Current Topic Report - Customer Perceptions of Corporate Social Responsibility Fit

All too often these days corporate social responsibility is seen as a given, but in then given little thought when it comes to execution. This may be a huge missed opportunity for companies. According to researchers in Singapore, customers care about the "fit" of a company and their CSR.

Take for example AARP's "Drive to End Hunger" Campaign. According to their website, AARP is a nonprofit, nonpartisan organization with a membership that helps people age 50 and over have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. The general public perception of AARP is that it is an organization for old people. In the fall of 2010, AARP partnered with Jeff Gordon and NASCAR on a program called the Drive to End Hunger. This was the first time for a cause-based organization to fully sponsor NASCAR. Jeff Gordon is a very philanthropically involved figure, so he was a logical face for the program. Unfortunately, the cause of hunger doesn't automatically trigger the thought of old people. As a society, we have been programmed to picture emaciated African children with gaunt bellies instead of elderly Americans. While unfortunately there are certainly hungry people over the age of 50, hunger and old age are not a clear "fit". 

There were many causes and CSR focuses that AARP could have chosen to create a program around. The rationale behind this choice is unclear. A better choice would have been Alzheimer's or even generally healthy aging. 

But how important is this “fit” to customers? Do customers care about a company’s reputation and what they are doing in the way of social responsibility? How do these perceptions influence buying decisions?

Recently McDonald's announced that they were going to stop sourcing their pork from suppliers that used inhumane practices in raising their pigs. This is a choice that will please animal rights groups concerned with the treatment of animals raised for slaughter. But does it matter? Some think not - they key being availability of substitutes. This idea makes logical sense. If you can only get the product from one company then you are less likely to let your opinions on their CSR change your behavior. However if you can go down the street and get a similar sandwich that is sourced responsibly the choice is easy. It seems that consumers want to do the right thing, but only if it is convenient.

So how do these ideas come together? I am interested in exploring how a company's corporate social responsibility decisions impact their customer's loyalty and buying decisions. 

How can social media behavior provide insights about a consumer?

With the world quickly boiling down to tweets, posts, check-ins and pins, it seems that everything we ever wanted to know about anyone is just a click away. We are at the point where what brands a person “likes,” what restaurants they “check in” at, and what products they “pin” could hold the key to some of the most illusive consumer insights.

LOOK and LISTEN

The first step to learning about your customers is listening to what they are saying in social media and looking at what they post about. An obvious example would be a rant about poor customer service at a new Vietnamese restaurant. Depending on if you are the restaurant, a competitor, or a different business that provides great customer service, you could learn different things here. Maybe you now know that this customer likes Asian food and that she values having her water glass filled. You can also learn about a consumer from less blatant activities. If, perhaps her Pinterest boards are full of exercise tips and diet recipes you can infer that she would be a great target for your new weight loss system. It is all a matter of observing.

FORWARDS and BACKWARDS

This system can work in multiple directions. For example if you are a brand like, say Pottery Barn, one strategy would be to look at what people are saying about other brands that are your competitors. Things that people like (or dislike) about Crate & Barrel or Restoration Hardware can give you ideas about what people in the space in are interested in and what they prefer. Alternately, you could sift through and monitor a test group of individuals that you see as your target. By looking at what they, individually are talking about you could find new ways to provide service in their lives. As Pottery Barn, you could learn that customers are really dissatisfied with the durability of their furniture upholstery, but still want a fashionable look. That could inspire you to go back and further research your fabric selections and offer something that your customers aren’t getting anywhere else.

ENGAGE 

This is not a new technique, but as we’ve discussed some companies do it oh, so right and some fail miserably. The most powerful way to get your message across is get someone else to talk about it, preferably someone with influence. As we discussed in class, there has been great work done in attempting to measure the influence of individuals - who’s messages are amplified the greatest. The trick here is to get on their good list. But before you can do that, you have to know who they are and who their audiences are. It may be very cool for Michael Jordan to tweet about your new baby sling, but odds are his followers aren’t new mothers. It is your job to know who influences your target customers and get in good with them. Follow them on Twitter or Pinterest. Then put content out that will be retweeted or repinned or reposted. Once some sort of trust has been established it is time to up the ante. If you are a shoe company, maybe you get people to post a photo of their shoe collection! Not only do shoe lovers love to talk about shoes and will show them off - you can see what styles and quantities your customers have in their closets already. See there are insights to be found just about anywhere!

