Simon-Kucher has released a new book, providing executives with guidance on how they can align their business to the new-age demands of sustainably-minded consumers. ‘The Demand Revolution’ outlines how sustainable strategies can help business become more competitive and future-proof.
Sustainability is an increasingly important differentiator for consumers, when choosing between products and service providers. That in turn means that executives should also increasingly consider sustainability – and wider ESG factors – into their business plans.
“What we managed to do in the book is really connect sustainability to the core strategy,” explains Nicolai Broby Eckert, senior partner at Simon-Kucher. “The strategic plays we describe in the book are very much plays that any company can do as part of their normal strategy. Really leveraging advantages they already have, and that’s also what consumers are asking for.”
Broby Eckert co-authored the book, titled ‘The Demand Revolution: How Consumers Are Redefining Sustainability and Transforming the Future of Business’, alongside fellow Simon-Kucher leaders Andreas von der Gathen (co-CEO of the firm) and Caroline Kastbjerg (senior manager).
Putting extensive research to use, the book explores how 60 years of awareness and exposure to sustainability have “reshaped consumer behaviour and reset expectations” – meaning “the majority of consumers are now willing to buy sustainable solutions”.
Yet within that trend, there are clear disparities between consumer groups. “There is no single sustainable consumer,” says Broby Eckert. “Our research reveals eight unique profiles, reflecting the wide variety of attitudes toward sustainability. These archetypes give companies the tools to build stronger, more meaningful customer connections.”
Nicolai Broby Eckert, Andreas von der Gathen and Caroline Kastbjerg
The 8 types of sustainable consumers
The first of those archetypes is the ‘Champions’, who are fully committed to sustainability, willing to pay a premium to support their green values – representing 8% of consumers. But beyond this, companies would be wrong to think that there are fewer opportunities. In fact, only 15% of consumers were ‘Non-Believers’ who would not prioritise sustainability in purchasing decisions under any circumstances.
According to the researchers, 10% of consumers are ‘Image Driven’, and will prioritise sustainability in categories that enhance their personal image, such as beauty or fashion. Meanwhile, ‘Thoughtfuls’ are well-informed and willing to pay extra, though to a lesser extent than Champions. ‘Selectives’ meanwhile will support sustainability in specific areas, often tied to added personal benefits like health or cost savings – they represent an 8% chunk of consumers.
More tricky are the 13% who are ‘Planet Savers’ – living sustainably by adjusting habits but resist paying a premium for sustainable options; ‘Cost Conscious’ consumers – 18% – who care about sustainability but prioritise affordability, often defaulting to the lowest-cost option; and the 18% of consumers identified as ‘Sceptics’, who believe in climate change, but distrust companies’ sustainability claims and doubt individual purchasing power.
Even so, with the right planning and customization, even these three consumer archetypes could be won over, according to the experts.
“Our research shows that 85% of consumers are open to sustainable options, but they want them to be accessible, affordable, and authentic,” concluded Von der Gathen. “Businesses must move past one-size-fits-all strategies and tailor their approach to meet the diverse values of these eight archetypes.”
This post was originally published on here
