Charitable Giving Can Lead to Increased Sales: Survey
Philanthropic activities can help drive business on a number of fronts.
Some 72% of consumers reported that they purchased a particular brand because it supported a cause they believe in, according to the 2007 PR Week/Barkley Cause Survey.
Corporate respondents said they saw positive PR (65.3%), an increase in sales/retail traffic (26.7%) and an enhanced relationship with their target demographic (52%), as a result of their cause marketing efforts.
The study also found that 90.7% of consumers indicated that it’s important for companies to support causes and charities. And, the majority of companies (34.7%) with cause programs funded their efforts through the marketing department, as opposed to HR (4%), or even PR (14.7%).
“Companies are beginning to clearly understand that there is a return on their reputational investment,” said Mike Swenson, president Barkley Public Relations, in a statement. “(And) cause is the perfect storm to allow companies to engage employees and customers in a more meaningful way.”
Corporate philanthropy can also indicated a positive influence on hiring and retaining employees.
Among companies with cause marketing programs, 56% saw improvements in staff morale and retention and 14.7% “strongly agreed” that they had an easier time finding top-notch recruits, the survey said.
For the full survey, visit www.barkleyus.com or www.prweek.com.