Persona

 This is Jeff. He is 36 years old, married and the father to beautiful 5-year-old twin daughters. Together with his wife they make approximately $215,000 a year. Jeff works in commercial real estate and works hard to balance his job with his obligations at home taking care of his family. Jeff’s home is large and in a good neighborhood near his parents and in-laws, but it is highly leveraged and they are unsure if the schools nearby will be ok long terms for their kids. Though they are making good money, Jeff worries about keeping up their lifestyle and the expense of possibly paying for a private high school education on top of college. Even so, he loves his classic car and likes to have the latest gadgets to help him “simplify his life”.

What does Jeff think and feel?

Jeff’s family is the most important thing in his life, and so doing what is best for them is generally the priority. However, he married young and sometimes wonders if he missed out on some of his “youth”. There is a bit of “midlife crisis” sometimes that comes out in his hobbies. He does think that he has a pretty great life though – he’s got a beautiful wife and adorable, precocious kids! He truly loves his wife and daughters. He aspires to “keep up with the Joneses” and provide for his family. He is working hard to move up in his career. His wife is a high-powered attorney, and sometimes he feels a little threatened by her success, which drives him to work harder.

What does Jeff see?

He lives in an upper middle class/upper class neighborhood. He sees beautiful homes with manicured lawns. As he drives to work he sees first expensive boutiques and high-end restaurants, and then big box stores and major retailers in strip malls. Jeff’s friends are mainly a mix of people that he knows from college and high school (many of them have landed in the same neighborhood). He is frequently at soccer games and ballet recitals. Afterwards he and the guys will hang out in the backyard and drink scotch or a few imported beers while the wives drink wine in the house.  He looks around his home and sees the latest technology – from flat screen TVs and surround sound, to front loader washer and dryer and gas range. Jeff’s kids are experts on his iPad and sometimes teach even him something!

What does he say and do?

Jeff is relaxed and confident in public. He puts on wry amusement at all the “girly stuff” he has to do as a dad, but he really loves it all and can’t get enough of his girls. During the week he wears a suit to work everyday and looks very sharp. In his time off he is a polo and jeans kind of guy. He always looks put together and his clothes are usually of a recognizable brand (but not trendy – legacy luxury brands like Lacoste, J.Crew) so that people know that he values quality. Jeff is a good-looking guy, but not “pretty”. He is a man’s man and knows how to work with his hands, though he’d rather pay someone to do the dirty work.  He does respect those folks though. He treats the people that he employees at home (housekeeper, nanny, yard crew) with great respect.

What does Jeff hear?

He gets a lot of feedback from those around him. His wife expects him to contribute to the home, and wishes he would focus more on helping within the family and less about “competing” with her career.  His boss likes him a lot and they have a good relationship. The only problem is that often his boss wants him to stay out late for drinks and dinner with clients when Jeff would rather be home with his daughters. Jeff’s friends are always comparing their latest toy (or bauble for their wives). There is quite a bit of friendly competition in the circle, and being a high school athlete, Jeff can’t resist trying to stay on par with his buddies. His parents are aging, so Jeff hears more and more about their needs. They are also very concerned about the schools in the area and are very vocal about their grandchildren’s education.

What are Jeff’s pain points?

Jeff’s greatest fears surround letting people down, whether that be his wife & kids, his boss, his buddies or his parents. He tries to be everything to everyone. He worries about his kids and would do anything for them. If something were to “threaten” them (physically all the way to something like a learning disability) he would move mountains to make it right. Even though in many ways it appears that Jeff and his family couldn’t want for anything and are the luckiest of the lucky, he still worries about what would happen if something were to happen to him. So Jeff tries to plan ahead. Even so, he worries about the economy and how that will affect his ability to provide at the level they expect.

What does Jeff hope to gain?

If there could be more hours in the day to get everything done and please everyone then Jeff would be happy. He hopes to find ways to spend more quality time with his daughters. He hopes to find more time with his wife. He wants to make more money to pay for his life.