Why Do Good-for-the-Planet Products Get Left Out of the Shopping Cart?
- The Profit Formula for Sustainability That Customers Choose First
Even when store shelves are filled with claims of environmental friendliness, customers reach for price tags and performance descriptions. For a promise to the planet to translate into revenue, it must first prove useful in customers’ daily lives. The next competition in sustainability begins with better products, lower costs of use, and more convenient experiences, rather than bigger declarations.
[Key Message]
* Customers weigh a product’s performance, price, and convenience alongside its environmental merits. Sustainability can reach a broader market when it strengthens the reasons customers already have for buying.
* Designing environmental friendliness solely as an additional cost makes it harder for customers to choose. Resource savings and product innovation must be connected to benefits that customers can actually experience.
* Opportunities to create value also exist in how products are used after the sale. Services that reduce the burden of energy, consumables, and maintenance can change the relationship between customers and companies.
* Longer use and reuse can become the starting points for new revenue models. Companies need to move beyond structures dependent on sales volume and design businesses that support customer outcomes.
* Customer value and environmental outcomes need to be verified together. Improvements demonstrated under actual conditions of use build trust in a sustainability strategy more effectively than good advertising.
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Good Intentions That Stop at the Shopping Cart
Imagine comparing two bottles of detergent in a supermarket. One carries a lengthy explanation of its environmental credentials, while the other prominently displays its stain-removal performance and the number of washes it provides. If the first detergent costs more, the comparison becomes a little more complicated. The customer weighs a desire to care for the environment against this month’s household budget and expectations of washing performance, all at once. That is why reading an environmental label and then choosing another product cannot immediately be interpreted as indifference.
This scene is a hypothetical situation intended to explain purchasing decisions, rather than a reconstruction of a real company’s story. Yet it clearly reveals the problem companies face. Saying in a survey that the environment matters and paying a higher price at the checkout are different decisions. The former expresses values; the latter allocates a limited budget. When companies treat the two as the same signal, a gap opens between the products they believe customers want and the products customers actually buy.
A sustainability strategy that puts customers first begins in this gap. The most immediate reason for buying detergent is to get clothes clean, and the reason for buying agricultural machinery is to perform the work farming requires properly. Environmental benefits are unlikely to displace those purposes. Conversely, if the same purposes can be achieved with fewer resources and at a lower cost of use, customers gain a reason to choose the product even without strong environmental convictions. To help purchasing decisions, sustainability needs to enter the specific problems of everyday life and work.
The important distinction here is between concern for the environment and the amount of inconvenience a customer is willing to accept when buying. Even highly concerned customers may hesitate when faced with complicated instructions or uncertain performance. Even customers with little interest may respond to a more convenient and economical alternative. The question for expanding a market therefore does not end with who cares about the environment. It must go further: for which customers, and under which conditions, does the product become a better choice? Before changing customers’ minds, companies need to change the terms the product offers them.
The Risky Arithmetic of the Green Premium
Charging a higher price for an environmentally friendly product is a familiar solution for companies. The calculation is that changing materials, checking supply chains, and obtaining certification have incurred costs, so the price should reflect them. An explanation of increased costs may make sense inside the company. But customers assess what they gain as well as how much effort the company has made. The moment additional costs fail to appear as additional benefits, environmental improvements can feel like a separate bill presented to the customer.
The shift proposed in Harvard Business Review Press’s official description also occurs at this point. It involves finding ways to use sustainability to improve product performance or offer products at more affordable prices. The question moves from explaining the supplier’s costs to designing the customer’s benefits. The two questions may sound similar, but they send development in different directions. The first can stop at adding environmental features to an existing product, while the second prompts a fresh examination of the product’s structure and how it is used.
A hypothetical detergent development team could examine concentration, dosage, and washing temperature alongside the use of recycled materials in packaging. Packaging improvements may produce environmental benefits, but the direct gains for customers may be small. By contrast, achieving the same washing performance with a smaller dose, or maintaining performance at a lower temperature, could reduce customers’ spending on consumables and the burden of use. Such effects must, of course, be verified through experiments and actual use. The benefits a development team expects may again differ from those customers experience.
