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Cause marketing is the practice of incorporating a charitable or “social good” component into your business model – and letting the world know about it. This might involve a donation made for every purchase of a certain product, giving free products to those in need, or making a stand on high-profile social issues.
Data shows that 75% of consumers expect the brands they buy from to be giving back. As more brands make their philanthropic activities a prominent part of their marketing strategy and positioning, the need to raise your game and put similar measures in place increases.
The concept of linking a worthy cause with a brand is nothing new – but with the advent of cause marketing apps, the process just got a whole lot easier (and potentially, more profitable). By integrating seamless donation functionality, slick checkout experiences and easy “round up” options, you have a huge opportunity to improve your customer approval and experience by adding cause marketing apps to your tech stack.
Being a socially responsible and conscious brand that gives back to society is just the right thing to do. But taking a slightly more mercenary approach, there are definite benefits available for all parties involved.
Cause marketing apps enable you to give customers a slicker experience (and a reason to feel great about themselves for spending money at your store). Knowing that their purchases are having a positive effect on good causes has been shown to increase conversion rate, boost average order value (AOV) and ramp up long lasting customer loyalty.
So, beyond painting your brand in a positive light, cause marketing can have a tangible positive ROI for your business.
Businesses at any stage of growth can benefit from aligning their promotional activity with a cause marketing strategy. In fact, as cause marketing becomes more widely adopted, you risk putting your brand at a disadvantage by not aligning with a social or charitable cause.
If you’re targeting a younger demographic, be aware that millennials and Gen Z are the most attuned and receptive to cause marketing. 91% of Millennials prefer brands associated with a good cause, compared to the US average of 85%.
There are a wide range of cause marketing apps on the market today and these can flex to suit all budgets. If you’re looking to integrate a solution that promotes a “donation on purchase” on your products, you’ll want to factor in how this will affect your marketing budget (as typically this is how you would fund the donations that you make on behalf of your paying customers).
Your Head Of Marketing will likely be driving the move towards a cause marketing strategy, and will play a leading role in ensuring that it's successful. But if you’re integrating apps to help you deliver this kind of promotional strategy, your Product Manager may also wish to help with the selection and promotion of certain “cause-linked” items. For example, this can be a great opportunity to collaborate with a well-aligned influencer whose audience also supports your chosen cause.
To be successful in cause marketing, you need to select a cause that will align well with your target demographic. But be mindful of the potential for controversy and alienating some audience segments when associating your brand with a cause. For this reason, your Founder or CEO may want to have a say in the direction that your cause marketing takes.
When you’re looking for tools to help support the implementation of cause marketing across your store, consider the impact it will have on your checkout experience. We all know the importance of a slick user experience – the slightest inconvenience or confusion can cost you a sale. Don’t let “doing the right thing” negatively impact your conversion rate. Look for cause marketing apps that integrate seamlessly with your existing checkout process, enabling a smooth, friction-free conversion and a happy customer experience.
It’s also wise to look for tools that will help handle the legal and compliance side of your cause marketing campaigns, especially for donation processing and management which can be complex if you’re selling cross-border or within different jurisdictions.