As a new generation of eco-conscious consumers unfolds, sustainability marketing has become a hot item over the past decade, with many businesses including it in their marketing strategy and finding it to be not only ethical and good for the environment, but also profitable.
Klimato has been helping hundreds of businesses to implement and communicate new, sustainable solutions and to get better results thanks to them over the years. So, if you’re looking for some good reasons to finally make that leap towards sustainability, or just for some clarity on the topic to keep into consideration for the future, we got you.
What on Earth is sustainability marketing?
For anyone who’s trying to sell a product or service successfully nowadays, understanding what sustainability marketing is and what it implies for a business is a crucial task.
Sustainability marketing should essentially answer the question: how is this business committed to the environment? The answer involves promoting brand values and practices that show environmental responsibility, being mindful about the way we design our products and services so they are better for the planet, and planning long-term strategies in order to reach sustainability goals.
Which is exactly where Klimato comes into play, helping businesses set these goals, give shape to a sustainability marketing strategy and ace the necessary climate reporting.
How can sustainability marketing benefit a business?
Becoming more sustainable is not only good for the planet, but also for the bottom line. At Klimato, we believe implementing sustainable solutions and communicating them correctly to customers can be a real game changer for any business, and here’s a few reasons why:
1. It has a positive impact on branding
As many businesses in the hospitality industry are starting to include sustainability in their marketing strategy, targeting new customers that are looking for a greener choice can make you stand out as a true pioneer of food sustainability - with great results on sales and brand image.
A recent Capgemini study shows numerous data points supporting this:
- Branding value: 79% of customers are currently changing their purchase preferences and brand choices based on products’ social or environmental impact. Even more, 53% of consumers stated that they had been fully switching to new, less famous brands because they were more sustainable.
- Emotional value: More than half of consumers state that shopping from sustainable brands gives them a feeling of emotional connection, with 64% saying that purchasing sustainable goods makes them feel happy.
- Benefits on customer relationship: Organizations are also enjoying the effects of sustainability marketing, with 77% stating that it has improved their relationship with customers, and 63% saying it has increased brand revenues too.
2. It makes businesses more profitable
Finding sustainable solutions to reduce your impact on the environment can lead to long term competitive advantage, and even help you reduce costs in the long run.
According to GFI Europe a more sustainable, plant-based meal offer is not only ethical, but often more appealing to customers: the market for plant-based products and meals is growing quickly, with sales of plant-based foods growing by 21% only between 2020 and 2022, reaching a record of a staggering €5.8 billion in market value.
In terms of expenses, swapping meat, fish or dairy with plant-based ingredients on the menu can reduce food costs significantly.
On top of that, as the demand for plant-based products grows, customers are willing to spend way more on meals that meet their dietary restrictions when eating out, especially when made aware of the difference it makes. Cost savings, revenue growth: it’s a win-win!
Klimato’s clients are a great example of how showing your environmental commitment to the world can really make you stand out from the rest of the crowd.
3. It attracts a more committed workforce
Including sustainability in your marketing strategy and brand identity, while always making sure to practice what you preach, has been found to influence your business’ appeal to potential employees as well.
Applicants, especially younger ones, tend to be more likely to apply and accept positions in companies that are environmentally sustainable. Even more, they seem to be willing to accept lower salaries compared to other offers if the company is committed to environmental or social goals.
Best practices from Klimato customers
Our clients’ brilliant results speak for themselves, as is the case for ForSea, a sustainable shipping company operating electric ferries between Sweden and Denmark:
Other than putting ForSea on the map as a market-leader in terms of environmental commitment, their sustainability efforts also paid off in customers’ engagement. This was shown by a study conducted by ForSea in partnership with Brandenburg University, which involved testing food sales for one week without labels, versus one week with Klimato carbon labels on menu items.
The results showed how customers positively responded to the carbon labels, which led to an increase in total sales - and in particular in those of low-impact meals - on the week in which they were displayed.
How can Klimato help?
Sometimes getting started is the hardest part, which is exactly where Klimato comes in to help businesses calculate, report and reduce the environmental impact of their products and services.
By using the Klimato software, professionals are able to make more informed and environmentally-committed choices, as well as communicating their sustainability efforts to clients and stakeholders.
Hundreds of clients around the globe have already joined our quest for a more sustainable way to serve delicious food, with brilliant results for their business and the planet.
Sources
Kemper & Ballantine, 2019
Peterson et al., 2021
Sinkula & Baker, 2005
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