filter by date: November 2009

The following originally appeared in Cone’s inConetext quarterly newsletter. To read current or past issues, visit our Web site.

Holiday-themed cause marketing programs have long been a staple for retailers to drive differentiation, loyalty and sales during a cluttered shopping season. This year, major retailers are raising the stakes by creating programs bigger and glitzier than years past. We’ve already begun to see full-scale efforts launched by Macy’s, JCPenny and Walmart that push the needle on innovation and integration.

Recently, providing consumers with ‘value’ has been the buzz among marketers of all disciplines. Cause marketers are no exception. Without a lot of money to donate, consumers are seeking ways to ‘do good’ through their shopping. In response, smart retailers are integrating charitable giving into their product offerings and brand experiences to deliver value to consumers on several levels.

First, they are triggering donations through consumer purchases or participation. This enables consumers to feel good about their purchase, feel good about helping and offers a critical point of differentiation and reason to buy. Second, they are offering value in terms of specialized offers, such as discounts and coupons, to consumers who participate in cause programs. These incentives provide a pocketbook benefit to consumers, but also give retailers a measureable tool to gauge effectiveness of their marketing efforts. Finally, retailers are demonstrating social impact. Consumers are seeing the real, immediate value of their participation in a cause marketing effort through donation calculators and online tracking.

Remember, for this holiday season, when it comes to cause marketing programs, glitz may sparkle, but a value-centric approach will shine brighter.

- Rich Maiore, Vice President

With all the chatter about the ups and downs of charitable giving during the down economy, it’s refreshing to hear some definitive - and positive - news. According to the 2009 Giving in Numbers Report, released this week by the Committee Encouraging Corporate Philanthropy (CECP), corporate giving was actually up during 2007-2008, despite worries that corporations would back down from charitable commitments as the economic turmoil raged in the second half of the year. What’s more, the data show that companies got creative when the economy started to sink, opting for pro bono work and skills-based volunteerism instead of simply backing down from their social commitments. In fact, the Wall Street Journal this week profiled how four chief executives at leading companies are rethinking their philanthropic strategies.

Other key findings from the CECP report include:

• A majority (51%) of companies surveyed increased giving from 2007 to 2008 despite 68 percent experiencing profit declines
• Among Fortune 100 companies, who experienced greater-than-average profit declines, 60 percent increased giving from 2007 to 2008
• Of companies surveyed, a full 91 percent report having an employee matching-gift program
• Ninety-four percent of survey respondents have at least one formal domestic volunteerism program and 49 percent of respondents have at least one formal international volunteer program
• The median number of pro bono time donated was 1,080 hours by companies that reported having such programs
• Consistent with past years, 86 percent of companies report having a corporate foundation

To download the full report for free, visit CECP’s Web site.

Brands – and, increasingly, causes – have been tapping celebrity supporters for years, and it’s become a tried-and-true promotional tactic. But it’s important for organizations to understand what they’ll be getting – and not getting – when they bring a celebrity on board. The “ripped from the headlines” best practices below can help guide cause-celebrity relationships in today’s environment.

1. Know your budget
In many cases, even when a cause is involved, celebrities don’t come cheap. Be realistic about your budget and crunch the numbers beforehand to make sure you’re covering costs – and meeting obligations to partner organizations. Overspending on “operating costs” and administrative expenses leaves a sour taste in the mouths of donors and beneficiaries – like the annual “Funniest Celebrities in Washington” event, which despite steep ticket prices and A-list performers, has failed to make donations to nonprofit partners for the past five years.

2. Learn about and leverage your celebrity spokesperson’s passions
Leverage the personal passions – beyond the causes they support – of celebrity supporters. Brad Pitt’s floating house, which combines his appreciation for all things architecture with his charitable efforts – is a perfect example. Through his Make It Right Foundation, focused on providing affordable and sustainable housing for Hurricane Katrina victims in the Lower 9th Ward, Pitt worked with Morphosis Architects to create the “Float House,” a home that can rise up to 12 feet on guideposts, in the event of flooding.

3. Think long-term
When searching for celebrity support, look beyond this week’s People cover. Causes that truly resonate with celebrity supporters can foster deep, long-term commitments. Sound like a marriage? Maybe, but you’ll get more bang for your celebrity buck if you find someone who’s willing to do more than pose for photos at your gala. Think advisory board memberships, event hosting and face time with beneficiaries, in addition to attending the usual fundraiser.

4. Do your homework
Research isn’t glamorous, but it’s important to understand what you’re getting into with a celebrity spokesperson: they have the power to hurt – or help – your brand. Celebrities are people too, and sometimes they make mistakes (see: Michael Phelps or Chris Brown) that reflect on the brands (and causes) they support.

5. Use caution when addressing celebrity compensation
Now that we know celebrities don’t come cheap (see #1), think carefully about how forthcoming (or not) you’re willing to be in addressing compensation for celebrity spokespeople. There’s a fine line between transparency and over-communication.

Example: Promotional materials for the Prostate Cancer Foundation’s campaign (funded by GlaxoSmithKline) featuring tennis star John McEnroe clearly stated GSK paid McEnroe for his involvement. Some are questioning this “full disclosure” tactic – one blog writer said the campaign had thrown McEnroe “under the bus” – while others are applauding its transparency.

- Kate Dyer, Account Executive

Temperatures are dropping and the holiday season is approaching, causing an outbreak of the “warm and fuzzies.” Yes, the giving season is upon us, and this year is already proving to be the most digitally driven to-date. Nearly every holiday cause campaign underway has an online component, thanks, in part, to growing consumer comfort interacting with brands via new media – up 32 percent from 2008.

Despite all the glittery online promotions, it’s important to recognize consumers are still hesitant to donate online. The 2009 Cone Consumer New Media Study showed some American new media users are concerned whether their donations will have an impact and others would rather donate offline. But that’s not to say online donations cannot be powerful. A leading holiday fundraiser and one of Cone’s Nonprofit Power Brands, the Salvation Army overcame the odds when, in 2008, online fundraising for its iconic Red Kettle campaign contributed an additional $10 million to annual revenues. However, the nonprofit was savvy enough to use new media fundraising as a complement to its offline efforts, ensuring donor comfort and convenience whatever the medium.

To help build confidence and trust among your online supporters this holiday season, keep in mind some best practices for new media fundraising:

• Demonstrate tangible impact: illustrate for consumers how their donation is being put to work by showcasing goals achieved in real-time
• Tap emotion: demonstrate why your cause is important to donors through emotionally compelling storytelling
• Provide value to contributors: don’t leave your donors hanging once they open their wallets – make them feel special by providing a badge of honor to display on their social networks or offer additional opportunities to support the cause
• Make it social: incorporate tools that make your campaign easy to share and pass along

The Big Warm Up installation, Boston

Doing its part to warm communities, Land’s End recently launched the Big Warm Up to encourage winter coat donations to the country’s homeless. The campaign embodies many of the best practices, having a robust online campaign that marries with its offline efforts - and, it just happens to be installed right outside our office windows.