RAPAPORT... A study revealed that 92 percent of Americans have a more positive image of a company that supports a cause they care about,” stated David L. Rocha, the executive director of Jewelers for Children (JFC) as he began his presentation at a recent seminar, referring to the 2007 Cause Evolution & Environmental Survey by the Boston-based agency Cone Inc.
“So when the consumer is out there looking to make a purchase or to do business with a company,” he continued, “92 percent of them are actually thinking about what the company stands for, who they help and how they are giving back, in addition to the product that they offer.”
Rocha knows from firsthand experience that most businesses give to worthy causes. JFC has raised nearly $30 million for children’s charities since 1999 with the support of companies that create and sell fine jewelry and watches. The point of his talk was to teach jewelry retailers how they could earn benefits beyond a tax write-off from carefully executed charitable giving. Making regular contributions a part of a store’s overall business plan — “cause marketing” — will, Rocha advised, create “a strategic position and marketing tool that links your company to a relevant social cause for mutual benefit.
“We all like to think that we’re doing the right thing by donating to charity but, at the same time, there is a lot of benefit that you as a business can get from making donations, as well as the fact that more and more of your customers want to know that you are a good corporate citizen,” Rocha clarified.
Building Partnerships
Turning contributions into goodwill means taking the time to set up partnerships, rather than relying on the same old “checkbook philanthropy.” While it may seem expedient to just send money when your company is approached, there are many options for the alert business owner to increase his own brand recognition while doing the right thing. A long-term program gives your company more influence and a higher level of effectiveness with your chosen organizations, Rocha noted.
The first step is to identify the causes that fit your company. Rocha urged business owners to think about their customers and employees and what’s meaningful to them. Though you may have a favorite charity, ask yourself if it really addresses your customers’ concerns.
“It doesn’t mean that you as an individual or you as a business can’t support a cause that’s very important to you but, at the same time, make sure that the ones you are supporting and promoting are the ones that are important to your customers,” Rocha cautioned. He singled out charitynavigator.org as a helpful tool. The website shows exactly how much money goes to services — versus administration and fundraising — for more than 5,000 charities.
Bringing staff into the process ensures they will act as ambassadors. “If you’re trying to communicate the message of what you’re doing to your customers, your employees are one of the most important assets you have in doing that. So they need to be well versed in what they’re doing, they need to be able to communicate it easily to your customers and they also need to buy in on it,” stressed Rocha.
Hometown Value
Rocha believes charities in your own marketplace should not be overlooked. It’s actually critical to doing business, because local causes provide opportunities to encounter politicians and business community leaders while raising your business’s name recognition with important prospective clients.
“If you are at an event and you are doing something good, someone’s going to have a better chance of remembering you when they think about making a jewelry purchase. It really helps to cement your position in the community,” Rocha noted. Even something as simple and relatively inexpensive as sponsoring a Little League team delivers a receptive audience, Rocha contended.
On the other hand, nationally known charities should factor in as well. They have instant name recognition and many have a network of state and local chapters across the country. “So that gives you a local connection to a national charity and the opportunity to be involved in some national-level programs — and maybe even some national press — simply by being involved in that,” he stated.
Rocha named four tactical approaches to cause marketing.
• Message Promotions
This can be as simple as displaying a collection canister to foster awareness and raise money. Rocha instructed that businesses should take advantage of any signage, window decals or pins that the charity might offer.
• Licensing
Many charities will work with their supporters to develop a product branded with their identity to sell in-store. “While it’s technically not your money that you are donating to the charity, you are still recognized as the point of donation because you are collecting it from your customers,” observed Rocha. It is essential to spell out exactly how much of the purchase price will go to the cause.
• Transactional Promotions
JFC relies on a number of retailers across the country who change watch batteries for free in exchange for a donation. Rocha recognized that “It’s a great way for you to be involved with a charity without actually having to write your own check.” Similarly, a promotion in which the store makes a donation for every purchase drives foot traffic to the store.
Another option is donating jewelry for fundraisers. “You probably have merchandise that hasn’t moved as quickly as you would have liked. It’s a great way to get a tax deduction and to get your name out there in front of everybody.” But don’t stop there, advised Rocha. In most cases, there will be a local newspaper or radio station in attendance, so if management can deliver the jewelry to the event in person, you might see your store on the news. He also suggested that companies consider sending out a press release after the event.
• Community Involvement
Businesses can be the headline sponsor at local events starting for as little as $500 or $1,000.
No matter how involved you are, it’s most important to market your company’s activities at every level, from the web to mailings to signage. “Show your community and your customers that you care. That’s really what it comes down to,” Rocha proclaimed.
Article from the Rapaport Magazine - March 2009. To subscribe click here.