How to Evaluate the Value of Cause Marketing Campaigns?
This article raises questions about how businesses can quantify the benefits gained from partnering with charitable organizations in cause marketing and seeks standardized evaluation methods. The issues involve the marketing effectiveness of donation commitments, the impact of charity awareness and cause type, the role of company size, and how to determine reasonable fees paid to charitable organizations. The author emphasizes that the goal is not to maximize shareholder returns, but rather to advocate for greater philanthropic investment by understanding actual benefits and to help charitable organizations set pricing standards for partnerships.
In the practice of cause marketing, is there a standard method for evaluating its benefits? For example, we might promise in an advertisement: for every product a consumer purchases, we will donate X dollars to charity "Y" to end world hunger, fight a certain disease, etc. So, how do we calculate the actual benefit we gain from associating with this cause? How do we determine a reasonable fee for using the charity's name and its cause?
I speculate that evaluation factors might include the charity's public awareness—the more well-known the organization, the stronger the "warmth and goodwill" customers may feel toward us. Additionally, does the nature of the cause itself matter? For example, do different causes, such as saving lives versus promoting independence, have different impacts? What other factors need to be considered? Does company size affect employees' positive feelings about the company's good deeds?
I appreciate any responses about general valuation principles, but I would prefer to first learn about evaluation methods developed specifically for cause marketing or corporate social responsibility (CSR). Thank you very much.
P.S.: Before anyone accuses me of hypocrisy, I declare: I am not asking this question to maximize shareholder returns. By understanding the actual benefits companies receive, you and I can more strongly advocate for more cause-related investment, because companies do benefit from it. At the same time, developing common standards will help charities determine what terms they should propose when companies wish to use their names for promotion.