Boosting customer lifetime value: How sustainable packaging practices win over eco-conscious consumers
Acquiring new customers is expensive. That’s why so many companies are focused on increasing the lifetime value of those they already have. And although the internet has conditioned today’s shoppers to shop around, research shows that they’ll stick with retailers that support causes that are important to them – like sustainability.
In fact, in a recent Futerra survey of more than 1,000 consumers in the U.S. and UK, 88 percent said they’d be more loyal to a company that supports social or environmental issues, and 92 percent said they would be more likely to trust that company.
Perhaps more important: these same shoppers are increasingly (and repeatedly) voting for sustainable shippers with their wallets.
The Impact of Sustainable Shoppers
As the Futerra survey notes, many consumers are willing to reward retailers that demonstrate real ecofriendly effort. Eighty-seven percent of respondents said they would have a more positive image of a company that supports social or environmental issues.
The single most impactful step shippers can take toward true sustainability is to reduce their damage rates.
According to Nielsen, eco-conscious consumers will spend about $128.5 billion on sustainable fast-moving consumer goods (FMCG) this year, an increase of more than 20 percent since 2014. By 2021, shoppers are expected to spend up to $150 billion on sustainable FMCGs, which will account for about one-quarter of all retail sales.
The moral of the story: since sustainable shoppers are in it for the long haul, they’ll commit to retailers that share the same commitment.
How to Ship More Sustainably
Shippers can demonstrate sustainability to eco-conscious consumers in a multitude of ways. They can use recycled and recyclable packaging materials like durable paper products, air pillows for void fill and hybrid cushioning for protection from impact. And they can make it easier for consumers to recycle packaging materials properly by applying How2Recycle labels. Retailers can also calculate their company’s environmental impact – and identify areas for improvement – by using free tools like Pregis’ EcoGauge.
The single most impactful step shippers can take toward true sustainability is to reduce their damage rates. This will not only substantially reduce their carbon footprint by keeping returned products out of landfills, it will prevent costly reships while nurturing appreciative, lifetime customers whose products predictably arrive in the right condition to perform their intended use.
Thankfully, retailers don’t have to figure out how to properly pack their products on their own. With a corporate commitment to sustainability, the packaging engineers at Pregis can customize packaging solutions to meet a retailer’s environmental goals. With 88 percent of consumers ready to recognize them for their effort, retailers can keep satisfied customers coming back for more.
To learn more about Pregis’ commitment to packaging sustainability, visit https://www.pregis.com/sustainability/.