Consumers Are 74% More Likely to Buy from Purpose-Driven Companies
Nearly three-quarters of UK consumers prefer to buy services and products from brands that stand for a purpose that echoes their own beliefs and values, and will steer clear of brands that don’t.
According to a new Feefo report, 74% want companies to take a stand on cultural, environmental, social and political matters that they’re the most sensitive about. The 2021 data reveals that 74% of shoppers aren’t as likely to buy from a company if they don’t agree with their actions and words relating to a political or social issue.
Feefo’s Marketing Director, Keith Povey, says:
“Today, it’s crucial that brands define their purpose and communicate it effectively to their customers. Companies need to demonstrate that by doing business with them, their customers will be supporting a transparent, trustworthy and socially responsible brand. Our research emphasises the need for businesses to create two-way conversations with their customers to better understand what they care about.”
The Report’s Highlights
Some of the key findings from the Feefo report include:
- 74% won’t purchase from a brand if they’re unhappy with their words.
- 48% would shop with them again if they made themselves responsible.
- 26% wouldn’t shop with them ever again.
- 78% prefer companies that care about social issues.
- 61% will spend more on socially responsible brands they respect.
- 61% revealed celebrities and influencers linked with a company don’t have any impact on how they feel about the company.
- Just 12% allege having a celebrity associated with a brand makes them view the company more positively.
- 47% feel strongly that brands should respond to bad testimonials.
Bright’s Brand Marketing and Communications Manager, Vic Heyward, says:
“Understanding what your brand truly stands for should be the motivation behind your core purpose, and brand values should authentically echo this. What’s the point in having a set of values you never live, or worse, never look at again?
“This newer focus on brand accountability for sustainable initiatives can feel daunting for some, especially if you’re not at the forefront of an environmental revolution. For brands like this, taking a step back to reflect on your brand purpose, code of ethics or CSR policy can be an enlightening experience and a way to further engage prospects and employees.”
Companies must think about being socially responsible as this can have a positive effect on shoppers.
The report also reveals that:
- 34% believe brands should be passionate about their products and services.
- 33% care about a company’s sustainability ethics.
- 33% always consider a brand’s transparency.
Previously, companies chose to stay unbiased on controversial issues in case of retaliation. But the latest Feefo report shows doing or saying nothing about current social and political issues simply alienates shoppers.
If a brand embraces purpose in today’s society, it goes beyond merely sharing an opinion about a topical matter. It shows its meaningful commitment to issues its main audience cares about.
Other findings reveal that if a consumer’s favourite company became involved in an ethical scandal:
- 26% would stop buying from them altogether.
- 48% would give them another chance.
- 17% wouldn’t be bothered, believing every brand has its problems.
In a world where review platforms and social media are the names of the game, word-of-mouth alone can have a considerable negative or positive effect on sales. Online communication is perplexing and convoluted in this day and age, making it hard to tell the difference between an employer’s brand values and employee behaviour.
Jonathan Emmins, Founder of Amplify, says:
“Disenfranchised from politics, let down by celebrities and questioning brands’ ethics, consumers are looking for heroes who share and champion their values. This presents both an opportunity and a threat for brands as spending is an area where audiences know they can exert influence. Pre-pandemic, this trend was already on the rise, particularly amongst younger consumers.
“Amplify’s Young Blood research that targeted 18-35-year-olds highlighted a paradox where young people’s passion and stance on sustainability meant they aspired to buy Finisterre or Patagonia, even if at this early life stage they could only afford Primark or BooHoo. We’re yet to see whether it’s a temporary or more permanent change but facing the global challenge of the pandemic, consumers are more empathetic, aware of their impact on the world and open to change.”
Brand purpose is important for any company and it’s a theme that’s unlikely to disappear any time soon. To develop more robust consumer relations and sustain a competitive edge, companies should welcome social issues that make sense for them instead of selecting a purpose that’s trending now.