Over the past year, local businesses have experienced tough times as a result of a slower economy, political volatility and global uncertainty. Citizens have lost patience with high levels of government corruption and failed service delivery.
As marketers, we are seeing the effects of this being manifested in society in different ways. People and companies are adjusting to this fragile environment, often becoming more conservative and risk-conscious in their planning and goals.
As businesses retreat and regroup in an attempt to survive in this high-pressured ecosystem, clearly it’s no longer “business as usual”. Consumer behaviour has shifted and businesses need to adjust their approach if they want to stay relevant and prove sustainable (and profitable) in the long term. Skeptical consumers have grown weary of organisations and their brands. Their interactions with organisations through their brands are tentative and start from a position of deep distrust. The lines between social and economic issues are blurred and are no longer distinguishable from one another.
In What Matters Now, author Gary Hamel notes that in the long run, the interests of shareholders and society at large need to be convergent. This makes sense: how can a consumer goods company that uses plastic packaging separate its economic desires from the impact it has on the environment, and consequently society?
These blurred lines represent an opportunity for prescient marketers to collaborate with businesses and governments to find sustainable solutions to deep-seated and systemic issues. Social innovation should now, more than ever before, shape and drive marketing strategies.
According to Havas’s Meaningful Brands index, 74% of people globally would not care if all brands disappeared for good. At a time when brands are battling to be noticed, marketers must do all they can to keep their brands from being among those consumers so easily disregard.
It’s a truth that consumers, when forking out their hard-earned cash for a product or service, expect the basics to work. But more than this, consumers want utility. Businesses need to task themselves with understanding how to build this into their brands.
A starting point would be through being an organisation that aims to be “better for” consumers and not simply “better than” competitors. Encouragingly, we are seeing progressive companies actively shift their values, and this is orientating their businesses towards “purpose”. This approach automatically places a business in a position where it is geared to address not only shareholder and customer value, but also systemic societal value.
At Yellowwood, we define social innovation as “a sustainable and profitable way of solving existing systemic problems or needs in ways that benefit the public or society, regardless of their social class”.
An example of a business that mirrors this definition is Iyeza Express Medicine on Wheels, a company started by Sizwe Nzima, a 24-year-old from Khayelitsha, Cape Town.
He had landed a R10,000 prize for being the best entrepreneurial student at the Raymond Ackerman Academy of Entrepreneurial Development, then bought two bicycles and got to work on his business idea: Iyeza Express.
He had identified a social challenge that many families in Khayelitsha encountered when collecting prescription medication from the local clinic. Nzima saw firsthand the burden of finding the funds for the cost of transport to the clinic, the tedious time spent waiting, the cost incurred to have someone look after children left at home, and the loss of pay due to missing work.
His business, Iyeza, solved a core pain point for the community, and now collects prescription medication for more than 250 residents in the township. For most, the dynamic young entrepreneur’s service is far more than just a pleasant convenience – it has helped improve the quality of life of those he services at a cost of just R10 a trip.
Nzima’s approach shows that understanding the social challenge first should be at the heart and soul of any true social innovation. However, the social challenge is rarely the starting point for most big corporates, and as a result, marketers who try to enter the social space often lack the social legitimacy and empathetic thinking needed to affect the community.
What if, for example, a big health-care organisation were to get involved in tackling the social challenges that are contributing factors to the service gaps in health care in a way that benefits both the community and the brand? Businesses can affect the social space while still driving relevance within their categories.
Learning to listen
Marketers need to take the time to understand the nuances of a social challenge or culture of a community. An orthodox approach to business will continue to keep brands at a superficial level. Before jumping straight into solutions, however, we need to first find the right insights that will lead us to solve the most important systemic issues. Sadly, marketers continue to miss out on the opportunities that being socially conscious offer.
An understanding of culture offers a pathway for marketers to leverage different perspectives in a given environment. Culture also creates inroads for businesses to initiate fresh conversations that will solve critical needs.
It’s critical to recognise that businesses can drive profit and social innovation concurrently. Armed with unique cultural insights, a broader worldview and business prowess, local businesses can lead the change that communities so desperately need. At the same time, this approach will ensure our businesses and brands grow in more relevant and sustainable ways, despite the increasingly competitive markets in which they operate.
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