Shane Price is the Founder & CEO of Green Circle Salons.
So much of business goes on behind the scenes. A million and one factors go into building a company, selling a product and marketing a brand. But increasingly, there’s one issue that’s been at the crux of consumer behavior: Not how good the product or service is but how good it is for the planet.
Sustainability is more than just a buzzword, it’s the backbone of decision making for many consumers, particularly the up-and-coming generation. Comprising roughly a quarter of the world’s population, Gen-Z are expected to account for 40% of U.S. consumers once they come of age. Their motivations are drastically different from previous generations—they’re less brand loyal, they’re the first digitally-immersed cohort in history and they currently command a whopping $360 billion in purchasing power.
Beyond those dramatic differentiations, they’re also the driving force behind a tectonic shift in consumer priorities. Approximately three-quarters of them make their buying decisions based on sustainability, not brand name.
Let that sink in. No matter how good your product or reputation is, a huge subset of consumers will put that on the backburner if your company isn’t doing its part to lessen its environmental impact. From reducing your carbon footprint to implementing sustainable packaging to CSR strategies that contribute to global change, there are a lot of ways companies across all industries and verticals can make a difference. So, why aren’t more doing it?
Going green hasn’t always been a big part of the national identity, let alone consumer drive. In the 1960s, only 7% of all waste in the United States was recycled or diverted from landfills. Today, that number is closer to 35%, a 5x increase. That seems like great news until you look at that figure alongside the amount of waste produced. In the 1960s, the U.S. generated approximately 88 million tons of garbage. Today, that amount has more than tripled to 292 million tons.
More sustainable solutions are critical to the health of the planet. Gen-Z’s focus on environmentalism is a welcome change from the previous “waste not, want everything” ethos. But sustainability solutions are also critical to the health of your business. According to a joint study from McKinsey and NielsenIQ, products making environmental-, social- and corporate-governance-related claims averaged 28% cumulative growth over a five-year period, versus 20% for products that made no such claims.
The need is evident, but action isn’t universal. Although 90% of business leaders think sustainability is important, only 60% of companies have a sustainability strategy. For some, defining and measuring sustainability is a challenge. Others may be duped by an “if it ain’t broke, don’t fix it” mentality. But for many, fitting eco-friendly practices into their business case is simply too daunting a prospect and the benefits too far a reach. Being sustainable does often come with a significant cost, whether in materials, packaging or practices, but the long-range benefits are clear.
The McKinsey NielsenIQ study found that 60% of respondents of any age would pay more for a product with sustainable packaging. And they’ll keep coming back for it. A recent report found that 77% of consumer products and retail organizations saw that sustainability leads to a significant uptick in customer loyalty.
What’s more, sustainability can actually help make your business run better—companies with strong sustainability programs have higher employee morale (55% higher in companies with strong sustainability programs) and increased employee loyalty (38% higher). Increased motivation and morale, in turn, can help reduce absenteeism and boost productivity.
To recap: Sustainability can attract new customers, boost your bottom line, create a loyal customer base, foster a better employee culture and, last but certainly not least, help the planet thrive.
If you’re at the helm of a business and haven’t implemented sustainability into your organization, the time is now. Here are a few ways you can get started:
• Find your champions: In your business, who cares deeply about sustainability in their own lives? Who can help you lead the charge? Sharing the buy-in can help shepherd initiatives from the idea stage through the implementation process.
• Pick one big goal: Although there are many ways to become sustainable, focusing on one big, bold goal can help define your efforts and keep you from getting overwhelmed in the process.
• Be transparent: There will be challenges along the way, but sharing successes, failures, roadblocks and big wins internally and externally is a great way to be both accountable and authentic (two of Gen-Z’s favorite things).
• Partner up: You don’t have to do this alone. No matter your industry, chances are someone has a service, product or approach that can help you start and sustain these practices.
• Brag for the brand: Adopting sustainable solutions is a huge positive step, and people deserve to know. Make your team and customers a part of your success by celebrating your wins.
Being sustainable isn’t always easy, but it is worth it. We now know that without a healthy ecology, we will not have a healthy economy. By marrying the two, you can make sure your business doesn’t get left behind.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here
