Your customer needs to respect your business, says Richard Rosen (pictured).
We are in the midst of a major revolution in business. Consumers today are more aware than ever that their purchasing decisions have an impact on the planet, both socially and environmentally. They now pay attention to your company’s values and are looking to buy from companies they respect.
According to Simmons OneView, 73% of consumers agree: “it is important that a company behaves ethically”. A whopping 88% of consumers buy green products. And the proportion of green products they buy increases significantly year after year.
Those businesses that successfully engage this concerned consumer will gain greater numbers of loyal customers, but the benefits don’t end there. According to a recent survey by Deloitte LLP, companies with a strong sense of purpose establish more trust with their clients, instil greater confidence in investors, receive more support from their communities, and have more engaged employees.
As a marketer, it’s essential that you get on board and consider how your brand is going to fit into this changing landscape. And you have to consider it in a real way. The days of smoke and mirrors are long gone. It’s time to ask: “What does my brand really stand for?” and then give careful consideration to the message you want to send to your customers.
Over the last decade we’ve seen plenty of examples of companies who have tried to continue business as usual by covering their less savoury practices with a heartfelt message and some beautiful window dressing. However, when those unpleasantries surface—be they corporate scandals, unfair labour practices, or environmental degradation— they leave their customers in a state of mistrust, ultimately destroying any chance of building long-term relationships. Whether it’s through their own efforts or through the social media grapevine, consumers will know if a brand’s behaviour aligns with their own personal values.
As marketers, it’s not enough anymore to tell consumers that our companies and products are good. We have to prove it.
B Corporations (B Corps) are committed to successfully addressing the needs of this new consumer. Using business as a force for good, B Corporations are leading a global movement that by redefines our success in business. Beyond being the best in the world, B Corporations compete to be the best for the world. And so far, more than 1,000 businesses from 32 countries have become certified, including Patagonia, Etsy and Ben & Jerry’s.
These companies voluntarily uphold performance and legal requirements by balancing the triple bottom line – people, planet, and profit. By taking a stand for genuine values, B Corps are engaging consumers as partners in creating a brighter future. And consumers are responding with enthusiasm and commitment.
A perfect example of a well-known B Corp that balances mission and profits is Ben & Jerry’s. Though they became a B Corp two years ago, they were using a triple bottom line approach since their first scoop shop. Their mission is three-fold: to make great product, to make money, and to make a difference in the world. Ben & Jerry’s shows their commitment to employees and consumers by working to source responsible ingredients, upholding fair labour practices, and even designing campaigns to reform US politics. Though they aren’t perfect, it’s their transparency as they work to make the world a better place that successfully engages customers in a truly empathetic way. They have created an honest dialogue that creates a reciprocal, long-term trust and enthusiasm for the brand.
Patagonia is another B Corp that has long been known for its efforts to be environmentally sustainable. But it’s their transparency and honesty that has cultivated such a loyal customer base. For example, their Footprint Chronicles initiative shares their supply chain in a transparent way to hold them accountable in reducing their social and environmental impacts. This sort of initiative extends an offer to consumers to partner with Patagonia to create a brighter future. Buying Patagonia becomes a vehicle for consumers to make a difference.
It’s no secret – as businesses, we need to make money. Most companies believe in doing good, but are afraid to implement it because they think it will hurt their bottom line. Having a strong sense of purpose goes much deeper than the old feel-good window dressing of the past. It creates a strong competitive advantage. As a marketer with 30 years of experience, I’ve never seen a better strategy to drive profits. I truly believe that balancing profits with a brand mission will drive customers to your brand, build profits and stockholder equity – it’s just good business.
This is the wave of the future. As integrated marketers, we need to consider whether or not our values and brand are aligned. And if not, maybe it’s time for a change.
Richard G Rosen is president/CEO of ROSEN Convergence Marketing (a certified B Corporation) and consults with major brands to improve their marketing campaigns through empathetic dialogue. His book, Convergence Marketing: Combining Brand and Direct for Unprecedented Profits, (Wiley & Sons), is a ‘how-to’ tool for marketing professionals. Richard will be presenting a keynote at the annual USA DMA conference in San Diego with Rob Michalak, global director of Social Mission, Ben & Jerry’s, in October 2014.
