Digital Strategy for Good Avoiding Cause Marketing Missteps: 5 Key Trends

Kate Olsen

An eGuide for corporations

from your friends at

Network for Good

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A New Paradigm for Consumer Engagement

News Flash: the people formerly known as the audience are now in control. In an era of always-on hyper-connectivity, fragmented online communities of niche groups, and easy content filtering options, traditional consumer engagement tactics won’t work. Consumers expect more than mass-market brand messages, and actively silence digital “noise” that doesn’t speak to them as individuals or engage through participatory co-branding. Digital engagement, through the ever-evolving landscape of social media and new technology, allows for segment-of-one marketing and relationship building with your consumers – and at scale. Success means you have to understand your consumers’ interests, and tap into their passions, hopes, and dreams. Cause marketing is a good way to do just that. Everywhere you look there are opportunities to join a corporate cause marketing effort – both online and in the real world. From adding a $1 to a Walmart checkout for the Children’s Miracle Network, to ‘liking’ P&G on Facebook to unlock a $1 donation to the Special Olympics, to texting ‘HEROES’ to 80888 to join the DC Comics Justice League and make a $10 donation (matched by Warner Bros. Entertainment), to charities providing famine relief in the Horn of Africa, giving back has become a standard component of consumer cultivation for brands of all shapes and sizes. In this eGuide, Network for Good will provide an overview of how to avoid cause marketing missteps, and detail 5 trends shaping digital consumer engagement in 2012. You’ll see interesting examples of how some brands are practicing these trends to win the hearts of their consumers. Regardless of which cause marketing trend fits your consumer engagement goals, the recipe for success is clear: start with an authentic cause partnership, set meaningful social impact and business goals, add a compelling call to action, layer in relevant social sharing, and co-create a thoughtful conversation with your consumers about the collective impact you are making. Are you ready to transform your cause marketing and win the hearts of your consumers?

5 Cause Marketing Trends

1. Crowdsourced Philanthropy p. 2

2. (Digital) Action Campaigns p. 3

3. Issue Awareness Campaigns p. 4

4. Cause Affinity Platforms p. 5

5. Social Enterprise Spinoffs p. 6

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1. Crowdsourced Philanthropy

Crowdsourced philanthropy programs democratize the corporate grantmaking process by allowing customers and employees to weigh in on where philanthropic dollars should be spent. Common Campaign Elements

Large grant amount to be allocated across several charities according to public input. Charity nomination or selection process that typically restricts participation to customers and

employees or enlists a panel of experts to cull a list of relevant charities. Toolkits and marketing assets to help charities rally their supporter base to vote for them. Public voting period with participation predicated on becoming a member of a brand

community. Social sharing and digital engagement via status updates, video content, and more.

Campaign Examples

JPMorgan Chase ‘Chase Community Giving’i Each year, Chase asks customers and employees to nominate charities to be eligible to receive a portion of $5 million in grant funding to be allocated according to Facebook Fan voting. ‘Chase Community Giving’, now in its fifth season, has become a hallmark crowdsourced philanthropy program, having recruited 3.5 million Fans to help award more than $20 million in grants to over 500 charities.

PesiCo ‘Pepsi Refresh Project’ii Pepsi made a big splash by pulling a $20 million ad spend for the Super Bowl and reallocating the funds to allow consumers to propose ideas for making the world a better place and let America vote on which ones should be funded.

State Farm’s ‘Cause an Effect’iii The ‘Cause An Effect’ campaign is a youth-led, crowdsourced philanthropic initiative that relies on local, nonprofit organizations to create solutions to community issues identified by State Farm Facebook Fans.

Target ‘Bullseye Gives’iv Considered the inaugural crowdsourced philanthropy campaign, in 2009, Target asked Facebook Fans to decide how to allocate $3 million across 10 charities.

Toyota’s ‘100 Cars for Good’v Each summer, Toyota awards 100 vehicles to 100 U.S. nonprofits over the course of 100 days. Every day, five organizations are posted on Toyota’s Facebook page, and Fans can vote to determine the winning nonprofit organization. The daily winner is awarded one of six Toyota models with the four runners-up receiving a $1,000 grant.

