Consumer activists are in the news every week for calls to boycott businesses based on employee treatment, executive’s political stances, sustainability practices and more. On the other end of the spectrum, some consumers will buy-cott a company, or go out of their way to buy its products based on support for a particular stand.
Advertising Week 360 featured Resonate CMO, Ericka Podesta McCoy, as she dug into the data to illustrate why these boycotts and buy-cotts aren’t always what they seem and when and why they work –– and don’t work.
Boycotts and Buy-Cotts: What Consumer Intelligence Reveals About Their Effectiveness
In the article, McCoy profiles several businesses that have faced boycotts and buy-cotts, from Home Depot to Chic-Fil-A to Starbucks and discusses why these calls have positively or negatively impacted –– or not impacted –– their businesses, based on the values-driven and brand-specific AI-powered data available within the Resonate Ignite Platform. If there was ever a time to know your customers on a deep, individual level, we’re living it.
She writes, “For those brands that struggle to understand who their customers are and what drives their purchases, consumer activism represents a threat—a looming and potentially devastating disruption to their already-challenged businesses. But for brands that understand their customers on a deeper, human level—their beliefs, values and motivations—consumer activism is a force to be embraced and channeled to the benefit of both the company and its community.”
One example is Amazon. They’ve faced multiple calls by activists to boycott their products over the years. However, consumer activists are actually more likely to be multi-product Amazon shoppers. It sounds counter-intuitive but, as you look at the data on consumer activists, it makes sense. McCoy writes, “Consumer activists are 209% more likely to do business with companies that reduce packaging, and Amazon proudly touts a mission built around sustainability.” These shoppers are willing to overlook certain value disconnects if they align in another area (plus, convenience counts for something!).
Want to learn more and dive into other brand examples? Read the entire article, Boycotts and Buy-Cotts: What Consumer Intelligence Reveals About Their Effectiveness, on Advertising Week 360 here.
