Exceeding Expectations in Business & Nonprofit Relationships

I had the chance last week to speak to a group of young professionals interested in nonprofit leadership about the power of a nonprofit brand. In some ways, it might be closing the barn door after the horse is gone. However, it is still a powerful message: Your brand can save you during difficult times.

Whether you run a billion dollar corporation or a small neighborhood nonprofit, you “are” your reputation. The brands that we trust are our comfort and the backbone of our self image. The less robust brands are blurred even more when we are choosing consumer spending and charitable giving in a tight economy. This is even more true when we try to combine our brands through the strength of cause marketing programs and partnerships.

American Marketers Association defines a brand as basically the logo, icon or image that provides a visual representation of your company. I don’t disagree with this but I don’t think it goes far enough. A strong brand speaks to your audience in an emotional and very personal way.

I drink Diet Coke – not Diet Pepsi. Why? Well, I like the taste but it’s also a brand that means more to me. I remember the group of people trying to “teach the world to sing” on top of a hill and my aunt once had a vintage coke machine full of those wonderful little glass bottles.  Coke tastes better in little glass bottles.

So, even when times are not their best, your brand can evoke strong emotions, revive positive memories and instill confident. Maybe it can also make you smile.

I had the opportunity to speak at an annual meeting of volunteer leaders who support one of our state park systems. Although a small gathering, the enthusiasm and passion in the room was palpable.

It is extraordinary, I think, to consider the strength of a group of passionate people. I was there to give them ideas for building their fundraising programs but many also taught me about the success you can achieve with sheer strength of purpose. Most of these volunteer leaders came to their positions because of their enthusiasm for their favorite park – not because of the politics or networking potential or (heaven forbid) the thought that it would look good on a resume. 

Companies and foundations would be smart to put their efforts behind these groups. If you want to see your dollars stretched to accomplish miracles AND your brand warmly embraced by strong minded people, look no further than these parks volunteers. They may not have legions of members but they are vocal and dedicated.

So many funders in the current market seem to be looking for big numbers and high volume nonprofits to support – with the thought of making their gifts worth more to more people. Perhaps another approach is to give some of these funds to small groups with clear focus and driven purpose. Who knows, they may move mountains.

This past week, I took my daughter to Las Vegas and the Grand Canyon for Spring Break.  In all, we had a great time. The hotels are gorgeous and the shows were wonderful. I couldn’t help but wonder about the tourism industry in the current economy and particularly noted that the MGM family of hotels has been in the news as facing troubles.

So, with one eye on my vacation and one eye (well, at least part of the time) on marketing, I noticed one really annoying thing: the aggressive expectations for tips.

As a general rule, I am not opposed to tipping for good service. In fact, I worked my way through college waiting tables and I know that I needed those tips to pay my rent and buy food. I also know that the business structure of restaurants is designed for all but the tiniest bit of base pay for servers to come from the customer. My questions are WHEN and WHY does it seem that so many businesses now expect the consumer to tip for even basic service?

For example, it cost me almost $15 in tips just to get my luggage from the hotel room to check-in at the airport. First, the grumpy bellman who held our bags wanted a tip to check them in, then the bellman who retrieved the bags and called our taxi waited for a tip, then the taxi driver expected a tip and FINALLY the sky cap at the airport even had a sign out requesting tips.

I’ve had the same experience more often recently even at home. There is a tip jar at the coffee shop counter – they aren’t providing me with special service, they are working a cash register. We are even expected to “tip” the teachers at school and the office staff with special thank you gifts. – not just to recognize exceptional effort, but as a matter of course.

Mediocracy should not be rewarded – excellence should. The best businesses and their best employees gain my thanks and my tips without hesitation. I also remember those businesses and people who didn’t earn either.

I’ve been reading a lot the past two weeks about concerns for the future of eco-chic or, as some are calling it, eco-nomics. For the past few years, the IN thing has been environmentally conscious consumption. This has appeared in every consumer segment from fashion design and housewares to hybrid cars and organic produce.

So… the question is now being raised whether our commitment to such things is only skin deep – or should I say pocket deep? When there is less money to spend, will we revert to our cheapo, pre-packaged, junk up the landfill former selves? My thoughts? Probably.

