By Alicia Gill, Head of Advertising and marketing, Gratifii
There’s an untapped alternative within the loyalty rewards market that would present an edge in relation to your rewards program, notably with extremely loyal values-based members.
Sustainability, very like loyalty applications, is an growing focus for companies in every single place. Nevertheless it’s not simply one thing your small business is eager about, with eco-awareness the brand new regular for youthful shoppers and a rising tide of ‘acutely aware shoppers’.
The 2020 Mando-Join and YouGov White Paper, What the British need from Loyalty, confirmed 28% of Brits wished rewards to assist the surroundings and charity. In 2022, the third model of the report discovered 71% of British adults thought loyalty applications ought to assist folks dwell sustainability or assist the surroundings and 28% felt applications ought to offset carbon.
A latest US client tendencies report by Attest exhibits a 79.3% of shoppers surveyed need manufacturers to take a stand and symbolize a trigger, with local weather change one of many high points cited by shoppers.
And a latest CHOICE survey exhibits Australians too need to use their buying energy for good, with 65 p.c of shoppers surveyed contemplating the carbon footprint of their purchases.
It’s an identical story for workers.
A 2020 Unily report discovered that nearly two-thirds of UK survey respondents have been extra prone to work for a corporation with sturdy environmental insurance policies, whereas analysis from Elmo discovered 48% of Australians – together with 71% of Gen Z and 52% of Millennials – wouldn’t work for a enterprise that didn’t take motion to handle local weather change.
On the identical time, social choices, together with applications which join folks with causes, and the power to donate rewards to charity, have been recognized in The Level of Loyalty’s For Love or Cash 2022 report as one of many six currencies loyalty program members care about, alongside the likes of monetary rewards, experiential choices and applications that make their customers really feel particular.
This burgeoning curiosity led The Loyalty Academy to develop the primary ever course on the topic final November – Introduction to Sustainability and Loyalty – outlining particular issues and use circumstances.
It’s clear local weather change is now a driver for buyer loyalty.
Prospects are searching for new, modern methods to assist them make a constructive influence on sustainability. As a loyalty supervisor, that paves the best way so that you can reward members or workers with a brand new supply – one that offers them the satisfaction of doing good, whereas additionally enabling you to spotlight your small business’ dedication to tackling the powerful local weather points.
And that new type of loyalty program rewards? Carbon offset present playing cards.
A carbon offset 101
The time period ‘carbon footprint’ was popularised by an early 2000s TV promoting marketing campaign by oil and fuel supplier BP, urging us all to do our bit in decreasing our personal carbon footprints – the quantity of carbon dioxide emitted via your day by day actions, from driving to work to electrical use and even the meals you eat.
Our World in Information places the common footprint per particular person in america at 14.85 tonnes in 2021. Australians have been racking up much more at 15.09 tonnes, with Canada sitting at 14.30 tonnes. The UK is available in almost 10 tonnes lighter at 5.15 tonnes.
On the flip aspect are carbon offsets, that are primarily a unit of discount in greenhouse fuel emissions, or a rise in carbon storage via issues like land restoration or the planting of timber.
Carbon offsets work by investing funds in initiatives that ‘seize’ carbon, or are vitality environment friendly, stopping the discharge of greenhouse gases.
One carbon offset, or carbon credit score, represents one metric ton of carbon dioxide or its equal greenhouse fuel (CO2e) that’s eliminated.
Whereas planting timber that sequester carbon is without doubt one of the most typical types of carbon offsets, initiatives run the gamut from constructing clear environment friendly cookstoves and methane fuel seize in landfill, to defending rainforests via diversifying landholder incomes and supporting sustainable agroforestry.
Finished proper, the applications don’t simply neutralise greenhouse gases: They will ship life-changing social and financial advantages to communities.
Take the instance of wind and photo voltaic farms changing coal-fired energy stations in Tamil Nadu in Southern India. Whereas the challenge offers clear vitality, it has additionally created employment alternatives in an space the place local weather change has made agriculture more and more tough. Locals are employed as engineers, upkeep technicians, on-site operators and safety guards, boosting the native economic system. New roads, constructed for the development of the wind and photo voltaic farms are offering improved accessibility, whereas vitality safety is improved and rural electrification has been prolonged. The wind and photo voltaic farms have additionally funded native colleges, vaccination applications and water wells to irrigate crops and produce life again to the parched land – powering actual change not only for the surroundings, however the group too.
So why do you have to think about linking carbon offsets to your loyalty program?
Carbon offsets have historically been utilized by organisations needing to fulfill compliance obligations or steadiness the scales for unavoidable emissions on the trail to discount (and let’s be clear right here, offsets usually are not the tip aim – they must be used together with precise carbon reductions by everybody).
However more and more, people are additionally utilizing them to offset their influence on the surroundings, together with for particular situations, comparable to a flight.
Airways have been permitting shoppers to buy carbon offsets when reserving flights for a lot of years, with resorts and automobile producers additionally embracing the idea.
Sustainabilty isn’t a brand new idea for loyalty applications, with inexperienced loyalty applications a rising market, and a few applications permitting loyalty level to unlock credit.
However now there’s another choice with Gratifii enabling companies to supply Carbon Offset Present Playing cards to reward and interact members or workers.
Gratifii has partnered with Asia Pacific’s most trusted carbon offset firm, Tasman Environmental Markets (TEM) and extremely revered local weather change advisory agency nDevr Environmental, to assist verified carbon offset initiatives supporting native forest regeneration in Australia and renewable vitality initiatives in Asia, together with the beforehand talked about Southern India challenge, by way of present playing cards.
True, not all your members can be but in taking on carbon offset present playing cards as a part of your loyalty program. However the rising swathe of values-based members – these keen to vote with their wallets to assist manufacturers that align with their values – are prone to welcome the chance.
These members include some added advantages for your small business, as highlighted by Forrester analysis that exhibits values-based buyer are extra loyal – they spend extra and really feel extra positively about these manufacturers.
Gratifii, which has two CLMPsTM on workers, is delighted to be a key sponsor of the inaugural Australian Loyalty Academy CLMPTM Certification Workshop being held this Could in Melbourne. We imagine supporting loyalty schooling to assist elevate requirements within the trade advantages all inside the trade – simply as carbon offsetting holds the potential to profit companies and all of humanity.
You’ll be able to contact or comply with Gratifii for extra data.
Alicia Gill is the Head of Advertising and marketing for Gratifii, an Australian-based loyalty providers and expertise supplier with purchasers in a number of markets world wide.
