Consumers are becoming more conscious of price and having a greater sense of wanting to give back. According to Forrester Research, most consumers care enough about the environment and the community that they consider these concerns when making purchase decisions. A small but committed portion of consumers will even pay more for products that are produced with green or socially responsible practices. Those consumers who are willing to pay extra for products in line with their ethical concerns earn more money and are more brand-loyal than average.
According to a recent article in the Wall Street Journal, consumers say they worry more about social and environmental values than ever before. In surveys by DYG Inc., a Danbury, Conn., market-research firm, the proportion of respondents who say they have shopped for products for “social, political or environmental reasons” rose by 10 percentage points, to 51%, over the past year.
It is becoming more apparent that cause-commerce is becoming an important strategic marketing opportunity as firms like Mckinsey, who advise F500 CEOs, are putting out white papers on corporate social responsibility. Smart brand strategists in all B2C verticals will need to incorporate environmental and social responsibility into their products to help drive differentiation, incremental revenues, customer acquisition and brand loyalty.
There are companies out there that are helping brands to easily set up cause-based marketing platforms with low cost, low administration and a time-saving set-up. BiddingForGood, the largest online cause-commerce platform in U.S., offers a turn key cause marketing strategy for top brands with a very low barrier for entrance into the marketplace. BiddingForGood works with 41 of top 100 NPO brands and hundreds of prestigious private schools and growing at 30%+ year. By mid 2010, the company will have raised over $100 million for causes and generated hundreds of thousands of new customers for brands.
BiddingForGood connects charity auctions, affluent consumers, and marketers with an online marketing program that turns charity auctions into a measureable marketing platform that delivers customers, leads, and deep engagement awareness. Virtually every major brand is represented in their system including DKNY, Four Seasons Hotels, Reebok, and Kimpton Hotels to name a few.
The company also holds a proprietary database with the latest trends in cause commerce (what brands are up vs. down, who is selling for highest % of retail, avg. losing bidder value, what categories shine and which ones bomb) and a case study on how a brand can work the cause commerce channel to acquire new customers, get leads, and generate measureable awareness.
So as consumers make their new years resolutions to become better citizens and smarter shoppers, brand marketers better be gearing up to serve this socially responsible group which seems to be growing exponentially.
I am currently the Media Relations Manager at cMarket. I have worked for national non-profit organizations in Washington DC and have been in public relations for 9 years, both in private and non-profit sectors.
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