What kind of people are these "Sustainable Customers" who create a virtuous cycle with companies?

Sustainable management and the circular economy are gaining attention as we strive to realize a sustainable society.

The keyword "sustainable" is now an indispensable element for companies conducting business.

Our previous article introduced the concept of 'Sustainable Customers' – a new customer segment companies should target – alongside data from Dentsu Inc.'s proprietary research, generating significant response. The figure stating "Sustainable Customers already account for approximately 20% of the market" was particularly impactful.

Subsequently, we conducted a second survey ( summary ) to delve deeper into who these sustainable customers are and what interests them. Based on the characteristics of sustainable customers, we explore hints for building relationships with them and approaches to engage them.

Second Survey Details eBook
Sustainable Customer Survey Digest Report Download
 

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Explaining "Sustainable Customer" Survey Data Useful for Sustainability Management

Sustainable management is the concept of "incorporating sustainability elements, including social contribution activities, into business operations and management strategies."

Traditionally, a company's activities were limited to manufacturing products and selling them to consumers. In contrast, sustainable management expands the scope of corporate activities beyond just manufacturing and selling to include "recovery and reuse."

This is the so-called circular economy.

Manufacturers that create products and distributors/retailers that sell them to consumers are considered "arterial industries." Companies that collect and recycle used items are considered "venous industries." This system involves linking these two industries to keep the cycle of circulation turning.

However, simply relying on the efforts of companies and industries is insufficient to keep the "circulation" cycle turning after "sale." Without customer action (participation) – specifically, customers returning purchased goods to the vein industries for collection and recycling after use – the circular cycle cannot function.

Dentsu Inc. recognized that this overlooked customer presence is the crucial key to driving the circular economy. We believe they represent a new customer segment that companies should target to advance sustainable management.

We positioned this customer group as "Sustainable Customers," proposing it as the next concept beyond traditional marketing focused on "Loyal Customers."

Furthermore, by systematizing customer segments along two axes—"Purchase Continuity," indicating high loyalty to companies and brands, and "Recovery/Recycling Participation," indicating consumers' sustainability awareness and engagement in related activities—we can divide them into the following four quadrants.

SX (Sustainability Transformation) refers to the transformation of companies and their businesses into sustainable entities. The presence of "Sustainable Customers" is crucial in this context.

• Indifferent group
• Green Customers
• Loyal customers
• Sustainable Customers

As in the first survey, this survey also found that consumers classified as sustainable customers accounted for approximately 20% of the total. This once again highlights that there is already a certain number of sustainable customers in the market.

Let's also look at the percentage of consumers who responded that they "choose environmentally friendly products even if they cost more." As shown in the table below, this figure was 5.8% among Sustainable Customers, a significantly higher result compared to other segments. This is also a point that cannot be overlooked from a marketing perspective.

Based on these survey results, we estimated the market presence of customers in each segment. The percentages and estimated numbers for "choose environmentally friendly products even if more expensive" represent their share of the estimated total population of 96.94 million. Compared to other segments, sustainable customers are notably numerous.

They make up 20% of the market! Who exactly are these "Sustainable Customers"?

Looking at the characteristics of each segment, distinct patterns emerge in their lifestyles, interests, and levels of engagement with recycling and collection activities.

● "Sustainable Customers" who empathize with companies and participate in collection activities

・Primarily housewives in their 40s with higher household incomes.
・Actively pursue energy conservation and desire a minimalist, well-organized lifestyle.
・Highly politically and socially conscious, with a strong desire to contribute to society. They gather information from all sources: newspapers, TV, the internet, and social media.
・Demonstrate the highest motivation to participate in collection and recycling, and are already actively involved in such activities.
・Trust and empathy towards companies and brands strongly influence their purchasing decisions.

●High brand repurchase rate! "Loyal Customers"

・Primarily working women in their 40s and housewives.
・Highly loyal to specific brands and tend to value interpersonal relationships.
・Have some environmental awareness but lack the motivation to actively participate in collection activities.

● "Green Customers" with high environmental awareness who value personal significance

・Mainly men and women in their 50s.
・They value personal meaning over social contribution.
・They actively engage in energy conservation.
・They are highly motivated to participate in recycling activities, but this motivation does not strongly translate into purchasing from the companies or brands running those activities.

● "Indifferent Group" with no interest in recycling activities

・Primarily working men in their 40s and 50s.
・Low awareness of social contribution; almost no interest in energy conservation in daily life.
・Low interest in recycling activities; incentives like shared points struggle to motivate action.

Beyond the segments above, another group to note is the "choose environmentally friendly products even if more expensive" segment, led by sustainable customers and present in every segment to some extent. Their common attributes are as follows.

● "Price < Sustainability" Segment: Chooses environmentally friendly products even if more expensive

・Primarily women in their 40s to 50s.
・They consciously pursue sustainable lifestyles daily, show extremely high willingness to participate in recycling programs, and respond to corporate appeals. However, they tend to prioritize personal satisfaction over social contribution.

