#243: How Can Loyalty Marketers Support Sustainability Goals?

Sustainability is both an urgent and an important focus for businesses, and one that loyalty marketers can play an important role in supporting. But how?

In today’s podcast, we’re joined by Isobel Finlayson, Sustainability Lead for Mando Connect to share their ideas, insights, research and suggestions on practical ways that loyalty marketers can help.

We showcase some examples of global best practice in sustainability led by loyalty professionals, with examples in both retail and aviation, and we discuss eight specific tactics you can consider implementing to leverage the power of your loyalty programme to address this critical concern for both consumer and companies alike.

Show Notes:
  1. Mando Connects
  2. Isobel Finlayson
  3. Mando Connect’s White Paper Download
  4. Sustainability article and exclusive research for The Wise Marketer
  5. Mando Connect’s Million Tree Pledge

Audio Transcript

PAULA: Welcome to Let’s Talk Loyalty, an industry podcast for loyalty marketing professionals.

PAULA: I’m your host, Paula Thomas, and if you work in loyalty marketing, join me every week to learn the latest ideas from loyalty specialists around the world.

PAULA: This show is sponsored by Comark, a global provider of innovative software products and business services.

PAULA: Comark’s platform is used by leading brands across all industries to drive their customer loyalty.

PAULA: Powered by AI and machine learning, Comark technologies allow you to build, run, and manage personalized loyalty programs and product offers with ease.

PAULA: For more information, please visit comark.com.

PAULA: Hello, and welcome to episode 243 of Let’s Talk Loyalty.

PAULA: Focusing on the all-important topic of how loyalty program owners can support the sustainability agenda of our businesses.

PAULA: As we all know, all over the world, consumers are expecting brands to lead by example when it comes to behaving in sustainable ways.

PAULA: And I was really impressed when our friends in Mando Connect reached out to me recently and offered to discuss this topic in the context of how the loyalty industry in particular can get more actively involved.

PAULA: They also offered to plant a hundred trees in the name of Let’s Talk Loyalty, as a thank you for us featuring them on the show as part of their Million Tree Pledge.

PAULA: So with that added incentive, how could I say no?

PAULA: I hope you enjoy this episode and my conversation with Isobel Finlayson, Sustainability Lead for Mando Connect, which includes lots of practical examples how loyalty programs can support sustainability.

PAULA: So Izzy, welcome to Let’s Talk Loyalty.

PAULA: Oh, it’s wonderful Izzy.

PAULA: We didn’t get to meet recently at the International Loyalty Awards, although I know that’s where this whole idea came about, about the importance of sustainability.

PAULA: As a word, I obviously can’t even say very well, but something that loyalty practitioners increasingly need to be thinking about.

PAULA: So, a wonderful conversation ahead.

PAULA: Really interested to hear all of the work that you’re doing with Mando Connect.

PAULA: But before we get into all of that, Izzy, I always ask, as you know, what is your favorite loyalty program of the moment?

IZZY: Oh, such a difficult question, as I think there are so many good examples out there at the moment.

IZZY: But if I had to choose, I would go with Costa Club from Costa Coffee, which is the UK’s largest coffee shop chain.

IZZY: I think it’s a great example of a loyalty program who is rewarding its customers for their use of sustainable and environmentally friendly behaviors.

IZZY: So members can earn free coffees twice as quickly if they use a reusable cup, which takes just four purchases versus kind of eight purchases if you were using without a reusable coffee cup.

IZZY: So it’s a really lovely, tangible benefit.

IZZY: And the app is simple to use, it’s digital, it’s visually engaging, and even turns your collector tokens green when you are.

IZZY: Yeah, so a real nice visual reminder of kind of you being green and doing your bit for the environment.

PAULA: That’s a brilliant idea, Izzy.

PAULA: I wasn’t aware of that.

PAULA: And I know you’re based obviously in the UK where Costa is, as you said, a market leader.

PAULA: And when we talked before, what I really loved you were telling me was the importance of something that’s very tangible.

PAULA: So again, as loyalty professionals, it’s all about driving, you know, profitable behavior change for the business.

PAULA: But actually this idea of making it profitable for the member and in such a simple way, I think that’s fantastic.

IZZY: Yeah, absolutely.

IZZY: I think they’ve done a fantastic job of weaving in sustainability into something that’s quite user-friendly and easy to understand for customers.

PAULA: Amazing, amazing.

