3 Studies Show What Sustainability Really Does to Your Bottom Line Don't just ride the wave of business trends. Dig into the data.
This story appears in the July 2023 issue of Entrepreneur. Subscribe »
Sustainability initiatives are good practice and something we urgently need to save our planet. But are they also good marketing? Yes.
I write a newsletter called Ariyh, short for Academic Research In Your Hands (find it at ariyh.com), where I summarize the latest scientific research in marketing and sales. And I see a consistent theme: When brands have well-executed sustainability initiatives, they increase nearly every metric a business needs to succeed. It's even true with little-known startups and small-to-medium businesses.
Below, I've highlighted three of the many studies that confirm this — along with recommendations on what you can do as a result.
Related: 7 Strategies Businesses Can Use to Be Profitable and Sustainable
1. Sustainability Drives Revenue
Scientists analyzed revenue from over 10 million sales at grocery stores across the U.S. They found that when products contain sustainability messages — about the eco-friendliness of its materials, packaging, or production — they had 6.4% higher revenue than related products without them.
How to use it: If your product has something truly eco-friendly to tout, test that out as the central message in your ads and branding. See if it performs better than your regular talking points. Just be careful: If your claims aren't backed by facts, they can backfire.
2. Sustainability Boosts Happiness
Sustainability makes consumers happier. In surveys, for example, people enjoyed the same songs 12% more — using the same headphones — when they were told that their headphones were made with recycled materials. Eco-friendly detergent made washing dishes 23% more pleasurable, and a sustainable pen made writing 28% more enjoyable.
How to use it: When people use an eco-friendly product, they feel that they're better citizens of the world. So give them reasons to feel good, such as iconography (a green plant symbol on your website) or useful upgrades (like bamboo instead of plastic chopsticks, if you run a restaurant).
3. Sustainability Signals Quality
Do customers want to buy more things from sustainability-focused small businesses? To find out, researchers asked people if they'd subscribe to a newsletter promoting a company's products. They found that 45% signed up when offered a 1% discount—and that number increased to 82% when people were told the company is environmentally friendly. That's a difference of 37%.
How to use it: Remember what your future customer knows — and doesn't know. People have less information about small businesses, so they instinctively look for hints about trustworthiness and quality. Sustainability pledges help build that trust.
