How Consumers Drive Charities
Recent research indicates there is an increase in support for cause marketing and charitable giving from consumers. When consumers react to the opportunity to give there are two things that happen – charitable giving and increased brand loyalty.
Recent economic studies focused on consumerism revealed that a staggering 91 percent of consumers firmly believe that companies/brands should be doing more than simply turning a profit from selling goods and services. These companies should also be focused on addressing economic, environmental or social issues. Granted, this may be more of a millennial mindset or approach to business, but businesses that are charitable have recently experienced a surge in business and brand loyalty.
In 2016, charities across the United States reported donations summing two billion dollars, all the result of cause marketing.
This new wave of corporate charity is mutually beneficial as well. As companies donate, the hometown community of the business succeeds, the business succeeds and most importantly, the recipient of the charitable work/contribution succeeds – the most important part of the equation. With more and more businesses participating and aligning themselves with charitable work (an estimated 75%), there is more to go around to those in need.
For example, Kyäni Caring Hands has been to Mexico this year participating in the addition of a local school, fed the homeless in the Dominican Republic, donated food to children’s shelters in Africa and organized relief efforts for those victimized by hurricane Harvey by sending supplies and food with employees and company representatives to Texas to help.
Kyäni Caring Hands has seen a tremendous outreach from employees and the company’s business partners who all had one thing in mind – helping those in need. Throughout the process of donating and serving, many people associated to the company were able to see a different, more compassionate side of business. On the other hand, those who had never heard of Caring Hands were able to experience the service and willingness to give from the company without the traditional business jargon found in other business meetings.
These types of business interactions create lasting and impactful relationships with current and future customers while establishing a relationship of trust, pride and loyalty.
Recent research into cause marketing also suggests that 90% of consumers have a greater trust for businesses that are involved in addressing global social and environmental issues. All the more impressive is the 88% of consumers who indicated they would reward any business that is focused on social and environmental issues by donating or becoming a loyal customer. This mindset is very prominent in the millennial group of consumers. Many of them will analyze a company’s charitable efforts prior to purchasing or aligning with them.
Of the large group of consumers surveyed, over 90% of them indicated they would willingly switch brands and align themselves with a company associated with a cause.
Identifying a social or environmental issue and aligning a company with it may sound cumbersome, but it is actually easier than many assume. With a commitment to start addressing a local issue within the community, many current employees and customers will already be willing to go the extra mile to contribute to the better cause. Whether it is a cause led by the business itself or a newly formed partnership with a non-profit organization, consumers want to see at least part of the end goal of the businesses they support being a positive change.