Tuesday, November 19, 2013

It's Complicated But It Doesn't Have to Be


Consumers need clarity to help them make the right choices and live more sustainable lifestyles

Bike schemes are now a common feature of most major cities. The front runner was Paris with its Velib; London has its Boris Bikes; Boston has its Hubway; and now New York City has Citi Bikes. The Citi Bikes first appeared in May and since then ‘NYC bikers have collectively pedaled 9.4M miles and taken over 4.7M trips’ – the scheme has been a great success. What I was interested to read is that the launch of the bike scheme coincides with a ‘12-point increase’ in the number of consumers who believe that Citi Bank is a ‘socially responsible company’. This is a huge jump considering the high level of consumer mistrust in the banking sector - poor Barclays must be kicking themselves for letting Boris Johnson get all the credit for the London scheme!

The extent to which positive perceptions of Citi Bank as a responsible citizen can be attributed to the company’s support for the bike scheme is unclear; however, it does raise questions about how consumers judge companies and brands.

Almost every week there are new survey results claiming that consumers increasingly believe that it’s important to factor social and environmental factors into their purchase decisions. Last month, BBMG, GlobeScan and SustainAbility released the 2013 Aspirational Consumer Index. According to the results, 92% of ‘aspirational’ consumers (36.4% of consumers globally) ‘desire for responsible consumption’ and 58% ‘trust in brands to act in the best interest of society’. What’s more, a staggering 90% ‘of them are even willing to pay more for products produced in a socially and environmentally responsible way’. Bear in mind that it is very easy to make these claims in a survey without actually doing the action in real life. This aside, the question for me is how consumers feel able to make these decisions when they are surrounded by so many conflicting messages.

A recent interview with Mark Crumpacker, Chief Marketing Officer at Chipotle, highlights the predicament of the consumer trying to make informed decisions. He cites the example of a competitor restaurant that lists grilled chicken that is ‘cage-free, skinless with no hormones added’ on its menu. Sold? The reality is that boiler chickens are never raised in cages and there are no Food and Drug Administration-approved hormones for use in chickens. The important consideration when it comes to chicken is whether or not antibiotics are used but this gets no mention. The restaurant in question seems to be intentionally misleading its customers.

It is not always so intentional. Just the other week Good Morning America featured a story about a woman in the UK who claimed that drinking 6 bottles of water a day had made her look 10 years younger. I’m not going to go into the validity of the claim – let’s just say that the light was significantly more flattering in the after image! What worried me was that the presenters were telling viewers how important it was to drink plenty of water, while sipping from plastic bottles. Not once did anyone think to refer to drinking from re-usable water bottles or glasses. Why should they? The story was not about recycling or sustainability right?

My instinct is to call on companies and brands to make it easy for consumers; reward consumer trust in brands to act in the best interests of society by actually acting in the best interests of society. After all, the task of educating consumers to make the right decisions feels like a daunting prospect.

However, as Tim Brown, CEO of IDEO, writes in his book Change by Design, in reality it has to be a ‘two-way process’. ‘If people do not wish companies to treat them like passive consumers, they must step up to the controls and assume their fair share of responsibility. This means that we cannot sit back and wait for new choices to emerge from the inner sanctum of corporate marketing departments, R&D labs, and design studios.’

In order to help consumers live up to their side of the contract, at the very least, there needs to be transparency so that consumers who want it, have the necessary information to make informed decisions. This is vital to help us all, as a global society, move further along the path to more sustainable consumption.