The CX Power Of Earth-Friendly Companies

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• In 2022 customers care more about sustainability than ever before.
• They are willing to spend more for eco-friendly products and brands that are marketed as sustainable.
• Sustainable companies see stronger growth and more loyal customers.

How customers think about brands and make purchase decisions has changed dramatically in recent years, but one thing is certain: sustainability matters more than ever.

Customers increasingly want to support eco-friendly companies and are even willing to pay more to make green purchases. Making sustainability an essential aspect of your customer experience is critical for helping the environment and growing your brand.?

Customers Increasingly Want Earth-Friendly Companies

Environmental issues have long been important to a subset of customers, but in recent years, sustainability has grown beyond a niche demand to become a mainstream factor in how most customers choose a brand.?

Consider these stats:

• Nearly 70% of consumers1 think it’s important for brands to be sustainable.?
• Online searches for sustainable goods have increased by 71%2 over the past five years.
• 66% of consumers3 (75% of millennials) consider sustainability when making a purchase.?
• 69% of customers? are willing to pay a premium for eco-friendly items—on average, up to 35% more?.?

But to spend that money, they have to know which products are sustainable, which can be challenging. Most customers don’t know how to identify eco-friendly products, even though 78% of people? are more likely to buy a product clearly labeled as eco-friendly.?

And this is just the beginning: 72% of consumers? are buying more eco-friendly products than they did five years ago, and 81% expect to buy even more in the next five years.?

This increased push for sustainability isn't a fleeting trend but a long-term influence on customers.?

Eco-Friendly Changes Improve CX

When a company makes sustainable choices, it becomes a crucial part of its brand and customer experience. Showcasing your values comes through in more loyal customers.

Patagonia makes more than 70% of its clothing from recycled materials and gives customers incentives? to return used items that can be repaired and resold. The goal to keep items out of landfills has led to incredible revenue growth for the company. Patagonia also has some of the most loyal customers of outdoor retailers.?

Target has also made considerable strides in its sustainability efforts, including installing solar panels on the roofs of hundreds of stores and reducing store and supply chain waste by more than 75% through recycling programs. Target also recently opened its first net-zero store, powered entirely by solar. While implementing these changes (and due in part to many other factors), Target has seen incredible growth.

Major companies, including L’Oréal, McDonald's, Amazon and Starbucks, have made packaging changes to significantly decrease their carbon footprints and have all seen substantial growth.?

Research found that products marketed as sustainable grew 5.6x faster? than those that were not. Sustainable companies are more agile to better withstand industry shakeups1?, which leads to stronger growth and more satisfied customers.?

Sustainability Impacts CX

What does this all mean for brands? Customers want eco-friendly products; there's no way around that. Sustainability has to become a key part of the customer experience strategy. But more than that, brands need to communicate their sustainability efforts so that customers can clearly see the difference and know they are making eco-friendly decisions.

Sustainability and customer experience are linked. Brands can't create a lasting CX strategy without focusing on the environment. Becoming an earth-friendly company increases your CX power.

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It’s never been more critical to understand trends and what’s coming down the pipeline. Providing an updated and compelling customer experience is the difference between securing loyal customers and becoming obsolete.

In this new e-book, I outline five trends shaping CX in 2022. You’ll learn why these trends are happening, why they matter and what brands can do to prepare.?Click here to get FREE ACCESS to this valuable resource.