Poor social and political ethics are no longer just an internal concern for businesses, with consumers paying closer attention than ever to a brand’s values before purchasing, according to a report from customer review platform Feefo.
The Feefo Brand Perception Report 2021 surveyed 2,000 people in the UK on how they perceive brands and what they consider before making a purchase. It revealed that 74% of people are less likely to buy from a company if they are disappointed by their actions or words on a social or political issue. Even customer loyalty can be tested by these views, with 26% saying they would stop purchasing from their favourite business if they got involved in an ethical scandal.
Vic Heyward, Brand Marketing and Communications Manager for Bright said: “This newer focus on brand accountability for sustainable initiatives can feel daunting for some, especially if you’re not at the forefront of an environmental revolution. For brands like this, taking a step back to reflect on your brand purpose, code of ethics or CSR policy can be an enlightening experience and a way to further engage prospects and employees.”
Blurred Lines Between Employee and Employer Values
With an increased focus on brand values and holding businesses accountable in social and political discussions, the line between employee behaviour and employer values is starting to blur. Thanks to social media and online reviews, communication between businesses and consumers is easier than ever, making the ability to appropriately govern online communications a growing challenge. Conversations in the public domain are increasingly important for brands and having employee’s behaviour match up with company values is a vital part of this.
Co-Founder of Design By Structure, John Galpin, revealed: “Customer perception is based on the customers’ own experiences of a brand, how it aligns with their own beliefs and values, their interaction with it at every touchpoint, from the awareness, through to purchase-decision to having it in their home.
“Brands don’t hold the reins completely. Consumers hold power in their ability to vote with their feet. If they don’t like what a brand does, represents or aligns with (influencers/ambassadors) they simply won’t purchase, or more importantly repeat purchase — that’s real power.”
Consumers Have Trust In Brands
Communicating values to consumers is more essential than ever before, with brand values playing a vital role in the purchasing decision. Interestingly, Feefo’s research shows that customers do have trust in businesses when they say they are socially responsible. In fact, 78% of people said they believe B2C brands when they communicate their brand values. Only a handful of consumers (4%) said they do not believe businesses when they claim to have socially responsible credentials.
Keith Povey goes on to say: “The Feefo Brand Perception Report 2021 clearly highlights the need, and opportunity, for brands to invest more in defining who they are, what they believe in and how they operate. Effectively communicating this demonstrates how, by giving business to the brand, the customers will be supporting a transparent, trustworthy and socially responsible business. In other words, it is imperative to invest in creating a brand with a purpose.”
The way companies operate and make decisions going forward needs to focus on addressing bad practices. It is clear to see that consumers are prepared to hold brands accountable for their actions, views and ethics, and it can have a significant impact on the bottom line. Entire organisations and all employees need to be on board with these brand values and be prepared to uphold them in public communications.
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Source: http://hrnews.co.uk/consumers-holding-brands-to-account-over-bad-practices/
