According to research conducted by Nielson, global consumers are willing to put their money where their heart is. Online consumers are becoming fast attracted to purchasing products and services that facilitate positive environmental and social impacts.
Here are five interesting findings that illustrate why global consumers are favouring more ethical small businesses.
People will pay more
Fifty-five percent of global online consumers across 60 countries say they are willing to pay more for products and services provided by companies that are committed to positive social and environmental impact. It’s important to promote your social and environmental impact in all your marketing material, and on all packaging. For example, display environmentally friendly logos on your packages such as: Australian Made, vegan and cruelty-free (of course only if these statements are true). These three symbols promote the company’s social and environmental impact effectively, allowing consumers to make a quick, informed choice.
Packaging and labelling is important
Purchasing decisions are partly dependent on the packaging and 52% of global respondents said this is true for them. They check the labelling first to ensure the brand is committed to positive social and environmental impact.
Factors that influence consumer decisions
Amy Fenton, global leader of public development and sustainability from Nielsen says, “Consumers around the world are saying loud and clear that a brand’s social purpose is among the factors that influence purchase decisions. This behaviour is on the rise and it provides opportunities for meaningful impact in our communities, in addition to helping to grow share for brands.” She adds, “It’s no longer a question if consumers care about social impact. Now the focus is on determining how your brand can effectively create shared value by marrying the appropriate social cause and consumer segments.”
Minimising impact on global climate change
Two-thirds of the “sustainable mainstream” population will choose products from sustainable sources over other conventional products. These consumers will buy many eco-friendly products, and have changed their behaviour to minimise their impact on global climate change. They’re also more likely to buy products repeatedly from a company if they know the company is mindful of its impact on the environment and society. You can promote your environmental impact everywhere, on packaging, your website and on social media.
Millennials embrace ethical brands in a big way
Of the entire global respondents in the survey, half were Millennials (aged 21 to 34). Millennials represent 51% of those who will pay extra for sustainable products and those who check the packaging for sustainable labelling. If your brand appeals to Millennials, it’s time to review your ethical and sustainability practices. Brands can enjoy increased sales by promoting their social and environmental efforts. Consumers can do business with brands that are socially responsible, feeling good about themselves in the process.
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