Acting with Purpose: Consumers Are Watching
People are looking for good value, buying local, and creating new online working and shopping habits. At the same time, the pre-pandemic trend toward purpose continues to grow. Increasingly, people prefer to buy from brands with a clear purpose and those that take care of their employees and the environment.
According to the IBM Institute for Business Value, in 2020, 40% of those surveyed identify as purpose-driven consumers -- willing to pay a premium for products and services that align with their values and lifestyle.
71% of consumers in the 18-24 age group are paying attention to which brands have been proactive in helping pandemic relief efforts (Retail Analytics Provider Intelligence Node’s 2020 Consumer Buying Behavior Report)
Accenture reports that 67% of consumers agree or significantly agree that companies will ‘build back better’ by investing in longer-term, sustainable, and fair solutions. (COVID-19: New habits are here to stay for retail consumers, August 2020)
Consumers are more discerning than ever. They immediately see through superficial advertising that doesn’t match up with company actions. And with social media, there is no place to hide. In some instances, companies are not protecting the safety, well-being, and financial stability of their employees. For others, there is a disconnect between what a company says publicly or advertises and the actions people see them take.
People are not happy about it. UK social scientist Catherine Oliver even created a list (that I won’t name here) that details positive and negative actions taken by companies in response to COVID. The list went viral over social media.
Do Your Values and Purpose Come through to Customers?
So, how can you ensure your company's values and purpose are coming through loud and clear to your customers? Here are three ways to test:
Ask your customers for a report card - Through surveys, social media, or focus groups, find out what your customers are seeing from your company. Find out how your communications and your actions are being perceived. They’ll tell you what you are getting right and what you need to do better.
Talk with employees - The people on your front lines can tell you where and when disconnects are happening. And they likely have ideas for how to solve them.
Analyze everything going out to see how it scores for authenticity. Honesty and transparency are paramount, especially now. No amount of “spin” is going to turn bad news into great news. Better to just be real.