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Conversations with Cause Marketers
John Hayes, Chief Marketing Officer,
American Express
CMT: How does cause marketing fit into AXP's marketing strategy?
JH:: At American Express, we believe being a good corporate citizen in the communities in which we live and work is critical to the success of our business and, in fact, it is one of our corporate values. Our cause-related marketing programs raise not only money, but also raise awareness for the group and the cause.
We choose to support causes that are important to our Cardmembers and to our merchant partners--e.g, breast cancer, education, hunger. Working with merchants, we can extend the scope of our programs, thus touching more lives and raising more funds.
CMT: We are familiar with Charge for the Cure, the Statue of Liberty campaign, Blue from American Express' work with the VH1 Save The Music campaign. Can you describe one of those campaigns in terms of its goals, performance and learnings?
JH:: As you know, the Statue of Liberty has been closed since 9/11 because of security concerns. American Express has a very long history supporting the Statue of Liberty, going back to 1885 when we provided money to help fund the Statue's pedestal. In 1976, we donated money for restoration work and underwrote a documentary film about the history of the Statue. American Express also developed a cause-related marketing program in 1983 to fund restoration work on the Statue for the centennial celebration and raised close to $19 million.
So when we heard that the Statue could not be opened because of the cost of putting in more security, we decided to step forward. Our donation began with a $500,000 direct contribution. In addition, every time you use your American Express card we will make a donation to the Statue of Liberty, up to $3 million, and if the campaign does not raise the full $5 million needed, we've made a commitment to make up the difference.
We believe that the Statue of Liberty is an important symbol of freedom for our country. And as [film director] Martin Scorcese, who is involved in the Statue’s latest fundraising campaign, said, what is most impressive is not just what the Statue of Liberty represents for Americans but really what it represents to the whole world.
CMT: Does AXP engage in so much cause marketing because it is part of the company culture or is every campaign an individual brand decision? How do cause-marketing efforts interface with corporate philanthropy by AXP?
JH:: At American Express we give back to our communities in a variety of ways, including cause-related programs and philanthropic grants. They are both incredibly important. For some projects, there may be a philanthropic grant given in connection with a cause-related effort, as was the case with our recent Statue of Liberty effort, but more often, our philanthropic grants are given to worthy organizations around the world apart cause-related marketing.
We have a philanthropic strategy that includes working on a variety of issues on a local, national and international level; those causes include: the arts, historic preservation, economic literacy, job preparation and disaster relief.
An interesting intersection of these two commitments is found in our receiving this cause-related award alongside the Boys & Girls Club, which, 50 years ago, was one of the first recipients of a grant from the newly formed American Express Foundation. The company established the American Express Foundation as a formal vehicle for grantmaking. The Boys & Girls Clubs (then known as the Boys Clubs) was one of three organizations funded that year.
CMT: Do you expect AXP to engage in more or less cause marketing moving forward? Anything on the drawing board that you can share?
JH:: We have just announced a new partnership with the Ronald McDonald House Charities for both the U.S. and Canada. From Mother’s Day to Father’s Day this year, American Express will donate up to $600,000 to RMHC. This is the first time that American Express is extending a cause-related campaign to Canada where cause-related campaigns are still a relatively new concept.
CMT: In addition to laurels, cause marketing sometimes attracts criticism to its sponsoring company. How do you deal with that?
JH:: Companies and individuals must continue to make philanthropic contributions as we do here at American Express. However, cause-related programs tap into existing marketing budgets and consumer spending, resulting in far greater funding overall. The marketing dollars used for cause-related programs are able to raise awareness for our non-profit partner, while at the same time allowing our Cardmembers to play an important role in the cause American Express believes that our cause-related marketing programs not only raise much-needed funds, but also raise awareness for the non-profit partner and its cause.
John Hayes is scheduled to accept the 2004 Cause Marketing Golden Halo Award for Business on behalf of American Express at the June 16 Cause Marketing Halo Awards luncheon in New York.
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