be very careful about trying the latter. My hunch is that the line between green and greed seems increasingly apparent to an ever more environmentally-aware population.

By the way… way to go, Kenneth Cole.

It’s okay to do well while doing some good. But doing one without the other is likely to be either unprofitable or in poor taste.

Mike Anderson

A new twist on conspicuous consumption

This month’s Trendwatching.com newsletter suggests that status is still the center of the consumer universe, but that status is no longer measured by simply “spending” or “owning.” Now, it is manifest in things like giving, doing well (to others), social responsibility, and more. Click here to read the issue.

Implications: This edition of Trendwatching is not all about luxury goods... but that's a category I'm thinking about right now. Purveyors of upscale or luxury goods had a particularly challenging time during the Great Recession, and they are likely most eager to see the economic recovery gain momentum. But even with apparent stability returning to many household economies, it might be a good idea to study how and why consumers spend on premium products.

For example, have you noticed any instances of “inconspicuous consumption?” That’s when people buy a Gucci or Coach handbag, and then ask the clerk to wrap it in a logo-less shopping bag. They want the nicer item… but they don’t want to be seen as spending too much when many other folks are cutting back. Another example might be the consumer who buys the flat-screen TV, but waits until the garage door closes before taking it out of the car and into their home. (In a previous life, perhaps that same consumer would have been happy to show-off the purchase to the rest of the neighborhood.) Earlier this week, one of my clients referred to this behavior as “Stealth Wealth.”

My personal hunch is that luxury goods will regain popularity as more and more people begin to prosper during the economic recovery. But there are many people who are ready to go upscale now… perhaps motivated by a different set of criteria than they were pre-recession. Which reasons motivate you?

Mike Anderson

Consumer trends from my top flat drawer

You know how that top flat drawer of your desk tends to gather miscellaneous business cards, coins, paperclips and rubber bands? When you come across some small item you don’t know what to do with… you toss it in that drawer. But eventually, the drawer is full and you have to clean it out.

The same thing happens when you collect ideas and consumer trends. Here are seven trend thoughts that were too good to throw away…

Observation 1: Nostalgia is making a comeback. It’s not surprising that in times of extended stress, humans like to think of happier times.

Implication: Consider how your product or service “brings back the good ol’ days.” Whether you’re selling cars (“Remember your very first car? You’re going to feel that good about driving your new 2010 _____”)… or if you’re selling pancakes (“Remember sleeping over at grandma’s house? When you woke up in the morning, she’d have _______”). People are enjoying a look back at the good old days; an emotion you should consider tapping into. (I was reminded of this by a recent article in Media Post.) Note: I also saw an interesting Research Brief, not long ago, that suggested people are taking comfort in focusing on the future, too.

Observation 2: Mobile is going to be a very crowded space. A good friend of mine, Joseph Naylor, recently suggested that I create an “Elm Street App” for people who use an i-Phone or Droid. Today, I set-out to give it a try, using the site Joseph suggested. But the company had temporary suspended accepting new customers, due to overwhelming response. (How would you like to have that problem!?)

Implication: Just building an “App” won’t make you a winner in the mobile space. There are well over 100,000 apps available for the i-Phone, and another 30,000 or so available for the Android. (Surely, the Nexus One will also command the attention of developers. Just as having a website does not insure success on the Internet… your mobile app must be designed with relevance in mind.

Observation 3: Less window shopping, more closet shopping. With frugality in mind, consumers are less inclined to “browse the mall” as a means of killing time; they know that unless a specific item is needed, window shopping risks the temptation of buying things we don’t need (and who has money for that?!). Instead, consumers are “shopping” their own closets… looking around to see what new combinations of clothes and accessories can be mixed and matched… in an effort to come up with a new look.

