ESG and CX are two trending acronyms in the corporate world and this phenomenon is no wonder. We increasingly see consumers demanding not only a position, but concrete actions from companies that have a positive impact on social reality.
ESG is the acronym in English for environment, social and governance (Environment, social and governance) and is a concept that aims to measure practices that have a positive impact on the social and environment.
It has gradually taken over the space of having “sustainability” in everyday corporate life. The following was strengthened in a context in which social empathy and environmental concern became a pillar for engaging people with a brand.
CX, on the other hand, is the acronym for Customer Experience. In Portuguese, this term means customer experience and is based on the concern of companies to strengthen the customer journey for a more solid and lasting relationship over time.
But, after all, what do ESG and CX have in common? We prepared this article so that you understand how these two concepts can go together to strengthen the authority of brands and consolidate customer relationships around ideals.
Read the content to the end to understand it better!
ESG and CX: why combine these two concepts?
Before talking about how to use ESG to improve a company's CX, we need to talk a bit about how each of these concepts work independently. Let's start with ESG.
What is ESG?
ESG means the set of practices and positions of companies in relation to the environment and social causes.
The importance of this acronym can be explained in numbers. During the first quarter of 2022, for example, the search for the term in the main internet search tools tripled, according to the Economic Value.
The term was created in 2002 based on the United Nations (UN) Global Compact report. The goal of this document is to motivate companies around the world so that companies are more engaged in the application of principles and actions aimed at expanding human rights, combating corruption, and practices that generate positive socio-environmental impacts.
And how the general public has been responding to this trend. According to data from PWC, 76% of consumers say they intend to stop buying from companies that are in any way involved in mistreating the environment, employees, and the community.
This is an important fact to talk about CX. Check it out!
What is CX?
CX is the acronym that represents the consumer experience. And when we talk about consumer experience, we talk about the entire customer journey from the first contact with the brand to the most advanced post-sales phases.
Each point of customer interaction with the company is taken into account for the customer experience, for example:
- customer service;
- technical support;
- rich materials, such as e-books, webinars, courses, and workshops;
- blog posts;
- relationship on a social network, from direct interactions to various publications;
- institutional projects and marketing campaigns focusing on ESG.
CX allows you to develop more than a mere commercial relationship between customer and brand. In fact, it represents a concept that seeks to achieve long-term loyalty and partnership based on a more affective and cultural experience.
What are the benefits of ESG in service?
But, after all, how do you use ESG to improve CX? We can see from previous topics that ESG became a demand from consumers to strengthen their relationships with companies.
According to Cone Communications, 88% of consumers will be more loyal to brands with social and environmental impact projects.
Thus, companies today have the knife and cheese in hand to develop initiatives that create in their audience a sense of belonging and engagement in a project with principles and goals for improving social welfare and working conditions, in addition to measures aimed at reducing global warming and other environmental problems.
So, as we can see, ESG and CX are all about each other. Not only can they, but they must be aligned so that companies' social and environmental practices are not only clear to consumers, but are also added to the customer experience.
The company wins, with a closer and more solid relationship with its audience, the clients win, because they feel they belong to a project to improve important aspects of community life, and so does the world.