EDF Climate Corps  Marketing Sustainability to Businesses                        Strategies & Tactics for Influencing     ...
EDF Climate CorpsWho We Are• Niche expertise in strategies for  changing human behavior• We help clients influence the dec...
EDF Climate CorpsYou may be familiar with some of our work…• Does your  monitor/computer “sleep”  to save energy?         ...
EDF Climate CorpsOur clients are innovators in the government andnonprofit sectors•   Chautauqua Institution•   EPRI•   En...
EDF Climate Corps  We’ve also worked with dozens of corporate  leaders  •    3M                                   •   Kraf...
EDF Climate CorpsToday’s Presentation•     Objective      – Share practical lessons for marketing energy efficiency and   ...
EDF Climate Corps  Seven common mistakes we make in “selling”  sustainability/energy efficiency to business  decision make...
EDF Climate CorpsHello!• I’m from an important  environmental organization!• (What do you mean you’ve  never heard of it??...
EDF Climate CorpsFailure to Establish Trust with Decision Makers• Why it’s prevalent     – We rarely stop to consider that...
EDF Climate CorpsCollaborate to build trust• If you don’t have specific industry knowledge or technical expertise,  partne...
EDF Climate CorpsWhat social psychology teaches us about buildingtrust1.     Convey your expertise2.     Point out your si...
EDF Climate CorpsAssuming there is only one decision maker• Why it’s prevalent     – Consumer marketing tends to focus on ...
EDF Climate CorpsAssuming Good PR is a Sufficient Motivator• Why it’s prevalent     – Peer pressure can be a powerful moti...
EDF Climate CorpsHybrid cars vs. hybrid trucks                     Over 1 million sold                      About 200 sold...
EDF Climate CorpsRelying on an emotional appeal• Why it’s prevalent     – Drives many consumer decisions• Why it can be a ...
EDF Climate Corps   © Beacon Consultants Network Inc. 2011   16
EDF Climate CorpsSpeaking the language…of the decision makers• ROI• NPV• TCO                     Ask to see an example of ...
EDF Climate CorpsEnergy efficiency investments with strong returnswill sell themselves• Why it’s prevalent     – We tend t...
EDF Climate CorpsInsufficient sales & marketing resources• Why it’s prevalent     – We shouldn’t have to remind orgs to ac...
EDF Climate CorpsFocus on manipulating attitudes instead offacilitating action• Why it’s prevalent     – It’s a lot more w...
EDF Climate Corps   © Beacon Consultants Network Inc. 2011   21
EDF Climate Corps  Manipulating the context of decision  making by removing barriers to action                            ...
EDF Climate CorpsSingle stream recycling   © Beacon Consultants Network Inc. 2011   23
EDF Climate CorpsRestructuring Context of Decisions Can ProducePowerful ResultsSolution #1                                ...
EDF Climate Corps  And now…                 A ridiculously condensed review of                what we know about motivatin...
EDF Climate CorpsSocial psychology research identifies a number oftactics that can motivate action•   “Social norms”•   Pr...
EDF Climate CorpsSocial norms: aka “following the herd”• How it works     – Information: if many people do/think       som...
EDF Climate CorpsSocial Norms Example            “U.S. Companies waste $2.8 billion            annually to power idle PCs....
EDF Climate CorpsSocial Norms Example, Take 2    “Nearly two-thirds of US businesses have launched IT    energy efficiency...
EDF Climate CorpsPriming• How it works     – When you measure people’s intentions, you affect their conduct     – Example:...
EDF Climate CorpsFraming: people react very differently toinformation presented in different ways• How it works     – Peop...
EDF Climate CorpsFraming Example            “U.S. Companies waste $2.8 billion            annually to power idle PCs. Powe...
EDF Climate CorpsFraming Example, Take 2    “Nearly two-thirds of US businesses have launched IT    energy efficiency init...
EDF Climate CorpsGarnering commitments• How it works     – People are motivated to behave consistently with the       comm...
EDF Climate CorpsProviding clear, straightforward “next steps”• How it works     – Start by asking for a small, easy step ...
EDF Climate Corps   © Beacon Consultants Network Inc. 2011   36
EDF Climate Corps                                            Questions   © Beacon Consultants Network Inc. 2011           ...
EDF Climate Corps  Thank you for listening!                                            Mike Walker, President             ...
