No Politics at the Dinner Table: A Deep Dive into the Consequences of Brand Activism

Since the rise of social media there has been a significant increase in activists publicly advocating for the causes they care about. Traditionally, however, corporations kept their distance from engaging in these hot issues. Whether it was because they didn’t think it was their place or for fear that taking a stand could alienate some of their customers, there are questions as to if these notions are still relevant today. Brian Cantor, Managing Director of Customer Management Practice’s Digital division, takes a look in our latest CCW Market Study.

In the Customer Experience industry there has been a shift from serving your customers to connecting with them. It doesn’t seem like much of a stretch to say that part of connecting with customers is understanding what social and political causes matter to them. Unfortunately, not all customers agree. While 19% of customers appreciate the effort of brand activism, 28% percent are only supportive if they agree with the cause. The remaining 52% is either apathetic to or against brand activism entirely.

Cantor says, “With a limited guaranteed upside, but also reasonably low risk of alienating the overwhelming majority of customers, a fair takeaway is that brands should prioritize authenticity.” In other words, if your brand wants to take a stance, go for it. If you don’t, no problem.

Unless.

There is a caveat. While openness is not required when it comes to hot-button social issues, transparent communication is paramount with issues that directly impact the service delivery process. This is particularly true in light of the supply chain woes affecting businesses across the world. The problem that started with the onset of the COVID-19 pandemic has only worsened over time. Consumers are now waiting longer for items that cost more, sparking controversy over who is responsible and what can be done.

Users are adamant that brands acknowledge these struggles, but only a portion of brands are sufficiently obliging. A mere 22% of customers are provided with transparent communication and solutions to their delayed products, while a staggering 62% offer little in the way of meaningful communication or support. In light of the fact that 60% of customers will switch to a competitor after one or two bad experiences, the pressure is on for corporations to acknowledge the issues and advocate for their resolution.

The moral of the story? If there is an issue that you know for a fact directly affects your brand and the way you get your product to your customers, it needs to be addressed. For other causes your brand may relate to, do what feels the most authentic to your company. Cantor advises, “If it makes sense for their brand, their customers, or their personal morals to speak about a particular issue or cause, they should feel every incentive to do so.” For more information about the current state of customer engagement, download our latest Market Study, “CX Trends, Challenges, & Opportunities.”