By Marc Stoiber
A few months ago, Joel Makower posted a story titled ‘Green Marketing Is Over.’ Makower believes green marketing as we know it has failed us – the great green consumer revolution simply hasn’t materialized, and green products continue to limp along as niche players.
All this, despite growing evidence that green products are hitting the mark as far as price and quality are concerned. It’s perception that’s killing them.
Nowhere is this more true than in socially responsible investing. Look at index after index, and you see SRI funds that consistently outperform their non-‘green’ counterparts. It’s easy to see why, if you consider companies incorporating sustainable and socially responsible practices are generally also innovative and forward-thinking in other areas—which tends to lead to better returns.
Cliff Feigenbaum, publisher of Green Money, believes SRI is gaining wider market acceptance, but still remains niche. As he told me, it’s migrated from values-based personal investors to become part of much larger institutional portfolios – but only as a minute part of these portfolios. It seems the big portfolios include SRI funds to simply tick off the ‘green’ box for trustees and shareholders.
So what can we as marketers do to change the perception of green funds to simply good funds? For answers, I turned to a number of great new studies.
Getting it right is the exception
At this year’s Sustainable Brands conference, I had the opportunity to sit down with James Cerruti of Brandlogic. His company just released a new study tracking the sustainability actual vs. perceived performance of 100 leading global corporations. The study is more interesting because the perception scores came from investors, students and supply chain partners.
Although some companies did put out a sustainability message consistent with their actions, the majority were either unacknowledged in their actions, laggards in both actions and words or getting unfair credit for their less-than-stellar performance.
If professional investors couldn’t tell the green companies from the not-so-green, how could the rest of us hope to find, and invest, in them?
Start marketing to the majority
Another illuminating study was released at Sustainable Brands by OgilvyEarth. As Freya Williams, one of the study’s authors, told me, green marketers are still busy preaching to the deep green choir, or trying to convert the defiant unbelievers – while bypassing the huge (66%) majority of consumers who would be willing to give green a chance.
If you look at SRI marketing today, this isn’t immediately apparent. Values-based pitches have taken the backseat to performance and windmills are slowly fading from the front pages of prospectuses.
But we’re still pigeonholing SRI marketing, albeit more subtly. Among the violations Williams highlighted, there were at least five SRI marketers regularly engage in. They include:
It isn’t easy being green – Why are green investments still presented as a separate category? Why do we spend a disproportionate amount of time explaining their green credibility? Why can’t we simply put a seal of approval on them to assure consumers they perform and fit the ethical bill?
Green is confusing – So what are they calling SRI anyway? In the last while, I’ve heard ethical funds, sustainable funds, responsible funds and more. If we can’t agree on a name, heaven knows we won’t be able to convey a clear message. Personally, I like what Paul Herman has created – the Human Impact Profit index, or HIP. Definitely a better emotional message than '”responsible,” and if you break down the acronym, easy to understand.
Green is the new pink – I understand that appealing to female investors is lucrative. But by making a pitch aimed at feminine values, you isolate yourself from 70% of the population – men, and women who like ‘cool’ men’s products vs. ‘girly’ women’s products.
Green costs – Lead with the personal profit benefit and you won’t go wrong. Balance the personal profit benefit with the values benefit, and you’ll introduce niggling doubt that your fund is a jack-of-all-trades and master of none – which translates into lower returns.
Green is suspicious – 73% of consumers prefer a green cleaner from a big company whose name is synonymous with bleach, over a green cleaner whose maker is green from head to toe. Why? Because we all want the reassurance of going with the tried and true. In SRI, this means pushing the reliability of the master brand, instead of trying to carve off a niche for our specific green funds.
The above watch-outs give us a good idea of our ongoing missteps in marketing SRI.
Potentially the most valuable learning we can take away is that we need to distance ourselves from our pitch – get outside the jar. We may believe our marketing is squarely aimed at pitching performance, but a step back might reveal we’re still engaging in limiting behavior.
If you’ve been with your company for more than six months, chances are you’re inside the jar. In that case, get some fresh eyes from outside to look at your work. It’s well worth the green.
Note: This article is based on a speech I presented to the Canadian Socially Responsible Investment Forum June 20, 2011.
About Marc Stoiber
Marc Stoiber is a creative director who helps clients build resilient, futureproof brands. He writes on the subject for journals like Huffington Post and Fast Company, in addition to speaking at conferences around the world.
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