'SPAT' Can Keep Your Cause Marketing Activation Intact

It’s probably fair to say that more cause marketing campaigns are activated by social media and public relations than by advertising.

You my readers are a sophisticated audience so there’s no need to detail the differences between advertising, public relations and social media. Suffice it to say that while PR has greater credibility, it’s challenging to get the frequency using PR alone that you can get with advertising. Advertising offers frequency and repeatability, but it can be expensive and it’s less credible than PR. Social media can have both frequency and credibility; Kony 2012, for instance. But I think we can agree that Kony is the rarest sort of exception.

So how do you activate your cause marketing story using social media and PR?

One answer is that the story you tell the media has a boy and a puppy like the story that appeared in People magazine last year about then 7-year-old Evan Moss. Young Evan wrote a picture book called “My Seizure Dog” about an epilepsy-detecting dog that he wished his family could afford. In the book Evan imagined he and his seizure dog in various settings, including going to outer space together.

The book… sold at a local café and on Amazon… generated more than $41,000 and now Evan and three other children have their epilepsy-detecting dogs.

(The only other thing Evan could have done to get better publicity is to marry a Kardashian!)

But maybe your cause marketing story doesn’t involve Kardashians or  really cute seven-year-old authors with service puppies. How do you do activate your cause marketing using PR and social media?

Remember the acronym SPAT.

Why spat?

Well a spat is a fabric or leather covering worn over your shoes and pants legs to protect them from mud and dirt and such. That's a spat on the left. 

And while the word and the item are rather antique… high school and college band color guards are about the only place you’ll see them in common use in the United States these days… using SPAT will help to convey you your cause marketing idea intact while minimizing the chances that it gets too muddied by the press or the social media.

Summarizable. Even if the dictionary in my word processor doesn’t believe it, summarizable is the adjective form of the word summarize. In this context it means that your basic cause marketing campaign has to be capable of being expressed in a concise form; two sentences or less.

Photographable. What we’re talking about here is visual 'memes,' biologist Richard Dawkins’ term for ideas, symbols or practices that are carried culturally rather than genetically. Japanese Macaques that learned to wash their food from one another is an example of memes in the animal kingdom. Not all memes require a picture. But washing food wouldn’t have gone very far among Macaques if all they could do was chatter about it. Even for literate humans pictures are much less abstract than words. It’s a whole lot easier pass on a meme with a photo or image than without. Think of the Aflac duck, Coke’s contour bottle, or breast cancer’s pink ribbon.

Arresting. The best cause marketing stops you in your tracks. TOMS Shoes buy one, give one approach (BOGO), for instance or young Evan Moss.

Transcendent. The word transcendent carries a lot of bulk around with it suggesting something outside human capacity or even divine. But the first meaning of transcendent is something superior or beyond ordinary limits. And who wants to promote cause marketing that fails to transcend the ordinary?

You don’t have to have all the elements of SPAT to effectively activate your cause marketing via PR or social media. But when it comes to activating your cause marketing via SPAT, more really is more.

What to Do With Leftover Cause-Branded Merchandise

Not all cause-branded merchandise sells. So what do you do with the leftover inventory?

The Tuesday Morning store in my neighborhood almost always has pink-ribboned kitchen implements from Kitchen Aid that once benefited Susan G. Komen for the Cure but are now selling at a fraction of the original retail price. Tuesday Morning is a deep discount chain of about 850 stores nationwide in the U.S.

Frankly, as a cause marketer it’s slightly embarrassing. Never mind that there’s a whole host of possible reasons… many which have nothing to do the cause… why the merchandise would be remaindered to discounters like Tuesday Morning. Still, much of the point of cause-branded merchandise is that the appeal of the cause helps move the product.

Back in March 2011 the big UK retailer and veteran cause marketer Marks & Spencer offered up men’s underwear designed by six different British sportsmen and benefiting The Prostate Cancer Charity. The original price of the underwear was £15 for a two-pack. Later, on the Marks & Spencer website, the underwear (in limited sizes) was discounted down to £5 after a brief stopover at £10.

A press report said that the promotion generated £60,000 for the charity. Not bad.

But it’s gotta be a shade embarrassing for the four players whose designs have to be discounted… rugby player Jason Leonard, ‘the Fun Bus,’ pretty boy footballer Jamie Redknapp (who's married to pop princess Louise), bad boy snooker player Jimmy White and the classy footballer Les Ferdinand.

