Stop putting customers at the heart of business strategy

Patti Alderman at Zone argues that purpose is of central importance to any organisation

 

It may sound strange coming from an experience leader at an experience consultancy but it is a responsible purpose — not your customers — that needs to be at the centre of your business strategy. 

 

Both customers’ and employees’ purchasing habits are screaming out for more purpose — specifically the need for greater sustainability, as our planet suffers from the effects of global warming and climate change.

 

But why, after decades of talking about the customer, should we shift now — and how can businesses successfully navigate this transition?

 

There’s no time like the present

Conscious consumerism is on the rise. People want to feel morally good about the products they purchase — but they also want reasonable prices.

 

Deloitte’s research into brand purpose found that 57% of global consumers acknowledge that they are more loyal to brands publicly committed to addressing social inequalities. This doesn’t just mean publishing well-polished statements. Meaningful action is also required.

 

Employees, on the other hand, want to enjoy a fulfilling role and want to feel proud. A study by McKinsey investigated whether employees were living their purpose during their day-to-day working life. Whilst 85% of upper management believed they were, almost half of frontline employees disagreed. This gulf between C-suite and those lower down the ranks needs to be addressed.

 

Shifting towards a purpose-oriented model, however, requires compromise. Achieving meaningful, long-term responsible growth is only possible if the board, investors and C-suite accept that short-term growth must be sacrificed.

 

It’s not just about being a cash-cow

Diversity, equity and inclusion (DEI), social justice, sustainability; these are issues that have become systemic in culture and behaviours, and all are fuelled by the relentless pressure to achieve relentless double-digit stock price growth. Abandoning this mindset in favour of a more responsible strategy puts decision makers in a difficult place, particularly when facing off with Wall Street.

 

The bubble will burst, so we need to shift now, easing the impact over time.  The desire to improve share prices and margins often impacts decision-making, subtly nudging away from the company’s fundamentals of its purpose. Any of these scenarios sound familiar?

• During the hiring process, you choose the quickest fit for a candidate (or just shift an existing person into the role) rather than waiting for the most diverse or inclusive option
• You pick a less sustainable packaging or delivery option as this saves you the most money
• Choosing Fear-of-missing-out (FOMO) marketing tactics as an effective acquisition technique instead of ones more supportive of mental health and wellness

Some organisations prefer to wait for legislation to force them to change their behaviour rather than adopting a more proactive approach. But the reality is that the world is changing. People want things to change — and history has proven that large enough movements can drive this change.

 

Addressing this elephant in the room is the first step in a long journey. Businesses need to either accept they must prioritise purpose now or be forced into it further down the line when a number of scenarios could potentially play out – for example, when you are faced with the prospect of being bought out by a close competitor, or when a new female-founded start-up disrupting the industry takes your customer base, or even when a private equity firm has to swoop in to bail out your failing business.

 

Putting purpose at the centre of your business strategy will elevate your standing in each of these scenarios.

 

Are you up to the challenge?

The time has come to adopt a new mentality. Put an end to your obsession with your customers. Start obsessing about doing the right thing, in the right way  — for both our people and our planet.

 

You aren’t sailing into uncharted waters. Patagonia is often seen as the North Star of businesses who have already successfully demonstrated how to effectively orient around purpose both inside and out, and there are several other companies (e.g., Boots, Unilever) trying to work through this shift now. But these shouldn’t be perceived as the golden standard.

 

Going above and beyond in the name of a responsible purpose should be the bare minimum that all companies are striving to achieve.

 

---

 

Patti Alderman is AVP Digital Experience at Zone

 

Main image courtesy of iStockPhoto.com