If you’ve been reading our emails, you’re likely here for the full ESG story, and we’re ready to deliver. ONR’s team has decoded purchase decision-making to make it easier for your company to embrace ESG as a key competitive advantage.
As a quick refresher, ESG stands for Environmental, Social, and Governance, and increasingly, customers are considering these non-financial factors in their purchase decision-making.
What does growing ESG influence mean for brands and their customer relationships? Being the curious bunch that we are here at ONR we knew a closer look was necessary, and the results confirm an important truth: ESG influence is definitely here to stay.
76% of purchasers report that a brand’s ESG position has significantly impacted a recent buying decision, and the same report that ESG’s impact on their decision-making will continue to grow over the next 2 years.
From food purchases to automotive decisions, pressure is mounting for brands across more industries to clearly articulate their ESG position. How brands choose to respond will certainly impact their customer relationships.
Technology Purchases:
While known for its culture of innovation, the tech industry appears less impacted by ESG expectations, with 21% of technology purchasers reporting that a company’s ESG investment significantly impacts their buying decision. This is a great opportunity for members of the Technology sector to get ahead of the competition and stake out their position and value proposition. ONR can help your brand inform and leverage its ESG efforts to create strong customer relationships that transcend trends.
Investment Purchases
Surprisingly, investment product customers are less likely to be impacted by a brand’s ESG position compared to those seeking general financial services. Only 1-in-5 report that a brand’s ESG position impacted their recent investment decision. The upshot of this finding, as acknowledged by a recent PWC report*, is that there isn’t enough reliable, complete, and comparable information currently available to investors, so their focus tends to fall on other factors.
Those investment firms that are able to help ESG-focused investors make informed and confident decisions will lead the pack. The ESG experts at ONR can help your firm clarify its ESG position and determine the best approach to establishing itself as a trusted industry leader.
Personal Care Purchases
Personal care was one of the first industries to recognize ESG as an important brand differentiator. Over the last 10+ years, many personal care brands have carefully marketed themselves as the healthier and more sustainable choice, so it is not surprising to see that 1-in-3 buyers report that a brand’s ESG position has influenced a recent personal care product purchase. You might assume that the focus on ESG has plateaued for these shoppers, but approximately 2-in-5 report that ESG will have an even greater influence on their decision-making 2 years from now. There is no better time for personal care brands to invest in and promote the unique ESG factors that help them stand out from the crowd. Connect with ONR’s experts to learn how to optimize your ESG strategy for maximum marketability and profitability.
Financial Purchases:
A high percentage of those seeking financial services are paying close attention to a brand’s ESG position; 35% report that their recent decision to purchase financial services was influenced by the company’s ESG position. Data also shows that a financial institution’s ESG position will have an increased impact on client decisions moving forward. Many institutions have already begun staking out their position, but is it the right position to take, with the distinction needed to ensure sustainable success? Marsh echoed this concern in a recent report**, suggesting that companies that can’t clearly articulate their ESG strategy put their business success at significant risk. This is where ONR can help. We conduct a thorough investigation to determine your brand’s position of greatest strength and offer insights and recommendations on how to evolve and capitalize on that strength now and in the future.
Healthcare/Pharma Purchases:
The Healthcare and Pharma industry has long been at the center of ESG discussions, and consumers know it. When asked if a brand’s ESG impacted a recent healthcare/pharma-related decision, 39% reported it had a significant impact. A brand’s ESG position can amplify its influence in the marketplace; organizations without the right ESG perspective are at risk of falling by the wayside. Our team of experts can help you determine your brand’s unique ESG approach, with the goal of satisfying customers, stakeholders, and employees while enhancing profitability and market position.
Next Week:
Don’t miss our next instalment where we answer the question “what financial payoffs await those brands that position themselves as ESG leaders within their industry?”
Stay tuned!
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