In a case like this where there’s a celebrity component, here’s a thought; hold back some of the promotion for later. Promotions… cause marketing and otherwise… tend to be front-loaded and rightfully so. You have to develop the momentum to see you through the promotion and the best way to do that is to go as big as you can right from the get-go.

But the celebrity aspect of this promotion affords Marks & Spencer and The Prostate Cancer Charity an extra arrow in the promotional quiver. Imagine offering up some bragging right to the celebrity whose underwear line sells out first. A press release. A billboard campaign. Facebook bragging rights. Whatever. Then get creative with any of the celebrities whose competitive pride won’t let them finish sixth.

Imagine, for instance, if right before Marks & Spencer was prepared to start discounting, the ‘Fun Bus’ Jason Leonard, started autographing the boxes of his line of Kelly green-colored underwear. Maybe he signs 200 boxes. I’ve watched American baseball players sign 200 baseballs plus another 200 baseball cards in one sitting. So signing 200 underwear boxes wouldn’t be terribly onerous. But instead of offering them first-come, first-served they go randomly to anybody who has paid the full £15.

Or maybe Jamie Redknapp, who along with his wife Louise represent a kind of beer-budget version of David and Victoria (Posh Spice) Beckham, could be part of some kind sweepstakes for a personal appearance. Again, this element of the promotion would only be triggered when Marks & Spencer’s usual metrics told them to start discounting.

This is a different way of running a retail promotion and more work than what is usually required. And, frankly, most retailers would reject it out of hand because it’s so far from the norm. Retail promotions just do not work this way. When merchandise begins to get stale, you discount.

But I’m a cause marketer not a merchandiser. And I’d love test this out.

Cause Marketing Cooperative

There’s dozens of ways to activate cause marketing. But the most common way… and frequently the least expensive… is with public relations.

One story that you must master when 'efforting' women’s magazines in particular is a pretty standard transactional cause marketing pitch; buy our thing and a portion of the proceeds benefits this fine cause. Get the details right and you’ll probably score some coverage.

But this is a classic case of good news/bad news.

The good news is you’ve got a pretty good chance at getting coverage in women’s magazines like Ladies Home Journal, O, the Oprah Magazine, Allure, Elle, Vogue, Lucky, Shape, Town and Country, and Self. The Alden Keene Cause Marketing Database has cause marketing stories from all of these women’s magazines and more.

The bad news, you’ll almost certainly have to share the coverage with other cause marketing efforts which may be thematically similar to yours. Magazine editors publish this kind of combined story with great regularity.

What do you do?

•    Do you hold out for your own story?
•    Do you pitch lesser titles?
•    Do you skip magazines altogether and target powerful mommy blogs, or even ‘women’s’ TV?

You first job is to try and make your cause marketing story stand out in a way that others can’t or don’t. Barring that, my suggestion is that you own your cause marketing story for what it is (and isn’t). If you can’t imagine a way to truly distinguish your cause marketing narrative, then I suggest as a fallback position that you approach would-be ‘competitors’ and enlist their cooperation in pitching your collective stories together.

In most cases the big PR agencies would balk at this idea. The only exception I can think of is if they’re representing a whole catalog of cause marketing campaigns in house. In such a case they might consider packaging the cause marketing campaigns they represent together, much the way sports agents will package multiple clients together in certain trades.

Here’s why a package deal might be a good idea for multiple cause marketing campaigns. Suppose that seven separate but similar cause marketing campaigns decided to pitch their stories together. Your PR budget is approximately 1/7th of what your six peers have to spend. By combining you can call upon seven times the resources you have by yourself.

This approach probably requires that the charities and/or the sponsors contact willing peers and then jointly hire a single agency capable of pulling off a seven-way pitch.

Granted there’s real risks involved. What happens if the magazine’s editors choose stories from only five of the seven partners?

But I think these risks are outweighed by the potential rewards of being able to bring many more resources to bear than one cause marketing campaign could by itself.

The Legalities of Cause Marketing

In the United States the practice of cause marketing is subject to governmental regulations, mainly at the state and local level.

If your organization is a nonprofit just beginning a cause marketing relationship, you’d be well served by seeking out expert legal advice before you sign any deals.

