It’s a Fact, Improved Sustainability Drives Sales Growth

There is no suggestion anywhere that introducing sustainability to any SME is something that does not create additional work. And it costs money. However, adopting sound environmental practice is increasingly becoming one of the smartest strategies for gaining competitive advantage. What follows explains why and how.

There is a glut of data that shows both consumer and B2B buyers seek out planet friendly credentials from those they purchase from, and a growing number reject sales propositions when they cannot identify green credentials. This is not about sizeable minorities. It is considerably more than half of business buyers, and a growing proportion of consumers.

A survey of 400 UK B2B buyers by Impact Sense found that participants said they are prioritising sustainability and ethics when choosing suppliers, and Fleishman Hillard’s report on the influence of environment on B2B buying, finds 50 per cent of companies switching suppliers say social and environment are the top reason for change, and 42 per cent of businesses have switched suppliers or business partners due to inadequate credentials and commitment. Equally, 73 per cent of managers of larger companies say environment and social value will become more important factors in their decision making in the next two to three years. These findings are a sample cross section of the many reports saying business procurement is increasingly focused on the need to have sustainably compliant suppliers.

Consumer buying motivation is still dominated by price, but climate change is an increasingly important factor. Boston Consulting Group’s research of 10,000 UK consumers found that 76 per cent are trying to play their part in improving the environment, and expect businesses to do the same, with 70 per cent wanting to know what companies are doing in terms of saving the planet, and 30 per cent saying they switch buying, or advocate brands positively or negatively as a result.  

A report from Capgemini found that 87 per cent of shoppers will buy a product because its owner advocates combating climate change or a social concern.

There is no doubt carbon reduction has grown in importance to become a potential sales and marketing asset that can provide escalating competitive advantages to those that promote advancements in the right way. What is more, this is still a scenario in which those most adept at publicising progress as a USP still have first mover advantage.   

So when did buyers adopt such strong environmental attitudes?

It started well before the pandemic, but during lockdown something extraordinary happened to consumer sentiment. It moved from ‘What does the brand / label do for me?’, to ‘What does the brand / label do for my family, friends and the environment and society?’ Buying motivation shifted from self to family and friends, and to creating a better planet.

This discovery was made through Brandwatch analysis of tens millions of UK based social media posts and discussions that took place during covid enforced isolation. The study discovered attitude to buying changed fundamentally with the need to see environmental responsibility from brands, including supply chain.

The Brandwatch analysis was confirmed in a survey of consumers by the Institute for Business Value, in which 93 per cent of individuals said the pandemic had influenced their views on sustainability, and that environment was significantly more important to them.

Of course, there are other factors involved in purchase decision making. Cost will always be the primary concern of the majority. But environment is a frequently a deal breaker of growing importance.

Unsurprisingly, the same shift in attitude occurred in business buying. Those in business are people after all, and this is on top of formalised procurement that leans more and more towards the necessity of suppliers being able to demonstrate green practice. Shareholders too, put pressure on to buy sustainably. There is no doubt that being green can significantly help to sell products and services, while its absence almost certainly results in lost sales.

How to use sustainability effectively in sales and marketing

One factor often overlooked when it comes to driving sales by promoting carbon reduction is emotion. Neuroscience reveals that messages to the limbic area of the brain, which is responsible for emotions and decision making, is susceptible to positive communication on improvement to the environment, and that broadcasting relatable narratives on sustainability is a good way to leverage it.

The best way to capitalise on this is by telling stories of journeys towards better practice. Like all good stories, they should feature the ups and downs, the stumbling blocks, and how they are overcome. It should not be all about success. Overcoming set backs when they occur plays an important part. Everyone likes the classic Hollywood theme of the hero being down to start with, but tenaciously coming back. Putting stories in this vein on social media, and using them in public relations and other marketing channels creates positive engagement with audiences. It also brings progress on sustainability to life in relatable form, is memorable, generates social media followers, and ultimately leads to commercial rewards.

Next Steps

If carbon reduction is to be used as a sales and marketing asset there is a need to put it in the spotlight. What is more, this does not have to be about publicising major ground breaking initiatives. Consistent progress no matter the stage of advance is what counts. In the case of SMEs, nobody expects companies get everything right all at once. As long as development is being shown to happen continuously then audiences appreciate it, and if presented effectively they will follow it. It is also possible to make quick significant wins in cutting carbon emissions along with making cost savings. This helps to fast track the commercial benefits. There is a guide to this on the site – link to Making Quick Progress with Sustainability.   

Of course, there is a trap it is important to avoid when publicising carbon reducation. Never give in to the temptation to overclaim. It is fraught with danger. Along with water companies and politicians, greenwashers have entered the top tier for contempt and condemnation. And it is a difficult road back once labelled. Besides, the big claims that often get companies into trouble are not necessary. Being able to report steady constructive progress is the requirement, and within the capability of almost every SME.