If you own or manage a company, you know the importance of making cost-effective marketing decisions, ensuring that the money you spend on advertising results in as much new business as possible. Before you dismiss sponsoring a cause as a waste of your advertising budget, you might note three vital reasons why sponsorship is good for business and even your bottom line!
Consumer Buying Decisions
Today's consumers are choosing to buy from companies that support charitable causes more than ever before. Neglecting the opportunity to support social causes can then result in even long-time customers leaving off your brand in favour of a more charitable competitor!
If you neglect to support charitable causes, you might also lose potential new customers who are looking to buy from companies that give back to their community. Since consumers today are more responsible about their buying decisions and appreciate knowing that at least some of their purchasing dollars are used to support charitable causes, a company would do well to consider these buyers as an untapped market. Corporate sponsorship is then an excellent way to retain current customers while also breaking into the new market of socially responsible buyers.
What better way to improve employee morale than by sponsoring charities in the neighbourhood in which they live or causes that are important to them? You might ask your staff to nominate a charity or suggest certain causes they support and, if possible, rotate a corporate sponsorship every quarter, year and so on.
You might also donate to more than one cause throughout the year so that all your employees feel their causes are supported. Volunteering your staff for local charitable events might even improve their sense of teamwork and communication, increasing their productivity back in the office!
Advertising and Ambassadorship
Corporate sponsorship allows a company some unique advertising opportunities that you might miss otherwise. For instance, you might create a slogan to use for a certain charitable program that resonates with consumers and which is hard to forget. As an example, consider the phrase, "There is too such a thing as a free lunch!" for sponsoring free-lunch programs for the local homeless community, or for schoolchildren in a rural area or developing countries. A consumer will then associate the commonly used phrase, "There's no such thing as a free lunch" with your brand, which creates awareness of your company while also supporting a worthwhile cause.