79% of women consumers would be compelled to buy from corporations that buy from women-owned businesses if they were not already.
WASHINGTON, June 28 /PRNewswire/ -- Women consumers care if a company buys from women-owned businesses -- enough to drive them to try a product or service for the first time, give it a second chance, and remain loyal for the long term. These findings from a survey of 1,200 women across the United States establish for the first time that corporations can seize a competitive edge by doing business with women.
This impact of buying from women-owned businesses on brand equity has eluded corporations since the birth of supply chain diversity. To put an end to the guessing game, the Women's Business Enterprise National Council (WBENC), the leading certifier of women-owned businesses that sell to corporations and large government organizations, and SB Services, a consulting firm focused on supplier diversity process improvement, conducted a survey of women consumers concentrating on the peak buying years of 35-55.
The survey found that almost 80 percent of women consumers would be compelled to try a company's product or service if they were not already a customer, if they knew a company used women-owned businesses as vendors. Another 80 percent said awareness of a company's practice of buying from women's businesses would moderately or significantly solidify their brand loyalty. And a majority, 51 percent, would even give a company a second chance if the product or service missed the mark the first time.
"Buying from women-owned business is an instant competitive advantage for corporations that have invested in supply chain diversity," said Linda Denny, President of WBENC. "For the first time, this survey takes the business case for purchasing from women's companies to the next level. Beyond the innovation, service and competitive pricing that our certified women's business enterprises deliver, they also demonstrate that a company's affinity for using women suppliers translates into greater sales to female consumers."
"In today's extremely competitive global business arena, every corporation is striving to attain customer intimacy to build brand equity," said Sharon Castillo, President, SB Services. "Although the majority of Fortune 500 corporations buy from women-owned companies, it's virtually unheard of for them to market the initiative to the consumer. This survey confirms that any company willing to make that leap should be well rewarded," Castillo said.
Over three quarters of women are unaware that such programs exist, the survey said. "Corporations need to educate female consumers about their practice of buying from women's business enterprises, how their supplier diversity programs support it, and that this positively impacts the growth of women's businesses and ultimately, the economy," Denny concluded.
"This is also a call to action for more corporations to give women business owners a serious look," she said. "Doing so will produce multiple dividends."
WBENC provides thought leader research; educational, networking and MatchMaker events, and the nation's largest conference and business fair to its 240 corporate members and close to 7,000 women's business enterprises that it certifies across the country. www.wbenc.org
About the Survey Respondents
- 76% were between 35-45 years of age
- 45% have a 4-year degree, masters or other professional designation
- 40% make over $50,000 annually
- 70% have children
- 91% are employed
SB Services Inc., www.sbservicesinc.com
SOURCE Women's Business Enterprise National Council
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