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Auren Kaplan

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94% of Consumers Would Switch Brands to Support a Cause

Posted: 12/04/11 10:30 AM ET

If you're like the vast majority of people out there, you are a citizen consumer - you just might not know it yet.

Citizen consumers are empowered individuals who take control of their buying. In purchasing local, shopping organic, or buying products related to causes, citizen consumers make choices at the checkout counter -- just like at the voting booth -- that carry lasting implications for themselves, their communities, and the world at large.

By now, it shouldn't come as a surprise that citizen consumers are looking for more enlightened ways to spend their dollars. People want their dollar to go a little further than simply adding wealth to a company's corporate coffers -- they want that money to have impact -- real life impact in the lives of individuals in need around the world.

Simply put, people want to do good by buying. But don't take my word for it. A recently released study by cause marketing firm Cone LLC announced that an astounding 94 percent of consumers would switch brands if one carried a cause and another did not. When factors like cost and product type were made equal, 94 out of 100 people would choose to buy the product that supported a good cause. That's not just proof that citizen consumers are looking for ways to spend their money that contributes to a better world. That's overwhelming, hit-you-over-the-top-of-the-head, slam-bang news that companies should be heeding. With 94 percent of consumers concluding that they simply want their shopping to do good, companies need to step up and recognize the powerful opportunity -- and potential challenge -- they face in light of an empowered consumer citizenry that is ready to put their dollars where companies are connecting causes with their products.

The opportunity is obvious. When companies engage in a meaningful way with a cause that their consumers care about, those consumers are going to switch to that brand over another brand that simply stacks its profits with no regard to the less fortunate. But for companies that don't heed this clarion call, they may find slumping sales as customers follow the good and as consumers follow the impact.

Consumers know that corporations wield considerable power. They understand that a well capitalized company can engage in all sorts of marketing tricks and sales tactics to win ever more sales, and ever higher profits. And now they desire, in fact are demanding, that companies play a meaningful role in improving the quality of the world.

I've written in the past of how large swaths of the human population exist in abject poverty. Bet you didn't know that 3.1 billion of your fellow human beings subsist on less than $2.50 a day. When causes like ending poverty are so real, consumers want companies to take a meaningful stand and contribute to those less fortunate.

Ninety-four percent of us would literally switch brands in order to support a cause we believe in. Betting on cause isn't just a nice way to spread cheer this holiday season. It's good business.

 

Follow Auren Kaplan on Twitter: www.twitter.com/aurensays

If you're like the vast majority of people out there, you are a citizen consumer - you just might not know it yet. Citizen consumers are empowered individuals who take control of their buying. In pu...
If you're like the vast majority of people out there, you are a citizen consumer - you just might not know it yet. Citizen consumers are empowered individuals who take control of their buying. In pu...
 
 
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05:28 PM on 12/15/2011
Problem with these kind of studies is that the outcomes sound wonderful, but reality is completely different. Of course people would answer a question "Would you switch brands if price and product are the same when one supports a cause and the other doesn't?" with yes. Absolutely! Problem is that in the real world products are not the same. Imagine eating your favourite yoghurt, let's say vanilla yoghurt, and then there is a brand offering vanilla yoghurt while supporting a cause. Sounds great, but every brand of vanilla yoghurt has a slightly different taste. And I would bet that most people of those 94% would say that they would switch, but when it comes to it, and they actually have to decide in the shop whether they want their favourite tasting yoghurt or the one supporting the cause, they may buy the one supporting the cause a couple of times, but after a while and immediately in most cases they will just buy their favourite yoghurt. Moreover, most products that actually support a cause either support a cause for a just a small period during the year as a marketing stunt, or their products are simply more expensive. Customers don't want more expensive products, that's why biological meat is eaten so little compared to cheap bio-industry meat. Responding to a question is very easy, but when it comes to deeds, unfortunately very little people would actually switch. Therefore, this claim of 94% is very misleading.
11:04 AM on 12/13/2011
Wow, what a fascinating article. I was aware of this phenomenon but I did not imagine that social causes would drive the choices of such a huge percentage of people. As you said, this information should send a clear message to companies that addressing consumers' concerns and doing good in the world are also good business.

