When Doing Good is Good Business
By Raghu Kakarala on Monday, April 16th, 2007I have come across two great examples recently where doing good is good business. I sense this is more than just a coincidence and is really a trend that should be monitored if not co-opted by other firms. The two things I came across are uniquely well conceived online marketing plans/ideas. So before I riff on the broader implications of the do-good trend let’s take a look at each example.
The first is from Microsoft and launched last month. It’s a new marketing plan involving their Live Messenger product. You may recall it by its previous name MSN Messenger. It is a popular and mature product that is free to use and ad supported. Many of you might not have noticed the rotating banner ads at the bottom of Live Messenger, they are easy to miss, but between pay per placement and pay per click they generate a modest profit. In a brilliant marketing move Microsoft has put a spin on the term “IM” and has created the “I’M Making a Difference” campaign. The essence of the campaign is that by choosing from one of the several worthy charities such as the Boys and Girls Club, Multiple Sclerosis Society, Sierra Club, etc and inserting a corresponding symbol at the end of your display name, Microsoft creates an ad revenue share with that charity.
So at no cost to you some of the revenue Microsoft receives for showing the ads that you are ignoring is sent to the charity you have chosen. An “i’m” symbol shows up at the end of your display name that shows that you are participating in the program. It is a brilliantly simple and well executed idea and should serve to increase users brand affinity for Live Messenger, which is a perfect complement to Microsoft chairman Bill Gates’s epic charitable efforts. The halo effect for the advertisers should not be ignored, perhaps leading down the road to higher placement fees which leads to more net dollars for everyone involved. An excellent, and rare, example of making something you are already doing help others. I encourage others who use Live Messenger (over 250 million have a version of it installed) to give it a try.
I came across the other “do good” idea a few weeks ago. The company is Green Dimes, and it has been up and running for the past six months. The company has built an internet based business model around junk mail. No, not the Viagra ads you receive in Outlook, but the junk mail you receive in your mailbox at home. They state that each year the equivalent of 100 million trees are used to create the junk mail we come home to every day and promptly throw in the trash. They act as a well connected intermediary to several “Do Not Mail” lists and let you customize which junk mail you actually want to receive. In a nice marketing twist they plant a number of trees on your behalf. Even their 1 year plan plants 12 trees. They keep a running tracker on their home page of how many trees they have saved/planted and how many pounds of junk mail they have stopped from being delivered. It’s a well conceived business that is venture backed and, to use the classic marketing phrase, “makes a great gift”. Several catalog dependent companies such as Mrs. Fields cookies have noticed a growing number of opt out requests coming from Green Dimes asking for recipients to be taken off of the company’s bulk mailing list. A note to catalog marketers to think about perhaps integrating their email and snail mail preference centers into one area.
So, do two examples of businesses doing good business by doing good make a trend? Actually, there are many more examples, some of which you may know of and I have yet to come across. So, please comment away on this post if you know more good examples.
The broader trend I see is that, increasingly, customers want to see, or will want to see, everyday companies doing their part to be good citizens. Particularly for the younger generation of consumers, this may become a requirement to prove your brand’s credibility. Old line businesses such as with British Petroleum’s “Beyond Petroleum” campaign and Charlotte-based NUCOR Steel’s “It’s our nature” website stories have been well done. However, those two firms have much to prove as far as whether their intentions lead to credible actions. So keep an eye out on your competitors, they may be more green or charitable than you. Whether they are or not, it may well be time for you to take the initiative to position your brand as a leader in this area. And you might enjoy the monetary benefits while you help everyone else enjoy the more tangible benefits of your efforts.












Thank you for writing about GreenDimes- we appreciate your time and thoughs. We can certainly help manage the 560 pieces of junk mail that we each receive every year and will plant a tree on your behalf as well. Please feel free to reach out and let us know if you have any questions or concerns and thanks for giving a dime!
Kendra
GreenDimes
I am not generally in the habit of commenting on my own blog post. But just today Home Depot announced a major initiative to work with all its suppliers to produce and label all environmentally friendly products it stocks on its shelves.
They will give all products that qualify preferential shelf space and extra advertising. Definitely a strong incentive for its suppliers to have their products qualify.
Hi Raghu,
It is wonderful to comment on your own blog, that’s what makes each post a conversation!
Here are a couple of blogs that you might be interested in following, if you don’t already know about them.
http://havefundogood.blogspot.com/index.html
http://como.typepad.com/community_mobilization/