Social attributes: a brand’s key factor for customers’ loyalty?

By Tina Ly.

So far, how Marketing has evolved? Before, as consumers, we cared about how functional a product was. Then, we were attracted by brands triggering some emotions and feelings. Now, we are attracted by brands with which we have a relationship. As such, brands are more and more concerned by the social image they vehicles and thus by how they are perceived by consumers. As a result, not only partnerships between companies and NGOs are increasing, but in terms of figures, cause marketing industry has exploded: from USD 120 million in 1990 to USD 1.62 billion in 2010.  

RELATIONSHIP WITH A BRAND DOING CAUSE MARKETING
For today’s consumers, functionalities of a product do not matter so much. What do they care about then? Today’s consumers are more looking at what a whole brand is, what a brand does, not only in terms of economic impacts, but more in terms of actions for the society and the environment.

According to the Social Impact Study conducted by Cone Communications this year on the US market, 71% of US consumers believe that it is businesses ‘duty to contribute to social or environmental issues.

Besides this study also shows that most of US consumers:

·         (82%) consider a company’s social and environmental commitment before making decisions about what to buy or where to shop.

·         (89%) are likely to switch brands to one that is associated with a good cause, given similar price and quality.

In Turkey, the 2012 Turkish Sustainability Academy study showed similar trend with 90% of Turkish consumers feeling closer to brands that offer greener products.

CSR: A MUST FOR CAUSE MARKETING STRATEGY

Cone Communications study also shows that consumers want to get engaged with corporate social responsibility (CSR) efforts. Indeed, 88% of Americans want to hear about CSR efforts. Furthermore, if given the opportunity, 88% of US consumers would buy a product with a social and/or environmental benefit; and 88% of them would stop buying the products of a company that is irresponsible or having deceptive business practices.

However, efforts must be made by companies in the way their CSR actions are communicated to their audience, since 87% of US consumers believe companies share positive information about their CSR efforts, but withhold negative information and 60% of them are confused by CSR messages.

In the same manner in Turkey, 92% of Turkish consumers consider information related to greener product to be insufficient in Turkey.
Besides, the milennials accounts for a quarter of the world’s population, these urban citizens are highly engaged in global issues. As presented in the Engaging Tomorrow’s Consumer report, milennials have growing influence and incomes with:

·         84% of them believe it is their generation's duty to change the world.

·         80% of global millennials have acted in support of a brand they trust and more than half would volunteer to test new products from these trusted brands

·         71% want brands to be environmentally friendly and ethical

·         61% want them to connect with a cause or social issue.

What does it mean? It means that consumers are considering the whole brand itself and not only a product of a brand.

SOCIAL ATTRIBUTES REWARDED
The Guardian Sustainable Business Awards 2013 – are a perfect illustration of brands being awarded for their social actions. Here are some winners’ examples:

1. Cred Jewelry – Supply Chain Winner: since 1996, this company is producing ethical jewelry from fair trade gold that can be traced right back to the mine it came from.

2. B&Q Plc – Carbon Winner: the company’s main goal is to reduce its carbon footprint by 90% by 2023. B&Q is also committed to helping its customers reduce their carbon emissions as well and become more sustainable by offering more than 4.000 eco-products.

3. MADE-BY – Consultancy of the Year: This not-for-profit organization, which motto is "fashion with respect for people and planet", aims to revolutionize the fashion industry by improving its environmental and social conditions.

4. Olam International – Society Impact Winner: one of the world's leading agri-businesses is committed to improving farmers’ livelihoods as rural communities move from subsistence-based agriculture to commercial viability. 3.5 million smallholding farms around the world account for the sources provided to Olam for its production. Besides, to encourage good quality, Olam invested USD 4.5 million in training for farmers to learn how to manage their assets and resources.

5. Seacourt – Waste and recycling innovation Winner: the company is the world's first printer to achieve zero waste to landfill.