What are the important trends for cause marketing in 2024?
What can you do to increase your impact on sales, and customer loyalty – while also supporting a cause that is aligned with your business and its customers?
Here are five critical and impactful trends and tactics.
1. Personas and additional nonprofits
We assume by now that you know that cause marketing is a proven good for increasing conversion, increasing cart size at checkout, and increasing customer loyalty.
For the most part, marketers that have applied cause marketing to their organizations have already enjoyed those benefits.
But at the same time, the incremental benefit of adding cost marketing for many marketers has peaked.
So how do you go about reigniting cause marketing-influenced improvement in these critical marketing metrics?
The answer is to execute on marketing basics.
Ask yourself: what is a tried-and-true formula in marketing that increases conversion, cart size, and customer loyalty?
One answer irrefutably is targeting specifically at customer personas.
Crafting your marketing messaging, product offering, and advertising so that it's targeted at a specific persona is a known and proven tactic for improving marketing and sales performance.
So how do you do this with cause marketing?
Your answer is to dive deeper into persona-based targeting as it relates to the nonprofits that you work with.
As an example: let's say that you're a marketer of a wearable fitness device and you know from experience that your fitness device is used by three primary personas.
- Your first persona is people that run, or more specifically, trail run. For that persona you're going to want to align with a nonprofit that promotes various running charities or running activities, preferably on nature trails. An example would be the Conservation Lands Foundation.
- Your second persona is senior citizens that do power walking in parks and in nature areas. For that persona, you'll want to align with senior citizen related causes but also include physical activity, specifically walking. America Walks might be an organization that has a good persona fit.
- Finally, your third persona is primarily physical fitness people that are highly engaged in intense exercise in a variety of manners, usually over 1.5 hours per day. For that persona, you'll want to have a very targeted charity that's focused on aggressive physical fitness and is a more dominant part of their life. An example of a possible charity to align with for these personas would be the Crossfit Foundation.
Matching your nonprofits that you work with to the personas that you typically sell to will increase customer conversion, shopping cart size, and loyalty.
2. More regulation
Another critical trend in 2024 will be the increase in state-driven regulations on businesses that work together with nonprofits in a marketing capacity to raise money for those nonprofits
If you work with a nonprofit for the purposes of raising money for the nonprofit and within the context of selling your product, then you are most likely what's known as a Commercial Co- Venturer, or CCV.
A CCV is required to register in several states.
The CCV reporting regimen has been growing and now includes several different requirements including:
- Filing of initial registrations and renewals
- Charitable solicitation notices
- Contract filings
- Campaign reports
The additional registration and filing requirements for CCV’s add a cumbersome and costly burden to businesses which are aligned with nonprofits and engaged in cause marketing.
We expect the additional cause marketing regulations to spread to additional states and the overall reporting regimen to become more and more detailed and more and more complicated.
Most cause marketing companies have pivoted to outsourcing their compliance monitoring reporting and legal filings so that they can focus on more typical marketing tasks like improving conversion and lifting sales.
Change has a comprehensive cause marketing compliance solution which will lower your compliance costs, simplify your life, and allow you to sell and market to additional cause-focused personas.