Utilizing the Environmental Advantages in the Sales Process

Abstract

Global warming and environmental changes are compelling private sector businesses to transition towards more environmentally friendly processes. The drive for this shift comes from global agreements, governmental regulations, and evolving customer preferences. Companies striving for improved environmental practices are discovering a novel source of competitive advantage. Although the relationship between a company's environmental performance and financial success has been explored from various angles in academic literature, research combining environmental performance with sales success remains scarce. This research seeks to bridge the gap in academic understanding by examining how companies can leverage the environmental benefits of their offerings within their sales processes. To guide this investigation, the following research questions have been formulated: 1) What environmental benefits do customers desire from their suppliers? 2) How can sales teams leverage the environmental benefits of products to their advantage 3) During which stages of the sales funnel can environmental offerings be effectively utilized? The study commences with a literature analysis of modern B2B sales processes, the dimensions of environmental sustainability, and the environmentally friendly practices adopted within companies' supply chain management. A framework for integrating environmental sustainability into sales processes is developed. The empirical segment of the study involves qualitative interviews with seven sales professionals. The findings underscore how environmental concerns have gained prominence in companies' purchasing decisions, yet these considerations are seldom the foremost determining factor for manufacturing firms. While companies have long focused on factors with a positive environmental impact, such as energy and water usage reduction, these efforts have been primarily driven by potential cost savings. However, there is a growing emphasis on highlighting the favourable environmental impacts of these initiatives. Environmental projects and processes are now employed in stakeholder communications and marketing materials, presenting new avenues for sales teams to differentiate their offerings. For manufacturing companies, the three most critical environmental dimensions are energy usage, water usage, and circular economy practices. The priority of these dimensions varies across industries and company levels. Sectors with the highest environmental focus are often related to renewable energy sources, such as biofuel manufacturers. The most promising markets for capitalizing on a product's environmental benefits are typically found in developed countries, particularly within the EU, due to the stringent environmental targets and regulations in these regions. Leveraging a product's environmental benefits enables companies to establish a competitive edge over rivals. This advantage is particularly manifested through enhanced brand image and company reputation, driving additional sales. The study also identifies increased customer loyalty and a more adept response to customer needs as positive outcomes contributing to sales success. The integration of environmental benefits into sales processes divides the sales journey into three phases: pre-sales, sales, and after-sales processes. The pre-sales phase involves collecting information about customers' environmental objectives, levels of commitment, and focus areas, thereby initiating the process of identifying customer-specific benefits. During the sales process, customer-specific benefits are pinpointed, and communication efforts to convey these benefits are launched. In the after-sales process, customer communication is concluded, and supplementary offerings can be proposed.