Ross Meyercord, CEO of Propel Software.
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In an era where political divisions often seem insurmountable, there's an underlying consensus among American consumers that transcends party lines: the importance of sustainability.
As the CEO of a company at the forefront of product value management (PVM) SaaS solutions, I've observed firsthand how sustainability has moved from a niche concern to a driving factor influencing consumer purchase decisions. In the 2024 election year, we will witness polarization among the two sides, but as consumers cast their votes—with dollars rather than ballots—a clear message of unity around brands that support environmental causes is being sent.
Customers Prioritize Sustainability
Propel recently conducted a consumer sentiment survey with OnePoll to determine what influences purchasing behaviors for sustainable products and brands. The survey was designed to offer businesses a window into consumer purchase behaviors and to help companies identify how closely they should be tracking and publicizing their sustainability efforts for the products they develop. The data compiled from a study of 2,000 U.S. consumers revealed compelling insights on how Americans prioritize eco-friendly purchasing decisions and how political affiliations impact those purchasing decisions.
The data shows consumers, regardless of political affiliation, are putting their hard-earned money towards brands and products that elevate environmental causes. And those brands that accurately communicate their environmental practices to consumers are being rewarded by consumers with increased revenue and greater loyalty.
Propel’s survey confirms a trend that Americans are severing ties with companies that aren’t focused on sustainability. In fact, the New York University Stern Center for Sustainable Business discovered in a survey that sustainability-marketed products are not only growing twice as fast as conventionally marketed products, but they are going at premium prices.
Likewise, Propel’s survey uncovered that more than 50% of consumers from both major political parties stated they’d be willing to spend extra on brands that champion environmental causes. And, contrary to traditional thinking about party ideology, more Republicans (66%) than Democrats (55%) cited they’d pay a 10% to 30% premium for eco-friendly brands. This data dismantles the myth of sustainability as a partisan issue, highlighting the shared commitment consumers have that bridges the political divide.
Why Businesses Must Rethink Their Sustainability Strategy
Many of the statistics we uncovered about consumer behavior challenge us to rethink our strategies to align business processes with the value of sustainability and environmental stewardship. As business leaders, CIOs, tech innovators and C-suite executives, we all need to sit up and pay attention.
As the architects of products and services that define our daily lives, we have a responsibility to embed sustainability into the fabric of our business practices. It’s up to us to reimagine how we design, manufacture and dispose of products, ensuring that every step of the lifecycle minimizes its environmental impact and promotes a circular economy.
The findings send a clear message to brands about how consumers view their products and how those brand messages influence purchase behavior. In particular, many consumers are actively looking for environmental claims when making purchases (66%), with a significant portion (58%) willing to alter their brand loyalty if a company fails to demonstrate eco-friendly practices. This is a powerful reminder that sustainability is not just a moral imperative, but a competitive advantage.
These findings further back up a 2021 PwC survey that found environmental, social and governance (ESG) has become a “make or break” consideration for investors globally, with nearly half willing to divest from companies that aren’t taking sufficient action on ESG. In a marketplace where consumers and investors are increasingly discerning, brands that fail to prioritize environmental considerations risk not just alienation but obsolescence.
Despite the tumultuous political climate of the past decade, there's common ground to be found in the values we share as consumers and citizens. And, the message we as business leaders should be taking from it is: Aligning with sustainable practices is not just about catering to a niche market but resonating with a broad, bipartisan consumer base.
We are in a unique position to drive this change. By leveraging advanced analytics, AI and collaborative tools, we can optimize resource use, reduce waste and ensure products are designed with their entire lifecycle in mind.
Businesses that are unsure where to start must first turn their attention inward. One important variable is your current supply chain. With a direct line of sight into the development and creation of your products, you can easily track sustainable business processes. If you don’t include your supply chain practices currently, it’s time to make that change. It’s only when companies can see every aspect of their internal and external processes that they can have a complete understanding of their practices to meet consumer expectations as they relate to sustainability.
Conclusion
The consumer mandate is clear: Sustainability is not a partisan issue but a universal value that guides purchasing decisions. As we navigate this election year, let us remember that the most powerful votes are often cast outside of the ballot box through the choices we make as consumers and the products we develop, market and sell as business innovators.
It's time for us all to respond to this call to action by embedding sustainability into our DNA and, in doing so, securing our place in a future where environmental stewardship and economic success are inextricably linked.
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