11 Oct Purpose-Driven Brands Are The Future
We’re seeing a transformation in consumer preferences
The growth in consumer interest to purchase from socially-conscious brands is one of the most pronounced changes in consumer preferences in recent times. Consumers more than ever are interested in buying products from companies not only based on price and quality, but also based on the company’s social impact and purpose. This is true across all industries, from food and retail to technology and beyond, according to a 2018 Cone/Porter Novelli Purpose Study.
Consumers are seeking out companies that deliver social impact, a major step beyond the “do no harm” attitude. In seeking out companies with social impact, consumers are asking themselves:
- How does this company create its products?
- How do they treat their workers?
- How does the company impact the communities they are involved in?
- How does the company take care of the environment? (since we only have one, unless we colonize Mars…)
A number of consumer statistics demonstrate how transformative this shift is:
According to a 2015 Nielsen report, 66% of customers are willing to pay more for sustainable goods. This was up from 55% in 2014. This percentage is even greater today.
55% of global online consumers have stated they are willing to pay more for products from companies with environmental and social impact. (2014 Nielsen Global Consumer Report)
When asked how they make purchasing decisions, 25% of millennial consumers say they always or usually buy solely based on the company’s brand values. (DoSomething Strategic 2018 Report)
The growing interest in socially-conscious brands is remarkable, but there are a number of gaps that remain.
What are the barriers?
A major gap has to do with discoverability and knowledge. Here we have a massive consumer movement seeking out socially-conscious companies, meanwhile 46% of them cite lack of knowledge about which companies are socially conscious as the major obstacle. Simply put, consumers don’t know which companies are socially-conscious. Anytime you have 50% of consumers unable to name a single socially-conscious company, that’s a problem.
The second gap has more to do with how socially-conscious companies are marketing. An overwhelming majority of consumers want companies to show how they are supporting communities around the world. Consumers also want to take an active part in the company’s social impact. They want to be involved. They want to be empowered and inspired. If socially-conscious brands more effectively show their social impact and provide methods for customers to be actively involved, the result is more emotional connections. More willingness to be an ambassador for the brand on social networks and with friends. More trust. More loyalty. And a greater willingness to switch from a familiar product to a similar product from a socially-conscious brand.
These gaps are preventing Purpose-driven brands from reaching their fullest potential. To truly tap into this consumer movement, brands need to show how their companies are making an impact and provide simple methods for consumers to be a part of improving the world.
Jukko was built to provide a way for brands to invite customers to be a part of social impact. For us, we’re dedicated to providing better ways to help all Purpose-driven brands flourish. This is our main objective.