Since the rise of corporate social responsibility (CSR), the customer landscape has forever changed. Consumers are moving away from buying from corporations who are only in it for a profit. They’re now rallying behind brands committed to making the world a better place.
CSR and customer loyalty
Have you ever noticed your favorite brands talking or posting about their global initiatives? Or how a portion of their sales goes to a local charity? Well, that is CSR at work.
Businesses that invest in CSR campaigns will attract and retain loyal customers at a much higher rate than businesses that do not have CSR at the center of their business strategy — but how does this work? Keep reading to find out.
The shift in customer buying habits
Consumers are no longer making purchases in the same way that they used to. If you take a look at Millennials and Gen Z, you’ll see just how much CSR has affected their spending habits. To these young consumers (and an increasing number of older consumers), corporate social responsibility is expected from the companies they buy from.
They want to see businesses do more than make a profit. Additionally, they are more than willing to withdraw support from those who put CSR on the back burner.
Companies that take an active role in the community and develop CSR initiatives that work to improve the lives of others are typically the ones that consumers want to give their money to.
It was stated in an article by CEO magazine that “a company with strong CSR values will have a high degree of transparency and enjoy greater trust.” Some business owners drop the CSR ball when it comes to attracting and retaining customers because they miss the one thing that really matters to them — trust.
A consumer’s trust can ultimately make or break a company. If a company has not shown itself to be trustworthy, how will it expect to get paying customers? Following the global pandemic, consumers are more conscious of their spending habits and prefer to shop with businesses whose values align with their own.
In a 2021 article by Harvard Business School, it states that “seventy-seven percent of consumers are motivated to purchase from companies committed to making the world a better place.” The article gives additional insight that points to the notion of CSR being paramount to a company’s success.
Effective corporate social responsibility initiatives will forever help to gain the trust of consumers. Furthermore, the more business executives tend to the needs of society, the more loyal customers they will attract.
How to create loyal customers through CSR
There are many components that go into creating a loyal customer — and the majority are centered around corporate social responsibility. From creating customer loyalty programs to hosting a social media contest for consumers to win a free product or service, the methods seem almost endless.
In Sage Pub’s recent article, it states that CSR is “the most salient feature of the customer’s behavioral intentions to preserve a long lasting and stable relationship” with a corporation. By investing in your customers and strengthening their relationship with your company, you are laying the foundation for organizational success.
Our whitepaper dives into how your company can create a loyal customer base who raves about your products and services. It takes away the guesswork that many companies face when using their CSR strategies to attract their ideal consumer base. Business owners who wish to learn about the following important points should download the whitepaper:
- The customer evaluation process regarding a brand’s reputation
- The benefits a company receives from adding CSR into their strategy
- Insight into what matters consumers like to see brands use their CSR budget for
The more effort and research business owners put into their CSR initiatives, the more they will win over consumers. How is your company investing in CSR?
Corporate social responsibility should be a top priority for corporations looking to attract and retain a loyal consumer base. How businesses interact with their consumers will ultimately determine the longevity of the customer lifecycle. Is your company hitting all the marks when it comes to creating a loyal customer?