MARKETING - 21.04.2011

Price first, green credentials a distant second

Revealing research

According to a new study carried out by the energy company, E.ON, more than 75% of Britons want to reduce their impact on the environment but are worried about the cost and confused about the technologies on offer.

It seems that people in the UK are motivated nearly equally by money and environmental concerns when it comes to reducing their own impact. Almost 78% said that saving money would motivate them to lead a greener lifestyle, with 75% claiming they want to reduce their impact on the planet too.

Costly business

While people want to do the right thing, a significant number of respondents to the survey (40%) said they were concerned about how expensive it was to do so. And more than a quarter (27%) said they didn’t know enough about what they could do in order to reduce their impact - whether it be their energy or water use, or the amount of rubbish they generate.

What does this mean for you?

Therefore, there are plenty of potential clients who want to buy into the green lifestyle, as long as it’s not going to cost them more to do so.

Tip 1. Promote the financial benefits of your products above the green credentials. For example, if a product is going to cut energy bills by 10%, this will be a much bigger draw that stating that it’s going to save 100 tonnes of carbon. Many won’t understand what this actually means and even those who do are unlikely to be that interested.

Tip 2. Avoid adding a “green premium” to your product prices. Yes, some may be willing to pay more for products which have good green credentials, but as this survey identifies, a great many won’t.

Protect your image

For some time now, companies have bombarded the public with messages about how green they are. However, rather than gain customers from this, it may have succeeded in putting potential customers off. According to a survey carried out by the Carbon Trust, just 7% of the British public believe the claims made by companies that they are taking tough action to reduce carbon emissions. And these are big companies with strong brands.

Note. The research also shows that two-thirds of people question the authenticity of the promises made by businesses, with 90% of respondents now demanding companies be more transparent in what they are saying and take tougher action to reduce their impact on the environment.

Tip 1. When looking at schemes to increase your green points, you’re better off investing your efforts and resources locally. If your potential customers can see what you’re doing and can actually benefit from it, they are more likely to buy into what you’re doing.

Tip 2. Avoid “saving the rainforest” schemes. Your clients aren’t going to be impressed by this kind of action. In fact, some might think that as you have enough money to make such investments, you are obviously charging too much for your products.