Go Ahead and Brag, Consumers Tell Cause Marketers

New LoyaltyOne-CMA Survey Reveals Canadians Embrace Cause Marketing

TORONTO, Oct. 14 /CNW/ - Forget what you have heard about modest Canadians. A new study by LoyaltyOne Inc. and the Canadian Marketing Association released today reveals that over three quarters (78 per cent) of Canadian consumers feel that companies that support social causes have every right to make a big deal of it through advertising and marketing. Similarly, 77 per cent feel that if a company supports a cause, the company should include this in their marketing.

"We may be known for modesty but when it comes to businesses that support social causes, Canadians have no issue with some good old fashioned bragging," said Andrew Souvaliotis, Chief Impact Officer, AIR MILES for Social Change.  "If companies need any further incentive to act responsibly, this research demonstrates that their customers not only want to know about their efforts but that it could be very good for business."

According to the survey results, hot-button topics dominate consumers' focus when it comes to choosing the 'most important' social issues on their minds: Healthcare, children's issues and education were rated "very important' by 50 per cent or more of survey respondents. Surprisingly, given the rising consumer interest in green products and global warming, green issues were rated "very important" by only 46 per cent of respondents.

Personal Involvement when Supporting a Cause
When it comes to supporting causes they care about, the LoyaltyOne-CMA study reveals that Canadian consumers put their money where their mouth is.  More than two-thirds of respondents (67 per cent) reported making a monetary donation to a cause. Nearly as many - 63 per cent - reported making non-monetary donations and more than half (55 per cent) of respondents said that they buy and/or sell products to support the charities they consider important.

Given current economic conditions, perhaps the most surprising finding may be that nearly two-thirds of respondents (59 per cent) said they were willing to pay more for products to support a cause. Of those who said they were willing to pay more, 18 per cent reported that they were already paying a premium to support their favourite causes.

Influencers in Promoting Social Causes
Respondents were overwhelmingly supportive of companies that align themselves with a cause and those that promote their relationships to a cause.

• A majority of respondents (84 per cent) agreed that it is important for a company to officially support a cause.  A similar percentage said that when a company communicates its support of a social issue, it improves the company's reputation.
• Three-quarters of respondents also mentioned that they would like companies to make them aware of the social issue they are supporting, and half of respondents said they would like to be informed whenever possible of a company's efforts for a cause.
• Despite the buzz they generate, however, celebrities were named least influential in drawing consumer attention to a company's social cause, with just four per cent ranking them a "very strong influence."  Family and friends, news reports and information from charities themselves were the top three influencers.

"All things being equal, many consumers would rather do business with a company that stands for something beyond profits," said John Gustavson, President and CEO, Canadian Marketing Association.  "Consumers are looking for more meaningful brand experiences and are voting with their wallets for ethical companies and quality brands that also reflect their social and environmental values."

In March 2010, LoyaltyOne Inc. launched AIR MILES for Social Change, a new initiative that allows organizations to use AIR MILES Reward Miles to reward individuals for acting in responsible, sustainable ways, such as purchasing transit passes or conserving energy.  Recently, the program helped the Ontario Power Authority secure participants for its Power Pledge conservation campaign.

The AIR MILES My Planet program also rewards Collectors with bonus AIR MILES when they purchase products that have been certified by a third-party as eco-friendly, and offers over 100 green products to those wishing to redeem their AIR MILES Reward Miles.  

The report can be found online at LoyaltyOne.com.

About LoyaltyOne: LoyaltyOne is a global provider of loyalty strategy and programs, customer analytics and relationship marketing services. Its roster of clients includes leading businesses and brands in multiple sectors such as retail, banking, manufacturing, government, natural resources and utilities. LoyaltyOne businesses include Canada's AIR MILES Reward Program - North America's premiere coalition loyalty program, COLLOQUY, Precima, LoyaltyOne Consulting and Direct Antidote. LoyaltyOne's industry-leading associates, practical experience and proven capabilities set the benchmark of thought leadership in the loyalty marketplace. Toronto-based LoyaltyOne is an Alliance Data company. For more than 30 years, Alliance Data has helped its clients build more profitable, more loyal relationships with their customers. For more information, visit www.loyalty.com.

About The Canadian Marketing Association:

With more than 800 corporate members, the Canadian Marketing Association (CMA) is the largest marketing association in Canada.  Embracing Canada's major business sectors and all marketing disciplines, channels and technologies, CMA Members make a major contribution to the Canadian economy by driving $150 billion in sales of goods and services annually and supporting nearly one million jobs.  

The Canadian Marketing Association is the marketing community's leading advocate on the key public policy issues affecting both consumer and business-to-business marketers.  As well, CMA is the principal provider of knowledge, marketing intelligence and professional development opportunities for marketers; and catalyst for networking and business opportunities within the marketing community.

For further information:

Jennifer Hills or Amy Davidson
Environics Communications
[phone]