PAULA: And I think what that does as well, Izzy, is you’re absolutely right.

PAULA: The visual reminder, and then I guess it brings in the frequency piece as well.

PAULA: So every single time you bring your reusable mug, you’re getting that benefit.

PAULA: It’s really, really lovely.

IZZY: Yeah, absolutely.

PAULA: Great.

PAULA: So listen, why did you guys decide?

PAULA: As I said, I know Charlie, she’s been on the show before.

PAULA: So, you know, Mando Connect is doing some extraordinary work and won some incredible awards, of course, with your clients at the International Loyalty Awards.

PAULA: But you’re literally putting a stake in the ground, I guess, in terms of, you know, sustainability being a key priority for every loyalty professional.

PAULA: So give us a bit of context around why you’re putting such emphasis on it, Izzy.

IZZY: Yes, we are.

IZZY: We’re flying the green flag.

IZZY: Well, the reason why I feel so passionate about this is because every year, Mando Connect publishes a white paper around what Brits want from loyalty programs.

IZZY: And every year, kind of sustainability comes out in the research.

IZZY: And I think, excitingly, this year is where we’ve seen the biggest kind of shift in attitudes towards sustainability.

IZZY: And it actually came out as one of our biggest key insights from the research.

IZZY: With 71% of Brits thinking loyalty programs should help people live more sustainably or support the environment.

IZZY: That’s a huge stat.

IZZY: Yeah.

IZZY: So for us, we see the obvious benefits.

IZZY: It builds emotional loyalty and also brand advocacy whilst also saving the planet.

PAULA: I totally agree.

PAULA: And what I think is happening, Isi, and I’d love to hear your view on this.

PAULA: So I think businesses are very clear and certainly pre-COVID, I think it was perhaps one of the top kind of marketing objectives for many companies, to find a solution around that.

PAULA: I think COVID did distract a lot of people for obvious reasons, but I definitely feel we’re getting back on track with this level of focus.

PAULA: But to me, I think the shift that’s happening, and it sounds like exactly what you’re finding in the research is, it’s becoming a responsibility and an opportunity that loyalty professionals can lead rather than having it maybe on the CEO’s agenda, which let’s be honest, the CEO is taking care of everything.

PAULA: So we’ve got the believers.

IZZY: I agree, and I think it presents quite an exciting opportunity for loyalty marketers as well.

IZZY: I think we’re all probably quite aware that sometimes the loyalty program within the marketing mix sometimes comes later within the kind of marketing strategy.

IZZY: Sometimes it can be harder to kind of get alignment with brand and kind of within internal kind of key stakeholders.

IZZY: So sustainability is something that obviously needs to be part of the whole program, the actual company itself.

IZZY: But as you say, it’s a real opportunity for the loyalty program to really fly that flag and kind of actually get the engagement off the back of it and almost be the vehicle to promote sustainability for the company.

IZZY: So yeah, I think it could become a really valuable lever for loyalty marketers.

PAULA: You’re absolutely right.

PAULA: And again, I’m still actually smiling about the Costa Coffee example, because again, not living in the UK, I don’t always hear about these wonderful ideas.

PAULA: We did have a great example.

PAULA: I’ll just give a shout out recently to Etihad Airways who are using their Etihad guest program.

PAULA: Just a really nice one for anyone listening.

PAULA: If you didn’t hear all about their Conscious Choices campaign, it’s exactly the insights you’re talking about.

PAULA: Wonderful for me, actually, it’s obviously happening in the Middle East region.

PAULA: But I guess the reason, I suppose, I wanted to go through some ideas with you today, Izzy, was exactly because I think everybody understands the need.

PAULA: And again, coming out into, you know, latter half of 2022, hopefully we have a bit more headspace, certainly planning ahead to 2023.

PAULA: But I think what a lot of us tend to struggle with is how can we be more sustainable?

PAULA: Like what kind of ideas do you think?

PAULA: And I know you’ve written about this, so would love to get some ideas on how loyalty program owners can start to drive that sustainability agenda with their members, you know?

IZZY: And the good news is that there’s so many ways in which you can do this.

IZZY: So yeah, as you said, Paula, we identified kind of eight key tactics, and we put these all through research as well as to kind of what are the best ways to kind of approach sustainability within your program.

IZZY: So coming in at number one, 44% of Brits said they want programs to reward sustainable and environmentally friendly behaviors.

IZZY: So obviously Costa is a great example of that with the reuse of the coffee cup scheme.

