In a cost of living crisis, most recently coupled with a reported plummet in consumer confidence ahead of the new budget, generosity may not be a priority for most businesses right now. As we consider the impact of potential stealth tax rises and hikes in National Insurance and fuel duty, it’s hardly surprising that we’re not feeling very giving.
In fact, the world seems to be getting meaner and meaner, with the internet driving divisions in society over everything from the climate crisis to migration and gender identity. It is undeniably true that personal generosity remains central to our wellbeing, especially at times of stress, boosting mood, self-esteem and our immune system, while reducing anxiety and blood pressure.
But what do we mean when we talk about generosity in the context of the business world?
When it comes to marketing, agencies and their clients are grappling with the impact of the so-called post purpose era. For far too long, far too many brands were simply ‘purpose washing’, attempting to sell more products by fabricating a higher purpose where one did not exist. And now the inevitable backlash means that for those that simply jumped on the purpose bandwagon, it’s time to get off. But brand generosity is so much more than offering consumers a purpose. Unsurprisingly, cost and value for money remain crucial, but despite — or perhaps because of — current economic pressures, people are still looking for more from their brands. They want them to be generous with their customer service and their honesty, rewarding customer loyalty and treating employees well.
In today’s world, it’s not just the brands that have genuine sustainability and equity at their heart that will do well. It is also the brands that are more generous to their customers in many different ways.
According to The Generosity Impact Report (a new study published by Fold7) generosity not only plays an important role in brand building, but when harnessed strategically, will have a positive impact on the bottom line. According to the study, people said that their consideration to purchase would rise between 7% and 11% for those brands they considered to be more generous. The report combines several pieces of research, including input from behavioural scientist Richard Shotton (author of The Choice Factory), and the findings from a nationally representative survey of 2,000 people, commissioned by Fold7 and conducted by YouGov.
The research revealed that brand generosity is defined differently according to age, and a one-size-fits-all solution will not work. In an era of consumer scepticism, brands must approach generosity in a nuanced way, particularly when it comes to the age of their customers. For younger consumers, brand ethics were of particular importance. For older people, experience was everything, and generosity was judged in terms of everything from customer service to loyalty rewards.
And perceptions of generosity also varied by sector, although there were also some common themes across all seven industries investigated — banking, airlines, quick service restaurants, fitness, spirits, snacks and tech. Most people surveyed felt that, in all sectors, there were untapped opportunities for brands to be more generous, and most struggled to name a single brand that was truly doing more for them. This is indicative of the impact taking a more generous approach could have for brands.
The momentum behind the importance of generosity is growing. Earlier this year, Chris Anderson, the British-American businessman who is the head of TED (the organisation behind the eponymous, TED Talks) published his book, Infectious Generosity, an examination of the power of generosity in business and personal interactions, and how it can foster success, build trust and create a last impact on our communities. Discussing how fed up he is with, what he terms, the culture wars in our society, he writes about the importance of generosity: ‘I’ve spent the last few years looking for an antidote. Just possibly, it can be found in a pair of human instincts wired deeply inside us: generosity, and our response to it.’
Featured image: Anastasia Shuraeva / Pexels
