Maintaining Core Values and Driving Social Impact
Small businesses face many challenges during this time. A continued understanding of their consumer demographics, revenue streams, and core operations is essential. However, much of this is out of their control right now, with their doors closed and operations halted. The way small businesses market themselves and uphold their core values is within their control. Driving home this message through social impact can not only help those in need, but also generate future returns on investment.
Clear core values + social impact = dedicated customers. Dedicated customers power sales.
Defining core values
The core values of a business are the guiding principles on which a company both unites employees and connects with customers. Having meaningful values that have a purpose, lead to action, and further the company’s mission is integral in creating a streamlined brand experience and establishing trust with consumers. Values must not be empty statements or cliché words. If defined carefully, they can be part of what distinguishes a company from competitors. Bland or dishonest values, on the other hand, “create cynical and dispirited employees, alienate customers, and undermine managerial credibility.” The way to avoid that is to be “aggressively authentic”.
Why it’s important right now
Having clearly defined, properly conveyed core business values is strategic. During this time, where small businesses have to rely on revenues from e-commerce or take-out services, it is incredibly important to deliver socially conscious messaging to build trust, transparency, and goodwill. Redistributing resources––perhaps by donating funds, producing PPE, or even just using the company’s digital platforms to fundraise and encourage social distancing––signals to customers that the company cares. Implementing a social impact initiative has been proven to increase sales by as much as 20% in addition to the internal benefits of reduced employee turnover and positive company culture. According to research, the “winning strategy looks like this: a company identifies areas of social impact that fit with its core strategy, products or services, and operations.” Research also confirms that millennials seek for ways to align their purchasing with their values and that “customers pay attention to the way brands react to social and political issues and are ready to boycott when a company's values appear to conflict with their own, or instead to line up to buy to applaud a company's activism.”
How small businesses can put this to practice
Most small businesses do not have the financial capacity to be giving things away for free right now. Small businesses are hyper-concerned with conserving cash and maintaining positive cash flow. Therefore, their form of social impact must not only be consistent with their core values, but also ideally drive revenue (or simply, cost nothing to the company). Here are five strategies small businesses can use to drive social impact and convey their core values during this time:
Keep a consistently updated website and social media.
A strong digital presence can keep your company at the forefront of customers’ minds, create a sense of togetherness, and indicate your company values transparency.
Ask customers for input.
Giving the customers a voice not only shows your company values customer feedback but also helps you understand what customers want to see from your business at this time.
Engage and interact with customers on social media.
Posts that show the human side of your business, such as staff features, behind-the-scenes, or DIY projects can improve news feed visibility and create an emotional connection with your customers. Use the analytics capabilities included in your business social media account to measure performance and inform future campaigns.
Initiate relationships with social and environmental NGOs.
Setting the foundation for corporate social responsibility can deliver a long-term return on investment and increase market value even when COVID-19 resolves.
Identify a product line that fulfills a current need.
Marketing their bandanas as alternatives to masks was ingenious for Madewell. Modifying the messaging of your marketing for one or more products to reflect current circumstances is a smart way to drive much-needed revenue.
As a social impact initiative, Rem and Company also offers free consulting services and resources to small businesses and nonprofits impacted by COVID-19. Our pro-bono consulting teams provide small businesses with the opportunity to identify and prioritize issues facing their business, propose innovative strategies, and facilitate execution. If you are a small business or nonprofit in need of assistance, learn more about how we can help.