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The Secret to Green Customer Engagement – Business Green Webinar 16 Jan 2012

Emissions often linked to your customers use of a product. Food is the exception.

Can’t have a green product unless you tackle emissions in use – Aerial Excel gel allows you to wash at low
temperatures.

        Make savings visible - to persuade customers provide information on energy savings – like the
        energy efficiency labels on white goods – has transformed white goods market. People only buy
        efficient appliances now.
        Live data - is even more persuasive such as smart meters.
        Make it desirable - electronic versions have smaller footprints but people buy as it’s desirable to
        have eg iPod etc.
        Restricting choice – washing tablets mean people can’t use too much. B&Q refused to stock patio
        heaters as they’re bad for the environment.
        Using automation to reduce waste – eg auto taps or auto lights or auto PC shut down.
        Make it easy - make green easy and un-green difficult.

Always put yourself in the place of the customer.

Sophie Flack at Hotel group Accor

Customers and employees asking for more commitments to sustainability.

Did a full lifecycle analysis of their impact – full details on their site http://www.accor.com/en/sustainable-
development.html

Included carbon, water etc to prioritise where to act first. Covered 11 key areas.

Did this because sustainability is a necessity.

Their impact is mostly water pollution due to food chain. Carbon is third highest factor. Consumers can
help a lot here.

They classified factors on European averages to work out where to act first to make the biggest difference.

They engage with customers and employers regularly to avoid them choosing unsustainable food options
as well as energy and water use.

Conducted research study in three countries to find out what customers are thinking and what they’re
willing to do. Generally no major differences between countries. People see government as the ones to
take responsibility.

39 - 51% consider sustainability as part of their decisions. Half said yes they’d be willing to pay a bit more
or choose a more sustainable option.



Carmel McQuaid – Climate Change Manager at M&S
Footprint of products way more than operations for M&S.

21m customers – getting them to change the way they wash clothes has a much bigger impact than
changing operations.

Research shows people think either:

    A)   It’s not my problem – often linked to poverty etc
    B)   What’s the point
    C)   If it’s easy
    D)   Crusaders – well educated and passionate. Very important but they’re a small segment for M&S
         who target mainstream consumers

Customers are saying they’re up for green if it’s easy and really does make a difference, and it doesn’t cost
more. Don’t want to compromise on quality for the sake of environment.

The downturn in economy has made consumers push more responsibility to retailers. Trying to embed
sustainability in to product lifecycle – quoted carbon neutral bra and chocolate. Environmentally friendly
without compromising on quality.

50% of products by 2015 will be linked to plan A.

Examples of initiatives to reduce emissions:

         Charging for carrier bags – encouraging consumers not to use them through charging money. Felt
         it would tip the balance to people using reusable bags without feeling odd for doing so. 80%
         reduction is use of bags.
         Wash at 30 degrees – a joined message across industries. Save money and clothes equally clean.
         People remember old days when you had to use high temperatures. They still keep high
         temperatures on clothes that need it so people believe the labels.
         Return your hangers – recycling hangers would save M&S money and they had to make customers
         feel happy to do this. The money they saved they donated a portion to Unicef to get them to join
         in rather than being seen to profit from sustainability initives.
         The one day wardrobe clear out – embodied carbon in clothes manufacture etc so items need to
         be work as long as possible. Reducing clothes going to landfill by donating clothes that would go to
         Oxfam. Incentivise consumer by offering ‘spend and save’ voucher for money off in store. Enabled
         business to push it in same way they would push any other marketing campaign. Meant it was
         more than CSR – instead it was a marketing initiative as drove footfall in store. Next step is to make
         it part of natural behaviour. Choose one day wardrobe clear outs when they move between
         seasonal ranges. Benefits go to Oxfam.

Need a business case internally to give it the marketing and support it needs.



Q&A

Historically green products were a bit rubbish and this memory hangs around. Good to have major
retailers acting as gatekeepers as reduces responsibility for customers enables change of perception as
green products are now equal quality.
Use carrot rather than stick. Doom and gloom doesn’t work.

Technology enables people to share resources in ways not possible before – B&Q a good example enabling
hiring of products you only use once or twice.

Human nature likes to accumulate stuff – probably goes back to days of feast and famine. Car clubs target
people who own one car and considering second so can still own but benefit from sharing too. Don’t
believe we’ll live without the product.