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Marketing Sustainability to Businesses: Strategies & Tactics for Influencing Corporate Decision Makers

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Objective: Share practical lessons for marketing energy efficiency and
sustainability initiatives to enterprises
Overview:
1. Common mistakes we make when trying to "sell" sustainability
2. Behavioral science on motivating action

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Marketing Sustainability to Businesses: Strategies & Tactics for Influencing Corporate Decision Makers

  1. 1. EDF Climate Corps Marketing Sustainability to Businesses Strategies & Tactics for Influencing Corporate Decision Makers © Beacon Consultants Network Inc. 2011 1
  2. 2. EDF Climate CorpsWho We Are• Niche expertise in strategies for changing human behavior• We help clients influence the decisions people make and the actions that they take• Our work has transformed… – Consumer lifestyle and purchasing decisions – Business operations – Products and service offerings © Beacon Consultants Network Inc. 2011 2
  3. 3. EDF Climate CorpsYou may be familiar with some of our work…• Does your monitor/computer “sleep” to save energy? Number of Human Organ Transplants Performed Last Year Sets Record• Do your electronics use 2200 - Wall Street Journal efficient power supplies? 2000 1800• Does your employer offer 1600 1400 commuter benefits? 1200 1000• Have you opted to Jan-99 Apr-99 Jul-99 Oct-99 Jan-00 Apr-00 Jul-00 Oct-00 Jan-01 Apr-01 Jul-01 Oct-01 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 become an organ or Organs Transplanted Per Month With 12 Month Moving Average tissue donor online? © Beacon Consultants Network Inc. 2011 3
  4. 4. EDF Climate CorpsOur clients are innovators in the government andnonprofit sectors• Chautauqua Institution• EPRI• Environmental Defense Fund (EDF)• NASA• New York City• Northeast Recycling Council (NERC)• The Pew Charitable Trusts• Southern Poverty Law Center• Tulane University• US Department of Defense (DOD)• US Department of Energy (DOE)• US Department of Health and Human Services (HHS)• US Department of Transportation (DOT)• US Environmental Protection Agency (EPA)• University of New Hampshire © Beacon Consultants Network Inc. 2011 4
  5. 5. EDF Climate Corps We’ve also worked with dozens of corporate leaders • 3M • Kraft Foods • AEP • MetLife • AOL • Microsoft • BP • Motorola • Bristol-Myers Squibb • Nike • Computer Associates • Proctor & Gamble • ConocoPhillips • Samsung • CVS • Staples • DuPont • Texas Instruments • Ford Motor Company • Toshiba • General Electric • UPS • General Motors • Verizon • Georgia-Pacific • Wal-Mart • Intel • Walt Disney World © Beacon Consultants Network Inc. 2011 5
  6. 6. EDF Climate CorpsToday’s Presentation• Objective – Share practical lessons for marketing energy efficiency and sustainability initiatives to enterprises• Agenda 1. Common mistakes 2. Behavioral science on motivating action © Beacon Consultants Network Inc. 2011 6
  7. 7. EDF Climate Corps Seven common mistakes we make in “selling” sustainability/energy efficiency to business decision makers © Beacon Consultants Network Inc. 2011 7
  8. 8. EDF Climate CorpsHello!• I’m from an important environmental organization!• (What do you mean you’ve never heard of it???)• I talk a lot about carbon!• Profits are evil! Corporations are evil!• Listen, I need YOU to do something for ME! Oh, did I mention that I drive a Prius? © Beacon Consultants Network Inc. 2011 8
  9. 9. EDF Climate CorpsFailure to Establish Trust with Decision Makers• Why it’s prevalent – We rarely stop to consider that we might not be trusted• Why it can be a mistake – Messages will be ignored…or worse• What to do… © Beacon Consultants Network Inc. 2011 9
  10. 10. EDF Climate CorpsCollaborate to build trust• If you don’t have specific industry knowledge or technical expertise, partner with someone who does• Choose credible sources in the eyes of your target – Subject matter experts – Influential colleagues – Professional associations – Widely-respected organizations• Leverage their networks & communication channels © Beacon Consultants Network Inc. 2011 10
  11. 11. EDF Climate CorpsWhat social psychology teaches us about buildingtrust1. Convey your expertise2. Point out your similarities3. Acknowledge weaknesses/shortcomings4. Ask for a small favor5. Leverage the power of reciprocity6. Offer a reason for your request. “Because…”7. Deliver on commitments you make8. Give your initiative an easy, memorable, “familiar” name © Beacon Consultants Network Inc. 2011 11
