In part one of this blog series, we went over what sustainability means and how your company can practice being sustainable. But in this portion, we are going to go over why it's worth going sustainable!
With access to the internet in every one’s back pockets, customers can easily do research and learn about your company. And you might think, so what, I have a great product and I’ve got nothing to hide? Well, when a customer looks up your company versus a close competitor, some customers are willing to pick one company over the other in knowing that one is more sustainable.
“According to a survey carried out in September 2018 in the United States, Millennials and Generation Z consumers are the most likely generations to be willing to pay extra for sustainable products. During the survey, one quarter of Millennial survey respondents stated that they would pay an extra 11 to 20 percent for a product that has been certified as socially compliant” (Tighe). (Socially compliant are products “which deliver environmental, social, and economic benefits over their life cycle, from their production until disposal” (Tighe).) Can you believe that? Customers are willing to pay twenty percent more for your socially compliant products.
Also, according to Tighe on Statista, on average from all five generations only thirty-three percent would not pay extra in terms of sustainability. So that means sixty-seven percent of the population is willing to pay more in knowing that the product is sustainable.
“Dr. Matt Johnson, professor at Hult International Business School and founder of neuromarketing blog Pop Neuro, says, "There is accumulating evidence that consumers are impacted by the perceived sustainability of [a] brand, and further, that consumers are willing to pay a premium for products from a sustainable brand over a non-sustainable competitor brand." -Rosmarin
Customers are willing to spend more because they want to purchase from companies that match their beliefs and values. More and more customers are looking at the life cycle of your products. They are researching how your facility and the materials & products you purchase & produce are sustainable. Also, with the current climate crisis at hand, more customers are looking for sustainable purchases to convert to a status statement to promote those personal values. “Dr. Johnson shares the example of a new Prius. "We may buy a Prius (at least in part) because it is a purchase reliably associated with environmental consciousness, and we want to signal that we're environmentally conscious," he says. And it turns out that these social motivations are more important than practical features like gas mileage”(Rosmarin).
You might be asking, even though we are being sustainable, how are customers okay with spending more money on products? Even though they might not be purchasing the product for its environmentally friendly attributes, having that quality reduces customers remorse from the product! For example, Dr. Johnson explains that "A part of us feels guilty about the money we're spending on a new Prius, for example, but the fact that it's a product which has an environmentally friendly angle helps us feel better about the purchase"” (Rosmarin).
So, if you haven’t read our first blog about some easy steps your company can take towards being more sustainable. Take a look and join us by being more sustainable today! Your customers are watching what you do and seeing what your brand values are. So, remember customers are willing to shop and spend more with other companies in knowing that they are sustainable. So, start taking sustainable steps today, so you don’t lose customers tomorrow!
References:
Rosmarin, Remi. “Sustainability Sells: Why Consumers and Clothing Brands Alike Are Turning to Sustainability as a Guiding Light.” Business Insider, Business Insider, 22 Apr. 2020, www.businessinsider.com/sustainability-as-a-value-is-changing-how-consumers-shop
Tighe, D. “Shoppers Who Would Pay More for Sustainable Products by Generation U.S. 2018.” Statista, 27 Nov. 2020, www.statista.com/statistics/936491/shoppers-who-would-pay-more-for-sustainable-products-by-generation-us/