Energy labels on white goods a good example of where government have intervened which has been
beneficial as it forced industry to act and they’re the experts on washing machines etc.

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The secret to green customer engagement - business green webinar notes

  • 1. The Secret to Green Customer Engagement – Business Green Webinar 16 Jan 2012 Emissions often linked to your customers use of a product. Food is the exception. Can’t have a green product unless you tackle emissions in use – Aerial Excel gel allows you to wash at low temperatures. Make savings visible - to persuade customers provide information on energy savings – like the energy efficiency labels on white goods – has transformed white goods market. People only buy efficient appliances now. Live data - is even more persuasive such as smart meters. Make it desirable - electronic versions have smaller footprints but people buy as it’s desirable to have eg iPod etc. Restricting choice – washing tablets mean people can’t use too much. B&Q refused to stock patio heaters as they’re bad for the environment. Using automation to reduce waste – eg auto taps or auto lights or auto PC shut down. Make it easy - make green easy and un-green difficult. Always put yourself in the place of the customer. Sophie Flack at Hotel group Accor Customers and employees asking for more commitments to sustainability. Did a full lifecycle analysis of their impact – full details on their site http://www.accor.com/en/sustainable- development.html Included carbon, water etc to prioritise where to act first. Covered 11 key areas. Did this because sustainability is a necessity. Their impact is mostly water pollution due to food chain. Carbon is third highest factor. Consumers can help a lot here. They classified factors on European averages to work out where to act first to make the biggest difference. They engage with customers and employers regularly to avoid them choosing unsustainable food options as well as energy and water use. Conducted research study in three countries to find out what customers are thinking and what they’re willing to do. Generally no major differences between countries. People see government as the ones to take responsibility. 39 - 51% consider sustainability as part of their decisions. Half said yes they’d be willing to pay a bit more or choose a more sustainable option. Carmel McQuaid – Climate Change Manager at M&S
  • 2. Footprint of products way more than operations for M&S. 21m customers – getting them to change the way they wash clothes has a much bigger impact than changing operations. Research shows people think either: A) It’s not my problem – often linked to poverty etc B) What’s the point C) If it’s easy D) Crusaders – well educated and passionate. Very important but they’re a small segment for M&S who target mainstream consumers Customers are saying they’re up for green if it’s easy and really does make a difference, and it doesn’t cost more. Don’t want to compromise on quality for the sake of environment. The downturn in economy has made consumers push more responsibility to retailers. Trying to embed sustainability in to product lifecycle – quoted carbon neutral bra and chocolate. Environmentally friendly without compromising on quality. 50% of products by 2015 will be linked to plan A. Examples of initiatives to reduce emissions: Charging for carrier bags – encouraging consumers not to use them through charging money. Felt it would tip the balance to people using reusable bags without feeling odd for doing so. 80% reduction is use of bags. Wash at 30 degrees – a joined message across industries. Save money and clothes equally clean. People remember old days when you had to use high temperatures. They still keep high temperatures on clothes that need it so people believe the labels. Return your hangers – recycling hangers would save M&S money and they had to make customers feel happy to do this. The money they saved they donated a portion to Unicef to get them to join in rather than being seen to profit from sustainability initives. The one day wardrobe clear out – embodied carbon in clothes manufacture etc so items need to be work as long as possible. Reducing clothes going to landfill by donating clothes that would go to Oxfam. Incentivise consumer by offering ‘spend and save’ voucher for money off in store. Enabled business to push it in same way they would push any other marketing campaign. Meant it was more than CSR – instead it was a marketing initiative as drove footfall in store. Next step is to make it part of natural behaviour. Choose one day wardrobe clear outs when they move between seasonal ranges. Benefits go to Oxfam. Need a business case internally to give it the marketing and support it needs. Q&A Historically green products were a bit rubbish and this memory hangs around. Good to have major retailers acting as gatekeepers as reduces responsibility for customers enables change of perception as green products are now equal quality.
  • 3. Use carrot rather than stick. Doom and gloom doesn’t work. Technology enables people to share resources in ways not possible before – B&Q a good example enabling hiring of products you only use once or twice. Human nature likes to accumulate stuff – probably goes back to days of feast and famine. Car clubs target people who own one car and considering second so can still own but benefit from sharing too. Don’t believe we’ll live without the product. Energy labels on white goods a good example of where government have intervened which has been beneficial as it forced industry to act and they’re the experts on washing machines etc.