Loyalty Programs In The Age Of Sustainability: A Green Approach
“The holistic fusion of carbon credits with social responsibility will serve as the new philosophy of Green Credit.” - PM Modi
The Green Credit framework conceptualised by PM Narendra Modi aims to instill sustainability as a social responsibility versus just commercial benefit. It will be a key to accelerate India's net zero journey through loyalty platforms recognising and rewarding partner eco behaviors across industries.
Six years and the word “sustainability” has transformed from corporate jargon to an indispensable business compass guiding companies of all sizes in India...even loyalty programs are radically reinventing themselves by integrating green thinking.
From manufacturing giants to local enterprises, the drive to be environmentally responsible has permeated every business process - right from renewable sourcing to carbon neutral shipping to recyclable packaging.
Now the focus has shifted from WHETHER to HOW...how to integrate sustainability into corporate cultures and processes. Investments in green solutions are booming to make net zero a reality, not a pipe dream.
Like the revamp happening across all other domains, B2B channel partner engagement and loyalty programs are also undergoing a revolutionary transformation. Below, we take a look into the future of loyalty programs which look green and sustainable.
The Genesis: Loyalty Programs Then & Now
Before we look into the future; we should also have a quick look into the history of Loyalty Programs. The earliest recorded program dates to 1896 when Sperry & Hutchinson introduced GREEN STAMPS in the United States. It was among the early retail loyalty programs where merchants purchased stamps from S&H and gave them to shoppers at a rate decided by the retailer. Some stores offered more stamps per dollar to attract more customers. Shoppers could then collect these stamps and redeem various merchandise rewards from the S&H catalog.
Loyalty programs were once synonymous with plastic cards and point systems, but as the world evolved, so did the expectations of businesses and their channel partners.
Today, Loyalty programs have transitioned from those punch-card days into a sophisticated data and metric driven processes. No more one-size-fits-all; it is about
understanding partners on a personal level and creating experiences that go beyond a simple transaction.
The Current Landscape: Data & Personalisation
Today's loyalty programs are sophisticated, data and metric driven, and leverage Artificial Intelligence (AI) to compose personalised experiences that resonate with each partner.
However, the current landscape is full of challenges – Gen Z and Millennials are picking options that are sustainable and good for the environment. Loyalty programs are seen more as just business transactions instead of a way to relationship building. There are also issues with how things are done offline, causing some operational hassle.
As we navigate this complex terrain, it becomes evident that the future of loyalty programs lies in sustainability – a paradigm shift that aligns perfectly with the evolving consciousness of both businesses and their partners.
The Future Unveiled: Green, Sustainable & Impactful
Companies are looking for solutions that seamlessly integrate sustainability into B2B channel partner engagement with Green Loyalty Programs. From eco-friendly rewards to initiatives that champion green practices to make loyalty impactful beyond business transactions.
Future is Green as many Generation Z shoppers prefer to buy sustainable brands, and they are most willing to spend 10% more on sustainable products. With Generation Z’s spending power estimated at up to $323 billion as per First Insight report, retailers and brands must remain committed to sustainability practices to stay on the path forward for retail’s sustainable future and growth.
Embrace the Green Revolution
As we stand at the crossroads of loyalty program evolution, let us not forget the power of "Green Credits." By launching Green Loyalty Programs, brands are not just rewarding their channel partners and customers; they are actively contributing to sustainable actions. These initiatives create a ripple effect, inspiring positive change across industries and fostering a collective commitment to a greener future.
Green loyalty programs will not only be a corporate initiative to reward partners but also a force for positive change.
*The author is Abhinav Jain, Co-Founder & CEO, Almonds AI
