Sustainability isn’t the next big thing for businesses, it’s already here.
Between countries signing agreements to become carbon neutral and customers demanding sustainable brands, now is the time to act. That being said, starting the journey to become an eco-friendly brand can be intimidating. Where do you start? Does it make sense for your company? How do you convince management? Below we’ll walk through changing consumer behavior, eco-friendly brand benefits, and an eCommerce sustainability case study.
Consumers Want To Buy Sustainable Brands
If this was a court case, the verdict would be in. Consumers want to buy sustainable brands. That includes those with sustainability at their core, and those striving to become more eco-friendly. According to Businesswire, 60% of US consumers list sustainability as an important purchase criteria.
So how can you benefit from this green wave? By adding a component of sustainability to your brand, you’ll stand out from your competition. If marketed correctly, this can lead to an increase in conversion rates. We’ll dive into a case study later in the article. For now, let’s get back to Businesswire’s data.
Not only are consumers looking for brands that exhibit sustainability, but many are willing to pay more for it. And it’s not just Gen Z driving this change, Gen X is getting in on the action. Forbes reports that willingness to spend an extra 10%+ on sustainable products has increased among Gen X consumers. How much you ask? From 34% two years ago, to an astounding 90% today.
This is big news, especially for companies above the opening price point. By adding an affordable sustainability program, they are able to reinforce their premium brand position. Think of it as adding a lightsaber to Batman’s tool belt. By integrating green programs into their business model, brands can grow while commanding a premium. The benefits to the planet, and your bottom line can be big.
We know customers say they will buy more sustainable brands, but are they actually doing it? Let’s check in with our partners at Echogear.
Green eCommerce Case Study: Echogear
eCommerce was made to be the testing ground of eco-friendly marketing messages. Simple but powerful AB testing can prove the value of sustainability in just a few weeks. Having hard numbers at your side always helps when presenting to company management.
A prime example comes from our partnership with Echogear, a top 250 marketplace seller on Amazon with over 26,000 reviews and a 5 star seller rating. As a mid-priced AV brand focused on DIYers, they specialize in TV mounts, cable management, surge protectors and other AV gear. These product categories don’t exactly scream “sustainable”, being mostly made of metal and plastic. However, the team at Echogear took a novel approach and tested planting a tree for every unit sold of their top products. This message was reinforced with a webpage showing how much carbon they have offset. The results were immediate and clear. Not only were they helping the planet, but products over $50 saw a sustained 10% conversion lift.
Josh Soupir from Echogear had this to say:
“Any conversion rate lift is big for an Amazon brand, it can improve your performance overnight. We were fired up to see a sustained 10% increase in conversion rate. This has led to additional organic sales and profit across multiple product lines. 2 years and 250k+ trees later, we’re stoked to be continuing our partnership with The Carbon Offset Company.”
Conversion rate improvement has an immediate impact on sales. Check out the below chart from Echogear’s first tree planting product. Sales were significantly higher after starting the program. Echogear even started reducing ad spend as more organic sales rolled in. That meant more sales and more profit! This shows that incorporating a sustainable program into your eCommerce business has a real, and immediate bottom-line impact.
As Echogear demonstrated, your product doesn’t need to be eco-related to make an impact. There are opportunities for all ecommerce brands to improve sales and the environment simultaneously. However, Echogear’s success in this space wasn’t just due to their participating in the program, but how they marketed it to consumers.
“We wanted to avoid greenwashing, so placement and tone of the message was key. After a handful of tests, we learned to introduce the program later in the product journey. The key is to first sell the customer on product features, then use the tree planting program to reinforce the brand. When a customer gets a great product & helps the environment by choosing Echogear instead of a competitor, we all win."
The “we all win” mentality is an important aspect of sustainability in business. Companies who see a positive economic outcome from green initiatives are very likely to expand the scope of these programs. This principle, known as enlightened self-interest, will naturally drive brands to become climate-friendly over time. As customers make eco-conscious product decisions in growing numbers, green initiatives will become table stakes to compete in many categories.
Hard data time? Let’s confirm this trend.
The Sustainability Trend In Consumer Behavior
Is now really the time to be investing in green programs? You’re probably occupied with rising material, freight, and labor costs. And we don’t blame you, those are a big deal. However, now is the perfect time to add a sustainable aspect to your brand. Check out this podcast from McKinsey, It’s loaded with great data on the topic.
Here are the top 4 takeaways:
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Covid has only strengthened the sustainability trend among consumers.
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Sustainability has been reinforced with a willingness to pay more for it.
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65% of global GDP is committed to becoming carbon neutral by 2050.
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Products marketed as sustainable grow 5-6x faster than those that aren’t.
These are powerful indications that the sustainability trend among consumers is real and can already be felt by many businesses.
Don’t be the last in your category to consider an eco-friendly program. We think every marketing team can benefit, and now is the time to explore green initiatives. Contact us at The Carbon Offset Company today to start your green journey. We will customize a tree planting or carbon credit program for your brand. The best part? Our programs are incredibly scalable, and there is no long-term commitment. All our planting projects make a real impact on the environment and local populations. Check out some of the projects here.
But what about proving it to management? Where do you start? Our internal team of eCommerce experts is here to help. We know the biggest hurdle is proving that green programs can improve sales & profitability. We’re here to help you navigate those challenges by working with you to design a testing plan to kick-start your tree planting program.
Sustainability is about to be mainstream. Customer behavior in real world situations has proven it. Stay one step ahead of the competition by testing your first eco-friendly program today. It’ll be good for the planet, and your bottom line. Let’s get started.
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