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Tips for Campaign Success

1. Make the campaign relevant at a local community level by encouraging participation across your brand footprint and/or soliciting charity partners at the local level.

2. Provide multiple levels of awards to increase the likelihood that participating charities will receive funding – or ensure all participating charities receive a grant (a necessary reward for expending their social capital to recruit supporters to participate).

3. Encourage competition and spur activity via social proof elements such as leaderboards, vote tickers, and social status update feeds.

4. Maintain a low barrier to participation, but still reward loyal customers and or employees (i.e. anyone can become a fan and vote, but only customers can nominate charities).

5. When possible, pair a digital engagement platform with in-store or real world activities to reinforce the campaign message no matter where/how the consumer interacts with your brand.

2. (Digital) Action Campaigns Action campaigns, most often digital, motivate an audience to take action in support of a cause or in the spirit of doing good or ‘paying it forward’. Actions can include ‘liking’ a Facebook page, reposting a status update, watching a video, or even making a donation. Common Campaign Elements

Central digital hub (or social outpost) where participants can take action and see impact results.

Clear call to action related to the campaign goal to encourage participation and viral spread. Low barriers to participation so it’s easy to get started and doesn’t take much effort to act. Social sharing and digital engagement via status updates, video content, and more. Real world element (often included) that encourages consumers to either perform a physical

act (donate a coat, mail a letter) or share a physical act online via a status update. Campaign Examples

AT&T ‘Connect for Good’vi In partnership with Causes.com, AT&T has created an activist community to raise awareness for social issues and cause partners important to the brand. The Causes.com community can take small digital actions (sign a pledge, watch a video) to trigger contributions by AT&T to charities including the National Organizations for Youth Safety (NOYS) and The Nature Conservancy.

Burlington Coat Factory ‘Warm Coats & Warm Hearts Drive’vii In partnership with ABC’s Good Morning America and the nonprofit One Warm Coat, Burlington Coat Factory hosts a coat drive

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across its retail footprint. Those who donate receive a discount on their next Burlington Coat Factory purchase.

Kashi ‘Real Project’viii Every few weeks Kashi features a different charity on a mission to tackle a piece of the Real Food Deficit. For every person who raises awareness for the featured cause via the Facebook ‘like’ button, and posts a Real Food statistic to his or her Facebook wall, Kashi will donate $10 to the featured charity, up to a threshold.

Kellogg’s ‘Share Your Breakfast’ix Kellogg’s, together with a coalition of partners, asks the public to share their breakfast (a description of a photo) on Facebook and Twitter to help deliver 1 million breakfasts to hungry kids across America via cause partner Action for Healthy Kids. Consumers can also participate via LivingSocial deals and product coupons.

Macy’s ‘Believe’x This holiday campaign, inspired by the New York Sun's famous "Yes, Virginia, there is a Santa Claus" editorial from 1897, features letter-writing "Believe Stations" in Macy's stores. Macy's makes a $1 donation to the Make-A-Wish Foundation for each letter deposited, up to $1 million.

Tips for Campaign Success

1. Create a call to action that resonates with the target consumer audience for the campaign. The call to action should answer: Why Me? Why Now? What For? Who Says?

2. Set a campaign goal that reinforces your brand’s values and overall responsibility strategy. 3. Build long-terms collaborative partnerships with charities so you can leverage the campaign

investment and digital platform over time. 4. Ask participants to join your Facebook community or other social community (not just take

action) so you can foster relationships after the campaign ends and cultivate influencers in your network.

5. Ensure consumer actions trigger generous acts by your company (grants, product donations) so your consumers feel they are co-creating good with your brand.

3. Issue Awareness Campaigns Issue Awareness Campaigns rally an audience around a cause or issue that is important to the company or brand. The call to action is not necessarily around donations – although that can be a component – but rather around creating a movement to effect change or collectively solve a problem. Common Campaign Elements

Cross-sector partnerships among companies, nonprofits and often government agencies. Selection of a timely, relevant social issue that speaks to a broad spectrum of consumers.

