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Tips for Businesses

Cause marketing: just show me the numbers

Sonia Nigam
December 9, 2024
Sonia Nigam

Have you ever had this conversation?

“Yeah, yeah, I get it.  But just show me the numbers.”

Or this one.

“The numbers don’t lie.”

The Holiday Season is the crucible of online sales, especially in B2C. You study every single data point. LTV, average order value, conversion, new customer uptake, etc.

“Just show me the numbers.”

In the end, facts matter. Pure financial results will always carry the day in a business analysis.

If facts matter, what about for cause marketing? Do the facts and the numbers support cause marketing initiatives?

If you are considering cause marketing campaigns in your business, you most likely have an altruistic affinity for doing so. If you have to justify it internally, how do you pitch it to your team?

Here’s a hint: Leave the altruistic reasons for the end of the discussion.

Instead, start with this phrase: “I want us to deploy (or do more of) a tactic that will increase our customer LTV, increase our average order value, improve our conversion rate, increase new customer capture, and increase our average customer order size. Want to hear more?”

Then use the 5 cause marketing stats for sales growth below to show how impactful cause marketing is. You’ll have to caveat that your company follows best practices to maximize the sales increase impact, but the link we just gave you shows you how.

Here are the numbers to bolster your cause marketing strategy, together with links to the cited studies to back up your argument.

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:

  1. Phin, Compelling Cause Marketing Statistics and How to Ensure Your Approach is Authentic
  2. Edelman, Edelman Earned Brand 2018: Brands Take a Stand
  3. Mintel, #GivingTuesday: 73% of Americans consider companies’ charitable work when making a purchase
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