Green Business Trend: Giving Customers a Bigger Role

Customers are no longer just passive witnesses to businesses’ green efforts – They’re joining in.  Many companies are moving away from conventional cause marketing – just donating dollars to charity — and creating their own environmentally focused campaigns that encourage customers to be part of the solution. These initiatives can engender more goodwill from consumers because they’re offering a genuine avenue to make a difference.

eco grocery bags

Much of this change is being fueled by the growing influence of social media, which allows a company to make its green efforts more transparent and creates a two-way conversation. Telling people you’re environmentally friendly isn’t good enough anymore; you have to have to discuss it with them and engage.

Retailer Old Navy, for instance, collected used flip-flops this past spring in a partnership with Terracycle so they could be recycled into playground equipment donated to schools and community groups. Best Buy recently dropped its $10 electronics recycling fee, Reuters reports, to encourage customers to recycle more old computers and monitors through its stores.

For many small businesses, turning customers into participants may be as simple as asking them to schlep reusable shopping bags to the store or to sign up for electronic delivery of newsletters or billing statements. But the most effective campaigns often take it a step further and get a little more creative: They come up with a unique initiative that inspires customers to want to do more to help the planet and feel really good about it.

One particularly interesting campaign I found: Swing Salon, a New York City hair salon, donated customers’ hair clippings to Matter of Trust, a San Francisco nonprofit that used the hair scraps to create mats that soaked up oil from the Gulf oil spill in order to protect wildlife.

These kinds of initiatives — even if they require little or no extra effort on the customers’ part — can be particularly effective and create more loyal customers in an age when consumers are seeking more authenticity and socially responsible behavior from the businesses they patronize.

In his book We First: How Brands and Consumers Use Social Media to Build a Better World, branding consultant Simon Mainwaring cites a 2009 Edelman survey finding that 83 percent of consumers would change their consumption habits if it could help make the world a better place to live – and 61 percent  have chosen to buy a brand that supports a good cause even if it wasn’t the cheapest one. Sixty-six percent of respondents believed corporations need to do more than give money to a good cause – they also need to incorporate causes into their business.

Mainwaring writes:

“Many consumers, especially those of the Millennial generation, are no longer willing to tolerate corporations and brands that neglect purpose or prevaricate about their efforts to be responsible citizens.”


Eco Grocery Bag Photo via Shutterstock

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Green Business Trend: Giving Customers a Bigger Role

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Green Business Trend: Aiming for Carbon Zero

Being an eco-conscious business once was impressive enough. But now more businesses are taking their green efforts to a whole new level: trying to completely erase their footprint.

carbon footprint

It’s often called “carbon zero” or “carbon neutral.” The idea is that a business lowers its carbon footprint (along with other noxious gas emissions) created by its operations and then takes extra steps to counteract what footprint remains – typically through buying carbon credits to offset the pollution they cause. Offset dollars can be used to plant trees or fund other projects intended to lower pollutants in the atmosphere.

Several large companies have announced initiatives in recent years to become carbon neutral within the next several years, and Federal Times reports that the U.S. government plans to have all federal buildings “net zero” by 2030. (It’s doing so by relying on renewable energy sources, such as solar and wind, to power buildings and harvesting as much excess heat as possible so it doesn’t need to use fossil fuels.) But now the concept is trickling down to smaller companies seeking ways to impress their customers with their green initiatives.

Some companies are even rolling out carbon neutral products as a way to entice and educate consumers. (Check out U.K. clothing retailer Marks and Spencer’s “carbon neutral” bra.)

The trend toward achieving carbon neutrality is spawning an ever-growing list of nonprofits and consultants devoted to helping small and big businesses attain carbon neutrality and get certified for doing so. SFGate reports that CO2 Neutral Seal, one such organization, recently unveiled a project that helps websites measure their carbon footprint using traffic data from Google Analytics and then sells them credits to offset it.

Some companies, such as yoga mat maker Gaiam, are getting customers involved by letting them  buy carbon credits to offset their shipping.

While it’s admirable to want to minimize your business’s footprint, it’s not necessarily wise to jump quickly onto the “carbon zero” bandwagon. Green business initiatives should be well-aligned with the rest of your company’s goals and initiatives. It’s easy to flock to carbon credits as a way to offset your pollution rather than finding more authentic, impactful ways to make your company environmentally friendly. Moreover, you must be careful about buying offsets and where you buy them from: Some studies have found that only a fraction of some programs’ offset dollars actually go toward emission-reducing projects.

The best way to go “carbon neutral” is first to examine your organization on all levels and find cost-effective ways to be  more energy efficient and deploy practices, from better shipping and travel management, that generate long-term environmental benefits. Once you’ve explored everything you can realistically do, then consider whether it makes sense to  spend money to offset the rest.

