If 2020 was the year of customer-centricity, 2021 will be the year of customer empowerment, says retail and customer experience expert Martin Newman.
Specifically, sustainability will be a massive global driver of change in retail this year, as empowered customers look for the brands they love to step up and play a key role in keeping our planet safe.
According to Forrester, 2020 marked a turning point in consumers’ conversations about climate change and other sustainability factors. Under pandemic-induced stay at home orders and against a backdrop of natural disasters like the California wildfires, consumers experienced the direct link between the environment and their personal wellbeing.
Taking this into account, how can retailers offer their customers a shopping experience that is both sustainable and empowering?
1. Operate and communicate with radical transparency
Forrester data reveals that a third of US adults say they spend more time thinking about the climate than they did before COVID-19. Social media and the continuous news cycle keep consumers in the know on environmental issues while encouraging them to do their own research. For retailers, this means radical transparency is expected.
Businesses should make information about where their products come from and their carbon footprint readily available on the digital channels their customers use most. For example, Chipotle’s ordering app allows consumers to see the “foodprint” of their orders, teaming up with Bill Nye the Science Guy to promote the feature. And if your brand plans to reallocate capital away from traditional initiatives towards sustainability initiatives – be proud of that. Consumers want to hear about it.
2. Safeguard products in guilt-free packaging
According to market research company CB Insights, the pandemic has exacerbated the global waste crisis, especially in regards to plastic waste. Disposable masks and gloves are increasingly contributing to pollution, while restaurant closures and supply chain disruptions have also led to an abundance of food waste.
In response, an increasing number of businesses, from startups to blue chip firms, are dedicating their mission to reducing plastic waste with new materials and connected packaging solutions – creating packaging that is biodegradable, compostable or even edible! With so many new, sustainable options available, make sure you’re keeping up with your customer’s needs and providing guilt-free packaging.
3. Encourage customers to reduce, reuse, recycle
The 3 Rs we learned in elementary school have never been more in style. Resale and rental platforms are increasing in areas from the expected – like fashion – to the less obvious, like electronics and even furniture. Major brands like IKEA are also jumping on this trend, launching initiatives to promote the recycling and reuse of its products, including an upcoming pilot program to test out furniture rentals and furniture buybacks.
In the food space, subscription box companies like Imperfect Foods are selling produce and other products that might otherwise be rejected by retail stores due to irregularities. Fashion brands can learn from this – for example launching a sister brand for slightly used or damaged clothing.
4. Showcase a cleaner supply chain and commitment to lowered emissions
We know that consumers increasingly want to know where products come from and how they are made, and regulators are also putting more pressure on businesses and manufacturers to be transparent about supply chains. Companies like Calvin Klein, Ugg and North Face use software to track and source more sustainable materials and tell their customers about it.
And even if you’ve invested in a cleaner supply chain, your materials and finished products still have to get from point A to point B. As the use of electrical vehicles by consumers ramp us, they’ll increasingly expect for the brands they love and the stores they shop at to invest in emissions-free logistics as well.
5. Put cleaner ingredients in their hands
Did you know that nearly 75% of global consumers say they’d be willing to change their consumption habits to reduce their impact on the environment? They’re even willing to pay more to do so. 41% of consumers say that they’re highly willing to pay more for products that contain all-natural or organic ingredients. This statistic is especially powerful in the beauty and personal care space.
According to an analysis of retail sales data, while the overall shampoo category saw declines of 3.4% over a recent year long period, all-natural shampoos are steadily growing at 2.2%. Brands that offer their customers natural, clean ingredients will not only help their customers feel good, they’ll also be rewarded by growing their bottom line.
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