  12. 12. EDF Climate CorpsAssuming there is only one decision maker• Why it’s prevalent – Consumer marketing tends to focus on individuals• Why it can be a mistake – Business decisions typically involve multiple decision makers – Different decision makers have different needs• What to do – Understand the decision making process: ask! – Tailor an approach and materials for each influencer• Examples – Top 5 Reasons IT Managers May Not Initially Share Your Enthusiasm for Green IT – Top 5 Ways to Get IT on Board © Beacon Consultants Network Inc. 2011 12
  13. 13. EDF Climate CorpsAssuming Good PR is a Sufficient Motivator• Why it’s prevalent – Peer pressure can be a powerful motivating factor for individuals• Why it can be a mistake – PR is a consideration but rarely drives business decisions – Ignores costs to business, even if costs are simply staff time• What to do – Understand the drivers of decisions: ask “what would it take..” or “what’s holding you back” – Quantify the value of good PR – Work on lowering barriers/costs or increasing benefits• Examples – Value of media impressions; new sales leads – Authoring success stories © Beacon Consultants Network Inc. 2011 13
  14. 14. EDF Climate CorpsHybrid cars vs. hybrid trucks Over 1 million sold About 200 sold Note: 2007 data © Beacon Consultants Network Inc. 2011 14
  15. 15. EDF Climate CorpsRelying on an emotional appeal• Why it’s prevalent – Drives many consumer decisions• Why it can be a mistake – Many decisions must be shared, discussed, and approved, removing the power of impulse – Business decision making favors rational, data-driven appeals (well…for the most part!)• What to do – Develop concise business cases – Speak the language of business decision-making: NPV, ROI, TCO, etc. – Offer data on ancillary benefits © Beacon Consultants Network Inc. 2011 15
  16. 16. EDF Climate Corps © Beacon Consultants Network Inc. 2011 16
  17. 17. EDF Climate CorpsSpeaking the language…of the decision makers• ROI• NPV• TCO Ask to see an example of a successful business case Ask to see an example of a successful business case © Beacon Consultants Network Inc. 2011 17
  18. 18. EDF Climate CorpsEnergy efficiency investments with strong returnswill sell themselves• Why it’s prevalent – We tend to think attitude changes lead to behavior changes: they don’t• Why it can be a mistake – EE is rarely mission critical; people focus on what gets them paid. Often, no one “owns” TCO! – Leads to an insufficient sales effort – Overlooks the importance of removing barriers• What to do – Get to the bottom of who pays vs. who benefits – Focus on removing barriers, increasing benefits• Example: Green IT measures – Facilities department benefits from lower energy costs, BUT… – IT department pays (staff time, solution administration, software) © Beacon Consultants Network Inc. 2011 18
  19. 19. EDF Climate CorpsInsufficient sales & marketing resources• Why it’s prevalent – We shouldn’t have to remind orgs to act in their own self interest• Why it can be a mistake – Social psychology: • “Finite pool of worry” • Confirmation bias • Single action bias – Like any other behavior change, energy efficiency MUST BE SOLD!• What to do – Push hard for more resources – Draw comparisons to other behavior change efforts• Example – The Newsletter Phenomenon – Vs. Verizon FIOS © Beacon Consultants Network Inc. 2011 19
  20. 20. EDF Climate CorpsFocus on manipulating attitudes instead offacilitating action• Why it’s prevalent – It’s a lot more work to facilitate action • We have to re-engineer processes to offer easy next steps • We have to do some of the work for our management• Why it can be a mistake – Research suggests that attitudes don’t drive actions; rather actions drive attitudes• What to do – Focus on eliminating barriers to action• Example… © Beacon Consultants Network Inc. 2011 20
  21. 21. EDF Climate Corps © Beacon Consultants Network Inc. 2011 21
  22. 22. EDF Climate Corps Manipulating the context of decision making by removing barriers to action An example © Beacon Consultants Network Inc. 2011 22
  23. 23. EDF Climate CorpsSingle stream recycling © Beacon Consultants Network Inc. 2011 23
  24. 24. EDF Climate CorpsRestructuring Context of Decisions Can ProducePowerful ResultsSolution #1 Solution #2Turn off…• PC• Monitor• Printer VS.• Backup drive• Speakers• Desk lamp• Space heater or fanAnd now…• UNPLUG EVERYTHING © Beacon Consultants Network Inc. 2011 24
