11. Do causes make us buy more?
A new research offers empirical evidence on whether supporting causes leads to more sales.
Last week was Women’s Day, and as usual, all brands showcased how they support women and associated initiatives.
While most brands did that as a tactical way to pink-wash themselves for a day, many others do make meaningful long-term commitments to social causes.
The first brand that comes to my mind is Unilever, which consistently does so across product categories and countries.
After Unilever campaigned for handwashing, the UN’s Sustainable Development Goals recognized handwashing with soap as crucial to better health.
During Covid, Unilever India pledged 14 Million USD towards fighting Coronavirus.
Unilever Philippines’ #SHOP2GIVE campaign led them to change 32 of their brand names into actual names of the UNICEF beneficiaries to personify them.
You can find many more examples here.
What makes brands associate themselves with causes?
Here are a few reasons -
This signals the values the brand cares about and, as a result, creates a sense of affinity between the consumer and the brand
Causes evoke strong emotions in those who care about it and lead to some transfer of the emotional connection to the brand supporting it.
It makes consumers believe that their purchases will make a meaningful difference.
It makes the brand seem authentic and relevant beyond commercial motivations.
It is a great way to engage consumers and provide opportunities for active participation.
But do causes drive sales?
The latest research from the Journal of Marketing Research delves into the effectiveness of Cause Marketing Promotions (CMPs) in driving sales under real-world retail conditions.
The short answer is - yes; CMPs can effectively drive sales, but their impact depends on various factors, including brand and market characteristics.
The findings suggest that, on average, CMPs result in a 4.9% weekly sales lift, lower than traditional Price Promotions (PPs). However, CMPs offer advantages such as longer duration and potential brand equity enhancement.
CMPs work best when manufacturers and retailers are aligned on promotional strategies and coordinate actions.
Brands that fare average on consumer consideration tend to benefit more from CMPs, particularly in complex markets.
However, concurrent PPs can significantly enhance CMP effectiveness, especially for non-leading brands or those with less attractive pricing.
So, if you are a brand looking to support a cause, you may expect some immediate sales lift with a concurrent price promotion, but the primary outcome to expect should be a lift in brand equity in the long term.