Selling Sustainability

After reading about the Exchange Behaviour Framework, as explained in my previous post, I decided to investigate the application of the Exchange Behavior framework to the selling of sustainability. For this analysis, the concepts of a sustainable ‘product’ has been used. For a sustainable ‘product’ to be sustainable, it must be able to make a contribution towards sustainability by affecting, or having the potential to affect the environmental impact of many millions of users. This is not limited to reducing carbon dioxide emissions, and an take various forms, including:

1. Services (Examples: carpooling apps, rental services, etc.)
2. Strategic Design (Examples: logistics, spacing and/or resource planning, relevant policies towards sustainability)
3. Optimised Design (modular, multi functional & upgradable products. Example: all in one printer, fax, scanner, photocopier)
4. Dematerialisation (virtual libraries, digitised video, software products that replace physical products, tele-working systems that allow people to work at home)
5. Life Cycle Design (a physical product that is sustainable through every stage of its life cycle)
6. Longevity (Products and component parts that are designed to have an optimal life span)
7. Positive Aspects (a product that has negative aspects which are totally outweighed by the positive ones)

there are many examples of the application of the Exchange Behaviour framework used for selling sustainability.

Ridesharing apps have been used to illustrate Phases of Purchase Process. An example would be a student running late to class, who selected a service such as uberPOOL, rather than a taxi. As shown above, a sustainable product includes any service with a positive environmental impact (even the slight reduction in emissions from carpooling instead of driving or getting a cab for one), making this a positive aspect of ridesharing services. The PPP element can be used to identify gaps in a market, especially if that gap is the need for a more environmentally friendly alternative.

Like with any sale, the second building block is about finding out who are ‘those with the authority over money spending and product selection.” One example of an implication of selling sustainability is targeting the key people are technology affluent, as opposed to those who are not.  Because of the lack of knowledge and trust around technologies such as Plug and Drive, it will be difficult to achieve wide-spread market adoption if only the general population is being targeted; it’s important to target the technology enthusiast. Additionally, it has been shown that despite the large surge of woman entering the workforce, there are still differences in men and women’s approaches to buying electric vehicles: ‘“The female focus-group participants’ interest in home charging jibes with statistics that say women are more likely to work at home or close to home than men, or do more non-work driving, such as running errands.” While it is a mistake to generalize when trying to sell technologies, it is a consideration for salespersons to keep in mind. Lastly, an interesting challenge with key people is not only finding those who you can sell to, but those who can exert influence over others you may want to sell to. Targeting government for ‘selling sustainability’ can be ac extremely wise strategy, as explained below with the sixth building block.

The selling of ‘ugly fruit’ by Intermarche and Loblaw’s have been used to illustrate View on Criteria, with the basic message of “Don’t sell them sustainability, sell them the benefits of sustainability!” These companies have noticed that as food waste is a significant issue in the food industry, so is the inability of low-income families. The VOC of low-income families is not necessarily sustainable food, but less expensive food, so they will buy ‘ugly fruit’ if it is affordable. The use of resources to grow fruit is made more efficient through the optimization of the use of crops, including ‘ugly fruit.’ As well, the selling of the idea of ‘greening of IT,’ and later on, ‘greening by IT’ required a financial justification in order for it to be implemented. Not only were costs cut by more sustainable, efficient uses of resources, but by implementing sustainable IT, Intel also increased its brand reputation.

Buying Points and Selling Points are both used in the sale of Tesla electric vehicles. Not only does Tesla offer sufficient Buying Points for a purchase to be practical (e.g. an alternative fuel vehicle that gets you from point A to point B), but it also fulfils a social need in consumers that buy Tesla vehicles. Using Appropriate Communicators and Networked Resources (explained below) can also be a way to get sustainability to ‘look cool.”

Deliverability is a challenge for alternative fuel vehicle sellers, especially with the lack of fueling infrastructure to support this industry. Even with battery electric and fuel cell vehicles on the market, there is still the concern that charging or refueling stations are nowhere as accessible as conventional gas stations. Rather than waiting for these stations to come up on their own, companies often have to provide their own infrastructure until the economy as a whole can choose to adopt the technology on a wider scale. For example, Tesla has its own charging stations, and Hyundai has promised free fuel for those who buy a fuel cell vehicle from them. Working with the government to provide these features to be part of your integrated product is also of great benefit.

As discussed above, choosing key persons who can also exert influence over others can be valuable for trying to sell a sustainable product. The focus is not only trying to make a sale, but to invoke a cultural change while doing so, for long-term success in both business, and environmental security. Governments around the world have been vital networked resources for many companies trying to sell sustainable products, as well as influencing consumers to strive for sustainability overall. Examples include Sustainability Weeks in Austria (thousands of retailers promote sustainability through special offers), ‘Energy Savings: Hurry Up. It’s Getting Hot’ in France (a television campaign where small steps for conserving energy are suggested), ‘Cool Biz’ in Japan (a campaign encouraging people to go to work in casual clothes to reduce air conditioning use), and ‘Tomorrow’s Climate: Today’s Challenge’ in the United Kingdom (a multimedia communications campaign to promote action against climate change).

In the Behavior Exchange framework, three difference indices are suggested for evaluating the status of an on-going sale: Relating Status Index, Attitude Index, and Confidence Index. The use of each of these indices will be beneficial for selling sustainability in virtually every industry. However, the suggestion from this analysis is to also go beyond those indices, and to look at socio-economic, cultural, and political trends, to evaluate the effect of changes in the macro environment, to determine how a sale of a sustainable product will occur in a sale from a single business to a single customer.

Lastly, competition remains as a crucial building block for selling sustainability, one that involves integrating other elements into it for success. With trying to sell sustainability, there is the momentous task of competing with the incumbents of the industry, the cheaper, more readily available choice that consumers already have placed their trust in. One staggering example of the delay in green technology development and market acceptance is that fact that despite being the world’s second-largest solar cell producer and a top manufacturer of energy-saving LED lights, Taiwan has faced significant challenges in getting its population to adopt these energy-efficient technologies, due to low electricity prices not being an incentive for them to cut electricity use. The key is to tie in all of the building blocks of the Exchange Behavior framework into the sales management of a company, in order to sell sustainability. It is important to look at co-opetition, not only competition. Compete hard in the sustainability industry, but don’t forget to collaborate harder.