We live in a world where consumers expect brands to do more than just sell their products. Whether you are a fashion retailer or an IT services provider, consumers today expect you to make conscious choices in every aspect of your business journey, and that includes rewarding your customers for making sustainable choices. What if we told you that rewarding your consumers for their eco-conscious behaviour isn’t just good for the planet, but also for your business? Sounds intriguing right?
Sustainable loyalty programs are game changers in today’s day and age where customers earn reward points for simple eco-conscious behaviour such as carrying a reusable bag, recycling old products, etc. In this blog, we will explore the world of eco-friendly rewards, and understand how brands can integrate sustainable loyalty programs into their green marketing strategies.
What are Sustainable Loyalty Programs?
A sustainable loyalty program or green loyalty is a program that rewards consumers for making eco-friendly choices in their everyday purchases such as choosing sustainable brands or carrying their own shopping bags, etc. These are essentially green marketing strategies that help businesses resonate with the eco-conscious values of their consumers and encourage their customers to make sustainable choices through redeemable rewards.
We live in a century where sustainability is no longer just a buzzword, instead, it is a lifestyle choice that represents the eco-conscious values of both consumers and businesses alike. Through green loyalty programs, businesses get to increase customer engagement by rewarding their environmentally conscious choices and increasing loyalty for their brand. It not only encourages consumers to make every purchase more meaningful but also leaves a positive impact on the environment, helping them contribute to environmental causes and attain a sense of fulfilment and purpose.
Importance of Sustainable Loyalty Programs
With the rise in conscious consumerism, customers are giving more weightage to the ethical and environmental impact of products. This not only pushes businesses to make conscious choices in their business processes but also encourages them to promote eco-friendly choices among their user base through exciting and sustainable loyalty programs. It has been noted in many consumer behaviour studies that businesses offering sustainable products and services see a consumer engagement rise of up to 77% in the UAE alone.
To put it simply, eco-friendly rewards are an answer to the demands of modern consumers who are considerate of the impact their purchase decisions and behaviour cause on the environment and are even willing to pay more for the cause. It wouldn’t be an exaggeration to say that sustainable loyalty programs are one of the latest and quickly growing loyalty trends, offering the below set of benefits:
A Positive Brand Image
Green marketing strategies and eco-friendly reward programs can be a big business differentiator in today’s business landscape. As per one of the reports published by McKinsey & Co., more than 80% of modern-day consumers prefer sustainable products, considering the environmental impact of their purchase every time they buy something. Rewarding this eco-conscious behaviour could help businesses build lasting relationships with their customers and a positive brand image.
Positive Consumer Behaviour
When businesses reward eco-conscious practices, consumers are more likely to choose sustainable and environmentally friendly products and services over their traditional counterparts. This also drives better engagement for businesses offering sustainable loyalty programs, as opposed to businesses that fall short of rewarding positive consumer behaviour.
Eco-friendly rewards and green marketing strategies are especially effective among the younger generations, who are conscious about their purchase behaviours and actively support businesses rewarding such practices and offering sustainable products and services.
Long-term Growth for Businesses
Companies that incorporate environmental responsibility in business operations are more likely to succeed in the long run, with customer loyalty playing a major role in overall business performance. Consumers today want businesses to commit to sustainability and environmentally conscious business choices, expecting long-term commitments to protecting natural systems and nature. For example, companies such as Team Computers prioritize corporate social responsibility and set an example for both employees and customers.
While sustainable reward programs help businesses build lasting relationships with their customers, environment-friendly business practices help companies reduce their operating costs by up to 59%, helping them succeed in the long run.
How Different Businesses Can Reward Eco-Friendly Choices
As per Kim Hardaker, the Head of the Sustainability Vertical at Global Loyalty Organisation, “Understanding the ESG challenges specific to your industry and key markets is essential for shaping the sustainability features of your program.”
Aligning your brand’s eco-conscious values with those of your consumers can help organizations build a stronger and more sustainable relationship with the customers, that is based on mutual concern for the environment. The modern consumer is so driven by a business’s sustainable choices, that they are very likely to switch to a brand that puts in more effort to conserve nature.
As a result, more and more brands are incorporating sustainable loyalty programs into their business models, and switching to green marketing strategies as a whole. Here are some ways in which businesses from different industry verticals can explore eco-friendly rewards:
Food & Hospitality
- Businesses could reward their customers for using reusable packaging such as tote bags.
- Consumers could also be rewarded for avoiding the use of throw-away cutlery in food takeaway orders.
- Extra discounts for choosing eco-friendly food delivery could also encourage customers to make sustainable decisions.
Retail & Ecommerce
- Discounts over eco-friendly clothing lines such as the ones made from recycled plastic.
- Customers could be rewarded for bringing in used clothing to be recycled.
- Businesses could also run special deals in pre-loved designer wear or refurbished products.
Tech Industry
- Eco-friendly rewards that incentivise the recycling of used electronics and refurbishing used products go a long way in sustainability practices.
- Businesses could offer special discounts to customers for choosing products that use green technology such as eco-friendly materials, energy-efficient appliances, etc.
- Encouraging sustainable practices such as reduced paper usage through special rewards and bonus loyalty programs.
Automotive Industry
- Businesses belonging to the automotive industry could do well by rewarding customers who prefer e-vehicles over traditional ones.
- Special discounts can also be offered for equipment such as EV chargers, etc.
- Many businesses also offer rewards for the recycling of fuel packaging in the form of points that can be redeemed for discounts.
Some Eco-Friendly Reward Options
Product Recycling Rewards
A lot of brands reward consumers for recycling used products such as used clothes, carry bags, and much more. Brands like The North Face, Costa Coffee, and Patagonia provide in-store credit (redeemable for discounts) to customers for returning used products, thereby reducing the amount of clothes that go to landfills and fostering repeat business.
Discounts on Sustainable Purchases
Incentivising customers for making an eco-conscious purchase decision not only builds a habit of buying right, it also provides brands an opportunity to connect with customers who are already conscious about their purchases.
Brands like IKEA, H&M, Sephora, etc. give extra offers and discounts to their consumers for buying from their eco-conscious lines.
Incentivizing Reusable Items
Food chains like Starbucks, Whole Foods, and Caribou offer special discounts to customers who bring their own carry bags and reusable cups instead of buying paper cups and bags. This encourages customers to carry reusable items from home and reduces paper consumption and waste production. Sustainable loyalty programs that empower environment-friendly choices are often beneficial for both the business and nature.
Final Thoughts
There is no denying the fact that sustainable loyalty programs are becoming instrumental for businesses hoping to build a lasting relationship with their ecologically aware and conscious consumers. The future of loyalty programs is very much intertwined with sustainability and by integrating sustainable reward programs into their business models, companies showcase responsiveness to customer demands and adaptability, helping them build a returning customer base and gain user trust.
Looking to build your own sustainable loyalty program? Get in touch with us today and explore our wide range of customer loyalty programs for businesses of all kinds.
