Hardly any other company does not use social media channels to reach their target groups. Almost 38 million Germans use Instagram, Facebook and Co. And since the Corona pandemic, trends that were already foreseeable have intensified. The way and what users share or comment on their social media channels is changing. Needs, opinions and expectations of companies, politics or society are communicated faster, more honestly and sometimes more aggressively.
According to a recent Bitkom study, 75 percent of Internet users are increasingly using social media since Corona. That means more is also being posted, shared, and commented on. This applies equally to almost all age groups. Among 30 to 49 year olds, it is 82 percent, among 50 to 64 year olds 74 percent and even almost every third user is over 65.
People all over the world are not only spending more time online, they are also using digital media and networks more intensively. This presents great opportunities, but also risks for companies. It is clear that trivial advertisements or irrelevant content have no effect and are therefore also wasted investments.
Social media not only ensure more exchange, they also create more transparency and the opportunity to uncover and disseminate grievances. And these opportunities are also being used. Almost two thirds of Germans have already boycotted a brand or company because they were encouraged to do so by online media. Sometimes the boycott is only short-lived, but around 60 percent of boycotters avoid certain companies permanently, as the market research and consulting institute YouGov discovered in 2017. The main reasons for the boycott are “harmful products,” “mistreatment of animals,” followed closely by “environmental pollution,” and “racism.” There are many examples of this. As early as 1995, a boycott against the oil company Shell was called for because of its planned sinking of the Brent Spar oil platform. Or when AEG Electrolux moved jobs to Eastern Europe, customers started a boycott and caused sales to fall by a fifth.
The latest example is the boycott calls against Adidas, H&M, Puma and Deichmann, who suspended their rent payments from April 2020 during the corona crisis. This was met with strong criticism from customers and led to boycott calls on social networks. Although such waves of outrage often subside after a few weeks or months, the long-term damage can hardly be measured.
Movements such as Black Lives Matter or Fridays for Future are also so big because they are spread via social media channels. These reach effects are increasingly forcing companies to position themselves in the face of questions about socio-political issues and to implement them in their long-term corporate strategies. The results of a Brandwatch study from March 2020 show that fairness, social commitment, sustainability and anti-racism will continue to increase for companies.
“The last person has now understood that brands are responsible for society and the environment.” Markus Weber (W&V)
For example, entrepreneurial activism has been making headlines in recent weeks. Apple announced a $100 million initiative that works for “education, economic equality, and criminal justice reform.” At the beginning of August, 27 companies decided to create 75,000 jobs and 25,000 internships for disadvantaged career starters in New York over the next ten years in order to support the metropolis hit hard by the coronavirus. These include JP Morgan Chase, Microsoft and Amazon. Unfortunately, initiatives often lack long-term goals and responsibilities.
The American ice cream manufacturer Ben & Jerrys, which has been known for its clear political stance since its founding, is different. Ben & Jerry's repeatedly takes a stand on topics such as racism, homophobia or the environment and thus becomes a prime example of brands that take a stand. It is likely that you will also lose customers as a result. But as Dipayan Biswas, marketing professor at the University of South Florida, told USA Today: “Like politicians, brands do well to polarize.”
The Ben & Jerry's strategy is of course not a recipe for success for all companies. But the trend shows that companies and brands can no longer afford to be indifferent when it comes to major political, social or environmental issues. The decisive factor is that consumers, and in particular the growing generation of so-called social millennials, are increasingly looking for identification in products and brands.
“The statement that anyone who polarizes more also implements more would be wrong. But it is true: brands that do not polarize have also not increased their sales in recent years.” Christoph Kamps — trend and generation researcher
Business strategies that don't take this into account won't get any better with cool social media communication. Brand and communication design must provide a consistent image and enable genuine relationships with consumers. Preferably in all areas of the company.
Digital communication behavior forces companies and brands to be more authentic. “Trust” is the decisive currency on social media. Brands that only pretend to be are quickly exposed by consumers as well as employees and ultimately punished with disregard or even refusal to buy. However, new strategies must not only be developed and documented, but also comprehensively implemented and implemented within the company. Especially at management level.
Although the corona pandemic is keeping us physically at a distance, we are moving ever closer together digitally and the dynamics of opinion formation are developing rapidly. Politicians and entrepreneurs should act and not just talk. Terms such as “profit” and “growth” are becoming curse words. This is also noticeable in marketing. Companies that focus only on rapid growth will lose competition in the long term with companies that make their environmental or social responsibility comprehensible. And this responsibility must also be translated into performance values for society, whether that is a proven improved CO2 balance or a transparent and fair production chain. Just as consumers can turn away, they can also become enthusiastic customers and thus credible brand ambassadors through social media.
Snackable content, beauty tips from the children's room — all of this is social media, just as it is part of society, but an verifiable and ever larger share also wants to invest in sustainability, fairness and authenticity through their consumption. This trend is already visible in relevant sales growth. Meaningful content is more important here than ever before. Even if the pandemic is over one day, the use of social media will not diminish and the search for a deeper meaning in consumption, ecological or social responsibility will increase. Companies that regularly question their own brand strategy and then formulate and implement a social media strategy in a future-proof manner will also win on Facebook and Co.
Uhura is a digital agency and advises companies such as Kikkoman, Uniper, Schlaraffia or even business associations and public administration in developing social media strategies and helping to implement them into effective measures. If you're wondering how Uhura can help you — Just give us a call!
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