Cause marketing seeks to boost the company’s profits and positively impact people through corporate social responsibility (CSR). CSR is a form of self-regulation ensuring organizations are working towards the best societal interests.
Connecting with clients through common issues can build a more personal relationship that cultivates loyalty and trust. However, being consistently active and loyal to a cause is something every company must do if they want its strategy to succeed.
Top Cause Marketing Statistics: Editor’s Choice
- 81% of businesses offer more eco-friendly options than they did three years ago.
- US consumers feel a deeper bond with firms that share their values, according to 79% of respondents.
- 25% of people stopped purchasing from a brand because it acted only in its best interest.
- 64% of customers would recommend socially responsible businesses to people.
- About 76% of millennials see business as a force for good in the world.
- Only 1% of CEOs in Fortune 500 companies are Black.
Cause Marketing and Brand Recognition Statistics
1. 3% of customers have boycotted brands because of their stance on social issues.
Most recent research shows that the majority of customers have strong beliefs and express them by purchasing from particular brands. It is beneficial for businesses to take a clear stance on social and political issues that customers support to attract a younger audience.
Cause marketing studies show that the number of people influenced by a brand’s actions towards corporate social responsibility will keep growing in the following years.
2. 81% of companies now focus more on sustainability than three years ago.
According to cause marketing statistics for 2020, most businesses have been working on meeting their customers’ sustainability expectations for the last few years. Consequently, more than eight in ten companies are actively promoting eco products.
3. 79% of US consumers feel more connected to companies with similar ethics to theirs.
According to social marketing case studies, purpose-driven brands can build stronger connections with consumers beyond the ordinary buyer-seller relationship. Moreover, if clients are loyal to a brand, they are more likely to defend it in times of controversy.
4. 84.3% of consumers are loyal to brands whose values align with theirs.
Customers are willing to buy more from companies representing their political and social stances. Furthermore, consumers are actively seeking brands that support today’s top social causes.
5. 66% of consumers are connected with brands through trust.
Social media is the communication channel that provides the most opportunities for businesses to connect with their clients, followed by TV and radio, email, and social ads. Furthermore, 53% of people categorize the alignment between their values and the brand as a connection.
6. 25% of consumers walked away from brands that acted solely in their own best interest.
Cause-related marketing statistics show that companies should always prioritize their clients’ needs when introducing changes. For example, raising the prices of essential items is considered selfish and unethical.
On the other hand, 82% of people continue shopping from a particular brand because it has recognized their needs.
7. People are willing to pay 6% more to purchase from a company that adopts CSR strategies.
The impact of social responsibility in marketing has increased over the years. Customers involved in social issues want to see companies that are engaged and educated on the causes they stand for. Consequently, people are willing to spend more to support such brands.
8. 64% of consumers recommend socially responsible companies to family and friends.
The benefits of pursuing a strategy of social responsibility include more recommendations to new potential customers. One of the oldest but most efficient forms of advertising is word-of-mouth marketing, so it’s best to ensure people want to talk about your brand.
9. 65% of companies paid volunteer work to their employees.
Offering employees a chance to support a non-profit organization can be a beneficial cause marketing strategy. It helps grow a strong community and underline the purpose of the company. Investing in a common goal can prove to be very advantageous in the long run.
Cause Marketing Statistics and Demographics
10. 64% of Gen Z customers spend more to buy an eco-friendly product.
Millennials and Gen X reported similar rates of purchasing sustainable products—63% and 60%, respectively, and 57% of Baby Boomers also follow the trend. All things considered, the majority of every generation chooses to buy eco-friendly products, even if it means spending more.
11. 76% of Millennials consider business to be a positive force for social impact.
The top issues for Millennials are social, political, and environmental. They actively use social media to raise awareness and educate a more aware audience. Millennials strongly believe the involvement of businesses in such matters can yield positive results.
12. Millennial employee retention is better in firms that participate in cause-related marketing.
Millennials are proud to support brands involved in social issues. Studies show that six out of ten consider the firm’s purpose as a determining factor when choosing an employer. Millennials and cause marketing have a strong bond that can attract new talent and ensure the satisfaction of current employees.
13. Only 1% of the Fortune 500 companies have Black CEOs.
In 2020, Fortune 500 only had five Black CEOs on its list and 18 altogether since 1999. Statistics reveal that despite the development of diversity programs, the business world is still far from inclusive.
Cause Marketing Statistics: The Takeaway
Nowadays, the impact of cause marketing has gotten stronger—both companies and customers can profit from it. As an increasing number of people demand brands to be socially and politically engaged, more and more companies adopt such campaigns.
The benefits of cause marketing include a deeper connection between brands and consumers, resulting in mutual trust and loyalty. Cause marketing is especially impactful for Millennials, and they firmly believe businesses can have a positive impact on society.
Frequently Asked Questions
Does cause-related marketing increase sales?
Cause-related marketing can increase revenue as it attracts significantly more attention than other forms of advertisement. Furthermore, taking a social or political stand boosts customer loyalty and employee retention. People of all ages tend to spend more on cause-related products than generic ones.
Based on a study conducted by Duke University’s Fuqua School of Business, brands can increase sales by up to 74% in specific consumer-good categories if they employ cause marketing.
Is cause marketing effective?
Cause marketing is an effective strategy that, if executed properly, can create a high number of loyal customers. People involved in social activism prefer to buy from a brand committed to a non-profit organization or cause. They are also willing to spend more on sustainable products. By increasing customer loyalty, it’s possible to make long-term profits.
How do you utilize cause in marketing?
When using cause in its marketing strategy, the company has to select the right purpose for its brand and set a goal. Another important factor is choosing a good time for the campaign based on, for example, corporate schedules to make the most of the opportunities.
The next step is attracting as many people as possible by using social networks and other social media tools. Finally, the brand needs to establish a relationship with consumers, inspire them, and convince them to take action.
Why is cause-related marketing often successful?
Cause marketing builds a connection between the brand, a cause, and the customers, which can be key to success. Mostly, it appeals to people’s feelings and uses words and images to trigger the audience’s response. A strong and impactful message on a social issue can motivate customers to spend their time and money on particular products.
What is the major difference between social responsibility and marketing ethics?
Social responsibility in relation to marketing includes targeting consumers who want to make a difference in society by purchasing a specific product. For this reason, many companies have adopted particular elements in their advertising strategies to help a community or marginalized group.
What is social responsibility in marketing?
Social responsibility in advertisement strategy includes targeting consumers who want to make a difference in society by purchasing a specific product. For this reason, many companies have adopted particular elements in their strategies that can help a community or marginalized group.
Why is cause marketing important?
A company’s impact can be strong enough to change the societal view on a topic. Cause marketing can empower and raise awareness of important social, political, and ecological issues.
During the last few years, cause marketing statistics have shown that such a strategy is beneficial for every business. Caring about a specific cause brings positivity and hope to the people the brand stands for.
Business Wire, Daily Karma, EBN, Fortune, Higher Visibility, Latana, Nucleus Research Guidebook for Salesforce Philanthropy Cloud, Porter Novelli/Cone Purpose Biometrics Study, Promoboxx, Sprout Social