The basis for comparing prices can also change. Even a product with a higher price per container may cost less per use if it provides more uses. But if customers must perform complicated calculations to discover that fact, value delivery is still incomplete. Dosage information, dispensing mechanisms, and pricing information must all be designed consistently. Reducing friction as customers understand savings and actually achieve them is also part of product innovation.
This does not mean that every environmental improvement automatically generates cost savings or better performance. Some changes impose a clear additional burden, and some customers may accept it. What matters is avoiding the extrapolation of that choice into the behavior of the entire market. Premium products for a particular customer segment and products aimed at a broad market require different designs. The expectation that an explanation appealing to customers who seek responsible consumption will also appeal to those who prioritize everyday purchasing criteria needs to be tested.
Sustainability That Changes Product Performance
The first opportunity lies in the product itself. Changes that enable people to use less, discard less, and keep using a product longer create competitive strength when they connect with its core performance. The verified table of contents addresses this through the framework of product resonance. Resonance refers to a relationship in which environmental improvements and customer value reinforce each other. This approach goes one step beyond maintaining the performance customers care about, seeking ways to improve performance or cost effectiveness through environmental improvements.
John Deere, which appears in the official description, offers a case through which to examine this perspective. John Deere’s precision spraying technology is designed to use cameras and recognition technology to identify weeds and apply herbicide where it is needed. What matters to customers is not simply an environmentally friendly label, but how efficiently they can use the chemicals needed for weed control. If they can perform the necessary work while using less herbicide, resource savings meet practical benefits for farmers. Savings vary with crops, weed conditions, and operating conditions, however, so a single percentage cannot be applied to every farm.
The key to understanding this example lies in why less is used. Asking customers to use less can impose a new burden in the field. Enabling equipment to distinguish the locations that need treatment solves the problem by improving the precision of the work. A structure in which users must work harder for the environment differs from one in which technology reduces unnecessary use. The company identifies where it can intervene and brings responsibility for improvement into product design.
The same questions can be applied to other products. Companies can examine whether lighter packaging makes transport and handling easier, whether a structure that is easy to repair reduces the customer’s replacement burden, and whether greater durability reduces breakdowns. These are questions for identifying innovation opportunities, rather than examples asserting the achievements of particular companies. Mapping environmental improvements alongside customer inconveniences may reveal common causes. Unnecessary materials, excessive use, and frequent failures are candidates that create both resource waste and customer burdens.
The Second Market Hidden in Product Use
The second opportunity unfolds while customers use a product. The price and specifications at the point of sale alone make it difficult to understand the product’s full value to the customer. The real burden becomes visible only when energy costs, consumable costs, and maintenance time during use are added together. Usage resonance in the verified table of contents broadens attention to this area. It asks whether there is room to help customers use a product more efficiently even after the finished product has been delivered.
An IMD commentary on Davos to which Frederic Dalsace contributed includes an anecdote about the industrial machinery company GEA. According to its chief executive, one new product line reduced a customer’s energy use so substantially that the energy supplier asked whether something had gone wrong in the production process. In other words, the consumption pattern differed so much from normal that it looked like a sign of trouble. The anecdote is interesting because the outcome of sustainability appeared in the customer’s operations, rather than in an abstract declaration. That account alone, however, cannot justify generalizing the same effect to every product or customer.
The managerial question that can be drawn from this is how much less wasteful a product makes the customer’s work, alongside how environmentally friendly the product is. Even excellent equipment may fail to deliver the expected efficiency if its settings are complicated or it is not used properly on site. Installation, training, operating support, and maintenance therefore need to be considered as parts of the customer experience. Touchpoints after the sale are ancillary activities that incur costs, but they are also places where the product’s promise can be converted into actual results.
Applying this perspective to hypothetical business equipment makes the difference clear. The seller explains its low power consumption, but the buyer may continue operating it in the old way, not knowing what to change during use. Providing settings and inspections tailored to the conditions of use, by contrast, increases the possibility of translating the technology’s potential into actual savings. If additional support incurs costs, those costs must be compared with the benefits customers gain. When a relationship focused solely on the equipment’s price expands into one that manages performance during use together, services can become a new value proposition.
