You may have come across a pattern in the branding sphere allowing brands to resonate better with their consumers, known as brand activism. In essence, it's more than merely pushing products or services; it's taking a stand for a cause that mirrors the brand's core beliefs and objective. So, let's delve into this intriguing intersection of marketing and societal matters.

So, what exactly is brand activism?

Brand activism is a term used when a company takes a stand on a social, political, environmental or cultural issue. This can be seen in their advertising, business practices, or corporate culture. The motive is not just about benefiting the brand but also driving positive social change.

A list of ways to engage in brand activism could include actions such as environmentally friendly business practices, advocating for diversity and inclusion in the workplace, or even supporting a specific political movement. Here's a brief list:

• Committing to sustainable practices to combat climate change.
• Launching a campaign to advocate for social justice or gender equality.
• Promoting inclusive hiring policies that support underrepresented groups.
• Donating a portion of profits to charities or causes aligned with the brand's mission.

Now, you're probably wondering - what does this have to do with strengthening customer loyalty? The answer is, quite a bit! Read on, as we delve deeper into the relationship between brand activism and strengthening brand identity.

Brand Activism: A Powerful, Double-Edged Sword

First, let's get into the nuts and bolts of it. Brand activism is a powerful tool, and it's crucial to understand why. Essentially, it's about a brand taking a stand on societal, political, or environmental issues, effectively 'activating' the moral emotions of its audience. The aim? To resonate with customers on a deeper, more personal level, further shaping their perception of the brand. Sounds powerful, right?

However, brand activism doesn't just happen overnight. It requires careful consideration, consistency, and most importantly, authenticity. Credibility and benevolence work hand-in-hand in forming a brand's reputation, and research suggests that these are among the core values that can cultivate a strong sense of trust and loyalty among consumers.

Put simply, brand activism is a commitment. When done right, it is an expression of the brand's organisational culture and core beliefs. It's about more than just aligning with trends or creating a buzz. For a brand to truly own its stance on an issue, the communication must come from a place of authenticity.

But it's not all about the brand. In this era of social consciousness and digitally empowered consumers, the public's response to a brand's activism is critical. Whether consumers agree or disagree with the brand's stance influences their overall attitude toward the brand, and in the long term, their loyalty.

So, as a brand, how can you start using activism to your advantage? Values-based organisations that authentically engage in brand activism can generate momentum among consumers who support progressive causes. With a transparent demonstration of brand activism over time, companies can reinforce the brand's purpose and engage consumers with similar values.

Lastly, is brand activism a sure-shot path to customer loyalty? Perhaps not. But it's a powerful tool that can fuel positive brand attitude which, if nurtured correctly, can lead to increased loyalty. As with most things, the key to success is striking the right balance!

Finding the Right Balance: Nurturing Positive Brand Attitude Towards Greater Customer Loyalty

It's interesting to observe that the brands we interact with daily aren't immune to the influence of global socio-political issues. In fact, according to a 2020 study by Edelman Trust Barometer, a whopping 64% of consumers around the globe now identify as "belief-driven buyers". This means they will choose, switch, avoid or even boycott a brand based on its stand on societal issues.

There are classic cases providing insight into how a big brand's stance on a contentious issue can either drive customers right into their arms or push them away. For example, let's take the crises in the Gaza strip. Brands like Starbucks, Nestle, and McDonald's found themselves under the microscope of "belief-driven" consumers.

Starbucks, a renowned global brand, found itself confronted by consumer backlash due to its perceived pro-Israel stance amid tensions in the Middle East. Holding their values and beliefs close to heart, consumers chose to boycott the coffee giant, which led to a significant drop in its market value, particularly during the holiday season, a crucial sales period for most businesses. Brand activism certainly has its risks.

What does this mean for your business? When engaging in brand activism, tread carefully. Address contentious issues with sensitivity and transparent intentions, and make certain your actions align with the values your consumers expect. Ineffective handling can turn your customers away and induce negative feedback. Remember, your consumers aren't just interested in what you sell; they are paying attention to what you stand for too.

The popular fast-food chain McDonald's missed its sales targets significantly in 2024. But what was behind this slump? It was primarily driven by customers in the Muslim-majority Middle East boycotting the brand, due to its perceived support for Israel during the war in Gaza. This is a classic scenario where a brand's position on a sociopolitical issue caused a significant pushback from an important consumer base.

When your brand maintains a stance that goes against the beliefs or values of your customer, as was seen in the case of McDonald's, it can alienate consumers. And when this happens, your brand risks tilting the scale on the negative side, driving customers away.

Finally, Nestle faced backlash with consumers calling for boycotts as a result of its investments in Israel. Despite the reasons being entirely economic, the interpretation in light of the Israeli-Palestinian conflict brewed strong consumer reactions. The company "temporarily shut down" one of its production plants in Israel as a precaution.

So if you're considering aligning your brand with a cause or taking a stance on a contentious issue, think long and hard. Is this issue directly tied to your brand's core values? Can your actions meaningfully support this position? Will getting involved in this issue have a positive or negative influence on your consumers and employees? These are all vital considerations to ponder before moving forward with brand activism.

In conclusion, the impact of brand activism can be a double-edged sword. Strong and occasionally heated consumer reactions underscore the importance of brands walking this path with utmost clarity, authenticity and sensitivity to all viewpoints.