Unlock sales growth through cause marketing: boost customer loyalty by 18%, increase order value by 23%, raise conversion rates by 19%, attract new customers, and command premium prices for purpose-driven products.
You’re a business.
You’re in business to maximize profits.
That in its own right is a social good.
Greater profits create more jobs, more opportunities, and more return for your investors to reinvest in other society-benefiting businesses.
Cause marketing is a method to increase your revenue.
So, how does cause marketing improve your revenue and what are the metrics around it?
Assuming you follow the best practices to maximize the sales increase impact, here are five ways cause marketing improves your business’s sales growth:
1. Increased LTV from Returning Customers
Cause marketing increases LTV by 18%.
Consumers, especially millennials and Gen Z, are more and more likely to make purchasing decisions based on a brand's values and social commitments. By aligning with a worthy cause, businesses can foster trust and establish deep-rooted brand loyalty.
Loyal customers tend to purchase more frequently, advocate for the brand, and are less sensitive to price changes.
This loyalty translates to consistent and increased revenue streams.
2. Increased Average Order Value
Cause marketing increases Average Order Value (AOV) by 23%.
Correctly aligned cause marketing campaigns drive larger purchases at the time of sale.
People like to spend more with companies they like and trust.
3. Increased Conversion Rates
Cause marketing increases conversion rates by 19%.
Online checkout donation opportunities give consumers reassurance about the legitimacy of the company they are buying from.
So, their tendency to purchase goes up and abandoned carts go down.
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4. New Customers Switching From Competitors
50% of consumers say they would switch to a new company if they supported a cause they care about.
Consumers are constantly making buying decisions – even when they have exhibited loyalty to your competitors.
One low-cost way to get a competitor’s customers’ attention is to support a cause that they care about.
5. New Customers at Higher Prices
67% of consumers have purchased, or will purchase, from a new brand based on a cause that they are involved in.
Consumers are willing to pay a premium for products or services when they know a portion of the proceeds support a good cause.
Cause marketing allows businesses to introduce special edition products or services aligned with a particular cause.
By leveraging these avenues, businesses can harness the power of cause marketing to not only make a positive impact on society but also drive their bottom line.
Sources:
https://www.yotpo.com/ecommerce-product-page-guide/cause-marketing/
https://app.phinforgood.com/stories/cause-marketing-statistics