This article appeared in TotalRetail. Read it in full here.
Just a few years ago, 73 percent of U.S. consumers believed brands should put a stake in the ground to represent their values. The rise of movements like Black Lives Matter played a key role in pushing brands to support social justice causes. Consumers would base entire shopping decisions on which brands aligned most with their values and retailers quickly recognized the importance of authentically connecting with their customers. Fast-forward to today and consumers have become fatigued from brands’ activism messages and no longer have the energy to track which brands are supporting which causes.
The altered political environment is deprioritizing DEI and retailers like Target are following suit. Once a fierce advocate for the LGTBQ+ community and Black individuals, Target’s sudden shift contrasts the focus from a few years ago when businesses would embrace activism to connect with socially conscious consumers. Target’s decision to scale back DEI efforts, although controversial, is rooted in the need to satisfy changing consumer behavior.
The bottom line? Last year’s consumers are not this year’s consumers. Retailers need to continuously recalibrate their marketing strategies based on what’s driving consumer decisions and turn to real-time data insights to understand evolving consumer sentiment and build authentic, long-term connections.
Financially Overextended Shoppers Are Tuning Out From Activism Marketing
Rising costs have heavily impacted consumers, leading them to put their financial health above supporting the next social justice cause. This shift is reflected in a recent Resonate report which found a steady decline in consumer sentiment around brand activism in 2024. Over 40 percent of consumers (an all-time high) say they’re no longer willing to buy from a brand based on its support for social justice causes. These “overextended” shoppers are choosing, subconsciously or not, to disengage from cause-driven retail marketing. Retailers need to recognize that amid other macroeconomic factors impacting consumers’ day-to-day lives, purpose messaging alone is no longer enough to keep customers coming back.
Social Media Buzz Doesn’t Equal Consumer Demand
With social media bringing more exposure to world events and issues daily, it often creates the illusion that consumers value brand activism. However, purchasing behavior tells a different story. The “influenced” consumer might react a certain way about climate change in TikTok video comments, however, that person isn’t necessarily loyal to shopping sustainable brands. Mental health advocacy has also become a hot topic on social media in the last few years, with brands turning to celebrity endorsements for mental health campaigns. A year ago, shoppers were much more likely to buy from companies that had a stance on mental health issues. Now, the data says consumers’ interest in these causes has declined at a steady rate. If retailers want to keep up with fickle consumers, they must balance what they hear on social media with consumers’ buying influences to build lasting, authentic consumer sentiment.
Consumers Favor Authenticity Over Activism
When retailers do choose to promote activism with customers, they need to truly walk the talk by integrating social responsibility into business operations. When many Americans are struggling with their financial health, brands need to recognize that prioritizing activism, especially when it feels performative, may not be the most effective strategy. Brands that truly stand behind authentic social action values will have a better chance at cutting through the social activism noise.
Ultimately, the lesson for retailers is that consumer behavior is quickly evolving. Gaining a deep, real-time understanding of customer preferences enables them to cultivate lasting loyalty. Resources like Resonate’s seasonal Consumer Trends Report exemplify the power of up-to-date, first-party data in the shifting consumer landscape, allowing retailers to optimize marketing efforts and drive growth.
