As a business owner, you have invested time and money into your business, and you continue to do so. You strive to do the right things and play by the rules. However, in today’s changing landscape, it’s tough. Markets are not what they used to be, and customers no longer return solely because they’ve been to your business before. They want more than that; they want to feel that you share their values.
Sustainability has become a critical consideration for consumers. More than two-thirds of consumers factor sustainability into their purchasing decisions. In fact, 47% of consumers are willing to pay more for sustainable products, and over one-third would pay up to 25% more. Gen Z, a new buying group, is particularly concerned about sustainability.
But how does sustainability impact loyalty? Research shows that customers are most likely to return to a brand for its product quality, but sustainable business practices come in a close second. A significant 68% of consumers say they’re motivated to be loyal to a brand when they share the same values. Emotional involvement is crucial for good customer experience, and sustainability addresses sensitive issues that modern consumers deeply care about. As customer experience overtakes price and product as the key brand differentiator, committing to sustainability becomes essential for fostering genuine customer loyalty.
Sustainability isn’t just about your own business practices; it’s also about helping customers uphold their personal values. Consumers are becoming savvy about “greenwashing,” where companies falsely promote environmental positivity without substantial action. Authentic brands stand out by not only promoting their own sustainable practices but also assisting patrons in making their own difference.
Brands that embrace sustainability benefit from increased customer loyalty and brand revenue. Sustainability influences consumer behavior: 53% of consumers overall (and 57% in the 18-24 age group) have switched to lesser-known brands because they were sustainable. Over half of consumers share an emotional connection with products or organizations perceived as sustainable. Buying sustainable products makes them feel happy about their purchases.
Despite intentions to be sustainable, there’s a gap between what consumers think they know and what they actually know about sustainability. Brands need to provide more sustainability-related information for consumers while ensuring authenticity in their claims. By aligning with customer values and actively promoting sustainability, businesses can cultivate long-lasting relationships based on shared principles.
Where do you sit?
