Buy a pair of shoes and make the world a little better in the process? That’s exactly what TOMS made its brand promise about 20 years ago—and in doing so, created one of the best-known examples of purpose-driven marketing.
The principle behind it is called Cause-Related Marketingg: Companies combine their core business with a social or environmental purpose. When done right, this not only enhances their image but also strengthens customer loyalty.
In this article, we'll use TOMS as an example to show you how this strategy works, how the model has evolved since then, and what you can learn from it for your own customer loyalty program.
TOMS: From the One-for-One Pioneer About the Grassroots Model
TOMS became well-known in 2006 with a simple promise: For every pair of shoes sold, the company donates another pair to people in need. This „One for One“ Principle made the brand world-famous.
TOMS has since refined this model: Instead of strictly donating one pair per purchase, the company now invests a portion of its profits in grassroots social projects – from better access to education to mental health. This is intended to provide more flexibility to help where it is most needed at any given time.
According to TOMS, several dozen million pairs of shoes have been distributed to people in over 80 countries over the years. This shows that even though the exact model has changed, social commitment remains a central part of the brand’s identity.
The Passport Rewards Program: Meaningful Customer Loyalty
In addition to its social commitment, TOMS also focuses on a traditional Rewards Program: Passport Rewards. Customers earn points with every purchase and advance through three tiers based on their point total: Good, Gooder, and Goodest.
| Level | Points | Advantage |
|---|---|---|
| Good | 0–124 points | Standard Points Earned on Purchases |
| Gooder | 125–349 points | 25 %: Faster Point Accumulation |
| Goodest | Starting at 350 points | 50 %: Earn points faster, free shipping |
Such a Step-by-Step Program works on the same principle as digital customer loyalty programs: The more active customers are, the more benefits they receive—an incentive that makes their status and progress visible.
Why Cause-Related Marketing has the effect of
Today, people don't just buy products—they also buy into the story and values behind them. A visible social purpose gives customers the feeling that their purchase is making a meaningful contribution.
For this to be effective, the message must be communicated in a credible and consistent manner—for example, through targeted communication in the app, via email, or in a newsletter, rather than just in a single campaign.
It’s important to note that social engagement only works if it’s sincere. If it comes across as nothing more than a marketing ploy without any genuine intent, it can quickly backfire and erode trust.
Conclusion
TOMS demonstrates how customer loyalty and social responsibility can be meaningfully combined—and how important it is to continue developing such a model over time.
Whether you follow a strict “one-for-one” principle or a more flexible donation model, what matters most is that your commitment remains credible and is communicated consistently. That way, a good cause becomes a real competitive advantage for building customer loyalty.
Frequently Asked Questions
What is cause-related marketing?
Cause-related marketing directly links a company's core business with support for a social or environmental cause. TOMS, with its original „One for One“ principle, is one of the best-known examples of this.
Does TOMS still follow the "One for One" principle?
No longer in its original form. TOMS has evolved the model and now invests a portion of its profits in grassroots social projects so it can respond more flexibly to different needs.
How does the TOMS Passport Rewards Program work?
Customers earn points with every purchase and, depending on their point total, move up to one of three tiers: Good, Gooder, or Goodest. Each higher tier offers faster point accumulation and additional benefits, such as free shipping.
Is cause-related marketing also suitable for smaller companies?
Yes, as long as the commitment is credible and aligns with your brand. It doesn't have to be a global fundraising campaign—even local, clearly communicated initiatives can strengthen customer loyalty.
What is the biggest risk associated with cause-related marketing?
If social engagement seems contrived or purely motivated by advertising, it can quickly backfire and erode trust. Customers usually recognize insincere engagement right away.
