When it comes to purchasing decisions, consumers want to be viewed as individuals. There’s a reason why 63% of consumers (opens in a new tab) expect personalized offers and recommendations.
Not long ago, consumers would turn on a TV to find the same branded advertisement airing on repeat. Modern marketing is far more personalized. Between online and offline efforts, marketing departments can create thousands of iterations of a campaign and push them to consumer segments based on location, purchase history, television shows watched, and much more.
The trend toward personalized messaging works well for consumers because they want to know that companies care about them and society as a whole. Customers no longer buy exclusively from big brands and household names; they look for companies they can trust. They want transparency in all things, right down to ingredient lists.
Because of these tendencies, consumers increasingly purchase products from companies aligned with their purposes and missions. They embrace businesses that focus on the greater good and offer sustainable, green products.
Marketers are able to observe this purchasing behavior in real time. When a customer chooses a product, there is an immediate impact on competitors. This sort of consumer “voting” can push competing companies to change to their products or services almost immediately, which ultimately benefits everyone.
Make Sustainability a Personal Mission
People like to know their actions make a difference. About 96% of consumers (opens in a new tab) surveyed by Futerra believe they make an impact by donating, recycling, or buying ethically. While they are doing good on an individual level, customers want to see the same commitment from the companies they support. Brands that don’t improve their environmental footprint risk losing a significant number of existing and potential customers.
Invest in Sustainability
Investing in sustainable companies can be profitable. For example, Finland’s Neste Corporation ranked third on the Global 100 list of the world’s most sustainable corporations (opens in a new tab). Originally a fossil fuel company, Neste now invests in renewable biofuels. The company’s higher margin on biofuels accounts for a quarter of its revenue and half of its profits.
Consumers today have choices in nearly every stage of purchasing. They have the power to sway businesses to action, and they no longer blindly buy products based on generic marketing. The companies that serve society and transition to more environmentally friendly operations will be the ones thriving well into the future.