By Shayna Samuels and Glenn Turner
From L’Oreal’s new sustainability campaign to General Mills’ recent acquisition of Annie’s Inc. natural and organic foods (at 37 percent above the stock valuation), big brands are catching on to the fact that today’s consumers are looking for a lot more than a pretty package and a good deal. They’re looking for products with purpose and brands who care about more than just the bottom line. And if today’s entrepreneurs want to survive in an increasingly crowded marketplace, they need to take a page from the playbook of pioneers like Seventh Generation and Ben and Jerry’s, whose mission-based business models and marketing have catapulted them from a corner in the co-op to every mainstream grocery store in America.
A growing body of market research is proving this isn’t simply a trend, it’s a tidal shift in our economy. Here are 10 facts about modern consumers and how their demand for socially conscious businesses is driving marketplace evolution.
- No. 1: 86 percent of global consumers believe that business needs to place at least equal weight on society’s interests as on business’ interests.
- No. 2: 91 percent of U.S. consumers are likely to switch brands to one associated with a good cause, given comparable price and quality.
- No. 3: 50 percent of global consumers said they would be willing to reward companies that give back to society by paying more for their goods and services.
- No. 4: 90 percent of U.S. consumers would be more loyal to companies that back causes.
- No. 5: 47 percent of consumers have bought a brand at least monthly that supports a cause, representing a 47 percent increase from 2010. There’s also been a 39 percent increase in how many consumers “would recommend” cause-related brands.
- No. 6: 75 percent of U.S. consumers say they would donate, volunteer and tell friends and family about a company’s social impact efforts if given the opportunity.
- No. 7: 93 percent of consumers want to know what companies are doing to make the world a better place.
- No. 8: Buzzwords are not convincing and only 11-15 percent of consumers are confident about terms like “natural,” “organic,” “sustainable,” “fair trade,” “green,” and “eco-friendly.”
- No. 9: 71 percent of consumers report being confused by the message companies use to talk about their efforts and impacts.
- No. 10: 41 percent of consumers rely on news media to gauge whether a company is socially responsible.
Ultimately, there’s an enormous opportunity in this new market landscape for social entrepreneurs, mission-driven brands, nonprofits and any organization seeking social change. But in a marketplace flooded with causes, authenticity combined with articulate storytelling and strategic media placement are vital to rise above the noise and make a real connection with consumers. Learn how to develop and execute a successful communications strategy using Ripple Strategies’ new report, “How to Use the Media for Social Change.” Take your marketing and your brand to the next level with tips and insights based on case studies and over a decade of experience.
Image credit: Mike Mozart, Flickr cc
Shayna Samuels and Glenn Turner are co-founders of Ripple Strategies, a PR & Cause Marketing Agency based in Boulder, Colorado
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