Australian consumers are four times more likely to purchase from a brand that has a social or ethical mission backing, according to a report conducted by communications agency Zeno Group.
The hardship of the past year appears to have pushed consumers to become more aware of their purchasing power. The survey showed a powerful movement amongst consumers towards purchasing from brands with ethical and sustainable practices and purposes.
The report found that 89 per cent of Australians support brands with a ‘positive purpose’ and that consumers were:
- 5.4 x more likely to recommend the brand
- 5.2 x more likely to trust the brand
- 4.4 x more likely to support that brand in a challenging moment
- 4.0 x more likely to purchase the brand.
“The prioritisation by consumers of sustainable and ethical business practices reaffirms that environment, social and governance efforts are worthwhile: not only because shareholders demand it, but also because when communicated effectively, consumers will reward these initiatives with incremental sales, recommendations and loyalty,” said Paul Mottram, Regional President, Asia Pacific, Zeno.
Zeno’s report identified the importance of a clear and meaningful mission when attracting customers.
However, the report also showed that only 28 per cent of Australians believe that most brands are purpose-driven. The market gap shows businesses that now is the perfect time to place purpose at the front of their brand.
“It’s clear that there is much room for improvement when it comes to brands communicating their purpose to Aussie consumers, said Sarah Littlefair, General Manager, Zeno Group in Australia.
“Brands need to step up to keep pace with consumer expectations, or they run the risk of losing preference, reputation, loyalty and sales.”
The report showed that consumers are more likely to support a brand that makes a profit when it positively impacts the world:
- 89% of consumers are more likely to support a brand making a profit if they have a positive impact on the world
- 87% of consumers said if a brand or company truly lives by a clear and strong brand purpose, they would be more likely to continue to support them if they were to make a misstep or receive public criticism
- 73% of consumers say companies should only earn a profit if they positively impact the world overall.
“The inescapable conclusions of Zeno’s new research are that brand purpose is here to stay, and its value to businesses in Australia is more compelling than ever before,” said Ms Littlefair.
“By first recognising consumer demand for brands with strong purpose, and then responding with relevant and authentic actions, Aussie businesses have a significant opportunity to gain in terms of reputation, sales and market share and lead the recovery.”