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Digital and real world components that are reinforced across an integrated marketing platform. Significant investment in social conversation and user-generated content to drive awareness. Gamification and contests are often used to speak to Millennials and drive activity.

Campaign Examples

American Heart Association ‘Go Red for Women’xi Together with corporate partners such as Macy’s and Campbell’s Soup Company (brands with many female customers), ‘Go Red for Women’ seeks to raise awareness of heart disease as the number one killer of women. The platform includes branded products via corporate partners, local and national ‘Wear Red Day’ events, health resources and more. GE ‘ecomagination Challenge’xii GE, in partnership with venture capital firms, challenges businesses, entrepreneurs, innovators, and students share their best ideas on how to build the next-generation power grid – an issue at the heart of GE’s business. Some ideas will be funded from a $200 million innovation fund. Haagen Dazs ‘Help the Honey Bees’xiii The ‘Help the Honey Bees’ project seeks to raise awareness about the plight of the Honey Bee – a key supply chain partner for Haagen Dazs – by providing many opportunities to make a difference. Participants can donate to fund research on Colony Collapse Disorder, plant a garden, buy special products, or join in online via games and contests. Starbucks ‘Create Jobs for USA’xiv As a ‘third place’ (outside of home and work) for consumers and frequent stopover for jobseekers and interviewers alike, employment is a relevant issue for Starbucks. The Starbucks Foundation has committed $5 million to the Opportunity Finance Network to create and sustain jobs in local communities. Consumers can join in by making a donation of $5 or more and receive an American-made “Indivisible” wristband to demonstrate their support and build awareness. Tyson Foods ‘Tyson Hunger Relief’xv The ‘KNOW Hunger’ campaign, under the umbrella of ‘Tyson Hunger Relief’, serves to raise awareness about hunger in America – a core issue for food companies such as Tyson. The platform incorporates cause partners such as Share Our Strength; community food and donation drives; research on hunger trends; and social media awareness activities.

Tips for Campaign Success

1. Establish a long-term commitment to the issue and cause partner(s) because you are building a movement and that takes time.

2. Clearly communicate the connection between your brand and the issue – it has to make sense in the minds of consumers.

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3. Provide a range of ways consumers can join the campaign to guide them up a ladder of engagement.

4. Report back on social impact milestones along the way to build momentum. Storytelling is key. 5. Make a corporate commitment to support the cause partner(s) regardless of consumer

participation.

4. Cause Affinity Platforms Since the adoption of the pink ribbon to broadcast status as an ally in the fight against breast cancer, cause-branded products have exploded. While more common approaches such as turning your product pink are still valid, many brands are pushing the model beyond one-off products to create full Cause Affinity Platforms. The product then becomes just one element of a larger partnership with charity. Common Campaign Elements

The cause tie-in for a product typically manifests as a limited edition version. Ideally, the product offering is aligned to the cause brand/mission and target consumer

audience. The campaign incorporates social sharing and viral elements such as videos to drive

awareness. The cause-branded product seeks to become a ‘badge’ for consumers to express their identity

through their association with the brand and the cause. The campaign incorporates social proof to foster product adoption by demonstrating the impact

achieved by product sales. Campaign Examples

Dell ‘Client Energy Savings Calculator’xvi Dell users can use the calculator to build their own energy saving computer and estimate the energy consumed by a computer over a year’s time. KitchenAid ‘Cook for the Cure’xvii KitchenAid has created a whole line of pink products, cooking events (online and off) and auctions to raise money for Susan G. Komen for the Cure to support the fight against breast cancer. Levi’s ‘Water<LESS’xviii Through its ‘Water<Less’ jeans collection, Levi’s pioneers sustainable manufacturing practices and translates the supply chain efficiency into a compelling cause platform with partner Water.org. This campaign encourages people to adopt a ‘Water<Less’ lifestyle—allowing consumers to experience what life is like for the nearly one billion people worldwide without clean drinking water.

