Sovereign bank uses 'cause marketing' to boost electronic bill activation.

• Author: Goodman, Len
• Position: Marketing News

Cause-related marketing can work with all demographic groups, but it has particular strong appeal to consumers in Generation X (those born between 1964 and 1975) and Generation Y (born between 1976 and 1990), according to Len Goodman of Sovereign Bank, Wyomissing, Pa.

"The future of marketing depends on the ability to communicate and engage this audience, known for its technology-friendly ways as well as a strong propensity toward environmental, ethical and social stewardship," says Goodman, who is director of product management for the bank's Global Solutions Group.

Last year, Sovereign developed an online cause-related campaign to promote online banking and bill payment services. The "Go Paperless" campaign used an environmental issue to promote replacing mailed paper bills with e-bills. The campaign was so successful that the bank generated another cause-related campaign later in the year and will repeat a "green" campaign for Arbor Day 2008.

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The bank's first cause-related campaign ran from April 1 through May 31, 2007, to coincide with National Arbor Day on April 27. The effort targeted consuraers using online banking and bill payment services. The bank and CheckFree Corp., the provider of Sovereign's electronic billing and payment service, donated $1 to the National Arbor Day Foundation for each new electronic bill a consumer activated. The campaign resulted in the planting of 12,386 saplings at The Huron State Forest in Michigan.

E-bill activations in April 2007 came to 6,469, a 142 percent increase over the previous April. In May 2007, e-bill activations totaled 5,912, a 115 percent...