Who can you trust? Ask most consumers these days, and the answer is “No one.”
Chris Coulter
The latest research shows trust in corporations is the lowest it’s been in years, and that’s a problem for marketers. That’s according to Chris Coulter of Canadian global research consultancy GlobeScan, which focuses on stakeholder intelligence and engagement.
Coulter will be giving the keynote at a June 24 screening of the film Not Business As Usual in Toronto. The event will launch a new speakers series produced by Corktown Seed Co. that will focus on bringing marketers and sustainability/CSR reps together. He’ll be explaining why brands seen as having a purpose have a huge opportunity in today’s unstable marketplace, especially if that purpose is integrated into the brand’s identity, such as with Tom’s Shoes and eyeglass maker Warby Parker.
Here are the numbers that show why marketers need to pay attention now, based on GlobeScan’s report and other sources:
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- Havas Meaningful Brands research, which measures the impact of brands on well-being, studied 134,000 consumers in 23 countries and 700 brands. It found that meaningful brands outperformed the stock market by 120%.
- GlobeScan’s report, Re:Thinking Consumption, indicated consumers in booming developing markets such as Brazil, China and India are more than twice as likely as those in developed markets to report they purchase products because of environmental and social benefits (51% compared with 22%), and are willing to pay more for sustainable products (60% compared with 26%). They are also more willing to encourage others to buy from companies that are socially and environmentally responsible (70% compared with 34%).
- According to the Cone/Echo Global Corporate Social Responsibility Study (2013) of the attitudes and behaviours of Canadian and global consumers, 91% are likely to switch brands to one associated with a good cause, given comparable price and quality. Meanwhile, 88% feel a responsibility to purchase products they think are socially and environmentally responsible; 67% say they have actually done so in the past 12 months.Edelman’s GoodPurpose study (2012) tracks five years of data on consumer attitudes toward “purposeful” brands. They found 47% of global consumers buy brands that support a good cause at least monthly—a 47% increase from 2010—and 72% of consumers would recommend a brand that supports a good cause over one that doesn’t, a 39% increase since 2008.
- Despite good results when firms build their CSR reputation, selling sustainability to consumers remains a challenge. Marketing to diehards who believe strongly in corporate responsibility — those GlobeScan calls “Advocates” — is tough, as they don’t tend to identify much with brands and are quick to vocally oppose companies that make thin CSR claims, says Coulter. To solve this problem, in 2012 GlobeScan differentiated a new consumer segment they call “Aspirationals,” who make up 39% of the global population and 41% of Canadians. They are engaged and influential on issues such as climate change, but they’re also style-conscious and love to shop. They land in a demographic — Millennials and Gen-Xers, more female than male — that happens to be highly coveted by any marketer.
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