Supportive Spending and Its Impact on Ecommerce
A report from Accenture and Google shows that after the pandemic hit the world in 2020, shoppers changed their perception of life and preferred products. In particular, customers from diverse regions, demographics, and backgrounds have transformed their purpose and values over the last few months, shifting towards what’s essential in their lives.
The Emergence of Supportive Spending
The pandemic resulted in stores’ closure and customers being forced to adopt eCommerce, who had to use available means to go shopping. Moreover, cultural shifts and social pressures pushed some consumers into picking commodities based on their viewpoints.
Contender brands that illustrate a cause may attract like-minded consumers. Google calls this concept the supportive spending approach. Existing brands may also leverage this impact on eCommerce to affiliate their products and services with a purpose.
Supportive spending is the concept that shoppers would purchase brands they align with both politically and socially.
«How shopping has changed: the four sustained shifts that matter for every purchase journey.» In the last year, Google reports that there has been a rise in the search terms, such as black-owned, ethical online shopping, and ethical brands.
When staying at home more, people started reevaluating what mattered for themselves. This trend has been in the growing popularity of affiliated shopping resources. For instance, service providers now focus on sending their consumers brand recommendations based on their preferences.
The Betterworld Shopper concept indicates that customers can leverage their dollars to vote for and support brands they love. From the Accenture report, 50% of customers admitted that they have focused on crucial things in life after the pandemic; meanwhile, 42% said they tended to put others before themselves.
These modern-day consumers are shifting their purchasing practices in a wide range of industries. As a result, they are generating tremendous opportunities for organizations that respond by adopting new standards and rebooting strategies to meet and then outpace consumer expectations.
Impact on eCommerce
The supportive spending—also called the cause commerce approach—has been more popular, and the CEO of OneHope Wine, Jake Kloberdanz, has been marketing this concept for the last decade. At some point in 2012, he gave a TEDx Talk on this topic. Based on the reports mentioned above, it’s evident that the concept is growing fast. So will supportive spending affect the retail and eCommerce industries?
The second effect involves the causes. When a brand donates a percentage of its revenue to the less fortunate or demonstrates sustainability, the method will earn critical benefits.
In his 2012 TEDx Talk, Kloderdanz mentioned that when a cause is developed into the capitalism DNA, it is interlocked into the business framework. Kloderdanz reiterates that every business can make a significant impact in the industry that surpasses their expectations.
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