Implication: If you’re in the apparel business, consider suggesting accessories—or separates—that can help create a whole new look (at a modest price). My thanks to friend Gene Vidler in Tulsa for sending the Yahoo Finance article that held this suggestion; he received it from morning host Joe Kelley at KRMG/Tulsa. Same place this next idea came from…

Observation 4: We’re volunteering more, and re-defining success. People might not be able to write as big a check as they used to for the charity of their choice… but that doesn’t mean they don’t want to give. These days, they might be more likely to give of their time, through volunteerism (something I’ve also referred to as “experiential philanthropy”). I’ve been writing about the consumer’s search for authenticity for quite some time, now… and that doesn’t just refer to the things they buy. People would like to live a life that is deeper than “veneer.” Same goes for their career; with paychecks cut or frozen in some cases, people are more likely evaluate their job based on whether it is personally satisfying, intellectually stimulating and emotionally gratifying.

Implications: What are the “core” benefits of the product or service you sell? Beyond the tangible attributes, are there ways your goods speak to matters of self-esteem, giving back, or a greater good? Once upon a time, marketers could sell their wares as if they were trophies… in a world that was trying to keep up with the Jones’. In a climate like this one, however, it might be more important to sell the authentic, values-based benefits of your product line. (i.e., “It’s not a mini-van, it’s a discovery vessel that will take you to new places together.”)

Observation 5: Hand-me-ups are hip. Okay, at first I thought it was kind of strange… when my oldest son walked up to me and gave me a pair of jeans he had grown out of. “They’re still perfectly good,” he said, “they just don’t fit me.” Turns out I was on the cutting-edge of fashion, according to JWT.

Implication: Same as item #3, above. Read about it in this Media Post story from last month, along with…

Observation 6: Indulgence off-setting. One might think of this as a new phrase meaning “pent-up demand,” courtesy of Icono-culture. It basically means a family can go only so far when it comes to cutting back. Eventually, all of that self-denial actually becomes the rational for a splurge.

Implication: Keep listening to the consumer, and be ready to position yourself as “a long over-due reward or treat.”

And finally.

Observation 7: More torches and pitchforks. Consumers want to yell at someone… for everything from government bailouts to bank bonuses to unemployment to… whatever. All of this has to be someone’s fault, right!?

Implication: In the past, I've referred to this as "the retaliatory consumer." If you’re close-by when they’re in the mood to be cranky—and you make a mistake—don’t be surprised if the consumer channels their general frustration toward you. Or, you can be pro-active, and present your goods (or your company) as the empathetic listener, or, “The one thing you can count on.” (Also from the Media Post story.)

Thanks for letting me clean-up my consumer trend desk. I feel much better now.

Mike Anderson

Evidence that the greater good continues to influence purchase decisions

Recently, I’ve seen more than a few stories that remind me of the power of Cause Marketing. For example, charitable tie-ins always have a high profile during the holidays, but a recent story in Marketing Daily explained that such campaigns were even more evident this year. From gathering gently used coats, to matching charitable contributions at the check-out, to accepting donations for the local food shelf… giving and selflessness have resonated with a lot of people this year.

Another story, this one from Research Brief, suggests that the compassion for “cause-related campaigns” is not limited to the U.S.; indeed, consumers around the globe are more likely to give their business to a company that gives back.

Implications: I’ve written about “The Purpose-Driven Purchase” on more than one occasion here (see this posting from early November). It’s the idea that consumers are less likely to buy the frivolous—as if money were no object—and more likely to buy the meaningful and useful.

These articles remind me that “meaningful” doesn’t always start with “me.” By supporting a cause that resonates with your consumers, you make it easier for the consumer to support you.

Mike Anderson

Is social purpose the new social status?

A recent study of 6,000 consumers in ten countries reveals that 57% of those surveyed have purchased a brand in support of a cause or charity, according to a story published by Marketing Daily.

A majority of consumers assert that they have chosen a brand—even though it wasn’t the cheapest option—because of the social responsibility or cause supported by that company.