IZZY: But we’ve also got some fantastic examples with my John Lewis.

IZZY: So John Lewis, one of the biggest department store chains in the UK here, we’ve got a fantastic reuse, recycle campaign called the Beauty Cycle Initiative.

IZZY: It’s exclusive to members only.

IZZY: You bring in five empty products and then you get to enjoy five pounds of beauty.

IZZY: Very simple to understand, again, a nice tangible benefit back for customers.

IZZY: They feel like they’re doing good, but they’re also being rewarded for their conscious choices.

PAULA: I really like that, Izzy.

PAULA: You’ve reminded me here, and it might be a local initiative, but Kiehl’s Cosmetics, which I’m sure many of you know that kind of brand as well.

PAULA: They certainly told my husband about that, and now he’s avidly collecting empty jars, which he never did before.

PAULA: And he’s lived in the Middle East a long time, Izzy, and there hasn’t been a responsible way to recycle, actually, in this part of the world for a long time.

PAULA: Like it was quite shocking to me.

PAULA: We only got recycled bins, for example, in my building about two months ago in 2022.

PAULA: So that’ll give you an idea that sustainability hasn’t been prioritized in this region.

PAULA: But I love that John Lewis is making that available for all beauty brands across the whole department store.

IZZY: Yes, I think you raise a good point there as well.

IZZY: I think the global standards for sustainability very much varies region to region.

IZZY: And I think I’m talking very much about the UK.

IZZY: And I think here, as we kind of talked about at the beginning, it is almost becoming a high-gain factor of programs, a sort of expectation rather than something to do.

IZZY: But well aware that in other countries, they might be at the very beginning of their journey.

IZZY: But we’re all, it’s good to start from wherever you’re starting.

IZZY: So the second tactic that we research was 43% of Brits said programs should offer rewards that help members live more sustainably.

IZZY: So a couple of great examples of that in the UK is TK Max’s loyalty program, which is actually TJX in the US.

IZZY: It’s called Treasure, and again, very easy to understand.

IZZY: Mechanic, you make five purchases, and then you receive a reward, and you can choose from one of four rewards.

IZZY: And one of those four rewards are always kind of eco or a conscious reward.

IZZY: So really nice examples of helping people live more sustainably with reusable wax wraps instead of cling film, e-bombs to encourage kind of bee production, reusable makeup pads, reusable hairbrushes, and really good examples there.

IZZY: Yeah, really nice.

IZZY: And then we’ve also got H&M who I think for a long time have been really actually pushing this conversation around kind of conscious choices through the H&M conscious range.

IZZY: They have the kind of donate in store activity, but they have now kind of built that into their loyalty program.

IZZY: So you earn conscious points for conscious choices.

IZZY: So bringing your clothes, using a reusable shopper bag, and purchasing from their H&M conscious range will earn you points in their program.

PAULA: And that’s also not one that I’ve seen through a loyalty context as well, Izzy.

PAULA: Again, they’re not just executing it in the Middle East that I’ve seen.

PAULA: I’ve seen it in store on the products, and that has been very reassuring actually, because I think we agreed all fair that fashion has often been one of the biggest sectors that unfortunately has contributed largely due to customer demand.

PAULA: And all of us wanting to have pretty things to wear.

PAULA: But just, I don’t know if this is, is that entirely, for example, the entire loyalty proposition, or does it sit alongside a core program?

IZZY: It does sit alongside a core program.

IZZY: So they will have kind of your exclusive discounts, which is 15% offer members instead of 10%.

IZZY: So that kind of sort of tiering.

IZZY: Yes, you know, if I was being critical, they could probably do even more.

PAULA: Of course, yeah.

IZZY: And maybe kind of bring it a little bit more to the forefront.

IZZY: They do have the standard kind of prizes that you would expect to see as well as the prize draws.

IZZY: So, you know, could they probably bring sustainability a little bit more into the prize draws and offers as well?

IZZY: I think so.

PAULA: Okay, okay, and yes, they’re also, I think, doing a lot more than most of the other high street fashion retailers, I would say.

PAULA: So I think we give them a nod to that.

PAULA: And I guess once they start building momentum, that’s the easy thing then to educate people because I do think there is a bit of a lag as well between sometimes what, you know, consumers say they want and then, you know, what they actually do when they’re in store.

PAULA: So do you see that in your own work as well, Izzy?

IZZY: Absolutely.

