Majority of customers buy from purpose-led companies

‘Purpose’ is now a powerful force helping businesses of all sizes build deeper customer connections and improve competitiveness.

Nearly two-thirds of people globally (63 percent) prefer to buy goods and services from companies that stand for a shared purpose that reflects their personal values and beliefs, and are ditching those that don’t, according to a new Accenture research of 30,000 people globally. This data applies to B2B and B2C businesses.

The study found that businesses that stand for something bigger than what they sell, communicate their purpose and demonstrate commitment, are more likely to attract customers and influence purchasing decisions which improves competitiveness.

“Purpose is more than companies simply responding to issues of the day. It’s about having a genuine and meaningful commitment to important principles that customers care about – such as health and wellbeing, natural ingredients, environmental sustainability and family connections – which inform every business decision,” said Bill Theofilou, senior managing director, Accenture Strategy. “Many businesses have neglected to convey purpose due to complacency, lethargy or the fear of polarising people, which has allowed smaller players to rise.”

Purpose influencing purchasing decisions
Sixty-two percent of customers globally want businesses to take a stand on the social, cultural, environmental and political issues close to their hearts. Moreover, 65 percent say their purchasing decisions are influenced by the words, values and actions of a company’s leaders. Customers are attracted to organisations that are committed to using good quality ingredients (76 percent), treat employees well (65 percent), and believe in reducing plastics and improving the environment (62 percent).

Authenticity and trust driving growth
62 percent of customers say their purchasing consideration is driven by a company’s ethical values and authenticity. Furthermore, nearly three-quarters (74 percent) crave greater transparency in how companies source their products, ensure safe working conditions and their stance on important issues such as animal testing. A drop in stakeholder trust can severely impact an organisation’s competitiveness and potential revenues.

“In this era of radical transparency, people are voicing their opinions, values and beliefs, scrutinising the actions of organisations and their leadership, and holding them accountable. They can see through inauthenticity and won’t tolerate it,” said Kevin Quiring, managing director, Accenture Strategy. “Customers’ voices can change the financial trajectory of companies. They are more than buyers — they are active stakeholders who are investing their time and attention and want to feel a sense of shared purpose. The winners in this era will not be passive bystanders.”

Customers changing the trajectory of companies
Two-thirds of people believe their individual protest actions, such as boycotting a company or speaking out on social media, can make a difference in how companies behave. Over a third (36 percent) have been disappointed by how a business acted which betrayed customers’ belief in what the company stands for, and nearly half (47 percent) stopped doing business with the company as a result.

Businesses that want to build stronger customers connections and sustain their competitiveness by becoming purpose-led can do so by:

• Defining what their business stands for: Companies need to determine the larger role they want to play in their customers’ lives and put a stake in the ground. Leaders can do that by understanding what their customers feel passionately about, why their employees choose to work for them and why other businesses partner with them. They’ll find what makes the company special and can use it to make a difference.
• Being clear and authentic: Customers can see through inauthenticity. If a company is truly committed to its purpose, its principles guide every business decision. This purpose will bind customers, employees and shareholders alike. It requires bold leadership where actions speak louder than words.
• Engaging customers on a deeper level: With customers actively aligning themselves to specific companies and having a stake in their success, businesses can capitalise on this energy by getting customers involved in co-creating new products and services, designing initiatives or partnerships, and investing in the company’s growth in exchange for personalised rewards. Including customers in their innovation ecosystem will help companies maintain their relevance, identify new growth opportunities and markets, and keep them on track with delivering on their promises.

You may also like Take your team to the extreme