In the last few years, it has become increasingly evident that the defining factor behind consumers’ purchasing decisions is a company’s values.
For businesses, taking a moral stand might seem like an unnecessary risk given the current economic climate and polarized political environment, but the cost of staying silent may be even greater.
Now, more than ever, customers are looking to do good through their collective purchasing power. They want to feel good about their choices, and they want to avoid the consequences of supporting unethical or unsustainable businesses.
As gen Z comes close to surpassing Millennials as the most populous generation on earth – making up one-third of the world’s population – brands must keep social activism top of mind if they want to achieve longevity.
Values-led marketing means promoting deeper commonalities, which grants brands a more meaningful connection with their target audience. As someone who prides himself on running a values-led business, I can say with confidence that the payoff in the end has been worth it. Though this has meant I’ve had to part ways with clients who weren’t the right fit, I’ve found many more who were, and I’ve gone on to achieve great things with them.
A growing trend
The rise of the ethical consumer has been a significant trend for quite some time. For example, more than one-third of global consumers are willing to pay more for environmentally friendly alternatives, while close to 90 percent of survey respondents in the United States said they would boycott a brand for irresponsible business actions. Consumers understand that their collective impact can affect real change. And thanks to social media, their clout has increased exponentially.
For businesses, taking a moral stand might seem like an unnecessary risk given the current economic climate and polarized political environment, but the cost of staying silent may be even greater.
The conventional wisdom that bad news travels twice as fast as good news highlights the high-stakes nature of doing business in a world with a 24/7 news cycle, online reviews and a highly competitive global market.
It is against this backdrop that values-based positioning really shines. Just like it is with people, what makes a brand stand out is its personality. The values a brand communicates is what makes up its personality and differentiates it from others.
As customers and stakeholders place higher expectations on companies’ behaviors, being brave, authentic and transparent has benefits well beyond the bottom line. Brands viewed as values-led are perceived as more attractive employers, better candidates for brand partnerships and valued members of the community.
The rise of the ethical consumer
Underpinning the success of values-led business is the rising awareness of climate change, environmental destruction, problematic supply chains that encompass child labor and sweatshops, toxic work environments and more.
Across industries and countries, ethical practices such as sustainability, diversity and inclusion have become essential to establishing a baseline of acceptability for a growing cohort of customers primarily made up of gen Z and Millennial consumers.
Not only is gen Z willing to walk away from their own jobs over a clash of values with their employers, as consumers they’re even pickier when it comes to where they choose to spend their money. Alongside price, functionality, design and value for money, a brand’s commitment to social causes and its particular values has become baked into the total customer experience. It has the added purpose of conveying status to those who choose to align with it.
Consumers have shown they don’t just want to buy your products. They also want to feel good or at least not feel bad while doing it.
Across the spectrum, consumers have shown they don’t just want to buy your products. They also want to feel good or at least not feel bad while doing it.
Brands that have been known for being values-led from the start include Patagonia, which was one of the first apparel manufacturers to use recycled materials; TOMS, which sends a pair of shoes to a child in need with every purchase; and New Belgium Brewing Company, which is famous for ensuring 99.9 percent of its manufacturing waste doesn’t end up in a landfill.
Values are critical to the extent that up to 42 percent of customers will drop a brand for not aligning with their beliefs, with 21 percent choosing to leave for good.
How to embrace values-led marketing
So how can leaders make the most of a values-led approach to better connect with audiences? Here are five steps to take.
1. Find your why
The first step is to look within and identify the values, priorities and experiences that motivate them.
It’s important to keep in mind that taking an authentic position can vary from person to person or brand to brand. Businesses need to ensure they truly believe in the values they’re hoping to project. This will provide material to tell a story that will engage consumers and serve as a point of difference against other brands.
2. Not everyone will like what you’re doing
As a values-led business, you may occasionally lose out on a client, contract or customer but your integrity and reputation are far more valuable than being liked by everyone.
Part of the values-led journey is about finding the right fit for your brand, which will attract the right sort of clients and customers to your business.
3. Set clear boundaries
Being values-led means you may come across business practices you may not agree with or you may be asked to do something that doesn’t square with your beliefs.
It’s important to communicate expectations and speak up early and often so stakeholders always know where you stand.
4. Highlight your brand’s social benefits
Social media can be used to send a clear and strong message about what you believe in. Use powerful content, including images and video, to show your business in action. For example, packing orders using sustainable materials, meeting with community leaders, donating to a cause and so on.
It’s easy to weave these values into brand content across all platforms when they form such a critical part of your overarching narrative.
5. Follow through with solid action
Put your companies’ values into action by aligning with a cause that’s meaningful to you, or take a stand against something that goes against your core values.
Brands can make a social media statement of support on significant days, like International Women’s Day, put their mission and values up on their website or share other organizations’ causes with their online audience.
Values will lead the way forward
Values are what inject brands with personality, substance and purpose. It’s how businesses draw the line on the things they won’t compromise on and broadcast it to their audience, whether that is customer service, quality or sustainability.
In a crowded marketplace, it is this authenticity that will cut through all the noise.
This is a chance for brands to educate their audience on their story and beliefs. Having a consistent narrative backed up with action is what will establish a fruitful and trusting long-term relationship with target audiences.
Beyond what a brand sells, bonding with customers over shared values to make the world a better place is what will resonate. Being passionate and open about what you believe in is a powerful way to capture attention. In a crowded marketplace, it is this authenticity that will cut through all the noise.
Warm, funny, creative and values-driven, Jason Steel, aka “Mother,” is the Founder of digital marketing agency Hello Mother. He runs his global empire from Perth, with a portfolio of progressive brands under his wing.
