Tag - loyalty

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4 Reasons why social involvement helps the business to increase customer loyalty
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5 reasons why CSR is not a cost, but an investment

4 Reasons why social involvement helps the business to increase customer loyalty

As we are companies which are integrating into society and developing our business within its framework, there is no denying that we have a responsibility within our surroundings. Returning to the people and to the environment the resources which they make available to us and which allows us to offer and commercialize our product or service is a question of commitment and consistency.

Beyond the involvement with society itself, there are more reasons to act responsible as a business and to carry out actions which promote sustainability and respect for our society and environment.

The relation with the client, in fact, is one of the strongest reasons as to why you should opt for engaging yourself as a business with society.  The commitment and involvement which companies show have a lot to say about their capability of increasing their clients loyalty. Let´s have a look why:

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1. The competitive nature of companies makes the client more demanding. There are increasingly more alternatives when making a purchase of a product of contracting a service, the client has many places to chose from and they are aware of this, therefore making the company more demanding of itself and the client more demanding when choosing the product or service. In this particular context, the businesses´social involvement could prove to be the deciding factor.

2. The client builds ties with brands that they like. Another of the characteristics of the world that we live in is the possibility that brands have to establish relationships which mean more than the simple one-off purchase. Social involvement is a reason to involve the client in the day-to-day activities of the business and therefore, strengthening the links they have and assuring the relationship lasts.

3. The client looks for brands that match his values. What we buy says a lot about our personality, which is precisely why we are so demanding with what we purchase. Recognizing our values in a brand or company is the foundation of a successful and long-lasting relationship.

4. Bad news travel fast. Neglecting the environment or society does not go unnoticed anymore. Mistakes will reach your client in the blink of an eye and damage your reputation. Acting responsibly is the only way to avoid that risk.

Worldcoo Team.

 

5 reasons why CSR is not a cost, but an investment

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The biggest difference between a cost and an investment is in the return that one or the other generates for the company, and weather it supports its growth. An example of the contrast is that the coffee you have every morning is a cost, whereas publicity for the company is an investment. What about CSR? Is it a cost or an investment?

In order to respond to this question, we must analyse what is the return for a company if they spend money in Corporate Social Responsibility:

1. The image? A coherent action in CSR, well executed and well communicated, will directly impact the image of the company, showing itself as a company with values, and as coherent and responsible, and therefore bettering the perception that their audience will have of them.

2. Talent? It is a fact that the businesses involved with society and its surroundings does attract more talent and they are able to keep the talent in their team for longer. To rely on a more motivated team with talent is a crucial condition in order for any business to grow.

3. Efficiency? Many CSR actions which are related to looking after the environment (recycling, energy efficiency…) imply a saving for the business, and therefore not only do they not lead to an increase of costs, but they actually reduce them.

4. Loyalty? The client values a responsible action on the part of the business and they thank them by being loyal to their brand. To carry out activities in line with certain values and defending these values with CSR will assure more successful and long-lasting relationships between the business and their audience, relations which will be in the foundations to the growth of the business.

5. A risk reduction? The socially responsible practices in the company reduce risks in which a business could potentially face and it permits them to have more control, something which reduces the possibility that said risks become a cost for the business, affecting its growth.

CSR generates value for the company in such important areas such as image, the relationship with the customer or the staff, and also, it could lead to a cut in costs and risks which the businesses have to deal with. All of this leads us to the conclusion that, without the fear of making a mistake, CSR is an investment and not a cost for the business.

And what about you? Will you invest in CSR?

Worldcoo Team.

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