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Cause Marketing Metrics

Updated: Jan 9

Supporting a charity as part of the online retail experience can be an impactful way to connect your business with a cause your customers care about. It can also have a big impact on some important eCommerce metrics


Cause Marketing Matrics

TL/DR Summary

  • Purpose-driven marketing campaigns can increase sales by 50%.

  • Supporting a cause with your business can increase customer conversion rates by 10%

  • 79% of consumers are more likely to buy a product that is committed to solving social and environmental issues.

  • Donations at checkout can increase conversion rates by 2%

  • 70% of customers are willing to spend more on products that align with social and environmental sustainability

  • 75% of consumers are likely to stay loyal to a brand that supports a social or environmental cause that brands that do not

  • 89% of customers will move to the competition if a brand is not committed to social responsibility


What is Cause Marketing?


Cause marketing or cause-related marketing is a business approach that involves a company aligning itself with social and environmental causes. It is a great marketing strategy as it mutually benefits the company's image as well as the cause or causes it is supporting.


There are many ways to take part including direct donations and partnerships with nonprofit organizations as well as involvement in awareness campaigns or working to make a business more environmentally friendly.


Cause Marketing Examples


American Express Cause Marketing

When thinking of great cause marketing examples a ton of great companies and initiatives come to mind including Patagonia and their environmental conservation efforts as well as Tom's donating shoes to those in need.


However, one of the best examples of cause marketing is one of the first. In 1983 American Express ran a cause marketing campaign with proceeds supporting the Statue of Liberty and its much-needed Repair.


As part of the campaign - American Express donated 1 cent towards its restoration every time someone used one of their cards. This campaign not only helped to raise $1.7 million for the statue's repair, but it also resulted in some great metrics for the company with card usage increasing by 27% and an increase in new card applications of 45%.


Benefits of Cause Marketing


Cause Marketing is a great way to connect with consumers and build strong Brand Values. While there are a don of intangible benefits of being an ethical business including brand perception, employee satisfaction, etc. There are also some direct benefits of cause marketing that eCommerce brands can track.


Overall Sales


Purpose-driven marketing campaigns can increase sales by 50%. - Nielson


While giving back and building a strong brand identity associated with sustainability can help with long-term sales, there are also some short-term benefits that brands can expect. When factoring in everything from dormant customer reactivation to increased conversion rates, purpose driven campaigns can increase sales by 50%.


Cause Marketing Conversion Rates

Conversion Rates - Giving from all Products


Businesses supporting a cause they care about can see a 10% increase in conversion rates - Cone Communications


When a business supports a charity and donates a set percentage of revenue towards the cause it is a clear way to show customers that you care and this can have a direct impact on conversion rates. When the Virtue Brand PAWDAW of London started supporting Dogs on the Streets they saw a 24% increase in conversion rates.


Conversion Rates - Individual Products

Cause Marketing dedicate an item to charity

79% of consumers are more likely to buy a product that is committed to solving social and environmental issues - Cone Communications


By aligning a product with a clear impact (like cleaning the oceans or planting trees) customers can clearly understand the commitment to tackling issues - and this can have a massive impact when selling an item.



Customer Donations at Checkout

Cause Marketing Customer Donations

Donations at checkout can increase conversion rates by 2% - The Giving Institute


While this is not directly giving as a store - businesses that let their customers add a donation as part of the checkout process are a very powerful way to give back.



Average Order Value


70% of customers are willing to spend more on products that align with social and environmental sustainability - IBM


When a customer knows that a company and a product support good initiatives they are willing to spend more on the items. This data was further backed up by a study by Nielson that found a similar result (66% of customers)

Donating to Charity Average Order Value

Customer Lifetime Value


75% of consumers are likely to stay loyal to a brand that supports a social or environmental cause - Cone Communications


Customers want to stay and support brands that align with their values, at the same time, they will boycott a brand if they have a stance that they do not believe in. The same study found that 76% of customers will boycott a brand based on misaligned values.


Customer Acquisition


89% of consumers would switch brands to one that is associated with a good cause, given similar price and quality - Cone Communications


In a similar vein to customer loyalty - having strong values is a great way to acquire new customers. If you do not communicate to your customers your commitment to sustainability - they will move on to your competition.


Cause Marketing Customer Acquisition

 
Cause Marketing for Shopify, Magento, and WooCommerce


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