They say in business it is 6 times more expensive to acquire a new customer than it is to retain a current customer.
3.5 min read
With the cost being so high to build a customer base it seems smart to leverage the current activities you’re already undertaking (or considering undertaking) to open business opportunities for your company.
Some refer to this as ‘sweating your assets’, in this blog we review 4 ways your company can leverage its corporate social responsibility activities to open new opportunities for your business all the while doing good for the cause. It’s a ‘win – win - win’ model where every stakeholder benefits. A win for your business and win for the new partner as well as a win for the cause by having two further engaged supporting businesses that can collaborate on CSR activities.
In this blog we’ll cover four marketplaces of opportunity:
Attract cause friendly market
Attract supply chain interest
Cause partner network
Let’s investigate in more detail:
1. Strengthen your own partnerships
In sponsorship there is a term known as ‘reflected glory’. This is when a sponsoring firm will align themselves with a cause or team to have the passion of the activity reflected positively upon your brand.
When entering a strong and high profiled CSR program you can gain a reputation for becoming a successful cause related champion and as such your business partners can enjoy the reflected glory of your cause related work.
This can be appreciated as a free benefit, working alongside your business and drawing existing partners closer to your company. There might even be an appetite for having them join your support, thus further engaging the relationship.
Through this strengthening of ties, you might be able to reach into your current partners network opening up your business and cause related activities to this new market.
2. Attract business aligned with the cause
Businesses are run by people and CSR often connects with people on an emotional level. One of the great advantages of positive cause related activities is the ability to promote your brand/products and services to the marketplace interested in that cause.
Research is showing us that people are choosing brands that have a friendly approach, with the largest generational group of consumers and quickest growing group of business owners; the Millennials, suggesting 6 out of 10 would be willing to take a pay cut to work for a socially responsible work force.
This same group are ardent users of social media which potentially would help take your CSR message to new, cause friendly, customers.
3. Attract organisations to your supply chain
Working on the same principles from the above points if you are a B2B business; opportunities to improve your customer base can also be found in your supply chain.
The promotion of your involvement in the cause will likely bring you to the attention of potential suppliers and it is always an advantage to have options on the table.
If you source your products or component parts abroad are you aware of the workforce welfare of your supply chain? With the profile and growth of mental wellbeing in the workforce you might find that your supply chain could be the cause itself.
4. Cause partners
CSR activities and working directly with a charity or large well publicised and supported cause can open you up directly to a warm marketplace of potential partners.
Charities will benefit from having a large number of commercial partners that will support by donating money, resources, staff time, access to marketplaces etc.
By joining the support for the cause your business may have the opportunity to be introduced directly to likeminded businesses that can potentially join your supply chain or even become a customer.
The strongest benefit of this is through the charity or cause you’ll either have several events or activities that you’ll be able to be introduced directly to the prospect and have a common interest to get the conversation off on the right foot.
From the blog above you can see how strategic partnership will help amplify your work with the cause by combining resources. Ultimately the aim will be to create synergy where all involved attain further reach and impact.
If you’re considering undertaking a CSR campaign, consider the opportunities posted in this blog and take into account the many benefits involved with CSR activities to help you put together a strategy that fits your business perfectly.