How ‘cause marketing’ benefits communities and, often, dealers

Paul Valentine says he doesn’t give charities his time and money earned through his Calgary dealerships as a way to find new customers. Yet in what he describes as “karma,” that’s exactly what happens.

Valentine, dealer principal of Valentine Volvo, Volvo Cars Royal Oak and Jaguar-Land Rover Royal Oak, said he has met a number of executives who sit with him on the boards of Calgary charities. And those connections often lead to sales.

“I don’t buy a car from you because you sell Volvos,” one executive told Valentine. “I buy a car from you because you’re working to make Calgary a better place.”

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Valentine is the third-generation owner of Valentine Volvo, founded in 1967 by Bert, his grandfather. Valentine said he learned the value of philanthropy from his father, Ted.

“My dad just used the dealership as an agent for good,” Paul Valentine said. “That rubbed off on me.”

Valentine Auto Group contributes 10 per cent of its annual profits to charities that serve Calgarians in crisis. They include the Calgary Women’s Emergency Shelter; CUPS, which supports people suffering from poverty and trauma; the Mustard Seed, a Christian-based charity helping homeless people; Feed the Hungry; Calgary Drop-In Centre; and Inn from the Cold.

The contributions have led to numerous honours for Valentine, including winning Volvo’s President’s Award 14 times over the past 15 years and being named the 2022 Alberta Dealer of Excellence (Metro) by the Motor Dealers’ Association of Alberta (MDA). His father received the same award in 1984. This year, Valentine said, the group is on track to sell about 800 new and 400 used vehicles, its biggest year ever.

GOOD FOR THE SOUL, AND SALES

“I guess it’s called karma,” Valentine said. But he emphasized that he is motivated by a desire to help his community and by his Catholic faith.

“I believe that the true measure of success is leaving the world better than you found it. Our business is a tool to improve the lives of everyone around us. ... That’s why we are in business.”

Supporting charities and minor sports “pays off in the long run,” he said. “It’s a win-win. It makes you feel good, and it’s led to more sales.”

Volvo’s annual excellence awards recognize dealers who are leaders and role models in propelling the brand’s growth and improving the customer experience, said Mark McDade, director of retailer development for Volvo Car  Canada.

“Valentine Volvo’s success can be traced back to its long history as a family business that focuses on customer service and satisfaction,” McDade said. “Valentine Volvo has made community giving an essential part of its business.”

‘THEY DON’T WANT TO BRAG’

Although many dealerships in Canada contribute to charities and support community sports organizations, the Canadian Automobile Dealers Association (CADA) doesn’t keep statistics on total contributions. In addition, dealers are often silent about the work they do, said Jeff Glackin, leader of sales for the Dealer Authority marketing agency near Dayton, Ohio.

“Dealers are some of the most generous people on the planet, but they don’t want to brag about it,” Glackin said. “If they can show they’re not just trying to jam a car into somebody’s garage, that’s good for their image.”

Valentine was not looking for financial gain. But his generosity has delivered the same business benefits as a marketing approach advocated by Dealer Authority, which advises dealers to consider “cause marketing” — essentially boosting their brand by aligning with social causes. It outlines three business benefits from giving back to the community:

Increased dealership loyalty:

Studies show that when a business improves a customer’s life, that customer will likely become an advocate for the business.

Earn new customers:

When given a choice between two dealerships, customers are more likely to support the one that benefits their community.

Sell more cars:

When executed properly, cause marketing can increase sales. Customers are more likely to purchase from a dealership, even if it doesn’t necessarily mean getting the best price.

EXAMPLES OF EXCELLENCE

Valentine shares the MDA 2022 Dealer of Excellence honour with Todd Ducharme, general manager of Westlock Motors in Westlock, Alta., who won in the nonmetro category.

The association bases its award on business acumen, community involvement, and association and industry involvement.

Valentine’s industry contributions include 18 years as chair of the Volvo Canada Retailer Advisory Board and stints as president of the Calgary Motor Dealers Association and Calgary International Auto and Truck Show. He has also been a member of the MDA board of directors.

“It is this peer recognition, from those who would often be considered competitors, that makes this award so meaningful,” said MDA President Gerald Wood in a statement.