Philanthropy Can Drive Business Success
7 November 2007 at 2:10 pm
A new US study has found that 90.7% of consumers say it’s important for companies to support causes and charities.
The 2007 PR Week / Barkley Cause Survey reveals that philanthropic activities can drive business success. In fact, 72% of consumers say that they have purchased a brand because it supports a cause they believe in.
Furthermore, corporate respondents say they see positive PR (65.3%), an increase in sales/retail traffic (26.7%) and an enhanced relationship with their target demographic (52%), as a result of their cause marketing efforts.
The first cause marketing campaign was launched 25 years ago, and what was formerly viewed as a trend, is now considered a cost of entry for many businesses.
In fact, consumers demand it, with 90.7% of consumers saying it’s important for companies to support causes and charities. The survey also revealed that the majority of companies (34.7%) with cause programs funded their efforts through the marketing department, as apposed to HR (4%), or even PR (14.7%).
Mike Swenson, the President of Barkley Public Relations says companies are beginning to clearly understand that there is a return on their ‘reputational’ investment and cause is the perfect storm to allow companies to engage employees and customers in a more meaningful way.
In addition to an increase in sales or enhanced customer relationships, corporate philanthropy can also drive recruitment and retention. Among companies with cause marketing programs, 56% saw heightened staff morale and retention and 14.7% "strongly agreed" that they have an easier time finding top-notch recruits.
The PR Week/Barkley PR Cause Survey was conducted by PR Week and Millward Brown. E-mail notification was sent to approximately 8,222 consumers and marketing pros and a total of 368 people (225 consumers and 143 marketing pros) completed the survey online between August 27 and September 17, 2007.
You can download the survey at www.barkleyus.com