Consumers Willing to Spend 6% More for Products from Socially Responsible Companies
November 12, 2018 — BOSTON–(BUSINESS WIRE)–New findings from Nucleus Research show that philanthropy is good for business, with the average consumer willing to pay up to six percent more for a product from socially responsible companies. The research is part of a guidebook developed by Nucleus for Saleforce.org Philanthropy Cloud – a platform that connects consumers and corporations with the causes they care about.
“Consumers show loyalty to brands aligned to their own values, even if that means spending a little more. Plus, employees are increasingly driving cause-based engagements from within. Businesses need to prioritize corporate social responsibility and consider better ways to centrally manage the overall process. The Guidebook shows the benefits of being socially responsible and how Saleforce.org Philanthropy Cloud can help companies redefine business as usual,” said Rebecca Wettemann, VP of research at Nucleus Research.
Manage The Process… or Risk Employee Attrtion
Younger generations in particular are demanding social responsibility from their employers and from the brands they buy. As the data shows, businesses need to manage the process or risk employee attrition, brand confusion and even decreases in revenue. Other key findings include:
- Consumers are 64% more likely to recommend socially responsible companies to friends
- Consumers are 63% more likely to try new products from socially responsible companies
- 50 percent of respondents believe it is important or very important to work for a company that supports philanthropic causes that they favor
Philanthropy… Good For Business
“Who knew corporate philanthropy was so good for business. It’s always nice for businesses to give to worthy causes. But to bump revenue potential by six percent and rev up word-of-mouth promotion is not only icing on the cake. It’s a strong call for businesses to be more strategic in how they approach corporate social responsibility,” said Ian Campbell, CEO of Nucleus Research. “It is not at all surprising that we’ve found these results with Salesforce.org, one of the most cause-driven businesses in the world.”
Further details are noted in the Salesforce.org philanthropy guidebook.
About Nucleus Research
Nucleus Research is a global provider of investigative, case-based technology research and advisory services. We deliver the numbers that drive business decisions. For more information, visit NucleusResearch.com or follow us on Twitter @NucleusResearch.