Implications: Even in a volatile economy, it may not be enough to fine-tune the values offered by your company; it is always important to consider the values held by your consumers. Which causes are inherently supported by your company’s customers and prospects? In what ways might you support the charities that are near and dear to your customer’s hearts?

Remember, not all cause marketing has to focus on fund-raising or charitable contributions of cash; we suggested that you consider “Experiential Philanthropy” in an Elm Street Trends blog posting earlier this year.

When your company considers its’ value proposition, are you considering the values of the constituents you serve?

Mike Anderson

When supplies are getting crushed, prices tend to go up

An interesting story in today’s USA Today suggested that prices for pre-owned vehicles could see a slight spike, since much of the “older inventory” is being absorbed by the Cash for Clunkers program.

Implications: New public policy (or private, for that matter) typically reveals a set of unintended consequences. The original goals for this program were to stimulate the automotive industry, and benefit the environment by offering incentives to junk a gas-guzzler and buy a more fuel-efficient alternative (among other things). It ran out of money quickly, and legislators had to pass additional funding about a week after the program launched. By those measures, the program could be argued as successful. (Of course, paying for the program is a matter of much discussion.)

The program has also had the effect, apparently, of reducing the number of pre-owned cars on the market. And as any good capitalist knows, when the supply goes down, prices tend to go up.
Also today, there was an Associated Press story in the Dallas Morning news about how charities that used vehicle donations to generate revenue are seeing a drop-off in contributions. In a volatile economy, it seems, the rebate of up to $4,500 on a Clunker is a little too much cash to part with.

I offer no opinion here as to the effectiveness or the side-effects of the CARS program. Only that it is having an impact… beyond that which may have been intended. Any policies like that in your company?

Mike Anderson

Experiential philanthropy

Even before taking office, the Obama administration began issuing a call to service, asking Americans to volunteer. A website was launched to connect people who could help to people who had needs (USAserve.org), and a YouTube message from Michelle Obama invited people to action on Martin Luther King Day. The spirit of participation also permeated the Inaugural Address.

I’ll spare you my reasons for thinking all of this was politically smart. But there are other reasons this push for volunteerism is the right message, at the right time. Chief among them: Simple economics.

Until very recently, many people have enjoyed a period of relative prosperity (some of it real, some of it an illusion). There has been a sense of overwhelming abundance, in which many people bought big houses, parked a couple or more cars in the driveway, and used plentiful paychecks or access to credit—or both—to fund a very nice lifestyle. Those paychecks often came from careers with big demands; consumers often had more money than free time. So, “charity” was often expressed in the form of a check or online contribution.

These days, many people are feeling a little less flush; they have tightened their belts, make purchase more cautiously, and many cannot donate as much as they did perhaps last year or two years ago... at least, in monetary terms.

Implications: Did you notice the general spirit--or shall I say, the "aura"--of people during the inaugural ceremonies this week? I offer no partisan remarks here… but I sensed that people from all walks of life and political persuasion seemed to have a sense of hope, optimism, and good will. Few people think the road ahead will be easy. But they seemed to feel ready for the trip, and prepared to carry their share of the load.

Another issue deserves consideration: In a fundamental switch from years past, consumers may have more time than money, in the near term. (Not that either is plentiful, mind you!) But in an economy where it might be difficult for some families to donate, financially, to the charities of their choice… it can be empowering to think they can still give, and at that, a gift perhaps more valuable than money: They can give of themselves.

I’ve said this before, but it bears repeating: In the wake of overwhelming abundance, and when people are in a back-to-basics frame of mind, “what I have” can become less important than “what I have done.” This is no less true where charity is concerned.

Cause marketing has always been an important part of a company’s public relations arsenal. But it might be time to revisit the motives and methods you use to engage consumers, where cause marketing is concerned. Is your company doing anything charitable… which might benefit from the manpower of your consumers, as much as from their financial gifts? (Think building for the homeless, racing for the cure, or reading to children at the local school or library.)

Here’s to a new era of doing well… by doing good.

Mike Anderson