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Consumers like brands with purpose

Wildfires. Protests. Pandemics. Elections. 2020’s plethora of political, social, and economic crises signaled the eruption of the “socially-conscious shopper.” The world was in its most astonishing state ever, and people everywhere were paying close attention and taking action.

Amex found that 88% of consumers say they’re committed to spending at small businesses this year to offset some of the financial effects of the pandemic.

Shoppers are supporting local shops, shopping women- and black-owned businesses, and trying to protect the environment, and they want to hold brands to the same standard. Luckily, philanthropic brands were in abundance last year - check out our list of 80 big-hearted companies that supported the community during the COVID-19 outbreak.

The majority of U.S. adult consumers are more likely to give their trust and loyalty to brands they see as being purpose-driven, and 83% of consumers are more likely to purchase from a brand they have an emotional connection to.

As a result, many 2020 shoppers sought out retailers that advocate for transparency and show a real commitment to supporting causes currently impacting society, many of them small businesses. On American Express’ 11th annual Small Business Saturday, spending reached an estimated $19.8 billion, up from $19.6 in 2019.

However, this growth has maximized the challenges that come with being a small merchant. Issues with supply and shipping for retailers, and problems with trust for customers; something evidenced by the 50% percent of shoppers who were prepared for incidents of fraud to increase according to the 2020 Loqate Holiday Shopper Insights Report. But shoppers and SMB’s have nothing to fear—in fact, with shoppers growing more socially conscious every day, this is an opportunity to excel while also making the world a better place.

8 Source: Associated Press