By: Ashley Byars
The retail landscape is evolving, and consumers increasingly seek brands with a purpose. In fact, 77% of consumers want to purchase from companies with corporate social responsibility (CSR) initiatives. As a result, partnerships between retail brands and nonprofit organizations have become a powerful tool for retail marketers. These collaborations go beyond benefitting causes to enhancing the brand’s:
- Reputation
- Customer loyalty and advocacy
- Overall business performance
Retail Brands Reaping Big Benefits of Cause Partnerships
- Consumer Demand: Today’s consumers want to make a positive impact. They are more likely to support brands that align with their values and contribute to social or environmental causes.
- Brand Reputation: Partnerships with reputable nonprofits can significantly enhance a brand’s image and reputation. Partnerships demonstrate a commitment to CSR and build trust with customers
- Increased Customer Loyalty: Customers are more likely to develop strong emotional connections with brands that support causes they care about.
- Competitive Advantage: Standing out in a crowded marketplace is crucial. Collaborating with a nonprofit can differentiate a brand and attract a specific target audience.
Inflation and Lack of Customer Trust Aren’t Making It Easy
Source: Accenture Life Trends 2024
High prices due to inflation have made it harder for customers to support all their favorite brands. Many retailers are experiencing all-time lows, leaving them searching for ways to gain back customer support.
Trust is a major issue, with few consumers believing that brands really care about them. It’s become a brand imperative across industries to win that trust back.
Successful Partnership Models Are Still in Full Swing
Several models continue to be effective in fostering successful retail-nonprofit partnerships.
- Product-Based Partnerships: Create limited edition products with a portion of the proceeds donated to the nonprofit.
- In-Store Fundraising: Dedicate a portion of sales or set up donation stations within stores to support the cause.
- Employee Engagement: Encourage employees to volunteer their time for the nonprofit or match employee donations.
- Cause-Related Marketing Campaigns: Develop joint marketing campaigns to raise awareness for the cause and generate sales.
Shifts in Shopping Patterns, Storytelling and Audiences
Early Holiday Shoppers: 40% of consumers have already started their seasonal shopping, according to the Q3 2024 Gift Card Gauge from Fiserv. This means register campaigns and product-based partnerships need to begin earlier than the week of Black Friday shopping.
Shoppers and Transparency: Whether in-store or online, shoppers want to know where their donations are going and how they might be spent to benefit their local community. Signage throughout the store succinctly explaining your mission connection is critical. To convert customers, share stories to showcase your impact and clear messaging around where these funds are helping.
Stale Campaigns Out; Fresh Ideas In: Most retail partners are looking for innovative ideas to bring their CSR values to life. How can your campaign incorporate not only customers, but also employees and suppliers? A multi-pronged approach to cause activations is on the rise and proving effective.
Innovation Is a Deal Maker
Many retail brands have successfully partnered with nonprofits to create positive impact but few have gone beyond a register campaign to uniquely activate the partnership. See how these brands are taking standard campaigns to the next level:
- Anthropologie and Kiss the Ground
- LuluLemon and The Trevor Project
- Bath and Body Works and Pelotonia
- Macy’s and the Trevor Project
- Walgreens and American Heart Association
- Express and Big Brothers Big Sisters of America
- Natural Grocers and the Organic Parks Project
Some Things Never Change
As you navigate cause partnerships, these essentials still apply.
- Alignment of Values: Ensure that the nonprofit’s mission aligns with the brand’s values and target audience.
- Measurable Goals: Set clear objectives for the partnership and track its impact.
- Authenticity: Genuine commitment to the cause is essential for building trust and credibility.
- Long-Term Perspective: Successful partnerships are often built on long-term relationships and mutual benefits.
- Communication: Open and transparent communication between both parties is crucial for effective collaboration.
By embracing cause partnership fundamentals and adjusting to shifting customer needs, nonprofits and brands can make a mutually beneficial difference in their communities.
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