Business Beware: Buyers Care!

Published by AYN Brand | Filed under Branding, Community Relations, Public Relations |

Welcome to our blog! If you're new to marketing, public relations, and promotions, please subscribe to our RSS feed so you can receive the latest branding ideas, trends, and insight from AYN Brand. Thanks for joining us!

More than two-thirds of Americans say they consider a company’s business practices when deciding what to buy. In corporate America, more and more workers want their employers to support social causes or issues. According to the 2007 Cone Cause Evolution Survey in cause branding, consumer thinking about how businesses interact with society has evolved to demand more corporate responsibility. The result: In order to maintain competitive in this climate, you must consider implementing socially and environmentally responsible values and business practices not only to help your community, but also to help your business.

“Cause marketing efforts have a proven impact on sales and remain effective ways for a company to express its heart and humanity,” says Julia Hobbs Kivistik, executive vice president of Cause Branding at Cone. “However, there has been a radical change once again in the value equation involving consumers, companies, and society…Now, companies have a strategic imperative to also consider their operating practices and how they impact their social commitments. Today’s informed consumers are now asking, ‘Is this a good company?’ and ‘What does it stand for?’ ”

Across a broad range of industries, business practices are now an additional purchasing influence for approximately one-third of American shoppers. Another third of consumers consider both social issues and
business practices when deciding what to buy. An overwhelming majority of Americans (85%) say they would switch to another company’s products or services if a problem with business practices was uncovered.

Social Responsibility Differentiates Brands for Many Consumers

Americans’ expectations of companies are at an all time high: 83% say companies have a responsibility to help support causes, and 92% acknowledge they have a more positive image of a company that supports a cause they care about. In many areas, Americans are more likely than ever before to reward companies for their support of social issues. 87% are likely to switch from one brand to another (price and quality being about equal) if the other brand is associated with a good cause, an increase of more than 31% (from 66%) since 1993.

Americans also consider a company’s commitment to social issues when deciding:

• Which companies they want to see doing business in their communities-86% (vs. 58% in 2001)
• Where to work-77% (vs. 48% in 2001)
• Which stocks or mutual funds to invest in-66% (vs. 40% in 2001)

Employees Seek Community Commitment from Their Companies

American employees’ expectations of companies have also increased, and quite dramatically: 72 percent wish their employers would do more to support a cause or social issue.

Employees familiar with their companies’ cause programs indicate:

• They are proud of their companies’ values-88%
• They feel a strong sense of loyalty to their companies-89%
• It is important for their companies to provide them with opportunities to become involved in causes-93%

Advancements in technology and the Internet have blurred the borders between the office and the community. With many employees considering the workplace as part of their entire community, it is imperative that companies begin to engage with them through meaningful work and communications about efforts that are aligned with community-oriented causes. By doing so, companies inspire their employees to become brand ambassadors who promote the company and build goodwill for it among their social circles by sharing these positive stories with their families and friends.

Web 2.0: Communication is a Two-Way Street

Americans prefer companies to communicate their social and environmental issues and practices through advertising and the internet (45% and 41% respectively). Americans are also using technology proactively to learn about and support social and environmental issues and causes. More than one in five (22%) have used the Internet or other technologies to engage in grassroots activism. Others are searching for information on issues (37%) or are forwarding important messages to family and friends (38%).

Viral communications and campaigns have increased among businesses that want to tap into consumers’ “social” behavior. Madison Avenue no longer has a stranglehold on marketing messages: the advent of Web 2.0 and social media has put the consumer in control, in the role of citizen marketers. As they receive information, citizen marketers tend to share their opinions - both good and bad - with their communities. For businesses to ensure those opinions remain on the “good” side of that dialogue, aligning their practices with positive causes and programs that benefit the community would be beneficial.

The Causes Consumers Care Most About

Health remains the leading issue Americans want companies to address (80%). Education, environment, and economic development (job creation, income generation, and wealth accumulation) tie for second place at 77 percent.

Add New Comment

Subscribe:  This Thread

Go to:  My Comments ·  Community Page

Thanks. Your comment is awaiting approval by a moderator.

Do you already have an account? Log in and claim this comment.

 

Add New Comment

close ()

• 
• 
• 
• 
• 
• 
• 

status via twitter

recent comments (follow comments)

View Profile »

Powered by Disqus · Learn more

close Reblog this comment

Powered by Disqus · Learn more

blog comments powered by Disqus