Whatever industry you’re in, following proper ethics in marketing activities can bring lots of significant benefits to your business. Here are the big advantages of ethical marketing.
Ethical Marketing Improve Your Competitive Advantage Enhance Customer Loyalty Increase WOM Referrals Improve Employee Retention
Improve your competitive advantage
By leveraging the power of ethical marketing, you can turn it into a primary competitive advantage for your products and services. An international study conducted by Unilever revealed that a third of consumers (33%) decide to purchase from brands that are making positive social or environmental impacts. Moreover, 21% of respondents stated that they would actively choose brands if they made their sustainability credentials clearer on their packaging and in their marketing activities.
Indeed, in a market economy where it becomes more competitive, consumers are looking for not only good products and services but also an ethical brand that cares about social and environmental problems like they do. Customers will develop a positive impression and be willing to support ethical brands if they know the products and services have been produced responsibly. This is the best way to connect with the customers in an emotional way and build good relationships with them. For instance, the American clothing retailer Everlane is committed to ethical manufacturing, from sourcing only the finest materials to offering good working conditions to their workers. Another case study of ethical marketing is the brand TOMS which commits to giving away $1 for every $3 it makes. Until now, the brand has given nearly 100 million pairs of shoes to people in need all over the world. It is clear that ethical marketing can become a unique selling point (USP) for businesses, no matter what industry.
Enhance customer loyalty
We all know that all sustainable relationships need to be built with honesty, fairness and responsibility. Thus, the best way to build customer trust and loyalty on a long-term basis is by practicing ethical marketing. Every customer wants to go for the genuine and authentic brands that sell the exact products and services that are shown in their marketing materials. They are also willing to build long-term connections with companies that care about their problems and are always ready to respond to their questions relating to the products and services. Moreover, other ethical aspects in marketing such as respecting users’ data and privacy, being honest in marketing communications, etc. also contribute towards customer loyalty and retention. By committing to behaving ethically, you can attract customers to your products and services and sway them towards loyalty.
Increase word-of-mouth referrals
Many marketers agree that word-of-mouth (WOM) is one of the most effective forms of marketing. According to SEMRush, WOM is resulting in five times more sales compared to paid ads, while people believe that WOM also allows businesses to increase brand affinity and brand awareness.
Ethical marketing plays an important role in creating a positive image of your business towards consumers, which could increase word-of-mouth (WOM) referrals. Thanks to social media networks such as Facebook, Instagram, Twitter and third-party review sites such as Google Reviews, Yelp, TripAdvisor, Internet users now can easily share their opinions online and reach thousands of users around the world. As consumers are now trusting other users’ advice over advice from a business, WOM is a powerful tool to help you attract new customers and nurture their relationship with your business.
Improve employee retention
Practicing ethics in marketing will not only improve customer loyalty but employee loyalty as well. Employees will feel happier and more productive when working for an ethical business. According to research by consultancy Global Tolerance, nearly half of the workforce (42%) want to work for an organization that positively impacts the world, while 44% of respondents believe that meaningful work that helps others is more important than a high salary. Also, if a company can commit to its ethical values, such as creating a healthy workplace environment, ensuring advancement opportunities and maintaining employees’ well-being, it helps to improve employee retention. When a company can bring valuable benefits to its employees rather than just salary, talented workers will want to contribute to the business and stick around with the business for a long time.
Ethics in internal marketing not only make current employees want to stay but can also give businesses opportunities to recruit talented people who share the same values and wish to be a part of the positive changes, especially among the younger generation. The survey carried by Global Tolerance also showed that 62% of people born between 1981 and 1996 (millennials) want to work for a company that makes a positive impact, while 53% would work harder if they were making a difference to others.