It doesn’t matter if my clients are steeped in green or stepping into green, the challenge of providing clear and concise Return on Investment (ROI) for their customers seems an exercise in “blood, sweat and tears.”
The green industry does a fine job in spouting the “Save the Planet!” message for customers, which is a good thing, but when it comes to the message of “How Does Green Save Me Money?” — it’s often muddy or missing.
Take home remodeling. According to the latest Professional Remodeler green research, energy-efficient products continue to grow in popularity while other green improvements are lagging. In Housingzone.com’s recent special report on green remodeling, 45 percent of remodelers believe that green features help them sell remodeling projects. While up 33 percent from 2007, it remains flat from a year ago. Take energy retrofits. For some time, homeowners have been sold on the fact that they are good for the environment and save them money on utility bills; however, a recent article in CNNMoney.com points out that appraisers don’t recognize these features one iota when conducting their home appraisals.
Years back, Cleveland-based Buildings magazine stated that “thanks to programs such as the U.S. Green Building Council’s landmark LEED rating system for buildings, green facilities have crept into the mainstream.” I have to also mention a new up-and-coming program, Green Globes, a viable alternative to LEED. But, the article went on to say that “despite the growing recognition of sustainable practices, green products, and high-performance technologies in building design and construction, concern within the facilities industry continues due to lack of accurate, thorough, and quantifiable information about the financial and economic impacts of high-performance buildings.”
These indicators tell me that this industry, among many others, is not doing its job in conveying the green ROI to its customers.
How can we develop this key green ROI message for customers? It takes time and an investment. Here are some of the ways:
- Be persistent with your suppliers and manufacturers to pull ROI information out of them any way you can.
- Set up a monitoring system with your past customers who have invested in your green products to get ROI stats first-hand.
- Invest in a third party—university research department, local marketing firm—to assist in getting the information for you.
- Comb the Internet for helpful product ROI information such as greenandsave.com and thedailygreen.com.
- Develop your own ROI formulas and tables by using compound interest calculators.
It can be done. It’s well worth the time and investment to develop the ROI formula for your customers. This will put the “green” in your pocket as well as help save the planet.