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

1. EDF Climate Corps
Marketing Sustainability to Businesses
Strategies & Tactics for Influencing
Corporate Decision Makers
© Beacon Consultants Network Inc. 2011 1

2. EDF Climate Corps
Who 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
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3. EDF Climate Corps
You 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?
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4. EDF Climate Corps
Our clients are innovators in the government and
nonprofit 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
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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
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6. EDF Climate Corps
Today’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
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7. EDF Climate Corps
Seven common mistakes we make in “selling”
sustainability/energy efficiency to business
decision makers
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8. EDF Climate Corps
Hello!
• 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?
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9. EDF Climate Corps
Failure 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…
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10. EDF Climate Corps
Collaborate 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
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11. EDF Climate Corps
What social psychology teaches us about building
trust
1. Convey your expertise
2. Point out your similarities
3. Acknowledge weaknesses/shortcomings
4. Ask for a small favor
5. Leverage the power of reciprocity
6. Offer a reason for your request. “Because…”
7. Deliver on commitments you make
8. Give your initiative an easy, memorable, “familiar” name
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12. EDF Climate Corps
Assuming 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
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13. EDF Climate Corps
Assuming 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
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14. EDF Climate Corps
Hybrid cars vs. hybrid trucks
Over 1 million sold About 200 sold
Note: 2007 data
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15. EDF Climate Corps
Relying 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
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16. EDF Climate Corps
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17. EDF Climate Corps
Speaking 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
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18. EDF Climate Corps
Energy efficiency investments with strong returns
will 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)
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19. EDF Climate Corps
Insufficient 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
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20. EDF Climate Corps
Focus on manipulating attitudes instead of
facilitating 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…
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21. EDF Climate Corps
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22. EDF Climate Corps
Manipulating the context of decision
making by removing barriers to action
An example
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23. EDF Climate Corps
Single stream recycling
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24. EDF Climate Corps
Restructuring Context of Decisions Can Produce
Powerful Results
Solution #1 Solution #2
Turn off…
• PC
• Monitor
• Printer VS.
• Backup drive
• Speakers
• Desk lamp
• Space heater or fan
And now…
• UNPLUG EVERYTHING
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25. EDF Climate Corps
And now…
A ridiculously condensed review of
what we know about motivating action
(with a focus on examples)
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26. EDF Climate Corps
Social psychology research identifies a number of
tactics that can motivate action
• “Social norms”
• Priming
• Framing
• Garnering commitments
• Providing clear, straightforward “next steps”
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27. EDF Climate Corps
Social 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
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28. EDF Climate Corps
Social 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.”
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29. EDF Climate Corps
Social 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.”
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30. EDF Climate Corps
Priming
• 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
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31. EDF Climate Corps
Framing: people react very differently to
information 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
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32. EDF Climate Corps
Framing 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.”
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33. EDF Climate Corps
Framing 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.”
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34. EDF Climate Corps
Garnering 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
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35. EDF Climate Corps
Providing 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
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36. EDF Climate Corps
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37. EDF Climate Corps
Questions
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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
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