The retail sector now carries a heavy burden of responsibility, in terms of balancing social and environmental concerns with profit margins and the level of sincerity that savvy consumers look for.
That also runs aside global, continental and domestic regulatory demands and social pressure for sustainability in business practices, and compliance with measures to reduce waste, and keep workers safe.
Setting aside environmental and ethical drivers (the duties everyone has to be kinder to the planet and the rest of humankind), what other factors are making social responsibility increasingly important to retail firms?
Added values from going green
One of the ironies of this topic is that some retail organisations have held back from making commitments to environmental issues, for fear of the costs involved. However, it has become clear that adherence to better water and energy efficiency, reducing waste and recycling can actually have a positive impact on profit margins.
This is not the only way in which having a strong social conscience can provide a competitive edge. It turns out that for all the obligations it brings, there are opportunities too:
Not acting will cost you
No retail company can afford to ignore the competitive edge to be gained from marketing their sustainability and conservation values. Particularly as doing nothing will quite literally cause customers to vote with their feet and shop elsewhere.
As just one example of this, in 2002 sweatshop campaigners appealed to shoppers around the world to boycott Gap over its extensive use of sweatshop labour. The majority of consumers are willing to pay more for ethical products and services.
In fact, consumers have been considering the ethics of the companies they buy from for years. In 2015 a pivotal Nielsen report found that 66% of consumers were happy to pay more when products and services were offered by companies with clear social values. This shows that brand trust can come from what a retail company does, as well as what it sells.
The potential to mobilise a generation of brand advocates.
In a more recent survey (2018) by Deloitte, over 50% of millennials reported that they would defend a “purpose driven” company if they heard someone speaking negatively about it. This shows that you have the chance to build advocates among your loyal consumers.
Supply chain social responsibility
Perhaps the most long-standing social responsibility issue that has dogged the retail sector for decades is the validity of its supply chain.
Consumers are increasingly demanding accountability in supply chains and reassurances that ethical manufacturing practices are central to all brands. Particularly since the Rana Plaza garment factory collapse in 2013, which killed 1,135 Bangladesh textile workers, consumers have become increasingly conscious of their buying decisions, the importance of an ethical end-to-end supply chain and how retailers are working to prevent such failings across the board.
On a smaller, more localised scale, consumers want to know that retailers are supporting British farmers and small businesses, for example. This is partly an ethical driver – keeping local businesses afloat – and partly a desire (where possible) to have fresher products that have travelled from local growers, cultivators and producers.
What steps can you take in your marketing as a retailer to evidence your social responsibility?
Strategic content management and emails
Don’t hesitate to talk about your ethical and environmental ethos via your website and emails. Retail businesses of all sizes are beginning to grasp a vital differentiating factor to be gained from social responsibility, but you must be able to evidence that properly to tick all the boxes.
Use marketing events and networking to show cross-business adherence to social responsibility
As recently as January 2019, a Government Environmental Audit Committee condemned the practices of ‘fast fashion’ retailers for the ways they stimulate overconsumption and high levels of waste. They also exposed the fact that some UK fashion retailers are still not matching basic standards for protecting workers and the environment.
When consumers read headlines such as this, it makes them even more demanding – they want actions that speak louder than words. If your business is taking genuine action and uses marketing to make its business operations transparent, it restores faith. Especially if you are part of the movement to promote best practice.
Carefully promoting social responsibility through printed materials
It can be a balancing act. No company wants to appear to be trying to gain obscene levels of sales leverage for the things they do, especially when the public see much of that activity as their duty. Also, if you want only print materials that go to be shredded, it appears to fly in the face of sustainability.
The trick is to buy printed materials that have a clear purpose – and to include carefully worded positioning statements on signage and other items. Also, work with a design and print company that shares your environmental concerns. (AlphaGraphics has stringent controls and sustainability policies in support of socially responsible clients).
Wastage in print marketing can be limited by being concise and personalising your communications. Delivering personalised information to customers means that each leaflet and brochure only includes the pages that are of interest to the individual. For example, if a customer is interested in women’s fashion, your CRM efforts and special offers, then only print this information. Across thousands of customers this soon adds up to millions of printed pages saved (no wasting time, money, ink and paper sending information on men’s or home ranges).
Use emails and texts to replace less sustainable communications.
On a similar note, companies that still buy paper in bulk, rake up high postage charges and use their office printers constantly may need to rethink their communications and marketing practices as a matter of urgency. There will always be ways in which “hard copies” of materials are most appropriate. However, strategic use of emails and text messaging shows higher levels of social responsibility; and it reaches a wider range of consumers.
Consistency in marketing social responsibility effectively
Marketing needs to position and promote the retail company’s ethos – and more importantly their tangible actions – in as many ways as possible. Information about your organisation’s ethical and environmental policies should appear on your website of course. However, that is not sufficient. As a company you also need to regularly refresh your environmental and ethic policies in the public consciousness via social media, direct mail, messaging, and printed materials.
Orchestrating the promotion of your organisation’s social responsibility builds a purpose-driven marketing campaign. It is only through planning marketing activity that focuses wholly on the purpose of social responsibility that you can be certain of gaining public favour, and holding on to it long term.
The team at AlphaGraphics has experience in producing purpose-driven campaigns that fully expose the core values of retail clients with authenticity and sincerity. Get in touch with our specialist Retail marketing team today to find out more. By leveraging their expertise, the team ensures that each campaign resonates deeply with the target audience and drives measurable results. They believe that every successful campaign is built on the three pillars of retail success: brand authenticity, customer engagement, and innovative marketing strategies. Together, these elements work harmoniously to elevate retail businesses and foster lasting client relationships. In today’s competitive landscape, the incorporation of personalisation strategies in retail is essential for capturing consumer attention and driving loyalty. By tailoring messages and experiences to individual customer preferences, brands can create a more meaningful connection with their audience. This targeted approach not only enhances customer satisfaction but also boosts overall sales performance and brand loyalty.
