When companies sponsor charities and non-profit organization, they are participating in Cause-Related Marketing or CRM. This is when companies combine selling their brand with doing good for the world. Over the years, CRM efforts have increased significantly within businesses. According to the 2010 PRWeek/Barkley PR Cause Survey, two thirds of business brands are engaged in some form of CRM with 97% of marketing executives agree that CRM is a valid business strategy.
CRM is especially helpful for small and local businesses who want to increase their revenue and form a bond with the locals. Why is that? Here are just a few reasons:
CRM Creates Brand Recognition
- Sponsoring an event or charity will give you opportunity to put your logo on fliers, t-shirts, posters, and more. This gets your brand out in the community, which increases recognition.
- When a brand is easily recognized, it will be more memorable to the consumer. Having a brand name at the forefront of a consumer’s mind will ultimately drive customers to your business, increasing sales and revenue.
CRM Gives You the Upper Hand
- When you are competing against companies that offer similar products or services, CRM sets your organization apart in a powerful way. It gives your brand differentiation and a uniqueness that your competitors do not offer.
CRM Humanizes a Company
- Supporting local events and businesses is very appealing to locals. The community will see your company in a much more personal way. Seeing your company name associated with places, events, or people that are near and dear to the community’s heart will make them feel more connected to you.
- Seeing a less “corporate” side of the business will increase brand loyalty. Consumers will remember how your company supports meaningful causes and be more likely to support your company over competitors.
CRM Offers Entertainment
- Often times when you sponsor an event, your company will get some perks. If you are sponsoring an event, more than likely you will receive a few tickets as a thank-you gift. These can be given to your other clients, employees, or friends.
CRM Helps Create Meaningful Relationships
- Sponsorships will inevitably bring you to new people and allow you to network. You could meet other sponsors who could benefit your company, allow you to recruit new employees, and of course draw in new customers.
CRM Can Be Done In Many Ways
- Helping a charity or non-profit organization is not excluded to monetary donations. Companies can of course make traditional donations, but they can also donate products, create a “Donate Button” to the company’s website, sponsor events, or donate time. Any and all of these options will create a powerful brand image for the company as well as benefiting the organization you are assisting.