Market insights from top researchers the latest intelligence on customer attitudes behavior - mark rossolo
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Market insights from top researchers the latest intelligence on customer attitudes behavior - mark rossolo
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Market insights from top researchers the latest intelligence on customer attitudes behavior - mark rossolo
- 1. Simon Mainwaring We First Branding @simonmainwaring Raphael Bemporad BBMG @rbemporad Whitney Dailey Cone Communications @WhitneyDailey Andy Last Salt @SaltyLast Maria Redin GOODcorps @luckystar Rosie Warin Global Tolerance @RosieWarin Nick Liddel Dragon Rouge @baronsauvage Mark Rossolo UL Environment @ulenvironment #SB15sd Market Insights from Top Researchers: The Latest Intelligence on Customer Attitudes Behavior
- 2. UL and the UL logo are trademarks of UL LLC © 2014 The Good, The Bad, and The Ugly Effectively Messaging Sustainability in the Marketplace
- 4. 4 NATURAL? Video excerpted from “The Natural Effect”, Youtube, via OnlyOrganic
- 5. 5 WHERE ARE WE NOW?
- 6. Categories 6 UNDER THE LENS: CLAIMING GREEN 1,000+ RESPONDENTS 95% CONFIDENCE LEVEL +/- 3% MARGIN OF ERROR HOME IMPROVEMENT ELECTRONICS PERSONAL CARE CLEANING
- 7. 7 THE GOOD: CONSUMERS ARE LOOKING FOR GREENER PRODUCTS 7 out of 10 respondents report consciously searching for greener products, and 8 in 10 report having purchased sustainable products in at least one product category.
- 8. 8 THE BAD The description of the claim or certification is too vague. I don’t understand what that claim or certification means
- 9. 9 THE UGLY
- 10. WHAT WE LEARNED 10 54% concerned about CHEMICALS in products 43% concerned about IAQ Millennials/GenX
- 13. 13 HOW BRANDS CAN DO IT RIGHT AUTHENTIC
- 14. 14 ANATOMY OF A MARK PRODUCT CERTIFIED FOR REDUCED ENVIRONMENTAL IMPACT. ADDITIONAL DETAILS: XXXX.COM/XXXXX STANDARD # XXXXX GREENLOGO Symbol Statement explaining certification More resources Standard number
- 16. 16 QUESTIONS?
- 17. THANK YOU. Want to learn more? Join us at 6:15 pm tonight at booth #115 in the Activation Hub! Get the full report here: http://environment.ul.com/claiminggreen/ Mark Rossolo: mark.rossolo@UL.com
Editor's Notes
- SPEAKER: GreenBiz Kick-off/Intro
- Unfortunately, we can’t claim to have wiped out greenwashing totally -- > although since we published our first “Sins of Greenwashing” report in 2007, the state of affairs has improved dramatically. Consumer attitudes have changed greatly since the original 2007 “Sins of Greenwashing” report by TerraChoice (now part of UL Environment) was published. At that time, we found consumers wanting do do the right thing, but growing suspicious of company’s misleading green claims. The good news is that in the past 8 years, the general consumer has become much more savvy and educated, and also more open in his demand for clarity and information. Additionally, the changes wrought by the 2012 updates to the FTC Green Guides have ensured that the more egregious greenwashing behaviors have stopped. For example, just in the past few years, the FTC and similar bodies worldwide have investigated and sanctioned brands for making misleading claims about biodegradability, the “green-ness” of biomass energy generation, the eco-friendliness of a soft drink bottle, and the potential product emissions of a paint product.
- This video is excerpted from the longer version, uploaded to Youtube by the folks at OnlyOrganic.
- Last year, UL wanted to know what the current state of customer awareness and sentiment towards ‘green’ labels was. We commissioned a survey via Shelton Group to talk to over 1,000 consumers (along with a set of B2B purchasers) to dig deep and better understand understand perceptions of various green claims - both good and bad - and their impact on purchase propensity and brand image. We took great pains to find actual claims in the marketplace and present them in such a way that would produce results that were as unbiased as possible. Because of that commitment to objectivity, we launched this study, quite frankly, with a little fear and trepidation, knowing that the results might or might not favor certifications in general, or UL’s business strategies.
- With that said, here’s what we did: Shelton Group conducted an online Online quantitative consumer study of 1,017 U.S. and Canadian respondents with quotas for age, ethnicity and region to ensure the sample was representative of the overall population. The study yielded a 95% confidence level with a +/-3% margin of error. To be included in the sample, consumers had to have shopped or be planning to shop in at least one of these categories in the past 12 months, or next 12 months. We created generic, fake brands in four major product categories (Home Improvement, Personal Care, Cleaning Products, Electronics) to properly set the context and showed the enlargement of claims consumers might see on the products, with the two claims choices, along with an “Neither” option. Over 40,000 head-to-head comparisons later, what did we learn?
