Brazil
Communicating sustainability to customers: Meet the NL and BE leaders
How effective are Dutch and Belgian companies in communicating their sustainability initiatives to customers? That is exactly the question Sia Partners set out to answer in its latest benchmark study, finding that the top communicators are miles ahead of their underperforming peers. However, overall, much work remains to be done.
For its study, global management consulting firm Sia Partners assessed how effective companies in the Netherlands (NL) and Belgium (BE) are with delivering communications about their sustainability activities during the customer journey they offer their clients. A total of 25 companies across six industry sectors were evaluated.
The customer journey was segregated in five stages: Awareness, Research & Consideration, Purchase, Post-Purchase and Retention. Each stage was analyzed from an integrated customer perspective, including both online presence (web and app) and offline elements (when applicable).
The key conclusions
The researchers found that, across the board, most companies are failing to effectively promote and clearly communicate their sustainability initiatives. They also found that there is a significant gap between having sustainability strategies in place and actually ensuring they are effectively communicated – embodying the traditional strategy execution gap.
Of the 25 companies assessed, Decathlon performed best with a score of 11 on a 15-point scale, followed by MediaMarkt at 8.5 and Coolblue and 7.5. Illustrating the large gap in performance, large retailers such as Hema, Bol, Wehkamp and Action all scored 2.0 or below.
“While some sectors and companies show promise, there is considerable room for improvement across the board. Consumers are increasingly savvy and expect transparency and authenticity in sustainability communications. Companies that fail to meet these expectations risk losing customer trust and loyalty,” said Katrien Watteyne, partner at Sia Partners in its Brussels office.
Pinpointing improvements across the customer journey
Based on the benchmark, Watteyne and fellow co-authors Maarten Jumelet and Monica Harmsen (both from the Amsterdam office) outline areas of improvement for companies seeking to enhance their ESG-reputation in the marketplace.
1) Awareness stage
Many companies occasionally feature sustainability on their social channels, but the topic is not prominently placed on most websites. Commonly used measures include occasional posts on social channels about sustainability activities.
There are often dedicated sustainability pages that are placed in the footer navigation menu at the bottom of the page, and many fail to communicate a comprehensive sustainability strategy across their various communication channels.
Benchmark best practices for creating more awareness on sustainability are:
• Decathlon (3.0 / 3.0): Website section on second-hand items, social tutorials on how to extend the product lifetime (maintenance & ‘buyback’ your bike).
• Rituals (2.5 / 3.0): Top-of-page sustainability reporting on the website, dedicated social media sections showcasing sustainability efforts, generating awareness, and prominent ‘B-Corp’ Certification on the website.
2) Research & Consideration stage
The most common feature that many companies implement within the Research & Consideration phase is product filters or dedicated menu categories for more sustainable choices, often using eco labels or certifications for products.
In this stage, key areas of enhancement are to: improve transparency regarding sustainability practices in product production, highlight the environmental benefits of choosing sustainable products or brands, and integrate sustainability factors into product selection tools (e.g., energy consumption for electronics or sustainability impact measurements).
Benchmark best practices in this stage are:
• Zalando (2.0 / 3.0): High standards for resellers (50% material must be sustainable), use of eco-labels, and filters for sustainable / pre-owned products.
• Kruidvat (2.0 / 3.0): Sustainable choice in all product tabs, sustainable private label products (diapers), partnership with GSES, paper bags for candy in-store.
3) Purchase stage
During the purchase phase, many companies fail to educate and guide customers on reducing the environmental impact of an order. Commonly used measures include ‘collect’ in-store, bike delivery within bigger cities, carbon-free shipping with and recyclable packaging.
Areas for improvement include: offering more education as well as guidance on the environmental impact of delivery and returns, such as providing better sizing information to reduce these returns. For the checkout, a possible improvement is to offer payment options with eco vouchers (e.g., Brico, Coolblue). Additionally, companies can improve by allowing customers to choose delivery timeframes that result in fewer emissions (e.g. Albert Heijn, Jumbo, and Picnic) and restricting orders below a certain threshold, to minimize multiple small orders (e.g. Albert Heijn).
Benchmark best practices for this stage are:
• Picnic (2.0 / 3.0): Electric delivery, return of plastic (delivery bags, bottles etc.), most sustainable delivery option selection and partnership with Sellpy (2nd hand reseller service).
• Albert Heijn (2.0 / 3.0): Restrictions on small orders, delivery when in the neighborhood, less plastics in packaging.
4) Post-Purchase stage
In the post-purchase stage, there is significant potential for improvements through services that support the circular economy or extend the product's lifetime. Commonly used measures include allowing the return of small items in-store, such as batteries, light bulbs, small electronics, clothes, and shoes.
For this stage, enhancing the customer experience can be achieved by providing incentives for using recycling or repair services. For after sales, it is important to proactively communicate services throughout the customer journey, in the case of returns, implementing charges may promote more responsible shopping behavior. Further enhancement can come from expanding repair services to include items beyond electronics to stimulate customer satisfaction.
Additionally, integrating a marketplace for second-hand or refurbished items can also contribute to a better sustainability journey.
Benchmark best practices for this stage are:
• MediaMarkt (3.0 / 3.0): Refurbished products, repairs on products, and an outlet for used / damaged products.
• Decathlon (2.0 / 3.0): Maintenance, repair and ‘buy back’ options for products.
5) Retention & Advocacy stage
Many online brands have successful loyalty programs, but making those greener and actively engaging a community is often overlooked.
Improvements can be made by adding editorial content about sustainable living and promoting sustainable products within the loyalty program. This can be achieved by showcasing sustainable behavior through blogs, magazines, or loyalty applications. Additionally, avoiding services that support less sustainable behaviors is crucial.
Additionally, providing opportunities for customers to share their sustainability efforts or experiences with the brand on social media can further enhance engagement.
Benchmark best practices for this stage are:
• Praxis (2.0 / 3.0): Praxis plus app to make your home more sustainable, information on government subsidies, and educational content.
• Decathlon (2.0 / 3.0): Large sustainability online community, extra points for loyalty customers when choosing sustainable options.
Conclusion: Build clear and effective communications
Reflecting in the report’s main conclusion, Watteyne said that brands should learn from the gap often seen in communications, and ensure that they build clear and effective communications around their sustainability initiatives. Then, these messages need to integrated across the customer journey, if possible in a personalised and seamless manner.
“By improving sustainability communications, brands can enhance customer experience and build stronger, more trustworthy brands,” Watteyne concluded.