On that count, today’s post on the legalities of cause marketing comes courtesy of a guest poster, Maria E. Recalde, Shareholder and Chair of the Corporate Department, Sheehan Phinney Bass + Green PA, a law firm founded in 1937 with four offices in New Hampshire and Massachusetts.

My thanks to Maria for allowing me to post this article that originally appeared in Sheehan Phinney's newsletter.

A cause marketing venture (also known as a "charitable sales promotion" or "commercial co-venture") is generally defined as a sales campaign in which part of the consumer's purchase of a product or service from a business - in cause marketing parlance "a commercial co-venturer" - will benefit a charitable organization (generally defined as a tax-exempt organization described in Section 501(c)(3) of the Internal Revenue Code). Cause marketing ventures are not only subject to general laws and regulations applicable to advertising, but they are also highly regulated by state laws.

Currently, a majority of states have some form of commercial co-venturer ("CCV") laws in effect. In general, CCV laws are triggered where the commercial co-venturer sells a product or service and represents to consumers that part of its purchase or use will benefit a charitable organization. Some CCV laws, however, apply where the commercial co-venturer promises to support a cause (e.g., "Alzheimer's research") without naming a specific charitable organization. Other states, such as Massachusetts, do not even expressly require an actual sale for their CCV laws to apply, but rather only that a commercial co-venturer use the name of a charity in advertising a product or service. See, e.g., Mass. G.L. c. 68, §18. Irrespective of the variations found in CCV laws, however, CCV laws are designed to protect consumers and charitable organizations against fraudulent or misleading advertising, and to ensure that the designated charitable organization actually receives its share of the proceeds that the commercial co-venturer commits to donating.

CCV laws cover a wide range of activities and can subject violators to significant fines and even criminal penalties. By way of example, and in no way exhaustive:

(a) A number of states, including New Hampshire, require the commercial co-venturer and charitable organization to execute a written contract (and the inclusion of certain terms in the contract) and to file an executed copy with the state. The charitable organization, not the commercial co-venturer, frequently must file the contract.

(b) Some states require registration and the posting of a bond (the amount varies by state).

(c) Some states require commercial co-venturers to file annual activity reports detailing the total dollar amounts raised from public contributions, disbursed to the charitable organization and retained by the commercial co-venturer.

(d) A number of states, including Massachusetts and New Hampshire, require the commercial co-venturer to make written disclosures in advertising. Some states require ads to disclose the expected portion of the sales price, percentage of gross proceeds, or other consideration the charity is to receive. Many states require this disclosure on a per-unit basis — often either as a dollar amount or as a percentage of the value of the goods or services purchased or used (e.g., "$1.00 per 6oz. juice box" or "5% of the purchase price").

Cause marketing campaigns can be structured in many different ways including online promotions, in-store promotions, direct mail coupon programs or solicitations made on product packaging. For example, a business might advertise that it will donate a certain portion of the proceeds of a purchase to a charitable organization, that it will donate "X" dollars to a charitable organization for every "Y" items purchased, or that for every item purchased the business will make a donation to a charitable organization.

The bottom line is that, when running a cause marketing campaign, businesses should evaluate the extent to which the promotion will implicate CCV laws and take steps to ensure compliance. When running a nationwide cause marketing campaign, a commercial co-venturer must ensure compliance with the CCV laws of each state.

Compliance with CCV laws is, of course, in addition to all general advertising and state consumer protection laws that apply with equal force in a cause marketing campaign to prevent false or misleading advertising. Common pitfalls include failure to disclose donation amount, suggesting a connection with a cause when none really exists, and failing to disclose applicable caps or minimum donations related to the campaign. Failure to follow applicable laws and regulations can lead to fines, penalties and bad publicity for both the commercial co-venturer and the charitable organization that it is supporting.

BEST PRACTICES IN CAUSE MARKETING
(1) Enter into a written agreement with the charitable organization, and include all provisions required by applicable state and federal laws.

(2) Comply with state requirements of registration and bonding to the extent applicable.

(3) When using a per-unit standard in the marketing campaign, state the amount of donation per unit and establish and state a maximum donation amount.

(4) Consider alternatives to a per-unit donation standard in an effort to avoid CCV laws while still showing support for a particular charitable organization or cause, such as donations per Facebook "like" - "we will donate $1 per like for our Facebook page, up to $5000" - or donations in a specified amount. Beware of states like Massachusetts, however, where CCV laws still may apply.

