In a series of posts, I will examine the intersection of cause-related marketing (CRM) and user-generated content (UGC). I’ll take a look at the origins of each concept as it manifests offline and online, the psychological motivations of each, and analyze a few case-studies where the two practices intersect. In an age where marketing is turning from a monologue to a dialog, CRM has the potential to further evolve marketing messages into social movements.
An apparent pattern in brand Web sites today is cause-related marketing. The concept of targeting consumers with a group-cause campaign has traceable roots:
The phrase “cause-related marketing” was first used by American Express in 1983 to describe its campaign to raise money for the restoration of the Statue of Liberty. American Express made a one-cent donation to the Statue of Liberty every time someone used its charge card; the number of new card holders soon grew by 45%, and card usage increased by 28%.
–Foundation Center
http://foundationcenter.org/getstarted/faqs/html/cause_marketing.html
The psychology behind the genesis of CRM in this particular example is a perfect circle of gratifying emotional impulse. Conspicuous consumption is encouraged and even rewarded, given the opportunity to wrap each credit card purchase in a patriotic wrapper. In restoring the symbolic icon of the Statue of Liberty the cause equates patriotism with capitalism.
Today AmEx still participates in the World Monument Fund’s funding, in an ongoing practice of corporate responsibility.
The partnership with the National Trust was born out of a desire to commit funds to help preserve historic sites in concentrated regions in the United States, and we have committed $5 million over 5 years to this effort. In 2006, we donated $1 million toward preserving 13 historic sites in the San Francisco Bay Area. In 2007, we expanded this community-focused initiative to the Chicago metropolitan area, donating $1 million toward preserving 15 historic sites. This year we have committed to work with the National Trust in bringing significant resources to the challenge of saving New Orleans’ unique historic and cultural assets.
–American Express
http://home3.americanexpress.com/corp/gb/pip.asp
CRM was defined offline in the sponsorships of events or in the fund-raising endeavors for medical research, landmark restoration, education, fair-trade and environmental protection to name a few. While the commitment to the board and the shareholder is to deliver on the bottom line an amoral numerical value, the actions of corporate citizenship may come as a surprise. Knowing that consumers do consider corporate responsibility when making buying decisions (or at least justifying and repeating those purchases) leads to a harmonic relationship between company and community, may not be such a surprise.
Look for my next post when I examine the origins of user-generated content.