Along those lines, I couldn't help but notice October's annual tidal wave of pink paraphernalia in support of breast cancer research. And a trip to the store can give a person the feeling they are saving the world for all of the "green" marketing. An under-addressed issue on everyone's minds is the US economy, jobs, and the health of our small towns and struggling cities. I believe that Americans are more likely to buy a product if they know it is made in the USA, but very few companies are addressing this desire.

I launched a site, www.usalovelist.com to celebrate the very best of American-made products. We have three goals: 1) make it easier for consumers to shop American, 2) encourage retailers to carry Made in USA products and display them so shoppers can find them, 3) support and encourage companies to proudly produce their goods in the US.

Thank you Auren, for this article. It will surely help us in our efforts. As I work with buyers, retailers and American companies, I will be keeping it on hand and referring to it often for both information and inspiration.
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HUFFPOST BLOGGER
Auren Kaplan
Business is a force for ending poverty.
11:53 AM on 12/13/2011
USAlovelist, it's a good idea that you have. I'm glad that the article serves you as a resource. You would probably like the work that Starbucks has been doing to support small businesses, they have put up $5 million for small business loans. Here's a web site where you can learn more: http://www.createjobsforusa.org/ Thanks again for your comments.
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rtolmach
03:59 PM on 12/06/2011
Of course, if you want to help a nonprofit do its work, you can make a donation to the nonprofit in a friend's name, in lieu of buying something from a company that might donate a percent or two. A new site makes it easy for nonprofits to provide the gift-like experience that requires: http://GiftsForHumanity.org.
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Auren Kaplan
Business is a force for ending poverty.
04:32 PM on 12/06/2011
Good point, rtolmach - but let's not forget the trillions of dollars in commerce that takes place every year in this country and the rest of the world. If business can harness even a small percentage of that product by tying it in with a cause - then the impact can far exceed the money that can be raised by simply donating to a non-profit.

I think the tool you bring up is great - but let's face it, the world we live in, including all the good work of non-profits, still has 3 billion people making less than $3. We need to amplify the impact. And by connecting companies with causes, and those companies' products with consumers, we can do it. Thanks for writing in.
12:07 PM on 12/07/2011
Hey Auren, we're a big fan of your work!

We are taking the 'sacrifice' out of a donation by offering tangible value in return. I (kelly, the founder) totally agree that if we harness even a small percentage of total commerce transactions, we can make a HUGE impact on society.

With Givengi, you can 'double the give' as we like to say or the term you used, 'amplify', by giving a portion of the sale, at no added cost to the consumer, to a charity of your choice, as well as buying something to give to somebody as a gift, or maybe a treat to yourself!

There is another company that is doing big things as well with an awesome founder, Brent Freeman from Roozt. Have you heard of them?

Also, I checked out the Gifts for Humanity site and it seems to be similar to Fundraise.com, the main differences being in the web development/Ruby on Rails platform that Fundraise deploys, and the pricing. Fundraise.com, like Givengi, doesn't cost anything to begin, but unlike Givengi, Fundriase takes 7.5% of every dollar donated through the platform. We think that we have the 'best alternative' solution that merges a few different fundraising models. I'd love to chat and tell you some more about us!

Keep up the good work!
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rtolmach
12:01 PM on 12/06/2011
Here's a new and generous cause marketing program: http://BookstoreThatGives.org offers a 10% discount and a 20% donation to the classroom of your choice.
12:15 AM on 12/05/2011
I might buy something for a cause, but I personally throw away the products like the Yoplait yogurt foil lids “Save Lids to Save Lives” to raise money for breast cancer research. Yoplait donates ten cents per pink foil lid that is mailed to the company. Why doesn't Yoplait just donate the money, instead of making the customer jump through hoops for a few cents or bucks?
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Auren Kaplan
Business is a force for ending poverty.
09:54 AM on 12/05/2011
Flilguy, you make a great point. Companies like Yoplait should be more proactive in supporting causes, and I think you'll see more of that as cause marketing evolves and companies integrate cause into the various parts of their business with increasing frequency and scope. Why not take a moment and write to Yoplait and voice your opinion? My guess is your letter will be read - companies take customer feedback very seriously. Remember - you have as much power as a consumer as you have as a voter - you (and society at large) simply needs to claim that power. When consumers talk, companies listen. Thanks for your comment.
01:53 PM on 12/05/2011
I agree that this isn't necessarily the best cause marketing initiative I can think of, but I'm not sure I agree with the logic of just having Yoplait donate the money directly to the cause. I would rather see them use philanthropic or marketing budget to find ways to incent other people to give, than to merely give directly (the charities prefer it too!).

