Customer loyalty in Sustainable Businesses

Embedding sustainable practices into your business is essential to future-proofing your business! Here are the facts:

• Customers are willing to pay up to 6% more for sustainable and ethical products
• Customers are 64% more likely to recommend a business with sustainable practices.
• Customers are more likely to return to a business they know is doing good for the environment.
• Hotels and businesses that include eco-friendly marketing are seen as having something ‘extra’ compared to companies that do not.
• Customers see hotels committed to the environment as more committed to them.

Customer loyalty is an essential ingredient to the success of any business. It is also a critical factor in creating a sustainable business model. Companies building solid customer relationships and creating loyalty have a greater chance of achieving long-term success.

Sustainability is increasingly becoming essential for many businesses as customers become more aware of their environmental impact and demand ethical products and services. In addition, companies that are able to demonstrate sustainable practices can gain customer loyalty, as customers become more likely to trust them and stay loyal for extended periods of time.
Sustainability is about protecting people and the planet, but onboarding sustainable practices into your business are vital for your business’s sustainability.

References

Haanaes, K., Dalsace, F. and Wurlod, J. (2022) How to make the business case for a sustainability strategy, I by IMD. Available at:
https://www.imd.org/ibyimd/sustainability/how-to-make-the-business-case-for-a-sustainability-strategy/
(Accessed: February 20, 2023). 

Chen, R.J., 2015. From sustainability to customer loyalty: A case of full-service hotels’ guests. Journal of Retailing and Consumer Services, 22, pp.261-265.