Finding Growth in Customers Who Use Products Longer
The third opportunity lies in redrawing the boundaries of the business. A question follows: if durability improves and usage declines, will sales opportunities also decrease? Real tension can arise if the existing revenue structure is tied solely to selling more products. But putting the outcomes customers seek to achieve with products at the center reveals other business opportunities, such as maintenance, repairs, reuse, and operating support. Strategic resonance in the verified table of contents addresses expansion into new business arenas, while IMD’s related discussion also identifies business-model possibilities in product longevity and lifecycle services.
Michelin’s mining tire management service is a supplementary example that illustrates this transition. In its official materials, Michelin introduces a payment model linked to production and a tire management service. It monitors tire conditions, reduces operating burdens, and helps address downtime and productivity issues. The focus of the transaction broadens from tires as physical objects to the outcomes of the customer’s work. Details of this service have been verified through the company’s official materials; the managerial interpretation presented here is an analysis of its structure.
In a transaction that sells tires, the number sold is a direct basis for revenue. In a contract that supports outcomes, the connection between the results the customer wants and the service provider’s revenue becomes more important. How longer lifespans and fewer unnecessary replacements affect the business depends on the structure of the contract. Simply describing a change as a move to services therefore does not establish that interests have been aligned. Pricing criteria, performance measurement, and the scope of responsibility must be designed together for customer savings to become a supplier’s business opportunity.
A hypothetical tool company could undertake a similar examination. If customers place more value on having tools work properly when needed than on owning them, there may be scope to combine rental and management services. Yet collection, maintenance, and transport may also increase costs and environmental burdens. The conditions under which repeated use is advantageous need to be examined, and customer convenience must also be checked. Business-model innovation is not a matter of renaming a product a service; it involves changing the entire structure through which customer outcomes are delivered.
Verifying Both Customer Value and Environmental Outcomes
Putting customers first does not automatically prove environmental outcomes. A product that reduces the cost of use may require more resources during production, and higher efficiency may lead to increased usage. These are possibilities to examine when assessing a strategy, rather than conclusions about a particular example. Claims of benefits for customers and claims of benefits for the environment each require evidence. The more a strategy connects the two, the more important it is to avoid assuming that results on one side prove results on the other.
Development meetings can therefore place two questions side by side. What benefits do customers gain over existing alternatives, and against what baseline and within what scope does the environmental burden decline? For a hypothetical refill product, the examination could cover collection, cleaning, and transport, as well as the time and costs customers bear, alongside the explanation that containers are reused. Broadening the scope in this way may weaken the benefits initially expected, or it may reveal more effective opportunities for improvement. The process of verifying outcomes itself becomes information that guides the next innovation.
The language used to communicate must follow the same principle. It should show the benefits that matter to customers first, without obscuring the conditions attached to environmental outcomes. A claim of lower costs of use should be accompanied by an explanation of the assumed usage and conditions. A claim of reduced resource use should make clear what comparison produced that result. Explanations can be both easy to understand and verifiable. The brevity of an advertising claim cannot compensate for weak evidence.
The official table of contents treats digital technology and artificial intelligence, communications, and leadership as enablers of execution. The practical task that follows is recognizing that adding more technology or campaigns is insufficient on its own. Development teams need to examine performance, sales teams the reasons for purchase, service teams the experience of use, and environmental teams the actual burden, together. If moments of customer inconvenience and moments of resource waste can be addressed as the same problem, conversations across departments can also change. Sustainability can move from work that communicates a separate target to a shared task of improving products and businesses.
In the few seconds when customers pause before the shopping cart, their own needs come before a company’s declarations. To pass that brief test, good intentions must turn into tangible benefits. More precise work, lower costs of use, longer lifespans, and fewer hassles are starting points for finding those benefits. When sustainability strengthens these conditions and also demonstrates environmental improvements, the reasons to choose become broader. Designing the connection through which a product chosen to solve everyday problems also produces better outcomes for the environment is at the heart of the next competition.