I do think that we have made some lasting change in consumer trends. In fact, this belief is at the very core of cause related marketing and cause branding. We hope that affiliations between good couses and good brands makes a difference. These differences, according to research, will have the greatest lasting impact with younger consumers who are still developing consumer behavior and brand preferences.

Still, these choices are self-conscious and deliberate. Consumers describe themselves as making an effort to choose brands with CRM ties and to give themselves a check in the “I did good” box each time. The concern is which box will carry the most weight when debt is high and credit is low.  Personally, I’d love to buy organic all of the time but I sometimes end up buying the frozen veggies on sale that week.  I also want to buy the cosmetics that support a breast cancer awareness cause but I’m still sorely tempted by the brand with the two-for-one sale.

Maybe we need to develop something like a green piggy bank… where we can serve two masters at once. I haven’t figured that out yet but I’m working on it.

It has been a while since my last post. Partly, the holidays chewed up my time but I must be honest… it has been tough just keeping up with the economic news.

In case you haven’t noticed (ha ha), the economy stinks. It stinks for consumers, businesses, NPOs, foundations, individual donors and the government. That covers just about everyone who might hope to give or receive a gift of charitable support. I’ve decided that THIS is the proverbial “elephant in the room.”

Over the past few months, I have spoken with quite a few consultants, donors and NPO leaders. I am amazed at h disconnect I see here. The donors are strategizing, making cuts, sweating the options and too many of the NPO leaders are smiling and saying they are just fine. You know, that smile that looks physically painful and has a little twitch in the corner.

Look guys, no one expects nonprofits to be immune to the climate. If NPOs had the magic potion they should be sharing it with everyone else! What our partners and supporters do and should expect is that we face the situation and make the tough choices. Ask yourselves these questions when requesting a gift or considering forging a partnership with an NPO:

1. How is this agency making a difference right now and to whom?

2. How is this agency adapting to changes and preparing for future potential changes. Will they outlast the bumps? Will my gift have long term value?

If you can’t answer these questions, get out the BIG pooper-scooper. That “elephant” has taken up residence in the corner of your office and isn’t leaving any time soon.

In this Sunday’s New York Times Magazine, there was a marketing piece about “The Brand-ness of Strangers.” It focused on the examples of Ralph Lauren’s Polo Brand and Dasani brand bottled water.

Among other things, this article summarized the results of a research study that answers the question” Does seeing a brand in regular use (as opposed to the media) impact our likelihood of selecting the brand? The answer seems to be YES.

I cannot say that I am surprised by this news but it does reinforce the high value of product based sponsorships. If, as the research in the article contends, people perceive a brand more favorably that they see often, then this adds weight to corporate – NPO partnerships that add visibility to a brand.

Nonprofits have loyal and consistent communities. Generally these communities of donors, participants and volunteers trust the NPO and its information. For the company that promotes their brand to this audience in this way, they receive the transferred benefit of these beliefs. Not only does the potential consumer see the logo, it sees it in connection with something they already like, already support.

Add the compact nature of NPO target audiences and the ability to micromarket, and you have solid gold.

There is an article in The Tennessean this morning about parents doing without purchases for themselves so that their children do not feel the pinch of the tight economy.

One mom says in the story that she has cut her travel to marathons, family vacations, clothes purchases and even lunches during the work week so that she could afford to buy her children things like fancy shoes and a new bike.  Mind you, this isn’t so that her daughter has shoes for school, its so that she can add to her collection of more than 50 pairs of shoes. The bike in question cost more than $1,000.

Apparently, some parents feel the need to buffer their children from the realities of the outside world.  I agree that they shouldn’t be overwhelmed with the plight of the stock market or the news of the latest wall street bailout, but is it good for a teenager to live in a bubble where every wish is granted?

I would propose that we find some balance in this as part of our goals to create consumer savvy children.  Just as we hope they will make responsible purchasing decisions – and look at things like social responsibility and philanthropy – I would also hope that they have a clear understanding of “needs” versus “wants.”

How can we encourage philanthropy from this next generation if they consider the buying newest version of the iphone as essential to existence as food and shelter for someone else in need? If they need (and believe they are due) every luxury possible, when will they learn to think of the needs of others?

I know I will lavish what I can on my daughter this holiday season and will pinch pennies elsewhere to do so. However, I also know that she will give to others this holiday season and will enjoy the giving as much as the receiving. That experience is the greatest gift of all.

