This article was authored by our partners at ShoppingGives, who offer seamless integrations for cause marketing focused on customers.
The 2020 holiday season brought significant changes to the retail landscape. Due to the pandemic, most businesses were temporarily closed, leading consumers to shift their holiday shopping predominantly to online platforms. As a result, online sales saw a remarkable 32.2% growth compared to 2019.
Now, as we look ahead to the 2021 holiday season, many businesses have reopened their physical stores, creating an expectation that more consumers will return to traditional brick-and-mortar locations for their holiday shopping. However, online sales are still projected to increase by 11.3% compared to the previous year. Additionally, recent research indicates that one in three consumers plans to increase their holiday spending.
While consumers are anticipated to spend more this holiday season, both in physical stores and online, they are also expected to do so with a heightened sense of consciousness. This means they will be actively supporting small businesses, enterprises owned by minorities, and brands driven by a sense of purpose. Here, we’ll provide you with essential insights on how to connect with these conscious consumers, whether they are shopping in-store or online.
Contemporary Consumers Are Increasingly Informed About a Brand’s Social Shop and Environmental Initiatives
It’s evident that the current retail landscape is shaped not only by conscientious consumers but also by well-informed ones. In the past, brands that touted their sustainability initiatives or made broad statements on societal issues were seen as purpose-driven. However, this is no longer sufficient. Modern consumers are dedicating more time to exploring a brand’s “About Us” page and are investing effort into understanding the concrete actions a brand takes to positively impact society.
With abundant resources available to uncover a brand’s social impact endeavors, today’s consumers can easily distinguish between authentic efforts and those merely creating an illusion of social responsibility.
Crafting a Comprehensive Approach to Social Impact
The most effective method to develop a genuine social impact strategy that resonates with conscious consumers is to establish a holistic, 360-degree approach to social impact. This approach encompasses four fundamental pillars: your team, customers, community, and products. By seamlessly integrating impact initiatives into your brand strategy across these dimensions, you allow consumers to gain a complete understanding of the positive contributions you are making. This approach also paints a more comprehensive picture of your brand identity and values.
For example, Allbirds is deeply committed to combating climate change and has woven social impact into the fabric of its brand. As a Certified B Corporation, Allbirds holds itself accountable for its impact and encourages others to do the same. By 2025, Allbirds has set a target to reduce its carbon footprint by 50%, with the ultimate goal of reaching a net-zero carbon footprint.
Amid the peak of the Covid-19 pandemic, Allbirds pledged to donate $500,000 worth of shoes to frontline healthcare workers. During this initiative, they offered a buy-one-give-one option, empowering their customers to donate a pair of shoes as well. When customers purchased a pair of shoes for themselves, Allbirds shared the cost of the donated pair, distributing it to a healthcare worker from their waiting list, which had grown substantially due to the overwhelming response to this initiative.
“Anticipating Social Impact Initiatives for the 2023 Holiday Season”
With various shopping channels available, this year’s consumers are not just projected to increase their holiday spending but also expected to kickstart their holiday shopping well in advance. In light of the events of the past year and a half, many shoppers have taken time to reevaluate their priorities. Consequently, they are likely to seek out more meaningful gifts, with a strong emphasis on supporting businesses owned by minorities.
A significant 53% of conscientious consumers, as revealed in surveys, are even willing to pay extra for a shopping experience that allows them to make a positive impact while completing their holiday shopping. This indicates that consumers will be particularly discerning when choosing which brands to patronize during the forthcoming holiday season, giving purpose-driven brands a distinct advantage in attracting the attention of socially aware consumers.
To tilt the scales in favor of purpose-driven brands this holiday season, integrating social impact initiatives across all shopping channels to create a comprehensive omnichannel giving experience is essential. Implementing giving features within Shopify’s Point of Sale (POS) system provides a straightforward yet potent means to achieve this goal.
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