5 Ways to Use the Circular Economy to Engage with Your Audience
Caring about the environment is no longer a trendy option. It's an important part of your company's success. Businesses that don't take advantage of the circular economy today are likely to face serious issues tomorrow.
The entire world is actively implementing sustainability into everything from supply chain to e-waste management. In addition to all of its benefits, you can use a circular economy to engage with your target audience.
What is the Circular Economy?
A circular economy is a system created to eliminate waste and pollution.
Linear economy — produce > use > discard
Circular economy — produce > use > reuse
In a circular economy, all products are manufactured in such a way that they can be reused either biologically (broken down by nature) or technically (for further production).
Today, the UK generates more than 40 million tons of waste per year. The main goal of the circular economy is to eliminate the need to deal with it.
The circular economy is drastically different from the linear economy. To implement it, companies need to rethink their approach to many aspects of the way they do business. One of the biggest differences is the consumer's role.
Businesses need to switch the marketing approach from promoting cheap short-term consumption to more expensive but long-term functionality. Meanwhile, they need to apply creativity to increase the appeal of refurbished products.
Audiences to Attract with Circular Economy
According to a small study done by Marks & Spencer, about 10% of the customers are passionate about the circular economy while 35% are ready to support it without making serious changes to their lifestyles.
The rest are either indifferent or ignorant because they don't believe they could make a difference. These people need a little push from a brand to become loyal circular economy followers.
1. Aware Consumers
According to a CGS survey, about 70% of consumers think that sustainability is somewhat important to their purchase decisions. These people may not be ready to take the first steps toward a circular economy on their own, but with a slight push, they can become loyal followers.
That's where your brand can come in. By implementing a circular economy and showing your accomplishments to the target audience, you can achieve impressive conversions.
Consumers who are aware of the need for sustainability but don't want to change their lifestyles will be more than happy to buy products or use the services of a company that does it for them. In short, you are doing the good stuff, and they feel like a part of the team. It's a win-win approach.
As a bonus, sustainability is the second reason why consumers return to a brand. Product quality is the first. By combining both, you can improve your company's bottom line substantially.
2. Loyal Brand Followers
If you aren't taking advantage of the circular economy, you could disappoint your loyal customers. About 88% of consumers expect their favourite brand to take action toward making the planet safer. They may not be aware of all the nuances of the circular economy, but they want the brand to help improve their environmental and social footprint.
Using brand power for good is highly appealing to all types of consumers, from loyal brand followers to slightly aware clients. Those who don't believe that one person can make a difference are ready to believe that a big brand can.
3. Passionate Green Activists
For a consumer who is highly aware of the need for a circular economy to save the planet, your move toward it could be a determinative factor. You could gain loyal customers simply by showing how much your brand cares for the environment.
When having to choose between similar offers, passionate green activists will turn to the circular economy implementers.
4. Generation Z
Generation Z, which is gaining purchasing power, is much more aware of sustainability than older generations. According to First Insight's study, more than 62% of Generation Z consumers prefer to buy from a sustainable brand. Meanwhile, 54% of them are willing to pay more for a sustainable product (compared to 50% of Millennials).
These buyers are driven by more than just price. They want the brand's message to align with their values. That's why by implementing a circular economy, you can attract an audience, which is going to dictate shopping trends in the upcoming decades.
5 Ways to Use Circular Economy to Engage with Your Audience
Implementing a circular economy is a huge step toward attracting new segments of your target audience while strengthening brand loyalty with existing clients. You can use this economy to engage with the audience in the following ways.
Launching a Green Line Of Products — The transition from linear to circular is gradual. While you are working on it, it's possible to cater to all segments of the target audience by implementing a "Green Line" of products manufactured by using recycled materials.
Educating the Consumers — As part of your content marketing strategy, you can provide educational materials that teach your consumers about the circular economy and its benefits.
Working on Warranty — Your clients will be more likely to appreciate your circular economy effort if you offer the same warranty on refurbished items as you do on brand-new products.
Increasing transparency — 55% of consumers demand more information on environmental issues from their brands. Providing clarity on your position and actions related to the circular economy can keep your existing clients happy.
Providing incentive — by giving consumers an incentive (e.g. reward programs) to join your sustainability effort, you are educating the audience while strengthening your retention tactics.
Overall, using a circular economy is likely to attract new segments of the target audience while giving you an opportunity to improve existing client relationships.
Branding and Circular Economy
With the circular economy gaining momentum all over the world, it's imperative to stay up to date with the latest changes. By implementing various aspects of this economy, you are powering up your brand, attracting new customers, and enhancing your retention efforts.
If you need help with branding in the circular economy setup, please don't hesitate to contact us at any convenient time.
