The benefits of implementing CSR in your ecommerce business
/ May 30, 2020
Over the last few years, there has been a significant change in the way that consumers seek out businesses to purchase from. Whilst, for a long time, it was always the company that sold the products at the lowest price that would win the business, this is no longer the case. Nowadays, consumers are increasingly looking to shop from those ecommerce businesses that are committed to making a positive social impact, irrespective of price.
A joint study by Cone Communications and Ebiquity Global CSR found that an incredible nine in ten consumers expected a company to act responsibly and do more to earn their profit by helping to address key social and environmental concerns. A further global study by Nielson, which was conducted in over sixty countries, found that almost two-thirds of those online ecommerce shoppers surveyed were willing to pay more for something if the company they were buying from was making a positive impact to the environment.
This means that for any ecommerce business that is serious about succeeding, incorporating an effective Corporate Social Responsibility (CSR) strategy is crucial.
Corporate Social Responsibility, or CSR as it is more commonly referred to, is a broad concept that covers a company’s commitment to operating their business in an ethical and transparent fashion. This means that they are not solely focused on the end profit, but instead are examining the impact that they are having on environmental, economic and social issues.
CSR is all about sustainable development, and although implementing the required changes might result in a short-term expenditure, it can lead to significant benefits and growth in the long-term. CSR strategy covers every area of the business and can involve undertaking activities such as:
Corporate Social Responsibility is able to benefit every business, and both physical brick and mortar stores and ecommerce companies will be able to benefit from incorporating a CSR strategy into their operations.
Implementing CSR can bring a number of benefits to an ecommerce business, with some of the most impactful including:
Incorporating a stringent CSR strategy into an eCommerce business will ensure that all required compliance has been met. This will help to reduce the chances of any accidental misinterpretations of legal issues, which in turn means that there will not be any unexpected fines or expenses incurred.
No matter whether it is a small startup with under ten employees or a global corporation, an effective CSR strategy will ensure that employees are treated fairly and are given the room to grow and develop. This will lead to increased customer loyalty, which results in a more efficient and content workforce.
In the world of social media, brand awareness is vital, and keeping a positive image of your brand is crucial. With consumers increasingly looking at the social, economic and environmental impact a business has on its surrounding, incorporating CSR into a business can see you going viral for all the right reasons.
As we previously highlighted, consumers are no longer simply seeking the most cost-effective products. Whilst the price is, and will always be, an important factor, it is no longer the primary focus. The ecommerce industry, in particular, is seeing that those companies who are implementing clear Corporate Social Responsibility strategy, are the ones who are flourishing.
Although social responsibility is a key consideration for every consumer, it is more of a contributing factor to the shopping decisions of the millennial generation and younger. Equally, ecommerce is helping the more socially responsible brands to make a stand against the retail giants as all they require is an internet connection and, to truly make an impact, an active and popular social media presence.
Consumers are increasingly looking to shop and engage with those businesses that are actively looking to reduce the impact it is having on the world. 92% of those millennials (aged 20-34) were willing to pay more for a product if it came from a sustainable company, whilst 70% of those aged 20 and under were willing to do the same.
The impact of CSR on ecommerce is unquestionable and incorporating CSR strategy into a business should no longer be considered a nice addition to aim for, but instead an essential ingredient to success. It is no longer a question as to whether consumers are choosing socially responsible companies over the cheapest price; their actions are showing this is happening. As we, as a society, continue to wake up to the impact we are having on the environment, this trend is only going to increase over the coming years.
That means that ecommerce businesses, no matter how big or small, need to be focusing on their impact on society now and striving to implement an effective CSR strategy. By doing so, it will help them to stand out from the crowd. We are living in a truly digital world, and every day consumers social feeds are bombarded with advertisements from companies attempting to attract their business. That is why when an ecommerce business is able to showcase the good work they are undertaking, they will be able to attract more customers, in particular millennials, towards their site.
Showcasing the steps they are undertaking to reduce their impact on the planet does not just help to bring in new customers for an ecommerce site, but it also helps to increase retention too. Consumers want to purchase from a brand that is giving back, so highlighting the charitable causes that you are working with will see them returning. Building that brand loyalty and emotional connection with customers can help an ecommerce take that step forward, enjoying more sales and higher profit margins.
Here at Kuber Digital, we believe strongly in reducing not only the impact that we as a business have on the world around us but also that of our clients. We are the world’s first ecommerce platform that comes with a built-in CSR strategy, and together we can create a responsible and smarter future; helping our clients to grow ethically and sustainably.
We understand what ecommerce consumers are seeking, which is why we developed our Kuber platform to help you not only attract a socially conscious customer but easily engage and retain them in the future. Unlike other platforms out there that are focused solely on the profit margin, we instead see ourselves as an extension of your business, acting as a strategic partner. We work closely with each of our clients, helping to eliminate the time-consuming tasks and letting you focus on the growth and expansion of your business.
Of course, no two ecommerce companies are the same, which is why Kuber creates a bespoke package for each of our clients. The first thing we do with all of our clients is to take time to listen and understand their needs, building a level of credibility and trust between us before developing a bespoke and innovative solution for your business.
Corporate Social Responsibility is always our main priority, and we have taken a strategic decision to embrace it as one of our core policies. We want our customers to not only take advantage of our cutting-edge ecommerce platform but also ensure that their business is working and operating to reduce its impact on the environment.
To do this, we have created an industry-leading initiative that lets your customers to do a good deed and benefit the world around them, at no extra cost to them. This means that even the most cash-strapped consumers are able to still shop and give back to society.
We have teamed up with IMPACT to create a unique process that sees a percentage of the commission on every transaction completed go towards truly beneficial causes in society. We believe in complete transparency, which is why all of our clients and their customers are able to see exactly how the money is supporting those people in need.
Alongside providing our customers with a clear CSR strategy, we also provide them with the tools required to run a truly successful ecommerce business. From front-end creativity and order management, to marketing and shipment management, Kuber is here to help transform your online business.
So if you want to ensure that your business is as socially responsible as possible and want to maximise your sales and profit, get in touch with our team today and start your first steps to a stronger and brighter future!