Hot Topic: Marketing Green

How to add sustainability into your business model and boost your bottom line

By Erinn Morgan

Is eco-consciousness an integral part of your business plan? If not, you just may be missing out on one of the most significant retail trends to come along in decades. "It's smart and prudent for retailers to pursue sustainability today," says Daniel Butler, head of the National Retail Federation's (NRF) Sustainable Retail Consortium. "If they are not doing this, then they'll undoubtedly find themselves behind the rest of the industry."

A passion for sustainability and the desire to be on the cusp of modern retailing inspired Boulder, Colo.-based Wink Optical to launch eco-conscious practices in-store. "This town has a hyper-awareness of all things green, so green makes sense in Boulder," says owner Brian Erley. "We also happen to like it. In the end, we've become a bit of a local leader by doing all these things." Wink Optical's efforts range from remodeling with eco-conscious materials like carpet made from recycled soda bottles to recycling everything down to contact lens trial containers.

The impetus behind the green wave is a savvy, educated, and conscious consumer group that has impressive spending power. Often pegged as the LOHAS consumer (Lifestyles of Health and Sustainability), this group represents approximately 30 percent of the U.S. population.

That accounts for 63 million adults who spend over $230 billion on green products and services annually, says Colette Chandler, principal of The Marketing Insider Inc., a Columbus, Ohio-based ecobusiness consulting firm. The LOHAS consumer, she notes, typically buys products based on personal, social, or environmental values.

"Today, green is bigger than ever, and we've started to see a big shift in people's values, how they shop, and the companies they support," says Hugh Hough, president of the New York City-based advertising agency Green Team USA. "As a result, a lot of companies are using sustainability to save themselves."

Hough calls the green consumer segment the Awakening Consumer. "They are well-educated, well-traveled, more aware of what's happening around them, and they do their research," he says. "They think, ‘Hmmm, I wonder who made this product. Were they treated properly? And, was it made green?’"

The future of retail, including optical, holds nothing but growth for this important consumer segment.

According to Chandler, another 38 percent of U.S. adults are expected to move into the LOHAS category over the next three to 10 years. This means the majority of consumers could be making purchasing decisions based not only a product's features and benefits, but also its impact on the planet and its people.

Green Continues to Impact Consumer Shopping and Buying Behavior

RETAILING GREEN

The bottom line for optical retailers is that the green consumer group is an excellent market to tap. Research confirms that eco-conscious consumers are more likely to patronize green retail operations.

Conducted by the NRF's Sustainable Retail Consortium and sponsored by Clear Thinking Group/McMillan Doolittle, the 2009 Greentailing Survey revealed that 45 percent of consumers decided to shop at a particular store because merchandise or operations were more green-friendly than other stores. This number is up from 39 percent of consumers who felt the same in 2008.

Additionally, according to the survey, 15 percent of consumers "actively consider and purchase/shop green," up from 12 percent in 2007. In 2009, 53 percent said they "occasionally consider and purchase/shop green," up from 47 percent in 2007.

Research also shows consumers in general are willing to pay slightly more for eco-friendly products and services. The Sustainable Retail Consortium survey found that 70 percent of all consumers would spend up to five percent more.

Green-focused consumers have an even looser grip on their purse strings. "LOHAS consumers are willing to pay 20 percent more," says Chandler. This signals a perfect opportunity for ECPs to appeal to their customers with the industry's eco-conscious eyewear lines.

Additionally, while greening your optical business can help drive sales, it turns out it can also help you save on operating costs. Chandler says, "There are many cost-saving ideas that are also eco-friendly, such as reducing paper use and shutting off your computers at night."

"There are economies you wouldn't normally think of," says Wink Optical's Erley, "such as not paying money for the extra space you need for paper records when you convert everything."

Since most expert predictions point to the continued booming growth of the green consumer segment—and the retailers who target them—it might be time to green up your own practice or optical shop.

Hough says it's not just a fad. "Today, it's become another way of doing business. And the younger generations coming up will expect every company to be green."

Important Areas for Retailers to Pursue: Recycling, Energy Savings, and Packaging

Women and younger adults are more likely to shop at a store because it is green-friendly

GETTING GREEN STARTED

These pointers will get you up and running on an eco-conscious platform that is right for your business—and your customer.

1 Bring it From the Heart. Experts stress that your new direction should come from the heart, particularly because your inquisitive consumers will want to know your impetus. "Think about whether you're doing it because it's hip or because it's important to you," says Lisa Duncan of Duncan & Duncan Enterprises, a retail consultant and author of the seminar "Going Green: How green business practices can color your bottom line green."

Erley says, "It makes us feel good, it looks beautiful, and it has saved us money, so why not go green?"

2 Be Dedicated. Bring ecoconsciousness into as many areas as possible to present a unified front to your customers.

"In an effort to save paper, we put glass countertops on the desks where we answer phones," says Linda Johnson, co-owner of Artisan Optics in Boise, ID. "We write notes right on the glass and wipe it clean when we're done."

3 Be Patient. Know that the greening process will take time. "Green is a goal, not an absolute," says Erley, who has a "Recycling" sign in his optical shop where the recycling bin is located.

Chandler says honesty is the best policy. "Tell customers that currently you have greened up only 10 percent of your business, but your goal is to have 30 percent."

4 Educate Your Staff. This can can build in-store awareness of your eco-consciousness—and help build morale. "Sit down with them and say ‘Here's what we'd like to say to the customer.’ Get them on board," says Duncan.

5 Educate the Customer. Spread the word about your greening through advertising and marketing efforts. Wink Optical positioned itself as a sustainable business to the public with a green ad (at below).

Use advertising and marketing to spread the word about your business's green efforts

"Run an ad that tells customers they'll get 10 percent off their purchase if they bring in a small bag of recyclables," says Duncan. She also suggests offering a free seed packet to customers during spring or giving away reusable bags imprinted with your business's name.

Hough says that partnering with a nonprofit group can also be helpful—and boost your credibility. "If you're embarking on a journey of sustainability, be transparent about it." EB