In recent years, as extreme weather patterns and damage to the environment have increased, so has Americans’ priority on sustainability. According to a recent study from Nielsen, 78% of consumers reported that a sustainable lifestyle was important to them.
With consumers tuned into helping the environment, businesses need to take note. Implementing eco-friendly (a.k.a. not environmentally harmful) or sustainable (a.k.a. environmentally beneficial) business practices has become an important way to connect with their audience. In addition to improving the earth, sustainability initiatives can also become a powerful marketing tool.
#1: It speaks to an important issue for consumers.
Given the growing number of climate issues facing our world, many Americans now consider helping the environment to be one of the most pressing issues facing our society today. Additionally, they also consider sustainability to be an important factor in the brands they engage with. According to data from consulting firm Simon-Kucher, half of all consumers now rank sustainability as a top 5 value-driver. The figure is even higher among younger audiences. A 2021 Deloitte study found environmental issues were the #1 concern for Gen Z. Marketing tends to be most effective when the message speaks to the consumer’s need or problem, and right now, improving the environment is an important need for many people.
#2: It’s a sales-driving differentiator.
Marketing messages about sustainability or eco-friendly initiatives don’t only speak to consumers’ beliefs – it also speaks to their wallets. Because sustainability is such a high-priority issue for customers, your company’s positive environmental impact can act as a differentiator that gives your brand an advantage over competitors. Advertising consultancy Wunderman Thompson reports 83% of consumers will always choose a brand with a better sustainability record when given the choice. They’re also willing to pay a higher price for those brands, with two out of three consumers reporting they would pay more to buy sustainable products (Forbes).
#3: It builds customer loyalty.
The increase in sales resulting from your brand’s environmental efforts is not necessarily limited to a short-term boost. While running a one-off campaign may not make a permanent impact, making sustainability a core value of your brand can build lasting loyalty among your consumer base. According to Forbes, 88% of consumers are more loyal to companies that support environmental issues. When a brand’s central messaging aligns with a consumer’s values, they’re more likely to choose to reward those products with their purchasing dollars.
#4: It improves overall business performance over time.
Even beyond marketing, putting emphasis on sustainability can benefit your business as a whole. According to the Harvard Business Review, a series of studies analyzing corporations’ sustainability initiatives have identified a positive correlation between sustainable business practices and stock price performance. For a growing number of investors, the use of environmentally friendly practices can provide a sense of security about the business. It shows the company understands their consumers and is unlikely to suffer a sustainability-related crisis, which would put their stock in jeopardy.
Implementing Sustainability into Your Marketing Program
Given the potential ROI on sustainability-focused marketing, your brand may want to incorporate a campaign into your upcoming calendar. However, it’s extremely important that you back up any marketing statements with concrete data, long-term plans, or examples. Consumers have become much more adept at identifying greenwashing, or businesses’ unsubstantiated claims about a product’s environmental impact. Even if the greenwashing is unintentional, it makes your brand look manipulative and deceitful.
Before you launch a new campaign, be sure your company is using the proper language to back up the real sustainable or eco-friendly initiatives you’ve put in place. If you need help navigating a sustainability or other cause-related campaign, check out our article or shoot us a message for expert advice on adapting this strategy to fit your brand.
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