In the recent Cone Cause Evolution Study researchers found that two groups in particular respond to “cause based” marketing: moms and young people ages 18-24 (the “Millennials”). The study focused on the surge of consumers seeking after companies that promote social causes in their business. In fact, they found that 83% of Americans with more of the products, services and retailers they use would support causes.
Moms are a sought-after segment because they manage such a high percentage of household shopping (80%). In the survey, the vast majority of moms (93%) indicated they would switch brands to support a cause. They also made more cause-related purchases than any other segment.
The college-aged Millennials have nearly $40 billion in discretionary income, and they are not far behind moms in their desire to have a social impact with their consumption. Eighty-five percent of them said they would buy a different brand if they believed it would support a cause.
I love seeing companies engage in creating a culture of generosity through their business model (I hope to highlight several local groups using the foundation to do just that over the next month).
If you think about it, everybody wins:
- The cause/nonprofit being supported gets more dollars to their mission. Sometimes more importantly, cause-marketing can give them local advocates.
- The business giving back tends to have more faithful clients, adding to revenues
- The consumers purchasing the goods gain satisfaction from knowing that even personal purchases can help others