Building Stronger Brands by Serving Communities
Here are seven ways social activities positively affect businesses’ bottom lines.
1. Enhance customer loyalty:
With the social media boom, businesses are using new ways to communicate and engage people around their corporate social responsibility (CSR) efforts. Customers choose your business over your competitors when they feel your company is trustworthy. It takes time to build the kind of loyalty that affects people’s decisions of who they buy. Warby Parker has launched a “Buy a Pair, Give a Pair” program. For each purchase made, glasses are given to someone in need. The eye glass company has donated more than 150,000 pairs to date and earned thousands of fans (and customers) in the process.
Field data collected from 3,000 grocery shoppers by Ad Age shows that work by companies to benefit their employees and communities increases customers’ favorable opinions. According to the study, if retailers improve consumers' perception of their fair treatment of employees by one point on a five-point scale, the resulting increase in share of wallet is approximately 1.7 percentage points. The gain from a similar improvement in local sourcing is even more pronounced at more than 2 percentage points. These numbers appear small, but they represent a sales lift of ten to 15 percent for the average retailer.
2. Improve business appeal:
The Reputation Institute’s 2011 “Pulse Survey” indicates that CSR is responsible for more than 40% of a company’s reputation. Ricoh builds trust and enhances attractiveness to prospective customers through action plans focused on the four key areas specified in their CSR charter: integrity in corporate activities, harmony with the environment, respect for people and harmony with society.