Good Deeds Can Open Doors in a New Market
Erin Moriarty
September 21, 2007

When AGL Resources Inc. acquired Florida City Gas, the Atlanta-based utility found the perfect way to reach its new customers on the coast.

As a community service project, employees cleaned up a local beach in Cocoa Beach, Fla. The initial effort in 2004 was such a hit that the cleanup continues to be a monthly activity from March through October.

Volunteerism is not only part of AGL Resources' values, but also part of the utility's corporate strategy. It is especially important when AGL Resources introduces itself to new customers.

"In every market we go into, we make our volunteer programming one of the forefronts," said Jodie Huiet, manager of community affairs. "We get as involved in the community as possible."

Companies are increasingly realizing that volunteer efforts are more than just good deeds done in the name of community service, but that volunteerism can open doors in a new market, build brand awareness and cement customer relationships.

Community service projects can play a big role in helping a company introduce itself to a new market, especially in the case of an acquisition.

"It helps get our name recognition out there and show the community that we are going to be a good neighbor and we are not some big bad company that acquired a local company," Huiet said.

Macy's Inc. also has found success using volunteer efforts as a way to build new customer relationships.

In March, Macy's launched a new store in Austin, Texas, by sending volunteers to a local school to clean and do landscaping.

"This is a natural way to reinforce our commitment to the community," said Joe Vella, divisional vice president of community affairs. "Our customers and our associates understand that there is a need to assist our schools."

During the back-to-school shopping season, Macy's stores ran a special promotion asking customers to buy a book for a needy school.

Educating future generations of workers is important to Sprint Nextel Corp., which has a grant program for schools and is involved in many charities, ranging from the March of Dimes to the Boys & Girls Clubs.

"Children are definitely our future, so anything we can do to develop them and help them take on leadership roles as they graduate from school and move into the workforce is only going to help us as a company," said spokesperson Kristin Wallace.

Sprint also used educational partnerships as part of its entry strategy into the Atlanta market in 1999 and 2000, when it began marketing wireless service here.

But education is not the only area in which companies can make a difference.

Accenture Ltd. uses its Technology Innovation Award program with TechBridge to build client relationships. The award is given to a nonprofit group that best demonstrates an innovative use of technology, with the volunteer panel of judges made up of local chief information officers, often from companies that are clients of Accenture.

"There are many ways to get to know your clients -- sporting events, dinners, cultural activities, etc. -- these are all great, tried-and-true methods," said Craig Ramsey, managing director for Accenture in Atlanta. "However, I believe partnering with them on community matters and concerns is key as well and offers the opportunity to work together to make a difference."

Atlanta-based Benevolink Corp. also is doing something innovative that supports community service efforts such as employee volunteering and philanthropy. The company owns Benevolink.com, an online community that lets people earn free funds for their favorite charities through shopping.

The site now has a new feature called "Connect," which is a social networking tool that helps connect volunteers with each other, allows volunteers to seek new opportunities to make a difference and helps organizations or individuals educate others about a cause they care about.

"It's not just about giving money, it's about giving time and giving support and we are trying to make that simple through Connect," said Darren Ryan, vice president of marketing and creative services at Benevolink. "We're helping them get that communication out there."