The environment is rapidly deteriorating thanks to our neglect and the cause for concern is at an all-time high. Customers want to support businesses that use environmentally safe practices when producing and distributing products so they can put their money toward good causes. This movement is called conscious consumerism and according to grow ensemble“ it is when buying practices are driven by a commitment to making purchasing decisions that have positive social, economic, and environmental impact. In other words, it’s a movement whereby consumers vote with their dollar by buying ethical products, avoiding unethical companies, and sometimes not purchasing at all. So, a socially or environmentally conscious consumer will think whether consumption is necessary, then once they decide to buy”
The concept of a “conscious consumer” dates back to the 1970s. But the first inklings of the modern concept of “dollar voting” can be traced back even further to 1954, when economist James Buchanan stated that individual participation in the economy is a form of pure democracy, in his article Individual Choice in Voting and the Market.
We in communique help many of our clients who ask, “how can we attract and retain the right customers?” by saying it’s NOT “ how can companies attract and retain the right customers” its “Why”? why do you want the right customers onboard? How would these customers help your purpose as a company come to life? By digging deeper on this point, we help them understand which aspects of ESG should they focus on and then we follow it up with a plan that would help them attract and retain their right customers.
According to Forbes Environmental, Social, Governance (ESG) strategies and ESG Company analysis are here to stay and they will help answer the question “ How can companies attract and retain the right customers?” their research on the customers of today found that about 70% of customers would be willing to pay 5% more for alternative “green” products or services of the same quality, 70% of people want to know how brands are addressing social and environmental issues, 48% of customers would likely change their consumption habits to reduce their impacts on the environment, and almost half of companies that implemented ESG company analysis and ESG strategies aimed to capitalize on business and growth opportunities.
A report ON how to attract the right employees by Nielsen found that 73% of millennials are willing to pay extra for sustainable offerings, and with more millennials filling positions of power, ethical marketing is more important than ever before. An increasing number of customers are choosing to invest in brands that have a clear ESG Company analysis and ESG strategy and make ethical, socially responsible decisions that don’t leave anyone in harm’s way or unaware about what they’re buying. The buying process is becoming less about what’s convenient and cheap and more about what’s sustainable and honourable.
According to Deliotte to attract and retain the right customers we need to understand their behaviours and this is why they surveyed hundreds of consumers globally where the main aim was to help answer the question “how can companies attract and retain the right customers?”
Here are some of their findings
It is clear that this growing consciousness is leading to the rise of many trends from waste-free living to eliminating plastic use. These trends demonstrate the fast-changing market and customers pressure for transparency and a clear ESG company analysis and ESG strategy – both huge challenges that companies must face.
let’s go through the process of how to attract the right customers i.e., the conscious customers.
let’s us look at some of these trends that would help companies attract and retain the right customers i.e., the conscious customers.
There are many behaviours that conscious customers adopt and if we understood them then we can market our sustainable products directly to them. The university of Cambridge mentioned ten behaviours that are adopted by the desired customers those include:
Before companies go out there and start marketing their sustainable products they need to check off the list below but it might be helpful to check off what your company is doing now, this way you will be aware of what needs to be done, plan your progress then track it.
By checking off this list and asking yourself the below questions you will get a sense if your customers and understand your ESG strategy and have a complete ESG company analysis.
The above list is not comprehensive as many organisations have needs particular to their business model and corporate culture. We have selected the most generic questions and they are a combination of B.Corp Impact Assessment questions and others including Patagonia’s book “The responsible company”
Communique specialises in communicating Environmental, Social, Governance (ESG) strategies. Our work has impacted 150K employees, 200k customers and resulted in £300M investment deals completed. If you need help gaining buy-in from your leadership team or designing your ESG communication strategy get in touch