I get asked about this a lot with clients… now that the economy has tanked, will cause consumption take a dive as well?

Here is what I tell them…

-Cause consumption remains on the rise

-Cause is a competitive advantage

-Cause is expected by consumers, employees, investors.

-Cause affiliation leads to high brand recall

-Cause affiliation can  lead to sales increase/increase in actual purchase

-Cause helps break through the marketing clutter

-Cause is personal and consumers still want to have a say in what cause their money goes to and how it is being used.

-Cause calculation= emotional satisfaction

-Consumers are likely to give differently- using different vehicles for giving in the recession (volunteering vs. donating)

-Local organizations (food banks, shelters) are top of mind for consumers who want to make sure they can sense their impact when they donate money or time. (last year Africa, this year your local foodbank)

And for some numbers to back it all up:

-The Center on Philanthropy at Indiana University says that historically, charitable giving has been recession-proof.Contributions to American charities have increased during 39 of the past 40 years in today’s dollars, and a change in the tax laws (not the stock market crash) can be blamed for the drop in 1987.  Between 69 and 72 percent of people give routinely.

-2008 Cone/Duke University Behavioral Cause Study and the 2008 Cone Cause Evolution Study:View Post

• Exponential sales increases (74% and 28%) in two cause-related product categories
• Participants spent nearly twice as long reviewing cause-related ads as general corporate advertisements
• 78% of Americans feel companies should maintain their philanthropic giving or even give more during tough economic times
• 79% of Americans would be likely to switch brands to one associated with a good cause (compared to 66% in 1993)
• Education, economic development and health and disease topped the list of priority issues for companies to address
• 85% of Americans say they have a more positive image of a product or company when it supports a cause they care about (remains unchanged from 1993)
• 85% feel it is acceptable for companies to involve a cause in their marketing (compared to 66% in 1993)
• 79% say they would be likely to switch from one brand to another, when price and quality are about equal, if the other brand is associated with a good cause (compared to 66% in 1993)
• 38% percent have bought a product associated with a cause in the last 12 months (compared to 20% in 1993)