Cause Marketing: Prepare and Implement Your Campaign
Teresa Chien, Senior Consultant
June 2011
Last month, we explored how to determine whether cause marketing is right for your organization. If your answer is “Yes, cause marketing can add tremendous value for us,” then your next steps are all about preparation.
Board Support
The question of Board support was brought up last month; it becomes even more important now that you are serious about obtaining a partner. Quite simply, your Board must help your organization make contacts to expand your cause marketing footprint. The Board should be the first to see your list of partner prospects to determine whether connections and introductions can be made. They should be involved in the decisions to accept (or not) the parameters of a partnership. And they should be involved in promoting and maintaining the partnership to make it successful and sustainable.
If your Board is not 100% committed, your organization may encounter challenges as early as the preparation phase.
Goals and Benchmarks
Cause marketing is about more than money, and its success is built on establishing clear objectives. Corporate partners are not simply another type of funder. They are strategic allies who can bring expertise, influence and non-cash resources toward the achievement of your mission. In determining goals, consider long-term or budget-relieving assets that prospective partners may contribute, such as in-kind support, pro-bono technical assistance or free publicity.
After deciding on your goals, you must be specific and able to outline measurable benchmarks. This is your return on investment and will help determine whether the partnership is worth the organizational resources required to establish and maintain the partnership. Without these benchmarks, you will not be able to effectively evaluate the success of the partnership. Below are some examples of objectives used by nonprofits that we provided in last month’s article about cause marketing:
Perhaps your mission is already capable of drawing broad-based support. What is your organization’s reputation? Is it strong and positive now? Will partnering with a for-profit business change your donors’ and the public’s perception in any negative way? If so, give pause before planning a campaign.
- Generate $50,000 of unrestricted revenue;
- Secure a commitment from a senior executive to serve on your Board;
- Ensure that you’re included in your partner’s advertising campaign that will increase awareness with at least 10,000 new supporters;
- Access your partner’s pool of 500 employees for recruiting volunteers and for fundraising.
Costs
For nonprofits, a successful cause marketing partnership is both profitable and sustainable. Setting concrete benchmarks is just one half of ROI. The other half is evaluating the costs to your organization that come with managing such a partnership. In reviewing your costs, you must consider hard costs (usually cash, but may also include equipment and capital), soft costs (staff time) and opportunity costs (any activity or opportunity that cannot be undertaken due to the hard and soft costs of the partnership). Here are some examples of costs to consider:
- Hard costs - $15,000 to print out new or additional collateral as it pertains to the campaign; $5,000 per promotional and community event related to campaign.
- Soft costs - reallocation of staff time needed to coordinate campaign: Marketing Director .75 FTE, Development Director .5 FTE, Development Assistant .25 FTE, Marketing Assistant .10 FTE.
- Opportunity costs - reduction in the number of special events, from five to two (potential revenue loss); having to decline another partnership (potential revenue or in-kind donation loss); postponing a capital campaign launch (lost media opportunities and potential revenue).
When costs are placed alongside objectives, many organizations find that the partnership is no longer as profitable as it initially appeared. Therefore, it is critical that you take the time to assess expected impact, cost and any alternatives.
Assets Inventory
A cause marketing partnership is mutually beneficial. That means that your partner will expect something in return for all that it is doing to help you reach your objectives. Before approaching potential partners, conduct an inventory of all the assets, activities and value your organization brings to the table. For nonprofits, common assets include the organization’s brand and credibility, access to donors and volunteer leaders, category exclusivity, impact opportunities (impact that your partner’s support makes possible), technical expertise, and additional print and web presence. These are things that make your organization valuable, so be prepared to proclaim and promote them.
Potential Partners
When seeking potential partners, identify businesses that make sense for your organization. Does the company’s mission or practices align with yours? Do you share a similar geographic reach? Does the company sell a product or services that your organization and your donors would purchase? Does a Board member, staff member, or major contributor have a relationship or connection to the company?
Once you have selected a short list of prospective partners, do your homework. Research the niche potential partners fill. Take a look at what their competitors are doing; and examine what causes or organizations the company has supported in the past. What objectives does the business want to achieve through a cause marketing partnership? Having this information arms you for selecting the right business partner and also prepares you to present your organization as that company’s best ally.
Schultz & Williams is a national consulting firm based in Philadelphia providing management, fundraising and marketing consulting for nonprofit organizations, along with full-service direct marketing, database and creative/production services.
