Why a Business With a Cause Matters in Retaining Customers
There’s a reason why purpose-driven companies do much better than other companies in general. Having a cause attracts like-minded individuals who are equally passionate about the vision and will commit to seeing the purpose or cause growing and expanding. In this article, we will look at the various reasons why businesses with a cause do much better at retaining customers than regular businesses. Happy reading!
1. Customers Have a Reason to Stay
Generally, customers are attracted to the best products and services offered by a company in a market. They tend to think in terms of how they can benefit from the service a company provides, and make their decision to stick to a company by comparing it with the services offered by similar companies in the same market.
However, when a company has a strong commitment to a social or humanitarian cause, the customers are generally attracted to the cause more than their gain. Hence, there’s a higher chance of the customers remaining loyal to the business than in a business that does not support a cause that appeals to them.
2. Customers Feel Needed
Being a part of a business with a cause makes customers feel included and needed in a business. The business owners need to let the customers know how their presence and contribution has impacted the cause periodically, as this will give them to feel essential and important in the business, which is the truth! Additionally, they will also feel positive towards purchasing a product or service, knowing that their contribution matters!
3. People Love Supporting a Cause
Apart from giving them a sense of motivation to support the cause, customers who are truly passionate about the cause develop an emotional bond with the company based on the mutual interest in the cause. 87% of customers have agreed that they would support a service or company based on its endorsement of the cause.
In addition to this, it is a known and proven fact that companies that use emotional value to attract customers have a higher chance of gaining customer loyalty. Along with this, loyalty programs also help benefit the retention of customers in the long run.
4. Stronger Bonds
When it comes to businesses with a cause, the relationship between the customer and the business does not end with the checkout, as with regular businesses. This is because the customers will receive regular updates on the activities of the company as it works for the social cause, and how their contributions are being put to good use. Thus, a purpose-driven business won’t focus just on sending weekly marketing emails of their products to the customers but will seek to maintain a healthy partnership with its customers who are equally passionate about the same cause.
5. More Trust-worthy
In general, customers tend to trust businesses with a cause a little more than businesses without one. This is because the brand easily establishes itself as trust-worthy by associating its revenue with a good cause. By using a humanitarian narrative to establish its legitimacy towards the cause, it automatically becomes better and more useful than a brand that only works towards its benefits. Thus, having a cause endorses the reliability of a brand.
Here’s a quick summary of the entire article below:
- Customers have a reason to stay as they aren’t mere consumers but are actively participating in a good cause.
- The emotional bond between the customers and the brand is established.
- Customers remain loyal to the brand as they associate the brand with the cause.