Cause marketing: Giving back increases profit

HomeInside FCNewsCause marketing: Giving back increases profit

October 12/19; Volume 30/Number 9

By Jenna Lippin

Cause marketing—a method that involves cooperative efforts of a for-profit business and a non-profit organization for mutual benefit—has become standard practice in the American marketplace, mainly because these types of campaigns resonate with consumers. In fact, the 2014 Nielsen Do Well By Doing Good report noted that 42% of North American consumers said they would pay extra for products and services from businesses committed to positive social and environmental impact.

It is evident that companies are investing in this potential to connect with consumers. Cause sponsorship hit $1.85 billion in 2014 and is expected to reach $1.92 billion in 2015, according to the IEG Sponsorship Report. The flooring industry is no stranger to cause marketing, with seemingly all entities large and small committing to at least one charitable effort. “It’s hard to find a brand today that doesn’t support a cause,” said Terri Daniels, vice president, public relations and communications, Carpet One Floor & Home. “Giving back is no longer just nice to do—it’s a have to do. Customers expect you to give back.”

Sylvia Bulanek, marketing manager for Hallmark Floors, explained, “It usually doesn’t cost the retailer any money to let consumers know that when they buy a certain product they are contributing to a charity. It is a bonus if the product they buy helps others.”

Manufacturers that get involved with national causes often help retailers engage at the local level, connecting with neighborhood shoppers to create both new and repeat business. “Retailers want to be involved in their communities,” said Laura Bartley, marketing communications manager, Mohawk Flooring. “Mohawk looks for those national causes with which retailers can find local affiliates.”

While many companies give proceeds from the sale of certain products to charitable causes, it helps to make a business recognizable through other efforts. Donating products or services can help form stronger relationships with consumers, especially if they recognize involvement in a local cause or one that hits close to home.

“Cause marketing works best when you and your employees feel great about the help you’re providing to a non-profit group,” said Kim Gordon, owner of National Marketing Federation.“You’ll work hard to make a difference when you give from the heart.”

Giving from the heart is commonplace in the flooring industry, with retailers and manufacturers of all sizes donating time and profits to honorable causes. Shaw, for example, has significant involvement with St. Jude Children’s Research Hospital. It partners with the group on various projects through the year and encourages involvement from its Shaw Flooring Network members. “We create opportunities for our retailers to participate and to highlight the work of St. Jude with their customers,” said Todd Callaway, director, digital content, Shaw Floors. “Our partnership with St. Jude provides a great source of content, including sales and social campaigns that showcase the charity’s work. Retailers are able to leverage their participation in the program as well and can promote in a way that is authentic to them.”

With one in eight women in the United States developing breast cancer over the course of her life, Mohawk recognizes Susan G. Komen as a critical non-profit organization dedicated to breast cancer research and providing resources to those affected by the disease. “Everyone has been affected by breast cancer and there are so many national affiliates,” Bartley said. “It gives retailers a segue to get involved locally, and is something to promote in store both during Breast Cancer Awareness Month and year-round.” To help raise awareness for Susan G. Komen, Mohawk provides content on a national level as well as the local retail level through its website, Creative Home blog and via Promoboxx, which posts on social media on behalf of Mohawk dealers.

Causes tied to patriotism are effective, as well, with many consumers and dealers seeking a connection to their country. Armstrong, for example, has aligned itself with Homes for Our Troops, which builds homes for United States veterans.

“It is important for our retail partners to align with Armstrong and the Homes for Our Troops (HFOT) partnership to make an impact in the community they are serving,” said Dawn McElfresh, builder channel marketing and Homes for Our Troops partnership manager for Armstrong. “A portion of sales from the American Scrape hardwood collection funds the Armstrong flooring donation to HFOT; this is a worthy cause-marketing message to promote in the showroom. The retailer sells more while building exposure for his business and giving back to the community and the consumer purchases a product that supports [veterans].”

Carpet One supports two national causes, Building for America’s Bravest and the Breast Cancer Research Foundation (BCRF). The Carpet Welcomes Your Support campaign generates awareness and donates to the BCRF through the sales of pink ribbon welcome mats. Through Building for America’s Bravest, Carpet One installs flooring in smart homes, adapted houses to help catastrophically injured service members get acclimated to life at home and live comfortably.

Hallmark donates all proceeds from its molding sales to Shepherd’s Field, an orphanage for children with medical disabilities. “We do have [the charity] on our website, but it is up to the dealers to decide what works best for them for advertising the cause because, after all, it is their business. We will support them any way they need us to.”

Must Read

WFCA extends Scott Humphrey’s tenure through 2028

Dalton—The World Floor Covering Association (WFCA) has extended CEO Scott Humphrey’s leadership through January 2028, with the option for renewal on a yearly basis....

High-tech tools to help dealers up their digital game

"The job to improve is never finished,” said Aaron Lee, CEO of Smith.ai, a firm specializing in automated voice systems. His statement reflects the...

Portobello America unveils wall tile collections

Atlanta—Portobello America (PBA) will be unveiling a portfolio of wall tile collections at Coverings 2024 here, Booth #7320 in Hall C. Designed to...

Mobile Marketing named Google Premier Partner

Pottstown, Pa.—Mobile Marketing was recently named a Premier Partner in the Google Partner program for 2024. “We are proud to have received the Google Premier...

Mapei sponsors Indy Race Car royalty

Deerfield Beach, Fla.—Mapei, a leading global manufacturer of adhesives, sealants and chemical products for the construction industry, will unveil the No. 98 Mapei/CURB Honda...

Mohawk campaigns commemorate Earth Day

Calhoun, Ga.—Mohawk is commemorating Earth Day by highlighting its commitment to planet-friendly flooring products and initiatives such as PureTech and the “Live Pure” campaign. “With...
Some text some message..
X