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One Campaign ‘Product (RED)’xix The One Campaign has partnered with consumer brands such as Apple, Converse, Nike, and Starbucks to offer (RED)-branded products where a portion of proceeds benefits The Global Fund to support HIV/AIDS programs in Africa. Warby Parker ‘Buy a Pair, Give a Pair’xx Warby Parker partnered with nonprofits such as VisionSpring

to ensure that for every pair of eye glasses sold, a pair is distributed to someone in need. Tips for Campaign Success

1. Design a product offering with a value proposition beyond just the cause tie-in. 2. Involve consumers in the cause-branded product process; even let them design their own

custom version like New Balance’s Lace Up for the Cure did with personalized pink sneakers. 3. Evolve your cause partnership to incorporate more than just portion of proceeds from special

products – think about how you can collectively problem solve with your nonprofit partners. 4. Reinforce your cause partnership with an integrated marketing campaign that promotes both the

product value and communicates the powerful impact stories the product proceeds enable. 5. Leverage your cause marketing campaign to showcase your sustainability investments, often

invisible to the outsider, just as Levi’s does with the ‘Water<Less’ product line.

5. Social Enterprise Spinoffs In addition to cause marketing and corporate philanthropy programs, many companies are creating special charitable businesses that combine the savvy of a for-profit with the mission and heart of a nonprofit. Social Enterprise Spinoffs tend to reflect the core business of the corporate host, but apply the business in a new or innovative way to drive social return. Common Campaign Elements

Many spinoffs are first established as philanthropic initiatives, but evolve into sustainable enterprises in their own right.

Spinoffs are logical extensions of the existing corporate brand, just with a social or environmental purpose in addition to (or instead of) bottom line goals.

Spinoffs often give companies access to new resources, markets, or partners that are otherwise not suited for traditional corporate programs.

Spinoffs are inherently designed for story-driven marketing campaigns to showcase a unique application of a business model and emotional impact stories.

Spinoffs can be ideal vehicles for social marketing and grassroots, viral awareness.

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Campaign Examples

eBay ‘World of Good’xxi WorldofGood.com by eBay is a multi-seller marketplace for socially and environmentally responsible shopping, featuring tens of thousands of products from around the world. IDEO ‘IDEO.org’xxii The nonprofit arm of IDEO houses the company’s social innovation practice to partner with nonprofits, social enterprises, and foundations to design solutions to social problems, and encourage open innovation platforms and social networking for collective problem-solving. Nordstrom ‘treasure&bond’xxiii Nordstrom-owned ‘treasure&bond’ donates 100% of all after-cost profits to programs that benefit people in need in New York City. The store selects local charity partners to benefit from proceeds, and rotates the selection to spread the generosity around the community. Panera Bread Foundation ‘Panera Cares Community Cafes’xxiv Panera Bread now operates several retail locations where customers are invited to pay what they can, rather than stated prices (or suggested donation amounts) on the menu. One of the goals of Panera Cares is to help ensure that everyone who needs a meal gets one and to raise awareness about food insecurity in America. P&G ‘Tide Loads of Hope’xxv In the wake of a natural disaster, ‘Tide Loads of Hope’ sets up mobile laundromats via a fleet of vans, each outfitted with over 32 energy-efficient washers and

dryers. Tide washes, dries, and folds the clothes for families affected by the disaster for free. Tips for Campaign Success

1. Stay true to your core business, but translate it in a way to prioritize social returns (often in addition to bottom line results, but not always as ‘Tide Loads of Hope’ demonstrates).

2. Know your audience and make sure your endeavor is seen as a relevant extension of your brand.

3. Don’t be afraid to experiment with applications of your business model and messaging until you find what works. Pilot programs are an effective way to test concepts.

4. When you find a concept that works, investigate how to make is sustainable and scalable. 5. Feel free to create a wholly-owned social enterprise, but remember that partnerships and joint-

ventures are a rich way to extend ideas, resources and impact.

