Transactional vs. Transformative Cause Marketing – Part 1
In this first of a two part series, resident expert Joe Waters discusses the differences between transactional and transformative cause marketing.
What is Transactional Cause Marketing?
Transactional cause marketing is a marketing strategy that’s defined by:
- One-off promotions that are generally reactive to opportunities in the marketplace.
- First generation partnerships that have a short promotional cycle.
- Single platform programs.
- Dominance of transactions over relationships to maximize immediate giving.
- Promotions that aren’t central to or defined by the brands of either partner.
- Primary goal is to raise money and build awareness for the nonprofit partner.
Nevertheless, my experience is that few organizations start a cause marketing program with the sole aim of raising a few bucks and building some general awareness.
There are exceptions.
In 2009, I blogged about the Charles River Conservancy (CRC) and how they stumbled on a pot of cause marketing gold thanks to Absolut Vodka. Absolut has produced several “city” vodkas and in 2009 it chose the CRC to receive a portion of the proceeds from sales of Absolut Boston Vodka (as they had in other cities, most notably New Orleans which received $2 million after Hurricane Katrina).
- The program was a one-off as Absolut had no plans of continuing its support for CRC. Indeed, their selection of CNC in the first place seemed pretty random.
- This program was active for just a few months.
- The major platform was the purchase-triggered donation from vodka sales. Absolut did set up a Wall of Pride of famous Boston sports moments outside the Prudential Center. But beyond CRC reaping the proceeds from this program, the wall had no connection with the nonprofit or water conservation.
- Absolut led the promotion with the “city” vodka theme, not water conservation.
- There wasn’t much rhyme or reason to Absolut supporting CRC or the Conservancy working with Absolut. This was about a brand giving a cause some money and generating some general awareness for them. Simple.
- The partnership ended and the promotion didn’t spur the CRC to do more cause marketing. However, Absolut has since then done other city vodkas, including Brooklyn. Once again, New York is second to Boston.
This promotion is the very definition of transactional cause marketing.
Most nonprofits have bigger aspirations. Transactional cause marketing is kind of like a career in sales. No one stares up at their parents as a kid and says “I want to sell!” No one goes to college to prepare for the rigors of cold calling and pitching prospects. But a lot of people end up doing just that.
Of course, there’s nothing wrong with being in sales – I proudly call my myself a nonprofit salesman – or just doing transactional cause marketing. Being happy and fulfilled with what you’re currently doing and making money from it is a good thing. The challenge arises when you decide that your position is holding you back and you really want something more.
In the case of cause marketing, most organizations want to succeed at transformative cause marketing, but are unsure of what that is, how it differs significantly from what they’re currently doing or how to achieve it.