IZZY: I think we talked about this, didn’t we Paula, that for a while, I think there has been a big gap between intent and action.

IZZY: And we often see that in research that people come out saying, oh, you know, I’m holier than now and I’m gonna do all of these lovely charitable things and, you know.

IZZY: But I do think we’re, with sustainability, I should say, I think we are at this tipping point where it’s almost becoming separate to other purpose-driven causes.

IZZY: It’s almost kind of because of the urgency of the climate crisis that we are in at the moment, it can’t be ignored.

IZZY: And it needs to, it really does need to be addressed by all companies.

PAULA: For sure.

PAULA: And I know there was a high-profile example in a positive way as well, Izzy, you told me about with the hit show, and I hate to say that, but Love Island, which is not my style of TV, but again, given that at the same time, it’s sometimes addictive when you just kind of find yourself watching it.

PAULA: So apologies to people for that little admission, but just for people who haven’t seen what Love Island have done again in the UK market, Izzy, would you maybe tell us about their sustainability choice?

IZZY: Yes, I mean, this was big news in a lovely, positive way.

IZZY: So Love Island very publicly broke up with Fast Fashion.

IZZY: So historically they have always had a Fast Fashion sponsor who provides all of the clothes for all of the contestants.

IZZY: And they decided to move away from I saw it first, which is the kind of Fast Fashion company here in the UK.

PAULA: Okay.

IZZY: And they made the bold choice to move to eBay.

IZZY: And so all of the contestants are now dressed in pre-loved items and it has gone down brilliantly.

IZZY: And I think something that I didn’t mention at the beginning was that stat around Brits wanting to live more sustainably.

IZZY: What we actually saw when we dug deeper in that data was that younger people more than anyone really wants this.

IZZY: So 78% of Gen Z really thought that loyalty programs should be offering that.

IZZY: And obviously Love Island really targets that kind of Gen Z audience.

IZZY: So a very smart move.

IZZY: And one of, I think, one example to follow because I think there is always this juxtaposition with Gen Z.

IZZY: They obviously want to fit in.

IZZY: They want to look on trends.

IZZY: And obviously just with the kind of available disposable income they have, they’re not always able to buy kind of ethically and consciously.

IZZY: So that’s kind of why sometimes they do end up going towards some of these fast fashion brands, but with the emergence of people like eBay and Depop, who are starting to make kind of fashionable, trendy things more affordable, it’s sort of opening up those kind of conscious purchases more for that generation.

PAULA: Absolutely.

PAULA: And I think those demographic insights are extremely important, Izzy, and hopefully we’ll be able to get some access to your research for everybody who is obviously listening to the show, because I saw some other stats as well around, for example, there’s also a female bias that you found.

PAULA: So tell us a bit about the other kind of insights that you got on the propensity or interest and where it’s coming from.

IZZY: Absolutely, yes, so more women, 77% versus 69%, thought loyalty programs should help people live more sustainably.

IZZY: And also ABC1 consumers, 76% versus 65% C to DE.

IZZY: So ABC1 is the more affluent consumers living within the UK.

PAULA: Yeah, and the ones with children as well, I think I remember reading.

IZZY: Yeah, yeah, yeah, that was really interesting.

IZZY: So again, I think that what we saw was people that have children at home are more likely to want to live more sustainably, which I think that’s the old pester power from the children.

IZZY: Come on, mum and dad, you know, we should be recycling more.

IZZY: I certainly found that when I was with my parents during lockdown and sort of having a weekly fight with my stepdad around the recycling bins, he couldn’t understand it, but it’s a sort of generational thing.

IZZY: It’s much more important, I think, for the younger generations to live like this.

PAULA: And I haven’t made that connection.

PAULA: Actually, my assumption around that was that the parents themselves were kind of developing a conscience more and more through, you know, I suppose, realising, I suppose, just the very human way that, you know, once you are a parent, you start caring about that child’s future so much more.

PAULA: So I guess it’s a mix of both, but you’re absolutely right.

PAULA: Hester Power is good, you know.

PAULA: Go on then, tell us a few more.

PAULA: Sorry, I think I interrupted your ideas.

IZZY: A really, really great conversation.

IZZY: I think, yeah, the third way, so 39% thought supporting environmental causes mattered.

IZZY: And, you know, I think traditionally this is an area where loyalty programs have done very well in.

IZZY: So this is the kind of enabling members to donate points to environmental charities or making actual donations on customers’ behalf.

