read
October 7, 2024
As we thoughtfully browse our way through 2024, one topic we notice being discussed more and more persistently is sustainability. According to all forecasts, it will surely remain among customer trends in 2025 and beyond.
Yet, crying out, “Go green, just like your customers,” is a vague call to action. It doesn’t sound profound and serious, but eco-consciousness is no joke when it comes to business success. Ignoring environmental responsibility is one of the most gruesome customer experience mistakes to watch out for this year and in the future.
After understanding the motives driving customers to buy eco-friendly products and services, you’ll see why. We then provide first-hand expert insights and examples of companies synchronizing with their customer choices and undertaking sustainable initiatives.
Learn from them in this article.
Here’s why customers opt for “greener” shopping.
“I want to make a difference and help save the planet.”
This statement is virtually a dogma of today’s “green” buyer.
Because of:
At the same time, there’s a huge interdependence between nature and health consciousness. As Roman Zrazhevskiy, Founder & CEO of MIRA Safety, points out, “Customers’ environmental concerns are closely tied to personal health concerns. An unsafe environment is automatically a dangerous and, without exaggeration, a life-threatening place to live in. That’s why caring about Earth as home is automatic care about human well-being.”
Social influence is perhaps the greatest contagious power. Consider this illustrative fact: 65% of online consumers made at least one eco-friendly purchase once they heard that others bought sustainable products.
Thomas Medlin, Co-founder at JumpMD, calls this phenomenon the “green ambassadorship.”
He explains, “In modern-day society, eco-conscious buyers act as role models and ambassadors of positive environmental change, inspiring others to adopt sustainable lifestyles and shop greener. They lead by example and demonstrate how a personal choice can collectively contribute to environmental protection.
However, word-of-mouth plays a critical role here: social sharing, influencer marketing, referrals, user-generated content (UGC), and so on.”
In this context, UGC pieces like customer reviews or testimonials from eco-conscious shoppers can transform buying habits, spreading sustainability to more people.
More people are buying second-hand goods to lessen their environmental impact. In fact, 59% of global consumers have purchased pre-loved items in the past year, and 70% plan to do so next year.
The most popular choices are:
For example:
Pre-owned luxury watches, such as vintage Rolex or Breitling, are in high demand these days. Their market size is projected to jump from roughly $26 billion in 2024 to $43 billion by 2031.
Gen Z buyers are the most determined in this case. Out of 62% choosing “greener” brands, 73% are predisposed to spend more on eco-friendly goods. Overall, across generations, customers would pay an average of 9.7% sustainability premium if products meet environmental criteria (sustainably sourced or manufactured).
When analyzing it from a financial perspective, Gary Hemming, Owner & Finance Director of ABC Finance, noticed a huge price gap between sustainable and conventional products. “The cost of a sustainable product may be 70–80% higher. Sometimes, it costs double the price, lowering the demand as consumers turn to non-eco substitutions. Considering this, brands have to adjust their pricing strategies so as not to make eco-friendly products unaffordable to consumers.”
Even though 79% of Americans want to buy from ecological companies, they don’t know how to find environmentally friendly offers. Worse—they have low confidence in brands proclaiming themselves as sustainable. This percentage is strikingly higher for younger generations, Millennials and Gen Z: 80% and 91%, respectively.
So, “bio” or “eco” labels on your products are not enough to build customer trust. One particular strategy from the list below will show you what will help you achieve that.
Read on.
First, segment your audience by lifestyle preferences and values (customer segmentation by psychographic factors). How many of your customers lead a sustainable lifestyle? To what extent do they cherish sustainability?
To simplify the process, there’s an excellent idea from Goutam Challagalla and Frédéric Dalsace, professors of Marketing and Strategy at IMD Business School. They suggest segmenting the market into three categories: Greens, Blues, and Grays.
Now, your task is determining the needs and requirements of “greens” and “blues.” What appetites do they have for eco-friendly products? What sustainable moves do they anticipate from you?
A brilliant example here is Norm & Irv’s Ice Cream Shop. The brand spotted the customer’s review on Google and switched from styrofoam to more sustainable cups the very next day.
Luckily, you don’t have to enter the digital jungle of customer voices unarmed. Use Clootrack to capture consumer trends like sustainability calls from your audience.
Here are the first baby steps for your business to go green.
This can be anything that reduces environmental impact:
What if we told you that 86% of shoppers are more likely to buy from retailers with eco-friendly packaging?
Knowing this, numerous companies switch to compostable, recyclable, or biodegradable materials to pack and ship their products. This tendency is particularly noticeable among quick-service restaurants (QSRs) in the food industry.
For example:
Let’s take McDonald’s, one of the most customer-centric companies among QSR heavyweights. The brand aims to make 100% of packages from recycled, renewable, or certified materials by the end of 2025. So far, they have reached 86.7%.
As we mentioned before, simply saying, “Our products are eco-friendly, biodegradable, and carbon positive” will not satisfy the consumer’s need for credibility. If you want your brand to tower as a truly sustainable company in front of your audience, you should speak not in words but in deeds and numbers that illustrate those.
One of the best ways for brands to show eco-friendliness (not just tell about it) is by running annual sustainability reports with yearly goals and achievements.
For example:
Learn from Ryanair driving change in the travel industry. Here’s a glimpse of Ryanair’s Sustainability Report 2024 with clearly defined goals, milestones, and actions taken this year to reduce emissions.
You haven’t forgotten about the “grays,” right?
You still have the customer segment reluctant to join the sustainable revolution. How can you encourage them to be more environmentally responsible?
By rewarding them for eco-conscious purchases, of course.
Here are several examples of “green” loyalty programs that recognize and reward eco-friendly buyers:
When creating such a program for your brand, Brooke Webber, Head of Marketing at Ninja Patches, claims that reward names matter greatly. “Naming rewards in your green loyalty program should emphasize their meaning and worth for the customer. For instance, instead of just Points, go with Eco Points or design special awards or digital badges for eco-conscious customers like Green Hero, Planet Protector, or Reusable Genius.”
Numerous brands already urge their target audiences to shop green via social media channels like Instagram, TikTok, Facebook, etc.
For example:
In 2023, Acer started innovating with a customer-focused approach to sustainability. So, the company entirely revamped its branding strategy for social media. On TikTok specifically, Acer changed the bio (We create technology that empowers you to #MakeYourGreenMark) and started publishing “greener” videos with the hashtag #MakeYourGreenMark.
This tactic is a splendid chance to educate your customers about environmental issues and inspire them to take action. It will also help you awaken a sense of togetherness and build stronger customer relationships with those who already care about the planet and the environment.
Add the following list of dates to your holiday marketing calendar and celebrate sustainable holidays with your customers:
Now, focus on promoting sustainable shopping through key customer touchpoints, driving eco-friendly engagement at every step.
Start listening to your customers’ voices and capturing their eco-needs with Clootrack. The platform’s advanced analytics will help you tune in to their “green” chorus and keep to their tempo.
Request demo to see how you can analyze customer reviews to make swift decisions based on shifting consumer trends.
Drive sustainable transformation today for a “greener” tomorrow!
Read Next: What is customer perception?
Author Bio
Roman Shvydun is a writer specializing in business, marketing, and technology, contributing to over 60 SaaS websites. Making complex subjects accessible, Roman has become a recognized voice in the SaaS industry, shaping discussions around key trends and developments.
Analyze customer reviews and automate market research with the fastest AI-powered customer intelligence tool.