(5) Develop a standard set of disclosures that must appear in all advertising and avoid any variation, keeping in mind that some states may impose specific disclosure requirements. With regard to Massachusetts and New Hampshire and generally applicable advertising laws, for example, each advertisement used in connection with a cause marketing campaign in which a business is acting as a commercial co-venturer should include the following information: (i) name, address and phone number of the charitable organization;

(ii) a description of the charitable purpose of the promotion; (iii) the promotion period - the dates the promotion will run; (iv) the amount of each purchase that will benefit the charitable organization - the dollar amount or percent per unit; (v) any limit on the commercial co-venturer's matching contribution (e.g., any maximum or guaranteed minimum contribution — e.g., up to a maximum of $50,000); and (vi) any other material terms/conditions of the promotion.

(6) Ensure that consumers can clearly see all of the material terms on point-of-purchase materials and packaging before they purchase the product. For example, any limit on the amount that will be donated to the charitable organization should not appear inside the packaging.

(7) Ensure that advertisements do not mislead, deceive or confuse the public about the effect of the consumer's purchase on charitable contributions or otherwise.

(8) Avoid increasing the price of the product or service that is the subject of the marketing campaign during the campaign period.

(9) Ensure that the charitable organization's share of the proceeds are promptly paid to it and in the amount committed.

(10) Set up verifiable accounting and inventory tracking systems to maintain accurate, up-to-date records of applicable sales. Retain a copy of the final accounting.

(11) Avoid advertisements that represent that the charitable organization has endorsed the advertised product or service. If the charitable organization has not made an endorsement, the advertisement should clearly disclose this fact.

(12) Have the marketing department (or whatever operational unit is running the cause marketing campaign) obtain internal clearance for the particular promotion and consult counsel for legal advice as needed.

This article is intended to serve as a summary of the issues outlined herein. While it may include some general guidance, it is not intended as, nor is it a substitute for, legal advice. Your receipt of Good Company or any of its individual articles does not create an attorney-client relationship between you and Sheehan Phinney Bass + Green or the Sheehan Phinney Capitol Group. The opinions expressed in Good Company are those of the authors of the specific articles.

The Cause Marketing Proposal

The production of a cause marketing proposal is a very big topic. Rather than tackle it in one ginormous 5,000-word post, I’m going to tackle it piece by piece over the next month or so.

Today’s piece of it; "preparing for every contingency in your cause marketing proposal."

Let’s say hypothetically that you’ve made your best cause marketing pitch to a would-be sponsor. It’s smart, strategically appropriate, and well activated across new media and old. You’re certain your prospect’s customers will get it and respond.

But then a week goes by without hearing back from the prospect. So on day eight you call, but don’t press very hard. The prospect apologizes all over herself.

“Everybody back at corporate loves the proposal,” she says. “Trouble is, unbeknownst to the marketing staff, the CEO had promised a campaign to another cause. The marketing department doesn’t think they can or should do both this year.” So sorry. Maybe next time.

While you could play off of their guilt and press for a donation from the company foundation, instead you decide to offer a counter proposal. How about if all the company does is for a straight ahead donation from customers when they’re at the cash register or when they’re at the shopping cart online?

It’s not terribly complicated. The campaign would go for 2-4 weeks. The activation will take place mostly in stores and perhaps in the company’s advertising.

I counsel every charity in the cause marketing space be prepared to offer something else when the first answer from a prospective sponsor is no.

I’m not suggestion anything that smacks of desperation. Nobody likes a sad sack. However, you do need to spend real intellectual time and energy game-planning what the prospect’s possible objections are to your proposal and how you might counter each of them.

Do that right and you won’t sound desperate. You’ll sound like someone with good sense enough to plan ahead.

Pre-planning for no’s and your likely responses does other positive things. It helps you refine your pitch and strengthen your sales skills. It teaches you to think of cause marketing sponsorship as a negotiation, not just a proposal or pitch meeting.

More than anything else, it gets your foot in the door with the prospect. You may or may not ever be able to get the rest of your body in the door with said prospect. But be respectful and play things smart and you might just make a long-term connection that can pay off in ways you couldn’t anticipate.

Here's a for instance: A friend in Atlanta has worked in corporate giving offices for no less than three Fortune 500 companies. If you made nice with her when she was at MCI, you probably stood a better shot at getting money out of GE's community affairs office or Home Depot Foundation, when she moved to those companies.

If not, you may have burned not just one but three bridges.