Brand loyalty has become more important for businesses in recent years. Customer retention translates to more revenue, and loyal customers can become evangelists for brands, recommending them to their friends and family and helping business growth. Consumer research shows that in 2024, one of the most powerful ways to earn this loyalty is to invest in the issues consumers care about, like sustainability.
These days consumers have countless options at their fingertips across most markets, making retention and brand loyalty increasingly difficult—and at the same time more crucial. Offering a reliable product or service is no longer enough to keep consumers coming back for more. When faced with a lot of options, consumers can easily conduct extensive research about companies online. More than ever, they are concerned not only about things like product reviews, but they care about a company’s values and actions as well.
82% of U.S. respondents in a global survey from Yotpo said they are more inclined to buy from a brand whose values align with their own. This is even higher for younger generations: 94% of Gen Z consumers base their brand loyalty on shared values.
Additional research found that 80% of consumers are changing their shopping habits based on social responsibility, inclusiveness, or environmental impact. According to a study from Capgemini Research Institute, 65% of consumers are more mindful since the COVID pandemic of the how their consumption affects the planet, and 64% say they feel happier buying sustainable products.
This has a palpable impact on brand loyalty. 53% of consumers (57% in the 18-24 age group) have actually switched brands and given their business to lesser-known companies because they were sustainable.
At the same time, brands who have incorporated sustainability measures into their business plans have seen positive results. 77% say their sustainability approaches increase customer loyalty, Capgemini found. Further, 63% of these brands have seen a revenue uptick.
These numbers may be surprising for business owners and executives. But these shifting consumer behaviors make sense when you think about how much information the average person can access nowadays through the internet and social media. Consumers are increasingly educated about the impact their purchasing and brand behaviors have on the environment, and simultaneously there are more news stories about the planet getting warmer, extreme weather events, and more. It’s easy for consumers to put these two together and to understand that being intentional with their spending, and using brands who care about sustainability and the environment, is an easy way to feel like they are making a positive difference.
That’s why climate reporting has become more common, and why most big brands are now hiring chief sustainability officers or consultants to lead meaningful initiatives. Even the SEC will now require many public companies to disclose their emissions.
Consumers have the power to make or break a business, and they’ve made it clear that sustainability is non-negotiable. For brands who want to retain customer loyalty and see revenue growth, demonstrating a commitment to helping the environment is a must.
However, it’s not enough to make ambitious sustainability goals and promises to consumers. It’s critical to have positive outcomes that can be measured and demonstrated concretely. When you work with Budderfly, you can fully outsource your sustainability efforts to an industry leading energy management partner that saves you both time and money. Your brand gets access to the most innovative energy technologies across your locations, with no upfront cost. These technologies—from smart thermostats to new high-efficiency HVAC units and so much more—reduce your energy consumption and your carbon footprint.
Better yet, Budderfly’s customer portal allows you to see in real-time just how much your carbon footprint is being reduced, how much you are saving on energy, and more valuable data that can drive more efficient operations.
Want to learn how your brand can partner with Budderfly for an impactful sustainability strategy? Contact us today.