Brand preference can be a challenge as consumer culture changes quickly and the strongest brands tend to move at the speed of consumer culture. Brands are expected to take a point of view on topics and brand action is visible to your internal stakeholders, customers and consumers.
In today’s era of government inaction on societal issues, brand values and brand action are more ... [+]
In today’s era of government inaction on societal issues, brand values and brand action are more important than ever before. I recently saw a new study from IBM on brand values and sat down with Sheri Hinish, global lead, IBM Consulting Sustainability Services, to discuss the implications further.
Jeff Fromm: How do values impact how consumers think about the choices they make?
Sheri Hinish: Historically, when forced to make a trade-off between affordability and sustainability, consumers typically prioritized their pocketbooks. However, as our recent IBV study of global consumers points out, consumers’ mindsets are shifting. Over half (51%) of respondents said environmental sustainability is more important to them today than it was 12 months ago, and 77% of consumers shared a desire to make more sustainable choices at home. Further, nearly half said they paid more — an average of 59% more — for socially responsible branded products.
That’s why it’s no surprise that purpose-driven consumers, who choose products and brands based on how well they align to their values, now represent the largest segment (44%) of consumers. However, while consumers are clearly willing to buy, and pay, more for sustainable products, they still voice several obstacles getting in the way of their actions meeting their intent. Consumers aren’t just looking for bargain pricing or high-end products, they’re looking to companies to be true stewards of change to lead with purpose, and for this commitment to be demonstrated in sustainable choices. They want a full range of environmentally friendly options, with sustainable benefits clearly communicated, so that they can make the impact and the investment that works best for them.
Fromm: What can brands do to close the intent action gap we see with consumers who are trying to live a more sustainable life?
Hinish: Companies must break down barriers to meet this sharp increase in consumer, investor and employee demand. A few tangible ways brands can do this include:
- Enhancing communications: Brands must increase transparency and communicate progress toward sustainability goals to help consumers and employees understand how your company is protecting the environment, human rights and enabling responsible consumption.
- Embracing the circular economy: Brands can design for zero-waste or as-a-service models and engineer a sustainable life cycle, including re-use, upcycling and downcycling of products.
- Increasing value for money: Brands can offer incentives for consumers to reduce their carbon footprint, such as discounts for customers who consolidate shipments from multiple orders. Or, leverage intelligent workflows and advanced analytics to improve efficiency while reducing carbon emissions and waste—then pass the savings along to end consumers and articulate the environmental and social benefit or avoided negative impacts by choosing the sustainable product.
- Boosting collaboration: Brands can insist on more material and more transparent environmental and social commitments and actions across your supply chain, and consistently make those commitments known to employees and shareholders.
- Increasing transparency and communicating progress toward sustainability goals: Social media videos, on-pack callouts, and QR codes can supplement traditional reporting to help consumers understand how your company is protecting the environment and enabling responsible consumption.
