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The Why? How? What? of Cause-Related Marketing

In a transforming competitive business environment, businesses must develop marketing strategies that give them a better competitive positioning. Managers may opt to partner with a non-profit organization to execute a cause-related marketing (CRM) campaign.

What is a CRM campaign?

These campaigns provide customers avenues to make donations to a cause while buying a product or service. For the business, it’s a system put in place to heighten customer perceptions of the brand. For the consumer is an opportunity to feel good about their purchase.

Recent trends have also shown that customers often do not mind paying a slightly higher price for a product if their values match those of the brand. While online shopping takes a larger piece of the pie year on year. Businesses have implemented these campaigns in the checkout process of the websites.

For example, the price of the product would be round up to the nearest dollar and donated to a non-profit. Such tactics have a compounding effect over time as they reach a significant sum.

Product- cause fit

However, it’s not as simple as that, there needs to be an appropriate product cause fit. In the customers' eyes, the products they buy and the cause they support must have a functional-based or image-based relationship, For example, a grocery store supporting a hunger cause.

Age of Transparency

Today, young donors who make smaller donations are much more sophisticated when it comes to charity research. Gone are the days when a charity could print a flyer to establish authority. Not for profits need to find better ways to communicate to their existing donors and attract a newer generation of well-informed donors about their contributions to charity.

Come across a good CRM campaign?? Tell us about it… comment below.

(Disclaimer: This content is for the sole purpose of teaching and learning at Edith Cowan University)


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