How to Balance Neutrality and Transparency in an Election Year

Many retail marketers debate the utility of taking a political stance as a brand or remaining neutral, especially during contentious times like an election year. But is this hot-button issue as important as it seems?

According to recent data from a Sitejabber survey, the answer may be “no.” While some brands feel compelled to engage in political discourse, most consumers prefer companies to avoid political involvement. Interestingly, even among those who value neutrality, few are willing to boycott a brand that does take a stance. Therefore, the correct approach to political brand speech will depend on your audience, niche and brand values.

How Do Consumers Feel About Political Speech?

The survey’s findings shed light on consumer behavior regarding brands and politics:

• Boycotts are rare: Only 30 percent of consumers reported boycotting a brand for political reasons.
• Political affiliations don’t usually drive purchase decisions: Over 60 percent of respondents said they felt indifferent or neutral toward a brand's political stance.
• Transparency divides opinions: 41 percent of consumers think brands should stay out of politics, while 31 percent believe companies should be more open about their political views.

As we approach the 2024 election, how can marketing leaders use this data? Well, for starters, they can rest assured that most consumers aren't swayed by mild political speech. This ambivalence suggests that most brands should focus on what consumers genuinely care about, including high-quality products and excellent customer support.

However, the ultimate decision to engage in political speech or activism still rests with a company’s top leaders — especially the founder/CEO.

When (and If) Brands Should Get Political

In 2020, discussions about environmental, social and governance (ESG) initiatives and diversity, equity and inclusion (DEI) efforts exploded. However, more recently, highly public and negative discourse about “woke” culture has led to a decline in financially motivated discussions of these issues. Mentions of ESG and DEI in quarterly earnings calls dropped by 31 percent year-over-year between 2023 and 2022.

Additionally, many companies, including big names like Lowe’s and Tractor Supply Company, have stepped away from their DEI efforts recently. This trend signals an increasing hesitance to engage in formerly apolitical social movements. However, according to our research, many consumers don’t consider political affiliations heavily when making purchasing decisions — only 42 percent said their opinion of a brand shifted after learning about its politics.

Still, leaders should be cautious. Even if only a small percentage of consumers participate in boycotts, that may pose a significant risk (especially depending on your niche). Thus, brands should only venture into political conversations if doing so aligns closely with their internal mission and values.

Focusing on What Matters

However minute the risk is, political speech can alienate your customers. So, if you’re worried about that, here are a few ways to set yourself apart in a crowded market:

• Leverage customer reviews. Aggregating and analyzing reviews can help brands understand common consumer pain points and guide product improvements.
• Use real-time feedback tools. Quick, direct feedback from customers can offer actionable insights for refining products and services.
• Monitor social media sentiment. Customers often voice their opinions on social media. Analyzing these conversations can help brands understand prevailing opinions among their audience and respond accordingly.

By focusing on delivering great products and maintaining strong customer satisfaction, brands can avoid the divisiveness of political marketing while keeping consumers happy. As election season approaches, these tried-and-true methods may be the safest way to succeed.

Michael Lai is the CEO and co-founder of Sitejabber, a leading destination for customer ratings and reviews of businesses.