The last two years have brought forth the importance of being purpose driven for organisations. According to a report by consulting firm Capgemini, 78% of consumers believe that companies have a larger role to play in society than just looking after their self-interests. “During the pandemic, consumers started questioning whether organisations really follow the purpose that they are stating. Today, they are able to differentiate whether an organisation is just having its purpose statement as a lip service, or following it in a consistent, systematic, and thoughtful manner,” Sarika Naik, CMO, Capgemini, told BrandWagon Online.
As per the Capgemini report, 75% of consumers share that they will purchase exclusively or more from companies that give back to society during this health crisis. For Naik, GenZs especially are far more sensitive to purpose-driven organisations. “They do not want to work or buy from an organisation that is insensitive to the environment or to a sudden crisis such as the pandemic or one that has taken arbitrary measures for profit,” she added.
Naik also highlighted that being purpose-led helps companies benefit in terms of consumer engagement. The report by Capgemini cited an example of Moët Hennessy Louis Vuitton (LVMH) which announced that it was transforming its perfume factories to manufacture hand sanitizer on March 15, 2020. The company witnessed a 90% increase in average engagement on Twitter, a 67% increase in average engagement on Facebook, and a 51% increase in average engagement on Instagram post the announcement. Similarly, American automaker Ford announced that it was producing a ventilator with GE Healthcare designed to operate on air pressure without electricity at the end of March 2020. Post the announcement, the company witnessed an 88% increase in average engagement on Twitter, a 39% increase in average engagement on Instagram, and a 31% increase in engagement on Facebook in March 2020.
Furthermore, as per Capgemini, positive social media engagement can increase brand loyalty and generate positive word of mouth. It stated that answering a complaint on social media can increase customer advocacy by about 25%. And 30% of customers who are ignored by brands on social media are more likely to switch to a competitor.
“People often took to social media during the pandemic and what we found out was that there was an increase in customer loyalty for those organisations that responded on social media. This trend will continue even moving forward,” Naik stated.
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