There’s an interesting phenomenon happening in the world of marketing.

If you follow the news at all, you may have noticed there is a sizable number of businesses jumping into the political fray. And while we may be quick to brush it off as an anomaly given our current political climate, it’s actually a trend that has been steadily on the rise for several years now.

The reason is simple. Customers are shifting their loyalty from Brands to values.

Rather than making purchasing decisions solely on whether a person likes a product or service – or even their experience with a Brand – more and more it’s becoming about whether they like the company’s stance on political and social issues. They’re evaluating whether or not a Brand’s values align with their own.

The data:

• A 2014 study by the Global Strategy Group  showed that 56% of Americans thought it appropriate for corporations to stand up for what they believe politically regardless of whether or not it is controversial
• 60% of millennials identified as “belief-driven buyers” globally, according to a 2017 study by Edelman.
• In a study by Forbes, they found Americans 8.1% more likely to purchase from a company that shared their opinions and 8.4% less likely to purchase from a company that doesn’t.
• A Sprout Social study found that two-thirds of those who responded said it was either “Somewhat Important” or “Very Important” for brands to take a stand on social/political issues

Mark Schaefer referred to this in a recent video as the “5th P of marketing”. That “P” being politics.

And businesses are taking notice.

In 2013 Procter & Gamble set out on creating their ‘Like a Girl’ campaign to introduce a new generation to their commitment to empowering girls. Heineken premiered “Worlds Apart” early in 2017, pairing strangers with vastly different – yet unknown – backgrounds in completing several tasks while getting to know each other.  Challenging society’s pre-conceived notions about those of differing political beliefs.

P & G’s ‘Like a Girl’ campaign:

Heineken’s “Worlds Apart” campaign:

And then, of course, was the big announcement last month from Nike about a partnership with controversial figure Colin Kaepernick and an ad that dropped featuring a close-up of the former NFL quarterback with the words “Believe in something. Even if it means sacrificing everything.”

A calculated risk for sure by Nike. Not surprisingly, it was met with an onslaught of negative reaction from calls for boycotts to consumers burning shoes to a loss of almost 4 billion on the day of the announcement.

But Nike did their homework. Based on research, they know that their customers skew younger, more urban and more diverse. In fact, 67% of Nike’s customer base is younger than 35, according to NPD Group via Bloomberg. So they made the calculation that those who would be offended by the partnership were probably not a big percentage of their customer base to begin with. According to the research, young, liberal-leaning shoppers – Nike’s core customer base – are more likely to respond positively to companies taking a stand on issues… as long as it aligns with their own beliefs.

To Get Political or Not

Whether your business should take a stand on political or social issues or stay neutral depends entirely on your business and your customers.

Tucson-based Cup it Up learned this lesson the hard way after publishing a list of things they did and did not support politically. Employees quit, the community spoke out and three days after the post went up, they closed the business entirely.

There is a lot to lose.

But the advantages could also be great in winning customer loyalty while opening the doors to a new audience. Inc. lays out some great points to consider when weighing the question of getting political.

The two main takeaways:

Know your customers and run the numbers

• You need to know your customers. Not just the demographics. Where are they likely to be on the social/political spectrum?
• You also need to know how much business you can stand to lose for a period of time… or permanently and still run a profit. Perhaps there is an untapped audience that may be drawn to your business if it aligned with their values.

Focus on issues that make sense for your brand

• P & G ran the #LikeAGirl campaign under their Always brand of feminine products. Heineken showcased people coming together for a drink.
• These were issues-based campaigns that made sense to the brand. Another question to consider is, “do your brand values and position require you to take a stand on a particular issue?”

Patagonia’s mission statement is to, “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” So it was natural for them to make a statement on their home page when policy on protecting federal lands changed a couple of years ago.

Whether or not Nike’s gamble will pay off is yet to be seen. Though they did see an immediate boost in online sales. And in the weeks following stock prices surged 36 percent on the year.

The point is before engaging your Brand in any political discourse or controversial social issue, make sure you have a good understanding of your customers. Really know them.

Or you need to believe so strongly in your position that you’re willing to close your doors for good.

Join to receive monthly marketing tips delivered directly to your inbox.

Jacqui Genow

Brand & Business Strategist

J. Genow Marketing

Jacqui Genow is the founder and principal of J. Genow Marketing. She works with clients in aligning their brand message, building their marketing roadmap, and helping them stay on track to move their business forward. As a Brand and Business Strategist, her focus goes beyond marketing; making the connections between how marketing decisions made today can impact a client’s business in the future. You can find Jacqui on LinkedIn and Twitter.

MORE FROM THE BLOG