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In today’s interconnected world, the role of brands has transcended mere existence. Gone are the days when consumers viewed brands solely through the lens of product quality and affordability. Now, they seek deeper connections, valuing brands that demonstrate a genuine commitment to social and environmental responsibility. Simply put – people are shifting towards a regenerative mindset that focuses on restoring, preserving and enhancing their lives and the lives of those around them. This shift in mindset underscores a fundamental change in consumer behavior and preferences.
Our current society is plagued by short termism, a disposable mentality and finite thinking. Regeneration shifts the lens to raise awareness to longer-term thinking and an energy-giving mindset. It shifts how society operates and has a direct connection to the expectations that consumers place on brands today.
Recent research from Human8’s 2024 What Matters Report illuminates this profound shift in consumer expectations, with an increasing demand for brands to be agents of positive change, actively contributing to making the world a better place.
The Expectation of Brands toward Regeneration: A Paradigm Shift
A study highlights a compelling trend: consumers expect brands to wield their influence for the greater good. Overwhelmingly, respondents expressed a desire for brands to go beyond profit maximization and embrace a broader responsibility towards society and the planet.
Key findings from supplemental research also reveal that 72% of consumers believe that brands should actively use their power and influence to help people. Moreover, 78% expect brands to be transparent about their sustainability efforts and ethical practices. These statistics underscore a growing consciousness among consumers, who increasingly factor social and environmental considerations into their purchasing decisions.
The Power of Purpose: Driving Brand Value
In today’s competitive marketplace, brands that embody a clear sense of purpose stand out. Research indicates that 82% of consumers are more likely to support brands that align with their values. Moreover, 91% of consumers are willing to switch to brands that support a good cause, given comparable price and quality.
We could see the proof of this with the shoe brand, Allbirds. Driven by their mission to create environmentally sustainable footwear in every aspect of their business, they know their position in the marketplace as not the most affordable or perhaps convenient option. But what they do know is Allbirds customers buy their products not because of the price-point or even the style, but because they align with the sustainable values Allbirds has put into their product. Allbirds customers want to express outwardly the fact that they are standing for change.
This emphasis on purpose-driven brands underscores a fundamental shift in consumer loyalty. No longer driven solely by product features or price points, consumers are increasingly drawn to brands that espouse values aligned with their own.
Meeting the Expectation: A Call to Action for Brands
As consumer expectations continue to evolve, brands must rise to the occasion – because if it matters to customers, it should matter your organization. To remain relevant and competitive in today’s marketplace, brands must adopt a holistic approach to business, one that integrates social and environmental considerations into their core operations.
This entails embracing sustainable practices, fostering inclusivity and diversity, and actively engaging with communities to drive positive change. Brands that prioritize purpose and demonstrate a genuine commitment to making a difference will not only earn the loyalty of consumers but also contribute to a better world for all.
Case Study: Starbucks Leading the Way
In addition to significant investments in Diversity Equity and Inclusion (DEI), EX and CX, Starbucks, a global leader in the coffee industry, exemplifies the power of purpose-driven organizational strategy. Through initiatives such as the Starbucks Foundation and the Ethical Sourcing Program, Starbucks has demonstrated a steadfast commitment to social responsibility and sustainability throughout their organization.
From supporting coffee farmers in developing countries to promoting diversity and inclusion within its workforce, Starbucks has consistently leveraged its influence to effect positive change. Starbucks also recognizes the importance of investing in their employees – from the frontline, all the way to the top. Through their College Achievement Plan, every eligible U.S. employee working part of full-time is eligible for 100% tuition coverage with Arizona State University online.
By aligning its business practices with its core values, Starbucks has cultivated a committed employee base and a loyal customer base that shares its commitment to making the world a better place.
In Conclusion
The expectation of brands has evolved, compelling companies to move beyond mere existence to meaningful impact. As consumers increasingly demand brands to be agents of positive change, embracing purpose-driven strategies becomes imperative. By prioritizing sustainability, social responsibility, and ethical practices, brands can not only earn the trust and loyalty of consumers but also contribute to building a better world for future generations.