Although I struggle with an apt metaphor, it is the difference between handing out fish vs. investing in tools, programs and campaigns that result in more people who love to fish...the latter approach is the one that will generate the most fish to distribute. But I think we're after the same outcomes. Yoplait maybe needs to bring a bit more creativity to bear on their program.
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Auren Kaplan
Business is a force for ending poverty.
04:35 PM on 12/06/2011
And Bryan, following your metaphor, I would say that companies can also love to fish! Talk to you soon.
07:25 PM on 12/04/2011
I wouldn't switch brands specifically for a cause. I might try another brand and love it and use it because I love it and take the time to log in since I am using the product, but to switch, no. I don't do that.Upset because I couldn't get my brand of yogurt, I tried Oikos, loved it, and ate a ton of it during the campaign. Noticing that I gained weight, and that my craving has diminished, I am still eating it, but have backed off on how often.
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Heleric
07:08 PM on 12/04/2011
I would love to see a corporation take on bullying. Or the lack of parenting skills. Perhaps a large corporation like Keebler for example could begin an anti-bullying campaign and go on to produce anti bullying PSA's or sponsor events at schools. I believe that less than civil behaviour by our kids starts at home. Maybe helping to teach parents and students at the same time what appropriate behaviour looks like we can make strides in what is becoming a national epidemic.
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Auren Kaplan
Business is a force for ending poverty.
09:51 AM on 12/05/2011
Heleric, you are tapping into exactly the shift that is happening. Companies are now expected to support a cause, and so you as the consumer get to decide which cause is important. My suggestion - write to the CSR department of a brand you like and suggest they take on anti-bullying. My guess is they'd take your letter very seriously. You're right that bullying is a problem, and you're also right that companies should be taking the lead to solve this problem.

On an unrelated note, if you are a parent whose child is suffering from bullying, I highly recommend the Gracie brothers' Bullyproof program. You can evaluate it here: https://www.graciekids.com/Default.aspx
07:39 PM on 12/05/2011
Thank you Mr. Kaplan. I will write to a company as you suggested. Great idea. And I have already clicked your link and will pursue that as well.

Yes our 13 year old daughter was bullied, thankfully this year we enrolled her in the Lee Virtual School here in Florida and its a God send. She is happy and we are happy. She is really a different child. She gets lots of encouragement from her teachers and she can focus on learning. But we feel for everyone else who is not as fortunate. And deep inside I don't think pulling children from school who have been parented and know how to act is the right solution. I would prefer my daughter stayed in school and set an example. I wish all parents would take the time to teach their children how to behave and respect others.

Thank you very much for your reply Mr. Kaplan. You made me feel better. And we, as a family are determined to make a difference.
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Auren Kaplan
Business is a force for ending poverty.
05:56 PM on 12/04/2011
Bryan, Benevity sounds like a wonderful platform that's based on the principles of this article: people want to do good by buying, and it sounds like you facilitate this. I'd love to connect with you and further this conversation. Find me on Twitter at @aurensays and we can go from there. Thanks for your comment.
03:37 PM on 12/04/2011
Good stuff, Auren. You're singing from a songbook I strongly endorse. Among other things, you've touched upon one of the important issues that is frequently left out of most discussion about the Cone (and related) data but is integral to achieving the desired outcomes: finding a cause that resonates with the individual consumer. That is part of the rub for many retailers who embark on cause marketing initiatives with the Cone outcomes in mind. They try to pick one or two causes from a popular pillar (kids, health, environment) and hope that those causes cut a wide enough swath across the diverse target demographic. The challenge of the benefits of empowered choice vs. administrative complexity is why "embedded giving" platforms like that used on eBay's Giving Works (www.ebaygivingworks.com) and ours at Benevity (www.benevity.org) are compelling. They provide automation, flexibility, user choice and corporate matching opportunities, all of which increase the likelihood of program success beyond the conventional "Cardboard Check" model.

Done properly, these initiatives can not only generate sales lift and social impact, they may even create switching costs.

Thanks for writing about an important part of our changing landscape.

Kind regards,

Bryan