Information is in the palm of the hands of every company’s consumer. It can be easily accessed and shared with repetition, making major waves in the community. Social media has paved the way for user-generated content to reign over advertisement campaigns and marketing strategies. This means consumers are building company reputations through their opinions posted on social media. Consumers care about social impact; as a business owner, you should too.
64% of consumers choose, switch, avoid or boycott a brand based on its stand on societal issues. Edelman’s 2018 Earned Brand Study
According to Edelman’s 2018 Earned Brand Study, consumers make strong decisions about whether they do business with a company, or not, based on its stand on societal issues. Whether your product is top quality, or you have the best price, unless you stand with your community, they’re not going to stand with you. Social Impact is a strong ingredient in your community. People want to feel a connection that’s deeper than transactional. They want you, the business owner, to be like them, the consumer.
28% of U.S. adults have stopped using a brand because of something negative they learned about in the news. Critical Mix’s 2018 Spotlight on CSR
Consumers want to make a difference. Learning about issues in their communities from local news stories will inspire them to take action. If your brand is associated with a cause they don’t support, there’s a 28% chance you will lose them as a customer. It’s essential for a business owner to conduct thorough market research, determining personal preferences of their customer, understanding which social issues are important to them, and taking action to be of support.
Nearly two-thirds of millennials and Gen Z express a preference for brands that have a point of view and make a social impact. Kantar’s 2018 ‘Purpose 2020’ Report
As of 2020, Generation Z will officially be the largest consumer. Combining forces with millennials, these two demographics have major influence over the success of businesses and corporations. They’ve mastered the art of social media, spreading their opinion far and fast. They have a voice and demand that it be heard. In Kantar’s 2018 ‘Purpose 2020’ Report, two-thirds of millennials and Gen Z want to get behind a brand that’s making that difference.
Your company’s reputation in regard to social issues plays a much bigger role than in past times. As a business owner, your choice to take a stand or stay silent is going to affect the success of your company. It’s imperative that you understand the views of the market you wish to target. It’s crucial you know where their interests lie, beyond the product or service you provide. Consider your Social Impact! Share your beliefs and values with your customer by supporting social causes in your community.