Based on these findings, let's delve deeper into the analysis from a marketing perspective.

Corporate communications can drive behavioral change among sustainable customers!

Delving deeper into the characteristics of each segment regarding recycling and collection behaviors revealed distinct behavioral traits unique to sustainable customers.

Sustainable customers show particularly positive reactions to companies engaging in recycling and collection activities. Not only do they exhibit higher intentions to use or purchase the company's products and services, but the proportion of people who "feel proud" when using that company's services or products is also higher than in other segments.

Looking at the reasons for participating in collection activities, sustainable customers stand out with significantly higher responses citing reasons like "because the manufacturer recommends it," showing empathy towards the company, and "because I like my lifestyle of doing things that are good for the environment," indicating a positive sense of purpose.

Furthermore, responses citing "because the manufacturer recommends it" as a reason for participating in collection activities are significantly higher than in other segments.

Sustainable customers, whose purchasing decisions are strongly influenced by trust and connection to companies and brands, likely resonate with the sustainability values and perspectives communicated by manufacturers, which then motivates their actions.

"Calls to action and information dissemination from companies and brands" are factors driving behavioral change among sustainable customers.

This emerged as a major finding in this survey.

Additionally, incentives offered in recycling programs remained a major topic from the previous survey. Attractive incentives like "product coupons" and "universal points" naturally showed high preference rates across all segments.

However, it was found that Sustainable Customers, in addition to these, chose "non-monetary incentives" such as "being informed of CO2 reduction amounts," "being able to make donations," and "being informed of collection volumes/results" at a higher rate than other segments.

Even with non-monetary incentives, sustainable customers who continue purchasing and participating in collection activities are precisely the customer group essential for driving the circular economy.

Potential for multifaceted business expansion including "secondary distribution"!

This survey also yielded interesting data regarding the concept of "secondary circulation" during purchasing behavior.

Sustainable customers and loyal customers share common traits, such as high repeat purchase rates and a tendency to prioritize environmentally friendly products even at higher prices. However, their attitudes toward "secondary circulation" differed significantly.

While many loyal customers feel "there are items I want to own even if I don't use them frequently," sustainable customers show a higher tendency compared to other segments to desire purchases that benefit society or those around them, such as ethical consumption or crowdfunding.

Sustainable customers also actively use services like flea market apps and show strong interest in sharing services. These findings suggest that the "secondary market" concept—involving sharing and reuse—aligns well with the values and lifestyles of sustainable customers.

One characteristic of sustainable customers is a high awareness of "reuse," such as using flea market apps. In contrast, many loyal customers want to keep purchased items indefinitely.

In Japan, "recycling" has traditionally been promoted. However, it's not widely known that recycling actually requires energy and generates CO2, making it an activity with a high environmental impact.

Therefore, to achieve a circular economy, it is recommended to prioritize low-environmental-impact approaches like extending product lifespans, "reuse," and "sharing" as the first choices.

Companies may be able to achieve both profitability and reduced environmental impact by shifting from the traditional business model of "manufacturing and selling products" to service businesses related to secondary distribution, such as sharing services and flea market apps, or by developing these alongside their existing operations, creating a multi-layered business model.

Sustainable customers evolve from buyers to "partners" supporting companies

Our survey findings reveal that sustainable customers often purchase products because they resonate with a company or brand's philosophy and wish to support it. They take pride in their lifestyle choices when buying from such companies or brands, which in turn drives repeat purchases and participation in recycling initiatives.

When transitioning to sustainable management, companies should consciously view sustainable customers not merely as "purchasers," but as "partners" in realizing a sustainable society, and strive to build stronger relationships with them.

Increasing the number of partners who join the circular economy cycle and creating a flow of circulation is arguably the most direct path to achieving both business viability and sustainability.

In recent years, the circular economy sector—including initiatives to digitize collection and reuse systems—has drawn attention from diverse organizations and companies, both public and private. At Dentsu Inc., we will continue to offer ideas and proposals that support sustainable management, leveraging marketing perspectives and approaches focused on consumers.

In future business and marketing, including business development, why not consider the "sustainable customer"?

[Survey Overview]
Survey Name: "Second Sustainable Customer Survey"
Conducted by: DENTSU PROMOTION PLUS INC.
Target Area: Nationwide, Japan
Respondent Criteria: Men and women aged 15 to 79
Sample Size: 1,200
Survey Method: Online survey
Survey Period: November 29–30, 2023
Research Agency: Dentsu Macromill Insight, Inc.

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Press Release:
Development Begins on Circular Platform to Realize Circular Economy Through Combined "Collection/Recycling" and "Sales Promotion" Mechanisms

Related Article:
Explaining "Sustainable Customer" Survey Data Useful for Sustainability Management
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