  25. 25. EDF Climate Corps And now… A ridiculously condensed review of what we know about motivating action (with a focus on examples) © Beacon Consultants Network Inc. 2011 25
  26. 26. EDF Climate CorpsSocial psychology research identifies a number oftactics that can motivate action• “Social norms”• Priming• Framing• Garnering commitments• Providing clear, straightforward “next steps” © Beacon Consultants Network Inc. 2011 26
  27. 27. EDF Climate CorpsSocial norms: aka “following the herd”• How it works – Information: if many people do/think something, it might be best for me too – Peer pressure: If you care about what other people think, you might go along with the crowd to avoid their wrath or curry their favor• Examples & suggestions – Talk about what the competition is doing – Cite professional associations and trade pubs © Beacon Consultants Network Inc. 2011 27
  28. 28. EDF Climate CorpsSocial Norms Example “U.S. Companies waste $2.8 billion annually to power idle PCs. Powering down idle PCs can provide a way for businesses to reduce overhead costs and their environmental impact.” © Beacon Consultants Network Inc. 2011 28
  29. 29. EDF Climate CorpsSocial Norms Example, Take 2 “Nearly two-thirds of US businesses have launched IT energy efficiency initiatives. [your competitor], for example, is saving $1 million annually by powering down idle PCs. For a info on solutions, many of which are free, visit www.energystar.gov/lowcarbonit.” © Beacon Consultants Network Inc. 2011 29
  30. 30. EDF Climate CorpsPriming• How it works – When you measure people’s intentions, you affect their conduct – Example: if you ask people the day before an election if they intend to vote, you can increase the probability of their voting by as much as 25%• Examples & suggestions – Surveying can influence actions, from meeting attendance to lighting retrofits © Beacon Consultants Network Inc. 2011 30
  31. 31. EDF Climate CorpsFraming: people react very differently toinformation presented in different ways• How it works – People don’t have the time or interest to be “mindful” about every decision they make• Examples & suggestions – “Loss aversion” principle • Focus on avoiding losses instead of gaining savings • Focus more on errors and how to avoid them instead of how to make good decisions – “Scarcity” principle • White paper only available to those who attend webinar – “Exclusivity” principle • Information I’m providing you is not freely available – High-priced products • Make the next-highest price appear attractively priced © Beacon Consultants Network Inc. 2011 31
  32. 32. EDF Climate CorpsFraming Example “U.S. Companies waste $2.8 billion annually to power idle PCs. Powering down idle PCs can provide a way for businesses to reduce overhead costs and their environmental impact.” © Beacon Consultants Network Inc. 2011 32
  33. 33. EDF Climate CorpsFraming Example, Take 2 “Nearly two-thirds of US businesses have launched IT energy efficiency initiatives. [your competitor], for example, is saving $1 million annually by powering down idle PCs. For a info on solutions, many of which are free, visit www.energystar.gov/lowcarbonit.” © Beacon Consultants Network Inc. 2011 33
  34. 34. EDF Climate CorpsGarnering commitments• How it works – People are motivated to behave consistently with the commitment they made – Voluntary, active, and public• Examples & suggestions – Pledges – Tactics that boost motivational effect • Show how new behavior is consistent with pre-existing values, beliefs, & practices • Avoid framing previous decisions as mistakes • Obtain written commitments © Beacon Consultants Network Inc. 2011 34
  35. 35. EDF Climate CorpsProviding clear, straightforward “next steps”• How it works – Start by asking for a small, easy step – When possible, offer some evidence of how the target is already made progress towards the goal• Examples & suggestions – A 20 minute call – Memory aids on furnaces © Beacon Consultants Network Inc. 2011 35
  36. 36. EDF Climate Corps © Beacon Consultants Network Inc. 2011 36
  37. 37. EDF Climate Corps Questions © Beacon Consultants Network Inc. 2011 37
  38. 38. EDF Climate Corps Thank you for listening! Mike Walker, President Beacon Consultants Network Inc. 46 Otis Hill Road * Hingham, MA 02043 mobile: 617-921-8445 email: mwalker@beaconconsultants.com www.beaconconsultants.com © Beacon Consultants Network Inc. 2011 38

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