TELEPHONE 01206 625222As we move towards Net-Zero, businesses are increasingly inclined to consider sustainability as a crucial aspect of decision making in purchasing, procurement and strategy. However, many organisations find that finance and time limitations have impacted upon their ability to prioritise carbon reduction and sustainability, and recent years have created additional business survival challenges. Businesses that thrive through difficult economic eras are those that stay ahead of the curve or are agile according to the needs of their customers.
Today we also face challenges relating to the environment and climate, and this presents additional pressures to all businesses. In terms of sustainability and carbon reduction, companies that prioritise sustainability can enhance their brand reputation, foster customer loyalty, and enhance long-term success. To select the most appropriate sustainability initiatives, businesses must deeply understand their customers' attitudes and expectations, and here market research will provide key insights enabling strategies to be highly effective and targeted.
Market research creates an investigation window through which businesses can explore their customer’s needs, aligning their initiatives with customer expectations. By revealing what customers appreciate most about sustainable initiatives, companies can tailor their strategies to meet preferences, ensuring their efforts are relevant and truly impactful.
Investing in sustainability without customer insights can be problematic, and could result in unintentional alienation of your target audience. Good market research can mitigate this risk by providing data-driven insights into customer attitudes, reducing the chances of misaligned messaging and developmental strategies.
When acted upon, insights from customer research can be used to create a competitive edge. By identifying unique sustainability opportunities, that sensitively resonate with customers, businesses can differentiate themselves from their competitors in the market.
Customers will have varying preferences when it comes to selecting suppliers for products and services, and these may change over time depending upon other influential factors. Market research can rank the importance of sustainability to customers against other factors like price, quality, or convenience at any one given time. By scoring and tracking customer priorities, companies can balance sustainability initiatives with other strategic goals effectively, whilst making sure that the needs of their customers are still being met.
We frequently consult with clients who are concerned that sustainability efforts will increase product or service costs, and there is a common assumption that eco-friendly products and services come with a higher price tag than their non-eco counterparts. When comparing perception with sustainability objectives, market research often reveals that people are willing to pay more for eco-friendly products, and net-zero services, if they are also receiving a superior service and high-quality goods. Here value for money is measured by quality and positive experience and may override any negative connotations attached to sustainability.
By asking direct questions about any given topic, including sustainability, market research should direct marketing and communications strategies. Effective communication is crucial in conveying the value of sustainability initiatives, and market research can provide insights into how best to communicate these efforts to customers, emphasising the benefits and justifying any additional costs. For example, if your sustainability efforts will also result in a higher quality product, an emphasis on the improved value for money could go a long way in mitigating your customers’ concerns.
Various aspects of sustainability resonate with different audiences and will need to be further unpacked during research. Specific sustainability drivers, such as off-setting carbon, reducing carbon footprint, using recycled materials, or supporting ethical labour practices, will be important to your target audiences to varying degrees. Highlighting nuances in your customers sustainability priorities will allow you to continue to meet the needs of each customer by type or segment, reducing the risk of alienating audiences who adhere to different values.
Whilst gathering data about customer perception or preferences, market research can also measure the return on investment (ROI) of sustainability initiatives. By tracking metrics such as customer acquisition, retention, campaign and service cost, and brand loyalty over time, businesses can assess the effectiveness of their sustainability efforts, and make data-driven decisions to optimise or flex their strategies. ROI is easy to measure, but often over-looked by market researchers. However, in changing times it is crucial to record patterns of ROI to assign budgets effectively whilst meeting the needs of customers.
Including employee and stakeholder perspectives in your sustainability research will complement customer and market research and provide a comprehensive understanding of how sustainability initiatives are viewed internally. Establishing how your employees and stakeholders perceive the importance of sustainability, and how they expect it to impact their work and the company as a whole, can ensure a cohesive company culture with additional buy-in and greater understanding of company goals.
This holistic 360° approach can enhance the effectiveness of sustainability strategies and ensure they are embraced throughout the organisation leading to improved customer communications, long-term relationships, and brand-loyalty.
Conducting market research to guide sustainability initiatives offers numerous benefits, from aligning strategies and company culture with customer expectations, to measuring the ROI of sustainability initiatives. It is a topic that will need constant supervision as businesses refine their offer to meet legislative criteria whilst respecting customer needs.
Ready to elevate your sustainability strategy with data-driven insights? Contact us today at [email protected] or call us on 01206 625222 to discuss how our market research services can help you achieve your sustainability goals and gain a competitive edge.
Dr Gemma Mackman
Research Director
Dr Gemma Mackman is co-founder and Research Director of the Mackman Group. Her professional career has given her a broad knowledge of business practices, an appreciation of good customer service and experience of a diverse range of sectors. Gemma is also a member of the Market Research Society and has completed research training provided by the Economic and Social Research Council.
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