A few weeks ago, I presented two sessions at the annual conference for the Friends of Tennessee State Parks.  I have spoken at these types of events dozens of times and usually the audience and the experience is the same – some people listen and some appear more interested in the snacks to be offered at the next break. Not this group.

I have rarely worked with a group, particularly one made up almost exclusively of volunteers, that seems so dedicated to their work.  There goals are clear – they are there to support our state parks.  They are not there for politics, self aggrandizement, brownie points or anything else.  In my humble opinion, this makes them extremely powerful.  I bet they will accomplish anything they set their minds to.

During the past decade, as the money has been flowing freely and NPOs have benefited from a strong market, many new NPOs have sprung up. Some are great but many have not had the outside pressures to clearly define themselves or to achieve to their potential. Times are different now and only the most dedicated and focused NPOs will do well when the flow of funds slows to a trickle.

I predict that these amazing Friends organizations will be among those that thrive.  They are clear and razor focused.  Many are unsophisticated in their ways but funders would make a good bet in looking past the sparkles and fancy trim of other groups to see the true dedication that I found here.  Perhaps this economic downturn will help NPOs and companies alike to separate the players from the pretenders – not such a bad thing.

Breast Cancer Awareness (October is Breast Cancer Awareness Month) is the motherlode of cause related marketing. Perhaps second only to “green marketing,” it is the most recognizable branding opportunity with a cause in the United States.

Some of its tools are simple: the pink ribbon and, for that matter, pink ANYTHING. In many ways, Breast Cancer causes now OWN pink. Can you think of any other business or NPO that can claim ownership of a color!? I would be curious to know how much value the cause receives overall from this juggernaut.

This type of market saturation has its ups and downs.  Avon, for example, was one of the first CRM leaders in this field. It has done outstanding good work and has also built brand strength through the relationship. Yoplait ’s ”save lids to save lives“ is another outstanding success story and multiple award winning campaign.

On the flipside, there is a preponderance of pink out there, especially during October.  For a list of some of the best and worst, visit Think Before Your Pink.  This site and its creators in Breast Cancer Action raise concerns about the true financial benefits to the cause of some campaigns and the general issue of whether we can “shop away” breast cancer.

In my Sunday local paper this week, I found pink campaigns for batteries, yogurt, breakfast cereal, soup, link rollers, credit cards, and laundry detergent. Which ones are worthy of our attention and support?

I guess the bottomline is, as always, buyer beware.  There are some wonderful CRM projects out there doing great work for all of the partners involved. However, it takes a savvy consumer to do the greatest good and to vote with our purchases on the best of the best.

The Wall Street Journal ran an article last Friday about reusable plastic shopping tote bags called “An Inconvenient Bag.” This article talked about the exponential growth in retailer interest in these alternatives to disposable plastic and paper shopping bags, particularly at grocery chains across the country.

Ironically, the article notes that many of these bags are, in fact, made in China of non-woven plastic that requires “28 times as much energy to produce as the plastic used in standard disposable bags.” This means that the average consumer will need to use this bag at least 29 times (without losing it, ripping it or leaving it to rot in the trunk of a car) before they hit an ecological break even point.

Some of the national retailers leading this product transportation revolution are Target, Whole Foods, Staples and even WalMart. The challenge is to offer a bag at a low enough price point to appeal to the consumer while making one sturdy enough to stand up to repeated use.  Of course, this isn’t the REAL challenge – underneath all of this ecologically correct rhetoric is whether consumers will actually use the darn things.

The WSJ points to research by the Stanford Graduate School of Business about the road blocks facing such marketplace changes. It takes time – sometimes a LONG time – for people to change ingrained behaviors.  This is most successful when there is either a taboo or reward associated with the behavior.  I have seen some retailers offering small discounts for using these totes but not enough to create massive change.

So, the success of these bags may hinge on the “taboo” of using the old bags.  In other words, will we become embarrassed enough to change our behavior? Personally, I feel as though they might as well announce it over the loud speaker when I forget my bags at Whole Foods. On the other hand, I feel the eyes (usually rolling upward) of the next customer boring into the back of my head when I slow down the express line at Kroger using the same bag.

If doing the right thing becomes a mandate from Big Brother or is based on embarrassment, will it create change or just resentment?