IZZY: We’ve got a lovely example of that in the UK, which is a supermarket chain called The Co-op.

IZZY: And that’s essentially the core benefit to their program.

IZZY: So going back to your earlier point, Paula, this is actually an example of a program who really does have sustainability at its core.

IZZY: So for every pound you spend, 2p will go back to the member, and then Co-op will also spend 2p on the donation to support community organizations and local charities.

IZZY: So a really lovely, again, simple mechanic and message to understand what a benefit for the customer, but also for your community.

PAULA: Yeah, yeah, you’re right, Izzy.

PAULA: I think the charity Opportunity was probably one of the first that loyalty program owners realized they could do for their members.

PAULA: So I definitely think there’s a lot of awareness around that.

PAULA: It seems to me that there’s a benefit where certain organizations do offer a choice, for example, to the member, where they can choose where to, I suppose, give their support to.

PAULA: And the simple example that always comes to mind for me is, I know Tesco, for example, had little plastic coins, which were just you could drop them in to a particular chosen charity, which was again a lovely, simple visual way to say, who do you want to support?

PAULA: So just in terms of principles around sustainability, do you also find that idea that the member can choose where the kind of support goes to?

PAULA: Do you find that’s important?

IZZY: I think that’s a great example.

IZZY: Actually allowing people to physically put a token in a bin, again, it gives you that wonderful moment when you finish your shop.

IZZY: I think the choice is actually really important because you need to…

IZZY: It sort of goes back to what’s important with loyalty marketing, and it’s that kind of personalization, offering choice, making it feel like it’s my choice.

IZZY: And actually we…

IZZY: There are a couple of nice new platforms out there.

IZZY: One of them is called Toucan, which is essentially like a charity aggregator, which you can almost plug in.

IZZY: You can allow your members to go into their platform and choose any charity.

IZZY: They have literally listed pretty much all of the UK’s charities.

IZZY: They were also on Dragon’s Den, if you’re a UK listener.

IZZY: They got their funding through that.

IZZY: But it’s like with everything, like we see with the food aggregators, delivery, adjust, et cetera, people want choice at the end of the day and it needs to matter to them.

IZZY: So yes, to answer your question, choice is very important and definitely a key factor.

PAULA: Absolutely.

PAULA: I think we’re all affected and touched in different ways by different ideas and areas that some people might want cancer support, some people might want to support the dog’s home or whatever.

PAULA: So I know that’s a little less than sustainability, but I do think that key insight, and that’s what I love about this show actually, is the idea of getting your expertise and insights on the key principles that people need to be thinking about because there is no one size fits all.

PAULA: So I love that example.

PAULA: So thank you so much for that.

PAULA: Great.

PAULA: Okay, so what other ideas have you got for us?

IZZY: Yeah, so number four, tactic number four.

IZZY: So 33% said programs should offer rewards from brands that help support sustainable causes.

IZZY: And actually 59% said they prefer brands that are sustainable.

IZZY: So we talked around the Love Island Partnership earlier.

IZZY: That’s a great example of eBay coming in.

IZZY: They’re obviously fantastic in terms of sustainability and their values.

IZZY: Another great example of this is Pret a Manger.

IZZY: So again, they do have a presence in the US.

IZZY: And they have got a charity within Pret called the Pret Foundation.

IZZY: They donate unsold food every night to shelters and charities across the UK.

IZZY: And so far, they’ve donated six million food items globally in the last year.

IZZY: So they are simultaneously kind of saving waste, food waste, and also working to break the cycle of homelessness.

IZZY: So I think just a really lovely example of a brand that’s really helping support sustainable causes.

PAULA: Yeah.

PAULA: And I can’t remember the exact statistic about the amount of food that is wasted on the planet, but it is something shocking.

PAULA: I’m going to say it was something around 33 percent the last time I researched it.

PAULA: It’s actually a huge issue.

PAULA: I mean, it’s totally the definition of unsustainable if we’re wasting so much food.

IZZY: Yeah.

IZZY: And I think quite rightly, it should be the players within the food and drink industry that are really stepping up here.

IZZY: Lidl as well, another supermarket chain here in the UK.

IZZY: They have some pretty impressive and kind of aggressive targets around food waste and carbon emissions.

IZZY: So they have committed to cutting kind of 40 percent of carbon emissions through food waste, which is a huge number.

IZZY: But again, fantastic to see that from these kind of big players.

