Per a new study by the Stern School of Business at NYU:
50% of consumers assume the worst when your company remains silent on its environmental and social position.
Think about that for a minute. Given that 50% of your consumer group has already formed an opinion of your company, what is going to happen when a competitor can show they are doing something good for the environment or society?
Here’s what will happen – Per the study, 64% of consumers buy, choose or avoid brands based on what matches or offends their societal beliefs. Many other studies have put the percentage between 60% – 75%, so this study is consistent with what other studies have said over the years.
So, in answer to the first question, roughly two-thirds of all your clients will leave you when they find a competitor that satisfies their environmental and social demands.
The study goes on and tests various messages. Of all the messages tested in the study, a social sustainability message was the most powerful. Again, this is consistent with many other studies over the years – If you want the most powerful differentiation tool for your business, be able to prove your sustainability commitment.
Also per the study, having a social message that resonates with your consumer increases appeal for your company by roughly 50%.
Think about all the money you are spending on trying to get your consumer to like you more than the competitor down the street. Can you think of anything you have done, or could do, that would have a +50% impact on your brand image?
This response occurs across all demographics, including education, party affiliation, income and age.
Your options –
- Keep playing Russian Roulette
- Decide to take proactive action, read this on what you want in a sustainability program, watch this master class, and contact us.