- The findings showed us that while there is much good news, there remains a great deal of work to be done by brands (and by certifiers) to move the green marketplace to the next level. The marketplace is hungrier than ever for greener, more sustainable products, with lower impacts to health and the environment, and is calling for greater transparency around the makeup and manufacture of the products available. Over 70% of Americans say they’re searching for greener products, and 67% of business decision makers state that sustainability is a key factor when they make operating, construction and purchasing decisions.(source: Shelton Group EcoPulse 2014). Additionally when we asked respondents directly whether they’d pay up to 10% more for a product with third-party certifications, 58% said yes. While this doesn’t always play out at the register, you’re likely increasing the perceived value of your offering and at the same price point. consumer loyalty
- There is still a knowledge-gap! Several legitimate, respected third-party certifications were frequently categorized as vague and/or misleading primarily because consumers couldn’t figure out what those marks were certifying. It’s important to note, that while these certifications are on a few consumer-facing products, they’re more likely to be found on products in the B2B space. There’s less brand recognition among consumers. And since they don’t call out what they certify, consumers were uncertain. They were better-known to B2B decision-makers who were less likely to categorize them as confusing or vague. The key point here is that you need to know your audience! Customers were confused by: Technical language –scientific lingo. Overly generic language Problematic claims “air purifying,” “eco-friendly,” and “cruelty free” Certification logos only Lack of qualifying language to provide context or tell the consumer what the certification meant created confusion.
- The ugly - There are so many claims out there, and simply making your green product claim in a way that’s confusing or misleading can damage your brand. And while consumers are still sometimes choosing unsubstantiated or plainly misleading claims, they are becoming much more educated. Once a consumer mistrusts your brand, it’s very challenging to woo her back. (“Low VOCs”, “All Natural”, “Eco-friendly”) (I suggest we leave as “her” … women control a majority of the purchasing dollars and make up a large part of the ‘marketing’ population)!
- Who likes green claims and why? What the top drivers are for the demand for green products (health and safety, waste reduction, concern for environment). 54% said they were concerned about chemicals found in products that come in contact with their skin (ie lotions, carpets, and electronics); 43% said they were concerned about IAQ. Gen Xers or Millennials, educated consumers with a relatively high earning potential are most likely to prefer not only green claims, but certified/validated green claims. Respondents who chose certified claims at least 75% of the time were more likely to: Be Millennials or GenXers Be 18 to 44 years of age Have at least some college education Have HHI of $75k+
- Which product categories connect to which market drivers? * What the top drivers are for the demand for green products (health and safety, waste reduction, concern for environment), Personal Care: consumers value animal rights, and information about chemical contents (certs that were meaningful; Leaping Bunny/CCIC; USEPA DfE Safer Chemical Ingredients; USDA Bio-based content) Home Improvement: Health (IAQ); recycled content; renewable/natural resource Electronics: Energy Savings; health-related claims (around emissions, toxins such as “free-of” claims), recycling (although there are some misconceptions here) Cleaning Products: animal rights (CCIC/Leaping Bunny); health & safety; recyclability
- Which claims were seen as most confusing and/or misleading? Those with vague/meaningless language Low VOCs All natural Made with recycled content OR those with highly technical, very industry-specific language, meaningless to the average consumer “maximum VOC: 50g/L (0.42 lbs/gal)” Product is compliant with RoHS Directive 2011/65/EU Container made with 80% post-consumer HDPE
- Use a mark/label that complies with FTC guidelines - more on that in a minute next slide has it If your brand has a sustainable differentiator – talk about it! Show it! Use it to set your product apart on the shelf and in the mind of the purchaser Clearly and authentically communicate your green claims – ensure they connect to your brand values and to your customers’ values. Avoid being too vague, but also be clear and not too technical Ideally work with a third party to substantiate your claims –protect your brand and put the power of a second, trusted source behind your statements – 56 % of consumers said this made a product and brand more reputable; If you are using an industry association mark, or a self-created label, work with an experienced partner resource to vet your program and ensure that it’s credible and compliant.
- Use a mark/label that complies with FTC guidelines ANATOMY OF A MARK (diagram of all the parts of a compliant certification mark) Optional: UL Environment’s Position on Qualifying Language: In order to protect our customers, our qualifying language is a direct result of the FTC Green Guides guidelines.
- SPEAKER Mark Consumers (and B2B Decision makers) prioritize health-related claims. Claims that addressed health concerns (e.g., toxic content and indoor air quality) were consistently rated more important for purchase influence, perceived value, and positive brand impact even in less “intuitive” categories like electronics. Recycled content and recyclability claims also have strong impact, but consumers don’t realize they need more than just the recycling symbol. More education is in order here. Organic, biobased and “natural” product content claims were also extremely impactful for personal care and cleaning products, though there seems to be an opportunity for a more holistic approach that ties content validation to free-of/health benefits.
- 10 minute Q&A period
- If you have more questions, or would like to dig into some of the details, please join us at our Activation Hub session this evening at 6:15 in booth 115. You can download the full report at http://environment.ul.com/claiminggreen.