Someday, maybe in the not too distant future, every kind of product and service we consume will be purchased with the knowledge that all of its various components from inception to the end of its life cycle will be part of a continuous and sustainable loop that does no harm to the planet. That is to say, the “take – make – waste” way of linear thinking that has been the prevailing method for conducting business over the past one hundred-plus years will have shifted to a place where sustainability is the only way of doing business.
For some people, if such a radical change in business practice were to occur, it would have come only as a result of determined environmentalists “winning” their argument where protecting the environment trumps any notion of potential losses or curbing freewill in the marketplace.
Today, at least in the US, there is a clear divide between those who are seeking and proactively working towards a sustainable future and those who aren’t interested or are skeptical about anything that is “green”. The new triple bottom line known as “People, Planet and Profit” is a real daily mantra for some companies while others seem focused on short term goals. What will it take to change these attitudes for consumers and businesses?
In the past, most big changes that shifted consumer attitudes were due to tenacious advocates such as Ralph Nader’s huge efforts in 1965 for mandatory seat belts in cars, or twenty odd years later when independent consumer groups demanded that McDonald’s stop using styrofoam in its Big Mac clam shells because they contained harmful CFC’s.
In both instances the changes were made and, in the case of the automobile industry, safety went on to become a major pillar in its marketing plans. And now, with the rise of social media, the ability for individuals to create change can happen instantly. However, there still is a divide among consumers that often mirrors political lines.
For instance, during the past ten to twenty years there has been a growing segment of the population that views the planet as a finite and exhaustible resource. This is of course true, but for some people it’s not an issue because there is no definitive end-date. However, whether it’s twenty years or five hundred years from now, the earth will eventually give up all of its retrievable non-renewable resources. The overriding message is that “dwindling resources and a rising population [will] mean we need disruptive change.” So what can be done to get everyone on the same page?
The shift in consumer thinking may be realized sooner than we think and it may occur on several fronts where different consumer segments, separated by differing political views and agendas, may all agree if only by accepting different messages and ideas that each arrive at same end-result.
In a new study on consumer “worldview thinking” the Shelton Group and John Marshall Roberts have revealed greater insight on how and why people react to sustainability messaging. According to the study, “there was a need to understand the why of sustainable consumer behavior in order to move sustainability messaging forward with more resonant and motivating communication.” The study focused on the premise that consumers typically fit into four predominant categories that are “specific, habitual ways of looking at the world that helps answer the why of consumer behavior.” The study found that consumers are either skeptical or indifferent on the one hand or they’re seeking information or actively participating in sustainable behaviors on the other.
By understanding these attitudes and behaviors, researchers are able to identify the kinds of customized messaging that will resonate and appeal to each consumer’s particular “worldview thinking”. For skeptical or indifferent consumers their attitude towards sustainability may be negative unless they can fully realize the idea of “what’s in it for me” which most often takes the form of competition and the need for social acceptance. Where as consumers who seek more information will be motivated by how sustainability affects the greater well being in their community; and for those who are actively involved the message should be about being pragmatic and empowerment.
With these consumer insights in hand, marketers can craft messages that focus on the needs, desires and values of each category of consumer and get them to agree and buy-in with their ideas. The notion of sustainability will mean different things to different groups and individuals and as long as there is a real, tangible benefit that adheres to their beliefs then there is a good chance that our attitudes will all change for the better.
As more and more companies are looking to implement and embed sustainability initiatives into their business plans, one company stands out as a beacon on how to be totally committed to changing the way business is done. InterfaceFLOR, which was founded by the late Ray Anderson, embarked on a mission in the mid-90′s at becoming 100% sustainable by the year 2020 where it would achieve the goal of completely eliminating any negative impact on the environment across its entire enterprise.
The company is squarely focused on selling great products (carpet tiles) that incorporate functionality with popular design and is based on an “innovative manufacturing processes to reduce waste and eliminate toxins from [its] products and facilities… and to completely eliminate any negative impact [it] may have on the environment by 2020.”
The lessons for all businesses, as expressed by Mr. Anderson, concentrate on eight major points that includes a “cultural shift” that needs to occur where the way we view business practices moves from “just seeking profit” to adopting a new paradigm that truly recognizes our place in the industrialized world.
From a branding perspective, InterfaceFLOR maintains a wide catalog of carpet products that are modern, fashionable and high quality. The environmental aspect of sustainability is not at the forefront of the company’s marketing efforts as Interface recognizes that the consumer is not buying the product because it comes from a sustainable business, rather, it has to meet their needs.
In February, 2009 Netflix CEO Reed Hastings said the following: “The company’s success hinges on its ability to transition to online video from DVDs…” Thanks to devices such as Playstation 3, X Box 360 and the iPad, one could say the transition has been wildly successful. However, two issues still plague Netflix from gaining wider acceptance. A greater variety of current movie titles and TV programs and a future where bandwidth is not capped out.
Many consumers complain that the current selection of movie offerings on Netflix resembles walking the middle of the isle of yesteryear’s Blockbuster where only B-movies and never heard of straight-to-video releases lurk. What Netflix needs is a constant supply of the latest and greatest titles to keep consumers coming back or they may start seeking other avenues.
Striking Deals for Better Content
One of the nagging issues since Hastings made his prophetic comment is that Netflix hasn’t been able to strike enough deals with the likes of HBO and the big movie studios to gain access to the streaming rights for fresh content.
Despite these problems the 14 year old company has had some recent gains by reaching agreements with NBC Universal and CBS as well as acquiring AMC’s Mad Men. It’s also important to recognize the success of Netflix online venture can be attributed to its ingenious use of algorithms (known as its content recommendation engine) where its vast store of titles are targeted to subscribers unique profiles. And even with its recent price increases many analysts predict the company will continue fair well because of it’s convenient and seamless ability to work on so many platforms. (Android, iPhone, iPad, Xbox360, Wii, PS3, PC and 3DS to name a few.)
Future Bandwidth
As for bandwidth, Nielsen recently estimated the typical customer is streaming around 11 hours of video from Netflix’s website per month. However, that is only based on PC and laptop usage. In Canada, where there are lower bandwidth data caps, users face paying extra ISP charges for going over the limit which is seen as a deterrent for rapid growth. For the mobile devices, Netflix has recently added a feature that allows viewers to change the video quality which cuts down on the data consumption restrictions where wireless carriers such as AT&T have imposed caps.
One thing for certain is the online streaming business is growing exponentially while the industry is still very much in flux. To quote Chris Anderson from Wired Magazine, when a “technology is invented, it spreads, a thousand flowers bloom, and then someone finds a way to own it, locking out others. It happens every time.” Stay tuned for the next technology to possibly upset Netflix…
The folks at SocialCast created this interesting infographic on philanthropy. We particularly like Kiva as an organization that allows everyone to contribute and make a difference.