PAULA: Absolutely.

PAULA: And I know that was another of your tactics as well, Izzy.

PAULA: You know, this whole idea of offsetting carbon and the role of the loyalty program being able to, I suppose, facilitate that.

IZZY: And yeah, this is an interesting one because there was about one in three felt programs should offset carbon and 71 percent are concerned about their carbon footprint and they want to take action, which is great.

IZZY: I think where we see a lot of examples from this is some of the highest carbon emitting industries.

IZZY: So airlines, fuel.

IZZY: And to be honest, it’s a hard sell because obviously people like Shell Go Plus, they have tried with kind of mixed success.

IZZY: So that’s the loyalty program from Shell.

IZZY: The members can join the program’s carbon offset program.

IZZY: And as long as they join, opt in and swipe their card, Shell will offset their emissions from the fuel purchases they make.

IZZY: And I also, funny enough, had the example of Etihad Airways as well around their kind of conscious choices.

IZZY: And the ability to kind of donate guest miles to green causes effectively.

IZZY: I think these companies, unfortunately, well, not unfortunately, are subject to more criticism.

IZZY: And I think it is quite difficult for them to I guess authentically promote kind of sustainable programs without sort of changing their core products.

IZZY: So it is harder.

IZZY: But I think what we have seen is a real rise in kind of planter tree kind of programs as well, which is lovely.

IZZY: And I think quite easy to implement.

IZZY: And again, a really nice example of, you know, a customer feeling like they have done something.

IZZY: So just by purchasing something from a brand, the brand will then planter tree on their behalf.

IZZY: And that’s a really nice sentiment.

IZZY: And actually, anecdotally, we’ve heard that by having these kind of planter tree kind of planter tree activities at point of sale, it naturally converts sales higher than if you were just going to give someone a straightforward discount, which is amazing.

IZZY: So that’s really encouraging to see.

PAULA: It is.

PAULA: It’s a really inspiring one, actually, because yes, I think at the end of the day, trees are absolutely part of the solution.

PAULA: And if we can get ourselves out there and get a few of them, a few more trees planted, well, a few more hundred million trees planted, to be honest.

PAULA: But just to go back to your point, Izzy, I think you’re absolutely right.

PAULA: There is huge conflict and challenges for the brands that are seen as contributing to the planetary challenges and how they can sustainably address it in a way that has credibility.

PAULA: So again, kudos to Shellgo Plus and to Etihad.

PAULA: And I think to me, the bottom line is, I think sometimes consumers can almost blame the company while continuing to buy that company’s products.

PAULA: So I remember somebody very high profile in Ireland commenting about a fuel company and how much damage they were causing the environment.

PAULA: And I’m pretty sure I’ve seen her driving a big car.

PAULA: So I’m kind of like going, okay, get on your bicycle.

PAULA: You know, we’re all consumers of these products.

PAULA: So that’s, you know, where the cycle has to, we all have to take, I think, individual responsibility.

PAULA: And of course, there has to be corporate responsibility as well.

PAULA: So yeah, I don’t think we can just expect, you know, the fuel companies to fix it or the airlines or whatever, because we’re, I’m still flying, for example, and trying to do my bit at the same time.

PAULA: So it is a journey.

PAULA: And as you said earlier, it’s an urgent one.

PAULA: And I want to give a shout out as well to Seth Godin, who’s one of my big kind of inspiring marketeers.

PAULA: Just if anybody’s interested, he’s published a book called The Carbon Almanac, which is a beautiful book which really showcases the shocking carbon issues that we’re all facing.

PAULA: So that really helped me, I suppose, start to educate myself around it.

PAULA: So certainly feeling like I’m getting more involved as time goes on.

PAULA: And there was another example, actually, Izzy, we talked about last time, which I just want to mention in passing.

PAULA: And it’s not a loyalty program example, but it takes the other principles we’ve talked about, which is something that’s measurable, something where I felt like I was actually making a difference by changing my behavior.

PAULA: And it was literally in my hotel in London, very high tech hotel brand called Citizen M.

PAULA: And what I really liked they did was they gave me the opportunity on an iPad to opt out of having the room cleaned every day, which at the end of the day, I certainly don’t clean my own bedroom at home every day.

PAULA: But what they did do is they literally said, we will donate three pounds to, I think it was also a tree planting charity, and they gave the cumulative effect of all of those individual decisions of guests who stayed with them.

