Newsletter: 3 Value Scales to Determine What Matters to Partners ⚖️ ; Court Dismisses Challenges to CVS’s Donation Checkout Program👩🏽‍⚖️ ; 2,000 Year-Old Marketing Advice That’s Still True Today 📜

Image via winnifredxoxo on Flickr

This month's thought-provoking article in the Harvard Business Review is titled ​3 Ways to Determine What Your Customer Really Values​.

Let's change the title to 3 Ways to Determine What Your PARTNER Really Values and see what we can learn about corporate partnerships.

When approaching a prospective partner, consider where they sit on these three scales. ⚖️ The author suggests you do this in the order presented.

⚖️ Commoditized vs Customized. If you're a small nonprofit with limited staff and resources, you generally have to accept the partnership you're offered.

For example, a conservation nonprofit I know was approached by an alcoholic beverage company that randomly selected them to benefit from the sales of a cause product. The sum was substantial, especially for a small nonprofit. As they were not familiar with cause marketing, had no dedicated staff - and weren't opposed to working with an alcohol company - they accepted the partnership as is.

A more prominent nonprofit with experience in corporate partnerships and a talented staff would have approached the opportunity differently. If the alcohol company had contacted the National Park Foundation, the conversation would have been much different. NPF would have sought a more active role and probably more money from the partnership rather than accepting the agreement as is.

"Your position on the scale of commoditized vs. customized depends on how much unique value you contribute to your products, which is why you need to start with this scale. If you’re in the business of supplying raw materials, it may be that you don’t add much value. This means that lowering your prices is your only option to increase competitive advantage. But this is not the case for most businesses. Your “value add” can include all sorts of factors from the experience of customers with your service to the quality of your materials. These are value factors that customers are willing to pay more for."

Bottom Line: When dealing with potential partners, you must assess whether they perceive you as a commodity or if there's room for customization. Are there opportunities to bring distinct value to the partnership, or should you opt for a straightforward financial transaction?

⚖️ Rational vs Emotional. The next scale helps you figure out what kind of value you provide. Is it emotional? Rational? Or a little of both?

"Finding your place on the rational vs. emotional scale involves scrutinizing your customers’ decision-making processes. Are they influenced by any emotional factors or are they able to set emotions aside entirely and take a hard-nosed and rational approach?"

As we all know, prospective company partners sometimes have emotional reasons for supporting a cause.

I just wrote a case study on a partnership with a health nonprofit that materialized after a beloved company supporter died from the disease the nonprofit is committed to fighting. The partnership decision was profoundly emotional.

In contrast, I've also penned case studies for the same nonprofit wherein the corporate partner's primary focus was on the quantifiable reach and demographics the partnership could achieve for marketing. In this instance, the partnership decision was more rational and analytical.

Bottom Line: When approaching a prospective partner, know which way the scale is tipping: emotional or rational. It will inform your decision on how to pitch the company and with what marketing materials.

⚖️ Assessable vs Unknowable. The last scale clarifies how the customer chooses you. The big question here is whether the prospective partner is new to corporate partnerships or an old hand.

"If you’re in the business of selling products or services to customers who don’t have the background knowledge to know exactly how they work, you need to figure out your place along the assessable vs unknowable scale. Customers making purchases in these areas are forced to rely on other sources of information to make their buy decisions. You must ensure that you’re presenting well across those other sources."

An experienced company that has established partnerships with other nonprofits, like Starbucks or Walmart, clearly understands what they seek in a new partner. They are adept at evaluating nonprofits and can confidently rely on their internal judgment. In contrast, a company new to corporate partnerships lacks established criteria and must depend on external opinions to guide its decision-making process.

Bottom Line: For a prospect with limited experience, social proof such as case studies, testimonials, and impact stories plays a crucial role in simplifying their decision-making process, as it confirms the value of others.

✍️ Partnership Notes

1. Here's a ​slide for your pitch deck​. Consumers rate the top factors affecting brand loyalty. Environmental impact is #4, and alignment with personal values is #5.

2. ​Seven questions to ask yourself​ before you pick up the phone or email a prospect.

3. In December, I reported ​how CVS was accused of fundraising fraud at checkout​. The update is that the case has been ​dismissed​. Still, there are some lessons to learn. ​I offered several here​. Law firm Venable LLP also offered insights ​here​.

🤑 Marketing Your Cause

1. The most valuable marketing advice I got this week was from 2,000 years ago. Persuasion occurs through identification.

😎 Cool Jobs in Cause

1. Corporate Development Manager, ​Lupus Foundation of America​, Washington, DC

2. Director of Strategic Partnerships, ​Special Olympics Oregon​, Beaverton, OR ($70k - $80k)

3. Director, Corporate Relations, ​Philabundance​, Philadelphia

4. Senior Manager, Corporate Partnerships, ​Best Friends Animal Society​, Bentonville, AR ($90k - $120k)

🧠🍌 Brain Food

1. Survey finds consumers are ​less interested in brands taking stances​ on sociopolitical issues. 🎁 (🎁 = I'm a subscriber and am "gifting" you the article)

2. Goodwill International is ​rushing to figure out e-commerce​. Is time running out? 🎁

3. How the stately Victorian mansion became the ​blueprint for haunted houses​. 👻

I have ghosts on my brain! I've begun my "season of horrible reading" when I only read ghost and horror stories. My first book isn't scary, but it does have a ghost! ​The Ghost and Mrs. Muir​. Are you an old movie fan? ​The book was turned into a movie.​ It's one of my faves!