August 22, 2024
Sustainable GIfting
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The 10 billion gift cards created annually equal 50,700 tons of plastic. Each of these cards creates at least 21 grams of carbon. For the environmentally conscious people, this is a big turn off. The demand for sustainable rewards has increased in its pitch. Making sure we have a clean Earth for the coming generations is an activity that requires immense introspection and big businesses should be the ones taking up the mantle. It will encourage their employees and customers to follow sustainable practices in their lives.
According to the Sustainability, EV, and Convenience Retail Survey Report 2024, 80% of consumers are concerned about the environmental impact of the products they buy, up from 68% in 2023 and 66% in 2022. These are serious figures and show the kind of impact businesses’ sustainability programs can have on the average customer’s psyche.
In this article, we look at why you must choose eco-friendly rewards, and various sustainable reward options, and learn how to reduce the carbon footprint of reward programs.
In a sustainable rewards program, customers who have been loyal to your brand will receive rewards that can be reused and recycled. Or, customers are rewarded for making sustainable purchases. The objective is to have a positive impact on the planet by offering rewards that are healthier to Mother Nature.
Choosing eco-friendly rewards for your business has multi-fold benefits. It will also endear the recipients towards your company. Such rewards encourage behavior that reduces adverse environmental impact and helps create a healthier planet. Let’s look at why you must offer eco-friendly rewards.
Offering sustainable products as rewards shows you as a responsible business. This will result in increased customer loyalty. Your goodwill among your target audience will increase as well.
In a crowded loyalty market where everyone is vying for a piece of customer attention, offering sustainable rewards will position you differently. You will also attract clientele who are environmentally conscious. PwC’s Voice of the Consumer Survey says that consumers are willing to pay a 9.7% sustainability premium– this could be your brand.
When you opt for healthy and sustainable reward options, you contribute to better and improved health. You restrict the proliferation of harmful chemicals and toxins into the atmosphere.
Because you decided to use sustainable rewards, fewer items end up in landfills. Resources are conserved and you reduce carbon emissions to a huge extent.
Even if the initial investment toward sustainable rewards might be high, it will save you costs in the long run. As a responsible organization, you will use resources wisely, save energy, and reduce waste management costs, which results in lower operating costs. If you were to follow sustainable business practices as well, McKinsey says that you can reduce your operational costs by up to 60%.
Let’s look at some of the eco-friendly reward options for each industry.
The commitment to sustainability should start from the top. They should strive to find ways to offer sustainable rewards. If the resolve isn’t top-down, it is difficult to build a culture of sustainable rewards.
To encourage green practices from your customers, you can select green actions that align with your brand. Reward specific green behaviors to reward customers. It could be recycling used products, offsetting CO2 emissions, and other activities. Not all businesses can persuade their customers to follow green practices that are in line with their brand values. Therefore, you must keep that in mind while designing your reward program.
To create an environmentally friendly rewards program, you must come up with sustainable reward options. You can start by evaluating the lifecycle of potential rewards, taking the materials used into account, manufacturing processes, and disposal. Choose options that are made from recycled or upcycled materials, and those that are biodegradable.
The main step toward reducing the carbon footprint of your rewards program is to choose a reward software that comes with sustainable options. Ensure that the platform prioritizes digital rewards. They must have a catalog of eco-friendly products and partnerships with green vendors. The software must also provide detailed analytics to track the impact of the program.
Find vendors who offer sustainable products. Make sure they follow the right standards in building their sustainable solutions. You can choose the rewards such vendors offer.
Identify the current products that you offer as a part of your rewards program. Does it need a complete overhaul to make your reward program sustainable? Or, should you change a few offerings alone? Based on this, you can change your rewards program to be sustainable.
To encourage sustainability from your customers and employees, you can create a knowledge base to make more sustainable choices. Build a sustainable rewards catalog that can be used to reward customers.
Encourage customers to choose options that are eco-friendly in nature. For example, if a customer uses digital rewards over physical rewards, provide additional loyalty points. This move educates the customer on the benefits of sustainable choices.
Promote sustainability by highlighting the impact of customer’s reward choices. Share case studies that show the difference that it makes. By continued education and communication, you can build a community of conscious customers who make greener choices.
It is the practice where businesses spend resources to market themselves as environmentally conscious, instead of following practices that minimize their environmental impact. Such misleading PR tactics can cause more harm than good if customers discover that it is not true.
According to Accenture Strategy Global Consumer Pulse Research, ‘From Me to We: The Rise of the Purpose-led Brand,’ you are more likely to influence purchasing decisions if your business stands for something bigger than what you sell, and can communicate your purpose and demonstrate your commitment towards it. Indulging in greenwashing to woo customers, when there is no actual commitment towards the environment is dishonest and harmful at best.
Offering sustainable reward options to customers results in a host of advantages to the business. It increases the allure of the brand, inspires employees and customers alike, and helps reduce the carbon footprint. Thanks to a growing base of eco-conscious customers, it is imperative that brands cater to their needs. Maintain transparency by sharing your reward program’s sustainability metrics.
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