Consumers now looking beyond price and quality
Many businesses believe that price and quality are the recipe for success among consumers, but a recent report by Feefo has revealed that brand value is also critical. Customers want to know where a business’s priorities lie when it comes to social responsibilities and are using this information as part of their buying decisions. In fact, the report revealed that a huge 74% of consumers take a brands values into account before purchasing. Nearly three quarters of consumers in the UK said they “would be less likely to purchase from a brand if they were disappointed by a company’s words or actions on a social or political issue”.
Companies must be socially and environmentally responsible
There is more focus than ever before on brands addressing social and environmental issues in the right way. Customers want to choose businesses which prioritise issues they care about, and 57% of UK consumers agree that companies need to be socially and environmentally responsible. This could be demonstrated through reducing packaging, choosing renewable energy sources, or using their platform to address political issues. Businesses not only have to focus on their values, but effectively communicate them to their customers.
Keith Povey, Marketing Director of Feefo, says “Companies need to demonstrate that by doing business with them, their customers will be supporting a transparent, trustworthy and socially responsible brand”. It is so important that brands are having these two-way conversations with consumers, because this is the information that they truly want to know about a business. Price and quality are still key parts of a buying decision, but it is clear to see that brand values are also playing a critical role.
Consumers won’t stand for unethical brands
The Feefo report also revealed that UK consumers are becoming more and more sensitive to brands which behave unethically. 74% of consumers are less likely to purchase from a company if they are disappointed by their words or actions over social or political issues, and only 48% stated that they would give a business a second chance if they made themselves accountable. This makes it very clear to businesses that getting it right the first time is vital, because consumers are likely to be unforgiving over social and political concerns.
On the other hand, brands which are socially responsible will reap the rewards from consumers as 61% said they would spend more on brands they respect. Interestingly, 78% said they will believe a brand when they say they are socially responsible, so communicating this to consumers is crucial for success. A third of all consumers take transparency of a business into account, so being open, honest and concise about brand values is an absolute must for businesses of all shapes and sizes.