 

From Small Business Trends

Green Business Trend: Aiming for Carbon Zero

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Green Business Trend: “Eco-Packaging” Takes Off

As you wrap, and unwrap, gifts this holiday season, you may notice they’re a little lighter than usual. It might be because more companies are easing up on the packaging – or at least using eco-friendlier alternatives.

eco packaging

As the green movement grows up, there’s a new movement among businesses to find new, more planet-friendly ways to package their products. Some companies reduced their packaging footprint years ago by eliminating unnecessary plastic and cellophane or replacing non-biodegradable Styrofoam with paper and cardboard. But packaging technology has gotten more sophisticated, and there are higher-quality alternatives these days, from compostable plastic to recycled wood to biodegradable packing peanuts.

Earlier this year, several big companies– including Coca-Cola, Kellogg and Dow Chemical – banded together to start the American Institute for Packaging and the Environment (Ameripen), an organization that will lobby for evaluating the impact of packaging on the environment and reducing its toll. And some product makers have pledged to stop using pollution-causing PVC plastic in their boxes.

Some of this shift might be due to pressure from major chains: Walmart and Target have put more pressure on their suppliers to use eco-friendlier packaging through their sustainability scoring.

For small businesses, though, determining what kind of packaging alternatives will work isn’t always easy, While there are lots of new, “eco-friendlier” materials to choose from, small businesses need to be careful and do some research.

Here are a few of the considerations:

  • True environmental benefit. Even though a company may claim its product is offering an eco-friendly alternative, such as “biodegradable” or “recyclable,” that doesn’t necessarily mean its environmental footprint is much less than anything else. You need to know how much energy is used to produce it and transport it.
  • Cost. Many eco-friendlier materials are more expensive than ones that are more environmentally harmful. You either have to suck up the extra cost or be able to pass it along to your customers – which isn’t always realistic. Be sure to understand the cost impact before switching to new packaging.
  • Feasibility. Eco-packaging may sound good, but will it actually be a good replacement for what you already use? It’s possible it won’t be as durable, so it’s important to get samples and test any prospective packaging before adopting it.

Given all these potential pitfalls, what do you do? Talk with other businesses in your industry or other businesses that have explored green packaging options. There are some nonprofits that help businesses adopt eco-friendlier packaging and can provide helpful research. Check out the Sustainable Packaging Coalition, for one.


Eco Packaging Photo via Shutterstock

From Small Business Trends

Green Business Trend: “Eco-Packaging” Takes Off

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Green Business Trend: Turning to Nonprofits for Help

Becoming an environmentally responsible business isn’t an overnight process. It can take weeks of research and data analysis to make wise decisions that help both the environment and the bottom line – time many business owners don’t have to spare.

environmental sustainability

To cope with this challenge, more nonprofit programs are springing up to help businesses achieve their green goals.

Sure, there have been environmental groups for years that have assisted businesses. But more are now focusing on specific green business initiatives, whether it’s disposing of old equipment, finding environmentally and socially responsible suppliers or reducing water use. Many established environmental nonprofits are also extending their services for businesses, big and small, and offering more rating services and actionable guidance. (As this interesting Bloomberg article points, some environmental nonprofits don’t look that different from for-profit sustainability consultants.)

Costs differ across organizations: Some charge businesses fees for services, while others are funded through foundations or donations.

While there are many organizations helping businesses with sustainability these days – including many local groups — here’s just a small sampling of what’s out there:

Good360 – Some big corporations, including Hilton Hotels and Home Depot, have partnered up with this organization, which collects new and gently-used goods from businesses and donates them to charities in need.

The idea: Instead of throwing products away or trying to find a worthy cause to donate them to, Good360 helps find it a good home. It works with companies of all sizes. Good360 provides tax documentation to the donor company.

Rainforest Alliance – This nonprofit got its start in the early 1990s working with Chiquita to improve its banana-growing practices. But in recent years, Rainforest Alliance has introduced more programs that help a variety of businesses certify their products and source sustainable materials.

Sustainability ConsortiumMembership fees are high, starting at $10,000 for businesses with 500 or fewer employees. But this high-profile group, spawned from the development of Walmart’s Sustainability Initiative, is developing standards for a variety of product categories, including paper towels, TVs and yogurt. It provides members with in-depth research on sustainability trends and networking opportunities with some of the biggest brands working on sustainability, from Coca-Cola to 3M.

Business Alliance for Local Living Economies (BALLE) – This national nonprofit has expanded quite substantially in recent years adding “Sustainable Business Network” chapters in cities and regions across the country. These local chapters help their business members pursue a variety of green initiatives, whether it’s renewable energy production or sustainable agriculture.


