Generation Green
How to reach today's eco-minded consumers
February 01, 2008
We're all familiar with the common characteristics and attitudinal traits associated with the Boomers, Generation X and Generation Y. But times are changing. With the increasing awareness of the need for energy and water conservation, consumers of all ages are bonding in an effort to preserve the earth's natural resources. Today's generations are all part of a new "Generation Green," which seeks tangible action and real results. To effectively market your eco-friendly products and services to this new generation requires an understanding of who they are.
The movement toward green products, especially in the home, is being shaped in part by educated women who are not only eco-sensitive, but also career-driven and financially secure. The subject of a study by Kleber & Associates and StandPoint Marketing Research, which focused on their purchasing habits, these highly motivated female consumers are responsible for about 80 percent of all household-related purchasing decisions, earning them the designation of "Chief Purchasing Officer" (CPO), and consequently make up an essential portion of Generation Green. Typically the manager of all household finances, they are prime targets for those looking to sell and market eco-friendly products and services. Also spearheading the green home movement now and in the near future are Generations X and Y, whose spending on homeownership and remodeling will peak within the next few years.
spending behavior
Of the eco-friendly kitchen and bath products evaluated in the study, homeowners were most interested in low-flow and touchless faucets, high-efficiency toilets, countertops, appliances, energy-efficient roofing options and flooring and cabinetry made from recycled materials. Motivating factors that ranked high in importance included energy savings, preservation of natural resources, look and feel of natural products and indoor air quality. Additional buying considerations include:
• Saving "green." Though participants in the focus group were familiar with the Energy Star logo, when asked if they would pay more for an item bearing the logo, they indicated a willingness to do so if the increase was no more than five percent. Both CPOs and the younger generations tend to make decisions that directly affect their day-to-day lives, like decreasing their utility bills. Therefore, they specifically look for those products and services that provide energy- and water-efficient benefits.
• Quality and price vs. brand name. Though brand-conscious, CPOs don't forsake quality for brand name. The younger generations are also known for having little or no brand loyalty, purchasing items based primarily on need and budget. Generation Green understands that a brand product does not necessarily equate quality workmanship.
• Combining luxury and environmental consciousness. One participant in the focus group indicated that she would be thrilled by a marrying of luxury and eco-friendliness. Generations X and Y tend to have varying style preferences, but will often choose design and comfort above any other product classifications.
improving contact
In light of these preferences, following are some marketing strategies that may offer better reach:
• Provide online information. Generation Green are avid and savvy users of the Internet, relying on it to research subjects that interest them or compare information on product brands and pricing.
• Offer a community for referrals. Because Generation Green is reliant on the Internet, creating an online community on your company website for current customers and prospects to converse about your product or service will pay dividends in the future. Endorsements and customer testimonials can go a long way with this group.
• Join and partner with green organizations and programs. Generation Green isn't just looking to purchase a high-efficiency toilet; they want to support a company that is involved in innovative eco-friendly developments. For them, an underlying commitment to sustainability is more appealing than just a green product.
• Create green-focused marketing messages. Generation Green is sharp, knowledgeable and not easily fooled. With the prevalence of greenwashing, truly eco-friendly businesses must be careful when marketing themselves. Saying you're green is not enough; you need to prove it.
The green movement is not a fad, and Generation Green will only continue to grow in volume and spending power. Understanding this complex generation and its different members will increase your sales and market share, simultaneously allowing your company to embrace its environmental side.
—Steven Kleber is president and founder of Kleber & Associates, Marketing and Communications (K&A) in Atlanta.