To stay relevant in 2020 brands need to stand for something meaningful if they are to stand out in a competitive market, social mission director Dora Nikols says.
Citing the 2019 Havas Meaningful Brands Global Study, which had 350,000 respondents from 31 countries, Dora said consumers had a higher intent to purchase from brands which made the world a better place.
Dora said 77 percent of consumers stated they preferred to buy from companies who shared the same values as them.
“Before, we were living in the digital revolution where companies scrambled to get onto social media. But with all this digital noise, consumers are now feeling overwhelmed and have their filters on and are now looking for brands that add meaning to their life. They want to support brands that reflect their values and want to know that their purchase makes a difference, because it makes them feel good and it also makes choosing easy. The most valuable asset a company can develop right now is trust within its community.
“This is why one of the biggest trends that will drive business in 2020 is having a meaningful social purpose. Not only does having a social purpose help create a strong competitive advantage but it leads to growth and wins the hearts, minds and emotions of your audience. But you must be authentic and you must get it right.
“So what is social purpose? It goes beyond corporate social responsibility where you simply donate to charity or run a short-term marketing campaign. Instead it is when you identify one key problem or issue you and your customers care about and you work to solve it for the long-term. You turn your business culture into one that wants to do good. This then leads your PR and marketing campaigns and transforms your business culture so staff stay engaged and customers stay loyal.”
According to the 2018 Edelman Earned Brand report, two in three people choose, switch, avoid or boycott a brand based on its stance on social issues.
Meanwhile, a recent YouGov study found 87 percent of Australians think business has a responsibility to do social good and 55 percent would recommend a brand that gives even a small portion of its annual profits to charity.
This article was first published on RetailBiz.