The Community Experience: Brands That Give Back Connect on a Deeper Level
More than ever, local disasters such as floods, fire, tornadoes and more are making headlines. Last year, Climate.gov reported 27 weather disasters with losses exceeding $1 billion each. This year, the Los Angeles area experienced wildfires causing billions of dollars in damage. In May, a tornado ripped through St. Louis, causing an estimated $1.6 billion in damage to homes and businesses. In addition to government support, companies and local citizens stepped up to support their communities in the wake of the devastation. Smart organizations are discovering that supporting disaster-affected communities is more than just good citizenship. It’s an exceptional customer experience strategy.
Brands that Give Back
Earlier this year, I wrote an article about brands that give back and support social causes. Patagonia was the featured brand that has an incredible give-back program. Our customer experience research finds that 62% of U.S. consumers prefer doing business with companies that support important social causes, and 52% say a company’s involvement with social causes increases their trust. These are just two reasons why brands give back. It connects them with their customers at a higher level, especially when the company’s cause is important to the customer.
The Local Connection Advantage
Another finding in my research was just as compelling, if not more so. Sixty-nine percent of customers prefer companies and organizations that support local community causes over those that focus on global issues. Customers can often see the impact that the brand is making in the community.
The Community Experience
A local approach represents an angle of customer experience worthy of consideration. Traditionally, CX focuses on the quality of service, convenience, excellent customer support and personalization. Smart brands recognize the benefits of giving back, and many of them view the local community as a means to demonstrate visible support and show that it’s not just about profit.
Last year I wrote an article about the benefit that sports and entertainment can have on a community. One of the examples in the article featured the Evolution Festival, a two-day music festival in St. Louis. Steve Schankman, the man behind the festival, wanted to produce an event with the goal of bringing a diverse community together regardless of color, religion or sex.
The Evolution Festival accomplished its goal, but this year, it is making a change. It transitioned from for-profit to non-profit status, dedicating net proceeds from ticket sales, merchandise and concessions to the United Way of Greater St. Louis for tornado relief, with a guaranteed minimum donation of $100,000, regardless of ticket sales.
“We realized we weren’t just in the entertainment business. We were in the community experience business,” says Schankman, Evolution Festival’s CEO and executive producer. “Our customers don’t just want great music and a good experience. They also want to feel good about their decision to spend money with us. When someone buys a ticket knowing it directly helps their tornado-affected neighbors, that’s not just a transaction. It’s a transformation of how they see themselves in their community.”
The Evolution Festival isn’t alone in its approach. In January, The FireAid benefit concert raised millions for California wildfire relief. Last year, country music megastar Luke Combs organized Concert for Carolina and raised millions of dollars for Hurricane Helene victims.
Final Words
Whether it be a natural disaster or a local issue tied to causes like homelessness, education or community development, many customers want their spending to align with their values. Organizations that recognize this can gain trust and repeat business from their customers. They understand that the best experience isn’t just about what you do for customers. It’s about what you enable customers to do for their communities.
Evolution Festival’s transformation from a for-profit entertainment company to a community-focused organization demonstrates the power of this approach. In a marketplace where customers have endless choices, the brands that win don’t just serve their customers. They also serve the communities their customers call home. That’s not just good business. It’s an important part of the next evolution (pun intended) of customer experience.
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This article was written by Shep Hyken from Forbes and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.
