How Businesses Can Measure ROI on Cause Marketing

Whenever I work with a business on a cause marketing program, especially point-of-sale–my bread-and-butter program–they usually ask that after helping a great cause how do they really measure what was gained from the partnership.

It’s a good question, to which there is generally no clear answer, especially for a smaller businesses that can’t invest in focus groups or customer research to determine if cause marketing did what it’s suppose to do: enhance favorability with consumers and employees and drive sales.

As I work almost solely with small and medium-sized businesses–and not the Walmart’s, Starbucks or Chili’s of the world–this is how we measure the ROI on a cause marketing program.

Did the campaign achieve its goal? Before the start of each point-of-sale program we work with the retailer to set a goal for each store involved in the program. A successful program that meets or exceeds goal and is greeted with enthusiasm–and few complaints from shoppers–deserves to be called a success.

Coupon redemptions. Most of the pinups and point-of-sale programs we create include one or more coupons. They add value for the shopper and give the business a tangible way to track consumer interest in the program. Most of the coupons on our pinups are good for a return visit–those on our Halloween Town pinup, for instance, weren’t good until after Halloween–so they’re traffic drivers.

The cross promotion that multiple coupons from several businesses creates can translate into new customers for some stores. A pinup partner of ours was excited to discover that a large number of coupon redemptions weren’t from their own customers, but from those of another partner in the same program (each partner has a unique code on their pinup so they can track coupons from other partners).

Take it out of the store. Because our programs are so multifaceted, we offer a lot more than pinups. Our latest program with Phantom Gourmet gives partners added exposure on radio and television, which is added ROI. Halloween Town gave pinup partners a two-day brand land experience that drew 15,000 guests. No cause marketing program should be one dimensional. Not only do integrated campaigns make for better cause marketing but they also deliver better returns. Whenever I meet with sponsors for a post-campaign wrap-up I always have lots to share with them on how valuable the program was to them.

Measure employee engagement. Getting hard numbers on customer engagement on cause marketing is difficult and expensive, but finding out the impact of cause marketing on employees is easier because the audience is smaller and you have direct access to them. Talk to your managers and rank and file employees about the program. Customers aren’t the only ones that benefit from cause marketing. It can also boost employee satisfaction and loyalty, which has its own bottom-line benefit.

Did you get your money’s worth? I always throw this question out to a partner because as many of you who follow my blog already know, we don’t charge anything for our cause marketing programs (nor should you). I usually make this my final point to a partner as I’ve already established the many rewards of the program. And then I add, “Oh yeah, and it was free.” Great ROI, eh?

Cause marketing delivers karma points and ROI for businesses. Even without fancy and expensive measurement tools you can gauge employee and customer interest and reach potential customers through cross-promotions and events. And if you’re a retailer you can get this all for free.

Who wouldn’t call cause marketing a good investment?

8 Responses to How Businesses Can Measure ROI on Cause Marketing
  1. John Haydon
    July 19, 2010 | 8:58 pm

    Joe – Are surveys recommended when measuring employee engagement? What other methods can be used?

    • Joe Waters
      July 20, 2010 | 6:49 am

      Surveys are one route, John. But in all my years of working with companies I’ve seen interviews with individual employees and managers and small focus groups. These are informal, of course, but they’ve been very accurate at gauging employee satisfaction with the program.

      Thanks for stopping by, John!

  2. Mazarine
    July 20, 2010 | 7:53 pm

    Take a poll and ask people what they thought about your brand BEFORE the cause marketing, and after. Find the points where people saw your authenticity, or lack thereof.

    Get subtler. What are you trying to generate as a brand feeling?

    Mazarine

    • Marco Puccia
      July 21, 2010 | 10:52 pm

      I like the idea of asking customers how they felt about the authenticity of a campaign!

  3. Marco Puccia
    July 21, 2010 | 10:52 pm

    There seem to be more qualitative returns on cause marketing than quantitative, don't you think? Brand equity, affinity, loyalty, etc. Something my marketing team was talking about the other day is how marketing these days doesn't seem to have an immediate impact — it is more about planting the seed in the back of somebody's mind so that when it comes time to make a decision, your brand comes to mind. What do you think?

    • Joe Waters
      July 21, 2010 | 8:45 pm

      Hey Marco, I think what you are saying is especially true for cause marketing as it seeks to enhance the favorability of a company. Indeed, cause marketing is one of those things that gives you a great competitive edge when product and price are equal as consumers tend to default to the company they view most favorably. Cause marketing gives you this favorable edge!

  4. Daniel Schutzsmith
    July 29, 2010 | 4:48 am

    one thing that we recommend to each client is making sure that any cm campaigns they embark on offline, also exist online. by doing this we can measure some specific results on contributions, petition sign-ups, etc. simply by making sure we're using a unique, trackable url to different targeted audiences. for instance, we're doing some work right now for a local green festival and we've been able to tell where a person has heard about the event simply by the url they use which are variations like localgreenfest.com, localtowngreenfest.com, localtowngreenfestival.com and so on. We can also track simply by adding a subdomain or a folder to the url as well like wkze.hudsonvalleygreenfest. Now once the person comes to the website and we have this information, we can then follow them all the way through the website to see how long they spend on each page, what pages they visit, and if they purchase a ticket.

    its nice because it is a quantitative result of the marketing efforts.

  5. [...] Help them see a marketing return on investment, not a fundraising problem. My post: How Businesses Can Measure ROI on Cause Marketing [...]

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