There has been heightened media interest around the rise of socially conscious, purpose-driven brands for many years. Now, it’s unsurprising to read daily about another company or brand announcing a new commitment they will make to leave a more positive imprint on the world – be it environmental, social, economic or another purpose-driven aspiration. And this trend is applaudable. Given 72 per cent of “mum shoppers” are largely in charge of the household discretionary spend, organisation
s are asking: Does this customer really care, and what role does being purpose-driven play in converting sales?
Having partnered with hundreds of retail brands over the years, it has been incredibly inspiring to see how so many of them have developed their positioning and ethos to be authentically purpose-driven and genuinely make a difference to the world or wider community. But for every brand that has evolved in this space, there are many others that have not, largely because they have too many unknowns in this space, and ongoing questions.
Mumpower conducted research with over 2170 Australian households – primarily with the grocery buyer. In this study, mum shoppers Australia-wide rated purpose-driven brands across all sectors, discussed awareness levels, brand sentiment and likelihood to purchase “better” brands. Here are the study’s key insights.
Your customers care
Eight out of ten consumers do care if a brand supports sustainability and/or other social causes impacting our community. A resounding 97 per cent of mums have the expectation that you are working towards making a genuine difference to the wider community and 1 in 2 expect most brands now have a bigger purpose already in place.
Not everyone will pay extra
While 5 in 10 mums are regularly buying purpose-driven products regardless of price, it is not a given that all purpose-driven brands should charge more. How much more depends on price difference, the value of the offering and what the product means to them.
Less than half of the respondents expect to pay slightly more for these products either regularly or always; 43 per cent believe they should “sometimes” be expected to pay extra; and only 13 per cent believe consumers should never be expected to pay more.
Mums are making considered purchasing decisions
There is evidence this consumer is making considered buying decisions that make a positive difference to her world. While 43 per cent of consumers are focused on “always” or “regularly” buying a product that purely meets her needs and does not make a positive difference to her world, the balance of respondents are more open to making “better” buying decisions.
“People love helping people. Knowing that their purchase is essentially investing into something bigger feels much better than supporting brands and businesses that are driven purely by profit,” Nadine Mueller, an influencer and mum involved in the Mumpower study, said.
It makes the buying decision easier
The research demonstrated that, in general, knowing about a brand’s bigger purpose influences 25 per cent of respondents’ decisions to buy. As a specific case study within the research, mums were exposed to 27 popular mid to large brands among the likes of Nespresso, Modi Bodi, Whole Kids, Vetta, Mater Baby Products and Baker’s Delight, and educated about their purpose-driven practices and causes. There was a lack of awareness, with 50 per cent of mums having no idea about half of the “known” brands’ purpose-driven causes. Yet 62 per cent of mums were now more likely to purchase these brands because of what they do.
A quote from Emily Foat, Twitter Australia head of agency development, rings true: “Consumers want brands to get involved in the issues and moments that matter most to them and those that do, will reap the rewards.”
Ultimately, mum shoppers have spoken.It is increasingly important to them that brands commit to a greater purpose for her world. In doing so the brand leaves an impression. It fuels a much stronger positive sentiment for the brand, fosters emotional connection and delivers a more compelling and feel-good reason to buy. Therefore, the consequences are great; for the brand, for the consumer and for the planet.
This was originally published in Inside FMCG magazine