CRM is the acronym for “Cause-Related Marketing“.

This is a special type of marketing strategy  which has primarily been associated with medium to large size companies but is now becoming an integral part of the marketing mix of even the smallest of businesses.

The term cause-related marketing was originally coined back in 1983 by American Express as a result of their campaign for the restoration of the statue of liberty. As a result of this new type of marketing campaign AMEX witnessed a 17% increase in new cardholder signups and an increase of 28% in cardholder spending.

The implications of this experiment are interesting for business owners and entrepreneurs as not only does it mean an increase in conversion for prospects to customers but also customers are more likely to spend more money.

Small Businesses and CRM

Small businesses and entrepreneurs do not have the same budgets to splash as the corporates for obvious reasons. Whatever marketing budget they have has to be used effectively. Pound for pound, dollar for dollar, cause-related marketing offers the small business owner a very effective marketing tool.

By giving to good causes, no matter how small the amount, the small business owner can:

• Leverage Press Releases reporting on their fund raising efforts and donations
• Blog about their efforts
• Affiliate themselves with a well known charitable organization thus improving credibility
• Improve customer engagement
• Improve public relations
• Improve employee morale
• Make tax efficient deductions from outstanding tax liabilities

Aside from the professional benefits to the small business, the personal benefits are considerable too. Self-esteem is increased knowing every little thing you do in your business (no matter how irksome or troublesome) is contributing to a greater cause.

You could be a doctor, a dentist, a plumber, an electrician, an internet marketer even - who knows! Regardless of your business type, should you engage in

Recommended Resources:

Cause-Related Marketing Directory

JointWinWin is a new directory specializing in delivering business growth information to it’s members with the goal of “Growing Your Business & Shrinking Poverty”. Membership is free and you can include unlimited listings for your websites in your account.

Entry requirements: You need to commit to donate a minimum of 0.8% of gross revenue to good causes (if you cannot do that, look at an alternative business model btw!)

KIVA Microfinance

KIVA allows you to loan small amounts of money ($25 minimum) to struggling entrepreneurs in the developing world. Each loan is to a specific entrepreneur you choose and will help empower them to lift themselves out of poverty.