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Conclusion In an era when consumers are bombarded by marketing messages and have the power to filter their digital lives like never before, marketers are seeking new ways to break through the clutter. Being heard in a cacophony of promotion requires building an authentic relationship with consumers. Cause marketing can be a powerful way to do that. As evinced by the diverse applications of the trends outlined in this eGuide, there is no one-size-fits-all approach to cause marketing. Rather, it’s up to your company to determine how to apply the trends given your goals and unique mix of brand assets, consumer targets, cause partners, and resources. Crowdsourced Philanthropy, (Digital) Action Campaigns, Issue Awareness Campaigns, Cause Affinity Platforms, and Social Enterprise Spinoffs are this year’s key trends driving brand/cause awareness and alignment. By using any one or a combination of these well-executed examples as a prototype, your company can avoid costly missteps to your brand. No matter which cause programs you initiate, remember the watchwords: authentic, meaningful, compelling, relevant, thoughtful and collective. If you stay true to your brand, respect your cause partners and invite your consumers to a conversation, your company is bound to generate social impact and brand value way beyond your marketing investment.

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Get Started With Network for Good

Network for Good is a nonprofit social enterprise that empowers corporate partners and nonprofits to unleash generosity and advance good causes. We work with companies like yours to help refine a cause strategy and implement effective cause initiatives. We have deep expertise in digital engagement through cause and a strong track record in helping companies fulfill their cause marketing goals – especially for Crowdsourced Philanthropy and Digital Action Campaigns. Specifically, we can:

Advise on your campaign strategy and design Help match your campaign with the right charity partners for your brand Host your cause marketing campaign microsite Process and disburse donations to any of over 1 million charities Provide guidance on incentives and challenge grants

Network for Good has processed more than $675 million in donations for more than 83,000 nonprofits since its 2001 founding by AOL, Cisco and Yahoo!.

Contact us at partnerships@networkforgood.org

Ready to transform your cause marketing?

Contact us to customize a solution for your

company.

Contact: Web.NetworkForGood.org/Partnership

Learn: NetworkForGood.org/Partner

Blog: CompaniesForGood.org

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Published July 2012 i http://investor.shareholder.com/jpmorganchase/releasedetail.cfm?releaseid=424463

ii http://www.pepsico.com/PressRelease/Pepsi-Refresh-Project-Opens-First-Voting-Session-to-Public-With-More-Than-1-

Mill02012010.html iii

http://www.statefarm.com/aboutus/_pressreleases/2012/cause-an-effect-mt.asp iv http://pressroom.target.com/pr/news/online-bullseye-launch.aspx

v http://pressroom.toyota.com/releases/voting+toyota+100+cars+good+opens+this+morning+10+am+et+7+am+pt.htm

vi http://www.causes.com/causes/639835-connect-for-good

vii http://abcnews.go.com/GMA/WarmCoats/

viii http://www.kashi.com/realproject/about_project

ix http://www.kelloggs.com/en_US/share-your-breakfast.html

x http://social.macys.com/believe/?cm_mmc=VanityUrl-_-believe-_-n-_-n#/home

xi http://www.goredforwomen.org/

xii http://challenge.ecomagination.com/ideas

xiii http://www.helpthehoneybees.com/ xiv

http://www.starbucks.com/responsibility/community/create-jobs-for-usa-program xv

http://www.tysonhungerrelief.com/ xvi

http://www.dell.com/content/topics/topic.aspx/global/products/landing/en/client-energy-calculator?c=us&l=en xvii

http://www.kitchenaid.com/flash.cmd?/#/page/inside-kitchenaid-cook-for-the-cure xviii

http://store.levi.com/waterless/ xix

http://www.joinred.com/home/ xx

http://www.warbyparker.com/do-good/ xxi

http://worldofgood.ebay.com/ xxii

https://www.ideo.org/ xxiii

http://www.treasureandbond.com/site/ xxiv

http://paneracares.org/ xxv

http://www.tide.com/en-US/loads-of-hope/index.jspx