How does CSR impacts customer loyalty?
CSR, a strategic asset for building customer loyalty?
More than ever, and despite the crisis in purchasing power, consumers are looking for brands that are in tune with their values, and that take into account their social and environmental impact.
CSR is more than just words: it has a real influence on purchasing choices, encourages loyalty and becomes a real lever for differentiation.
Find out why and how to integrate CSR values into your customer retention strategy. Concrete ideas, inspiring examples, and steps to initiate or reinforce your CSR approach... It's all here to help you get started!
What is CSR?
Let's start by reviewing the basics. CSR stands for Corporate Social Responsibility.
Beyond the acronym, CSR, in concrete terms, means that our companies must assume the consequences of their actions, decisions and communications on all their stakeholders.
What are stakeholders? Stakeholders are all those directly or indirectly affected by a company's activities. For example: employees, customers, suppliers, the community in which the company is located, government departments, associations and NGOs, the press, etc.
As you can see, CSR is a vast subject.
In order to gain a clearer understanding of the subject, most companies that embark on a CSR approach rely on a reference framework, such as ISO 26000, to help them move forward in a structured and efficient manner.
It's also worth noting that a comprehensive CSR strategy must address 7 core issues, which include - for example - the environment, working conditions, fair practices, and in particular, consumer rights!
Okay, but what exactly are consumer rights?
They include protection against unfair commercial practices, access to clear and transparent information on products and services, and the right to quality and safety. Clearly, all this can only strengthen customer loyalty by enabling them to make informed, responsible choices! We'll go into more detail on this subject in the next section.
How does CSR influence customer loyalty?
As you know, today's consumers are no longer content to judge a brand on the quality of its products or services.
Quite rightly, they also want the company's values to be aligned with their own consumer principles and decisions. And that's where Corporate Social Responsibility (CSR) comes in.
According to Industry Report 2024, for more than 1 in 4 French people, a brand's values influence their first purchase.
In other words, when making a purchasing choice online or in-store, a growing number of customers take into account a company's responsible commitments.
Consequently, by adopting a strong CSR approach, companies naturally attract customers who are sensitive to the values of sustainability, ethics and transparency.
But the effect of CSR doesn't stop there. In fact, 13% of consumers say that brand values at odds with their own may lead them to break off their loyalty. For example, if a brand no longer embodies or loses the values it once held dear, this can be enough to drive away its most loyal customers.
These statistics clearly show that CSR has become a real lever for securing the loyalty of increasingly demanding customers, who expect brands to act responsibly towards the environment, communities and society as a whole.
But in reality, there's much more to it than that.
CSR is about taking into account the expectations and needs of our stakeholders, including our customers.
To discover more information on what really matters to french customers here is our Industry Report
In fact, 65% of customers surveyed would leave a brand if product quality dropped. And 22% would do the same if the return/exchange policy changed. Also, 18% would abandon a brand if it solicited them too much (email, SMS, etc.).
All these aspects of customer relations are taken into account in a global CSR approach!
How do you define your CSR strategy?
Defining a CSR strategy requires a clear vision of your company's values and objectives, as well as an in-depth analysis of its impact on all stakeholders.
Here are some key steps to building an effective CSR approach:
- Evaluate your impacts: first and foremost, it's essential to carry out a diagnostic to understand the main social, environmental and economic issues linked to your company's activity.
- Involve your stakeholders: talking to your stakeholders (employees, customers, suppliers, local authorities, etc.) helps you to better understand their expectations and to co-construct an approach that is both ambitious and realistic.
- Define precise, measurable objectives: an effective CSR strategy also relies on concrete objectives that enable progress to be measured and adapted over time, integrated into a CSR roadmap.
How can you pass on your CSR values as part of a customer retention strategy?
Developing a customer retention strategy aligned with the company's CSR values is an excellent way of strengthening ties with customers. Here are a few ways to integrate CSR into your customer retention strategy!
What rewards to offer for a committed loyalty program?
Offering eco-responsible rewards or making donations to partner associations can make your loyalty program a powerful retention lever.
For example, the Omaj brand allows customers to convert their loyalty points into donations for social and ecological projects.
Other brands, such as Terre de Bougies, offer sustainable rewards in the form of environmentally-friendly products, an ideal alternative for building customer awareness and loyalty with shared values.
Find out how to overcome the 6 most common obstacles to eco-responsible purchasing.
Offer second-hand products and encourage the circular economy
To integrate second-hand products into your offering and encourage a circular economy, several tools enable you to add a dedicated tab to your e-commerce site.
These solutions offer your customers the opportunity to buy and resell your products, thereby promoting reuse and limiting waste. Here are a few examples from our selection:
Diatome
This solution offers a CtoC marketplace directly integrated into your site, enabling your customers to easily buy and sell second-hand products.
This adds new life to your items and strengthens the loyalty of customers who are committed to responsible consumption.
CrushON
Specializing in vintage fashion, CrushON encourages the extension of the lifespan of existing garments.
Their marketplace brings together partner thrift stores and designers who select unique pieces, reducing textile waste while meeting a growing demand for quality second-hand clothing.
Nopli
This other tool lets you add a dedicated resale space to your site, where customers can exchange their products for cash or vouchers.
This encourages your customers to reinvest in your brand while reducing their environmental impact.
Hipli
As well as encouraging second-hand, Hipli aims to reduce the waste associated with e-commerce product packaging.
With reusable packages, Hipli engages your customers in simple but meaningful gestures, enabling them to choose sustainable packaging for their purchases.
As you can see, there are many solutions!
To discover those 4 tools and many more read the 200 best tools for your e-commerce
Implement more organic acquisition strategies
Acquisition strategies can also be aligned with CSR values by adopting more organic approaches, such as sponsorship and word-of-mouth.
To take the example of Omaj, the brand has foregone paid advertising to concentrate its efforts on referral, relying on sincere communication and the direct recommendation of loyal customers.
An approach that reinforces credibility and builds loyalty among customers who are sensitive to the values of transparency and commitment!
3 examples of brands committed to CSR and their retention strategy
Many inspiring brands demonstrate how a CSR approach can translate into lasting customer loyalty.
By integrating values of sustainability and transparency into their strategies, they meet consumer expectations while consolidating their relationship with them. Here are three concrete examples.
Hindbag
This ethical accessories brand favors sustainable raw materials such as GOTS-certified organic cotton and recycled wool.
Hindbag goes a step further by collaborating with an NGO to guarantee fair working conditions and by using maritime transport to reduce its carbon footprint.
By involving its customers in this approach, Hindbag creates a sense of belonging and support for a common cause.
Learn more about Hindbag's retention strategy with Loyoly check out our case study
Terre de Bougies
The brand focuses on eco-responsible products and awards, offering customers the chance to play an active part in making environmentally-friendly choices.
Terre de Bougies values local and sustainable raw materials, cultivating a relationship of trust and transparency with its customers, who identify with its ecological and social values.
Read this case study to know more about Terre de Bougie and their collaboration with Loyoly
Si Si La Paillette
By offering a range of plastic-free, biodegradable sequins made from plants, the brand invites its customers to make a commitment to a cleaner planet while enjoying festive, innovative products.
By putting sustainability at the heart of its products, Si Si La Paillette raises customer awareness and loyalty by offering a responsible alternative that reflects their own willingness to act.
Discover how Loyoly helped them improve their retention strategy read this case study