PAULA: So to me, that’s super powerful when a brand gives it again, a reason for me, that kind of win-win model, I guess, which works for everyone.

IZZY: Yeah, absolutely.

IZZY: And actually that brings us neatly on to one of the tactics that we outline, which is around, you know, programs should offer forums to discuss environmental and sustainability issues and suggestions, etc.

IZZY: And I think comms is so important when talking about your loyalty program to give it that authenticity.

IZZY: So don’t just say we’re not going to clean your room.

IZZY: Give context to that.

IZZY: I think you said as well, they kind of displayed visually how many trees they planted, which is, again, as long as you’re understanding the context, you feel like you’re contributing to the cause.

IZZY: There’s a purpose to it.

IZZY: So I think, you know, making sure that you’re authentically communicating and keeping your members informed of the difference will also help people feel more engaged and kind of, yeah, involved with the programme.

PAULA: Totally, totally.

PAULA: Yeah, I think there is an increasingly interested, you know, angle, I suppose, or let’s say a tactic around community, which we’ve talked about on this show a lot.

PAULA: And I don’t think it’s being done as yet to any great scale that I’ve seen, with the one exception I saw was IKEA who are on the show and they very much have an active community.

PAULA: And I’m sure there’s plenty others which I’d love to hear from.

PAULA: Anybody wants to talk about community?

PAULA: But I think you’re absolutely right.

PAULA: Something that is a shared cause like sustainability.

PAULA: There might be a way that your loyalty programme members feel that they’d be happy to discuss solutions and brainstorm with you that allows them to feel, I guess, more emotionally involved with the brand as well.

IZZY: Yeah, absolutely.

IZZY: And I think like all loyalty programmes, having that two-way conversation is so important because I think sadly the alternative is sometimes it will end up on your social channels and they’ll call you out there.

PAULA: True, totally.

PAULA: Yeah.

IZZY: So much better to kind of engage them early and have that conversation rather than deal with the fallout.

PAULA: Exactly.

PAULA: Yeah, it’s almost the balance of we’re listening, you know, and starting to invite those ideas versus, you know, launching something, I guess, prematurely, because I know there’s also an issue around green washing, as it’s called.

PAULA: So you might actually explain that term, Izzy.

PAULA: I’ve heard it a lot, but just because you’re the sustainability guru, you know, what’s your experience of green washing?

PAULA: And I guess it’s been an issue in the UK market, hasn’t it?

IZZY: I think so.

IZZY: So green washing is essentially any company that inauthentically talks about being sustainable.

IZZY: I would say probably talks about it more than actually practices what it says it’s going to do.

IZZY: So I think, yeah, there have there have been a few examples.

IZZY: I’m not going to call out anyone specifically.

IZZY: But it is an issue.

IZZY: And I think I think there needs to be a certain amount of leniency with smaller companies, you know, when they’re first starting out, or it’s about kind of phrasing it in the right way.

IZZY: This is our first step towards becoming a company, or this is, you know, but almost laying out what that plan is.

IZZY: I think potentially there is a hesitancy, or the reason why some brands don’t have sustainability in their loyalty program as of yet is because they don’t have the full strategy.

IZZY: And that’s the right decision.

IZZY: You absolutely need everyone’s buy in to make sure that what you’re saying and communicating in your loyalty program is exactly what’s happening within the company.

PAULA: So I think you’re absolutely right, Izzy.

PAULA: There is a need for clarity and authenticity, actually.

PAULA: That’s exactly the right word, because I don’t think any company sets out to misrepresent an intention to be sustainable.

PAULA: I always think it’s coming from a great place.

PAULA: I think what has happened just in the past is perhaps they’ve overstated something and that has caused that backlash.

PAULA: So I think what we’re saying is there is a risk of over promising and under delivering.

PAULA: But I like your suggestion, which is literally, OK, well, if we say this is our first step or we’re looking for ideas, just as long as that authenticity is there, I think that’s exactly the right approach.

PAULA: Wonderful.

PAULA: Wonderful.

PAULA: And I know we missed out one, which is definitely one I think that most of the audience are probably doing already.

PAULA: Again, geographic differences, but I suppose there is just much more appetite for certainly British consumers or digital loyalty cards versus plastic or paper ones.

PAULA: So I think that one’s well understood, but probably worth mentioning as well.

IZZY: Yeah, no, absolutely.

IZZY: So this was our fifth and kind of most popular tactic.

