Giving is Good Business
I believe that we reap what we sow.
And lately, I've become even more aware of companies, who through their direct marketing programs, are contributing a portion of their profits to charity.
Companies are getting involved and giving because it's a good thing and it's good for business.
The goal of contributing a portion of profits to charity is to deepen the trust and the relationship with customers, enhance the company's corporate image, and drive sales - while providing benefits for a worthwhile cause.
I came across a study a while back by a research firm, Walker Information, that found that consumer loyalty was in fact influenced by the social responsibility or irresponsibility of a company. In fact, the study indicated that nearly 15% of the population actually seek good corporate citizens when making a purchase. I would imagine that for the remaining 85% of the population, when price and quality are perceived as equal, the purchasing decision is based at least in part on what they know about the company making the product - and good corporate citizenship always reflects well on a company.
We sometimes think of companies as friends.
I know that as a consumer, I want to do business with a company that is "caring." As I talk about in my soon-to-be-published (August 2001) book, Friendship Branding, the characteristics that we want in a company are the same characteristics we want in a friend.
Being generous, on a corporate level, translates into brand equity, enhanced customer loyalty and a new way to draw customers to your products and services.
If "the Brand" is everything that you stand for as a company, then giving to charity can be seen as a branding strategy. When I see a company that's donating x% of their profits to a worthwhile charity, it means several things to me.
Most importantly, it adds to a company’s image of quality. I think "this must be a company that cares - they treat others well, so they'll treat me well." I anticipate that I won't regret doing business with them. Their generosity and commitment infers that they are socially aware and responsible in other areas. It implies that the company is committed to addressing issues that impact their customers' lives. I think that they're "not greedy", they don't cut corners, they "do the right thing."
Good companies are doing good deeds.
I'm thrilled with all the ways that companies are finding to give to good causes. American Express has been a pioneer in these efforts. They were involved in the mid-eighties with a campaign that helped restore the Statue of Liberty, and The Charge Against Hunger campaign has been active for years now. That particular campaign has contributed millions of dollars for domestic hunger relief while generating significant increases in credit card usage during the time it runs. In addition, with their disability insurance programs, they donate a portion of profits to The Christopher Reeve Paralysis Foundation.
Hanna Andersson is another organization that is obviously committed to community involvement as evidenced by the history and variety of their programs. They donate 5% of their pre-tax profits to a variety of good causes. The first 16 years of their "Hanna-Downs" program resulted in over one million clothing items being recycled to children in need. They also help local schools, and sponsor reading programs. Another charity they are involved with is Court Appointed Special Advocates (CASA), an organization which helps find safe homes for abused and neglected children. CASA (www.kidsforkidsforcasa.org) produces beautiful Christmas cards designed by the kids they work with - and to help sell the cards, Hanna includes a CASA Christmas card brochure in their Hanna catalogs during the holiday season. The response has been tremendous.
Online, there's been an explosion of companies who have found innovative ways to make a difference. I don't know if they're still doing it, but one of the online toy companies was offering 50% off any toy purchase that would be donated directly to "Toys for Tots." The American Girl Company web site (www.americangirl.com) is running a food drive concurrent with their introduction of a new doll named "Kit." I also came across this web site, www.makemywish.com that serves as a personal gift registry with a twist, they donate 10% of all profits of every item purchased through their site to charities chosen by its members.
For cause-related marketing to be effective in branding, it must be relevant. The American Girl Company has a food drive that is tying in with the introduction of their new doll - whose character lived in the 1930s, during The Great Depression.
Another important factor for success is that the company must be committed. The commitment has to be genuine and the company must be willing to devote enough resources, (both people and financial) to a program.
Gratitude - how lucky we really are to be able to give.
I just want to share with you some numbers that I came across the other day:
Number of dollars that will be spent on interactive media in 2000: $2.8 billion
Direct marketers' projected advertising expenditures for 2000: $191.6 billion
Projected catalog sales for 2000: $110.6 billion
Those of us who've been around a little while know, overall, that these are good times, business-wise. I am so grateful for so many things this year, especially the people in my life. I'm sure you feel the same.
If you need a great organization to incorporate into your direct mail programs or, in the spirit of the season, maybe you want to help out those less fortunate than yourself - look no further.
There's an organization called Harlem RBI, Reviving Baseball in Inner Cities, that I know about because it's run by Rich Berlin, who is the grandson of DM great Larry Chait. He was my mentor and my friend.
Harlem RBI directly serves over 350 boys and girls, ages 7-18, with year-round educational, mentoring, college prep, and job internship opportunities - and spring, summer, and fall baseball leagues. The children in the program produce a newsletter and a web site, and are required to perform a variety of community service tasks and maintain tough academic standards.
Harlem RBI is a true "Field of Dreams" for the children of the neighborhood. Harlem RBI can be reached at 212-722-1608 or visit their web site at www.harlemrbi.com (you can donate directly online).
LOIS K. GELLER is President of Mason & Geller Direct Marketing, a full service direct response agency in NYC. Mason & Geller creates direct marketing plans, direct mail campaigns, direct response commercials and other offline and online strategic services for many blue chip businesses as well as smaller companies. Lois is the author of the new revised and updated edition of “RESPONSE! The Complete Guide to Profitable Direct Marketing” published Fall 2002. Lois is the developer of the popular corporate training seminar “Direct Marketing Boot Camp” which she has delivered to over 100 top organizations. If you have any direct marketing questions, email Lois at loisgeller@masongeller.com.
