How to meet customers' expectations of sustainability

Sustainability has become a fundamental expectation among consumers, with a significant majority now prioritizing eco-friendly practices in their purchasing decisions. Through the years, studies have indicated that consumers are increasingly willing to alter their shopping habits to support brands that demonstrate a commitment to environmental responsibility.

Stores are still failing to meet consumer expectations

Consumers are increasingly prioritizing sustainability in their purchasing decisions, according to a 2023 study in the peer-reviewed journal "Sustainability. In a Danish survey from PriceRunner, 12% say that they have at least once opted out of an e-commerce store due to their lack of consideration for the environment and sustainability, and that number is expected to increase rapidly.

If we look at the consumers of the future alone, the 18-29-year-olds, the figure is already almost doubled to 22%.

However, PriceRunner’s studies also show that it is difficult as a consumer to ensure that you act as sustainably as possible when shopping online. Only 20% responded that they agree with the statement, “I get enough information from e-merchants to be able to make sustainable choices when shopping online.”

It seems clear that e-commerce stores have much to gain from communicating better about their efforts to promote sustainability.

Lars Sørensen, CEO of the Danish award-winning outdoor chain Eventyrsport, states: "Danish stores, both online and physically, have a responsibility to make it easier for Danes, for example, by making it easier for customers to find the products that are produced with an emphasis on sustainable materials and quality.”

It is not only within B2C that information on sustainability is in demand. In 2022, the Danish Chamber of Commerce showed that nearly half of Danish companies have adopted formal policies or guidelines that consider sustainability when making purchasing decisions for their businesses.

While personalization and recommendation platforms are not typically associated with promoting sustainability, they offer significant potential to support this goal. This article will explore how these platforms can be leveraged to enhance sustainable practices in e-commerce.

How can a personalization platform contribute to sustainable practices?

As the name suggests, a personalization platform can help predict which products or articles are of interest to the customer based on their behavior. Common methods of implementing these recommendations could be integrating product suggestion modules on the homepage and individual product pages or adjusting the order of items displayed in product category lists.

In other words, a personalization platform analyzes customer behavior to identify preferences. If a customer frequently views or purchases organic products, the platform will recognize this pattern and tailor future recommendations accordingly.

Essentially, a modern personalization platform influences customer behavior when they shop. By leveraging personalization technology to promote sustainable options, businesses can fulfill their responsibility to encourage more environmentally conscious choices.

The secret sauce: Merchandising

By setting up merchandising rules, you can influence how relevant specific products appear and increase the chances of them being shown to users. The more often a product is shown to a customer, the higher the odds of it being purchased naturally.

However, it is important to use merchandising rules carefully. If they prioritize certain products too much, making the displayed products less relevant to users' needs, it can negatively impact the conversion rate.

Merchandising rules can also be used to deprioritize products. You can learn more at the Relewise Merchandising Center.

What kind of data can be used for merchandising rules?

Merchandising rules can be applied to any available product and category data. This means that it enables targeted prioritization of sustainable options to influence customer choices⏤ and this is where it becomes interesting!

Many data points could be relevant to supporting sustainable choices, including:

Organic certification: A widely recognized product attribute, often indicated by a visual label. Merchandising can prioritize organic alternatives, not just for eco-conscious customers, but for all shoppers, promoting sustainable choices more broadly.
Return rate: Transportation is a major contributor to e-commerce's environmental impact, especially when products are both delivered and returned. To mitigate this, merchandising rules can be used to deprioritize products with high return rates, potentially reducing unnecessary shipping.
Recycling: If all or part of a product is made of recycled materials, it'll be more sustainable than newly produced products. These products can be prioritized using merchandising rules.
CO2 emissions from production: It's increasingly common to calculate the CO2 emitted during product manufacturing. Merchandising rules can prioritize products with low CO2 emissions and/or deprioritize those with high emissions.
Distance to the production site: As mentioned, transport and shipping are some significant transgressors related to sustainability. A data point you can often determine is the distance to a product’s production site. You can then create merchandising rules to prioritize products produced closer to the consumer and/or deprioritize those further away.
Various labeling and certification schemes: There are many certification programs across different industries and products. Merchandising rules can be used to prioritize the presentation of products that meet sustainability certifications.

Product information management (PIM) has become a key area for online success. The more and better data you have about your products, the better customer experience you can deliver. As the list above shows, product data combined with a personalization platform can help influence customer behavior in a more sustainable direction.

Merchandising rules can target not only product and category data but also customer data, such as their behavior or how they entered your shop via UTM codes. These rules can also be applied to combinations of product, category, and customer data.

Summary

Both companies and private shoppers have an increasing desire to help ensure a sustainable future. The responsibility is shared, and many consumers would like to take on greater responsibility but feel they lack the information to make informed choices.

With the right data available, a personalization platform like Relewise can help online shops inform customers and influence their behavior in a sustainable direction when shopping online. PIM systems are a crucial factor in online success, and with the collection of new sustainability data points, it only becomes even more critical to keep track of your product data.

Studies show that many customers request it, and in this way, a sustainable focus can also become a competitive advantage for your online shop.