IZZY: So 31% said offer a digital card rather than a plastic card.

IZZY: And yeah, it feels fairly obvious, but some supermarkets in particular, I can understand the hesitancy around not rolling it out because you’re worried about alienating the older generations who loved to have that physical card.

IZZY: But Little Plus, who’s a little supermarket here in the UK, they were the first supermarket over here to become a digital only proposition.

IZZY: And yes, there was some initial feedback, but as long as you kind of upscale your staff to make sure that they are able to kind of brief the customers and show them how easy it is, then I think it’s a no brainer, really.

IZZY: Our phones have become a one stop shop for monies, keys, making calls, etc.

IZZY: So it feels like the logical move.

PAULA: It definitely is.

PAULA: And I do remember seeing some of those comms from Needle when they launched the Little Plus program.

PAULA: And again, I can’t remember the number, but I do remember it was super effective.

PAULA: It said something like it only takes nine seconds to download and install.

PAULA: And I was like, finally, somebody is actually showing and really articulating how simple it is, because we all have this aversion of, oh, I don’t want to download anything else and I’m busy and I just, you know, I won’t bother.

PAULA: But I was just like, oh, nine seconds, totally.

PAULA: I’m definitely going to do that.

PAULA: So again, they just really understand what customers need to take that very important first step.

PAULA: And as you said, then everything else follows, because then they’re in the digital world of loyalty with them.

IZZY: And I think COVID has been a great upskiller in terms of digital tech for older generations.

IZZY: And I think there’s some great examples of brands like Apple.

IZZY: You know, you’ve got these special training classes to teach the older generations how to use phones and tech, so definitely think there are ways around it.

PAULA: Wonderful, wonderful.

PAULA: There definitely are.

PAULA: And again, we’re in 2022, so I think most people understand the trade-off.

PAULA: You know, yes, I might want a plastic card, but actually plastic’s probably not the best thing anymore.

PAULA: So yeah, just a case of people understanding why decisions are being made and the full context for that.

PAULA: So I think that’s all of my questions, Izzy, for you today.

PAULA: Were there any other kind of key things you wanted to mention about sustainability and the context of loyalty before we wrap up?

IZZY: I think one thing I wanted to just talk about was around the future of sustainability.

IZZY: And I touched on it lightly and I guess helping any loyalty marketers that are listening out there, how do you make it happen within your company?

IZZY: And I think it’s really important.

IZZY: And we certainly feel that Mando Connects that ultimately it ends up as a KPI as part of your loyalty program.

IZZY: So you might have NPS, active participants, net impact on revenue, frequency, barter skies, and then adding in this net impact on sustainability.

IZZY: So what is your carbon footprint and the impact of it on its members lives?

IZZY: And we think if you can get that into your kind of set of KPIs, then it can’t not be embraced by the rest of the company.

IZZY: So I think, yeah, that’s probably where I would like to leave it.

PAULA: That’s absolutely perfect way to leave it because as we know, what gets measured gets done.

PAULA: So absolutely right.

PAULA: Let’s start with the KPIs and make sure it stems from there.

PAULA: So for people who want to find access to this sustainability research that you’ve done at Mando Connect Izzy, where’s the best place for our listeners to find that?

IZZY: Yeah, absolutely.

IZZY: So you can actually check it out by going to our Mando Connect website, or you can check it out on The Wise Marketer, where if you just type in Mando Sustainability, our article will come up.

PAULA: Excellent, excellent.

PAULA: And I’ll make sure to link to it as well in the show notes as well.

PAULA: So with all of that said, it’s been a very inspiring conversation Izzy.

PAULA: I want to thank you for leading on this super important topic.

PAULA: And I’m sure we’ll be talking again in the future and looking for lots more examples.

PAULA: So with all of that said, Isobel Finlayson, Sustainability Lead and Senior Account Director with Mando Connect.

PAULA: Thank you so much from Let’s Talk Loyalty.

IZZY: Thank you, Paula.

PAULA: This show is sponsored by The Wise Marketer, the world’s most popular source of loyalty marketing news, insights and research.

PAULA: The Wise Marketer also offers loyalty marketing training through its Loyalty Academy, which has already certified over 245 executives in 27 countries as certified Loyalty Marketing Professionals.

PAULA: For more information, check out thewisemarketeer.com and loyaltyacademy.org.

PAULA: Thank you so much for listening to this episode of Let’s Talk Loyalty.

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