Supporting worthy causes can boost the bottom line

By DITA DE BONI

Consumers will switch brands to companies that support their favourite causes.

An ACNielsen and Stillwater Marketing study of 1000 consumers called "Good IS Gold" shows that 85 per cent of New Zealanders think highly of firms that support charities.

As many as 74 per cent would be willing to drop their normal brand or service in favour of one with similar prices and a philanthropic bent.

And 65 per cent would pay more for a product or service if it was directly linked to a worthy cause.

In all cases, respondents who most strongly agreed with supporting "good" firms were women aged 45-54, who earned less than $70,000 and were, in most cases, the household shopper.

Not all causes rated equally. The study found that while an association with a specific cause or project helped consumers recall companies - WestpacTrust and Ronald McDonald House initiatives ranked highly - "consumers could not remember very many companies that were supporting charities."

Child-related causes were most important, and environmental issues the least.

Stillwater director Peter Rachtman says New Zealanders' apparent low regard for environmental causes is mirrored in other countries. That did not mean firms should turn their back on green issues.

"You have to select the issues that your target market is most interested in."

He says the results show corporations should heed consumer sentiment and not be shy to publicise good deeds.

"We're not talking about philanthropy. Cause-related marketing is a strategic positioning and marketing discipline... not a gift, but a fully orchestrated partnership where all parties will benefit."

He is not concerned that customers may not always practise what they preach.

"When you are talking about such huge percentages of consumers, even if only half of those then go and act according to what they believe, the numbers are still staggering. To pick up an extra market share of just 10 per cent because you have supported something worthy would lead to a dramatic increase in your business."