Image from alphaspirit/Shutterstock

From Small Business Trends

Green Business Trend: Turning to Nonprofits for Help

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Green Business Trend: Moving Beyond Green Marketing

Throughout December, I’ll be looking at green business trends that can help business owners lower their environmental footprint and engage their customers in their sustainability initiatives in the New Year.

donate green

It used to be a business could stand out simply by being environmentally sustainable. But that’s changing: Now companies of all sorts and all sizes are playing up their efforts to save energy, reduce carbon dioxide, use more sustainable materials and streamline their packaging. Being green is not such a unique thing anymore.

Not that green marketing ever helped out that much anyway. Joel Makower, founder and editor of GreenBiz.com, said it well in a recent article:

“For more than 20 years, consumers haven’t been willing to vote with their dollars. The reasons are many and complex, but the result is clear cut: With the exception of some energy-saving devices, no green product has captured more than a tiny slice of the marketplace, at least in the U.S.”

If you look at environmentally friendly products that succeed, Makower says, it’s not because they’re eco-friendly.  Consumers choose them for more self-serving reasons. They buy organic foods for their health benefits, Toyota Priuses because they save gas dollars, and energy-saving products because they lower utility bills.

Green marketing on its own doesn’t drive sales. Makower adds:

“Too often, green marketers have attempted to prod consumers to act by relying on guilt or by encouraging people to ‘save the Earth,’ neither of which has turned out to be particularly aspirational or appealing.”

People are actually  less interested in buying environmentally friendly products in the aftermath of the Great Recession, according to a recent survey from Grail Research. The survey found the diehard “dark green” consumer segment grew slightly from 8 percent to 9 percent from 2009 to 2011, but the overall percent of consumers buying green products declined from 84 percent to 69 percent during that time. The report said:

“As opposed to previous years, growth will come from green products being comparable on value and having superior product performance.”

So, what can be gleaned from all this?

The ubiquity of green products and services is making it more challenging than ever for sustainable businesses to communicate their greenness with consumers in a way that actually produces sales. And it’s becoming far more difficult for consumers to wade through the choices. One walk down a food aisle turns up a crop of phrases like “all natural,” “sustainable” and “organic.” How do we decipher the legitimate from the greenwashing?

The answer may lie in supplying consumers with details – and authenticity. Companies can support their green claims by providing customers with more numbers and information about how they’ve lowered their environmental footprints. Many do so by writing sustainability plans and devoting sections of their websites to them. They show how much money they’re spending on sustainability – and how much money and natural resources they’re saving – by being more eco-friendly. And they can engage their customers by compelling them to get involved, whether by donating money to environmental campaigns or taking action.

It’s also important to realize that consumers won’t buy your products just because they’re green. They will buy them for other, less-idealistic reasons. So it’s essential to know what those reasons are and make that the central thrust of your marketing. Environmental good deeds are often just the icing on top.


Image from Arkady/Shutterstock

From Small Business Trends

Green Business Trend: Moving Beyond Green Marketing

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The Trend Towards Lean Startups


The Trend Towards Lean Startups

This content from: Duct Tape Marketing

Marketing podcast with Eric Ries (Click to play or right click and “Save As” to download – Subscribe now via iTunes or subscribe via other RSS device (Google Listen)

The Lean StartupThere is a bit of a movement afoot in the startup world called the Lean Startup. While the word lean might conjure up notions of cheap, it’s really about taking a scientific approach to innovating, measuring and responding in ways that stop companies from wasting time and money.

The basis of the concept, as applied to startups, comes from the Lean manufacturing world popularized by Toyota. Lean manufacturing is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination.

My guest for this week’s episode of the Duct Tape Marketing Podcast is Eric Ries, entrepreneur in residence at Harvard and author of The Lean Startup.

In The Lean Startup, Ries attempts to show entrepreneurs how to bring the principles of Lean manufacturing and agile development to innovation.

According to Ries, startups that apply the lean method will achieve dramatically lower development costs, faster time to market, and higher quality products in the years to come.

While the application in the real world can get very complex the concept is rather simple – using a cycle of build, measure and learn, startups can determine what works and what doesn’t and make the necessary changes and fixes or determine to end the ideas altogether.

One of my favorite case studies in the book involves a tool I use everyday – Dropbox. Drew Houston, CEO and Founder of Dropbox applied Eric Ries’s Lean Startup concepts and started iterating their product much faster in order to test what customers really wanted, early and often. Using Lean Startup principles, in just 15 months, Dropbox went form 100,000 registered users to over 4,000,000.

Anyone can participate in the movement and learn about the principles by joining or starting a Lean Startup Meetup Group – find one here.

You can listen to the show by subscribing the feed in iTunes or a variety of other free services such as Google Listen (Use this RSS feed) or you can buy the Duct Tape Marketing iPhone app. (iTunes link – Cost is $2.99) or

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