Embracing circular principles isn't just about environmental responsibility; it's also a strategic move to enhance growth and profitability. By adopting circular practices, businesses can forge stronger connections between their services and profits while simultaneously fostering customer and employee satisfaction. In this submodule, we'll explore the symbiotic relationship between circularity and business success within the small tourism sector.
Customers who are actively dissatisfied and may engage in negative behaviours or actions against the organisation.
Deep Dive into Key Topics
The Submodule Consists of Three Sections:
1. The Apostle Model:
○The Apostle Model examines customer loyalty through the lens of four distinct categories: Hostages, Apostles, Terrorists, and Mercenaries. By understanding the dynamics of customer loyalty, businesses can identify strategies to cultivate devoted apostles who advocate for their brand, thus driving sustainable growth and profitability.
2. Introducing the Profit Cycle:
○ Next, we'll introduce the Profit Cycle, a revolutionary model that highlights the relationship between employee satisfaction, customer satisfaction, and business growth. By prioritising employee well-being and customer satisfaction, businesses can initiate a positive feedback loop that leads to increased profitability and long-term growth.
3. Circular Drivers for Customer and Employee Satisfaction:
○ Finally, we'll explore the circular drivers that can elevate both customer and employee satisfaction within small tourism businesses. By focusing on initiatives that contribute to social and environmental well-being, businesses can create meaningful value for their stakeholders while bolstering their bottom line.
2.1. The Apostle Model:
Understanding customer satisfaction is the key to success. One critical aspect lies in the availability of competition from other service providers.
Essentially, the importance of customer satisfaction is much greater when customers have other options and can easily switch to competitors. If a business holds a monopoly or occupies a niche market with limited alternatives, customer satisfaction may not be as pressing, although it remains a fundamental aspect of maintaining a loyal customer base.
In this section, we'll introduce the Apostle Model, a framework that segments customers into the categories: Hostages, Apostles, Terrorists, and Mercenaries. By examining the dynamics of customer satisfaction within this framework, businesses can gain valuable insights into cultivating loyal customers and driving sustainable growth. Let's explore how customer satisfaction intersects with the Apostle Model.
The Apostle model
Hostages (H):
● Hostages are customers or employees who are dissatisfied and feel trapped or compelled to continue their association with the organisation.
● They may remain with the organisation out of necessity or lack of alternatives, despite feeling unhappy or dissatisfied with their experiences.
● Hostages are unlikely to advocate for the organisation and may have negative perceptions that could potentially harm the brand's reputation.
Apostles (A):
● Apostles are highly satisfied and loyal customers or employees who actively advocate for the organisation.
● They are enthusiastic about their experiences with the organisation and willingly promote it to others.
● Apostles are committed supporters who contribute positively to the organisation's reputation and success.
Terrorists (T):
● Terrorists are customers or employees who are actively dissatisfied and may engage in negative behaviours or actions against the organisation.
● They may express their dissatisfaction through complaints, negative reviews, or disruptive behaviour.
● Terrorists pose a threat to the organisation's reputation and may discourage others from engaging with the brand.
Mercenaries (M):
● Mercenaries are customers or employees who are primarily motivated by incentives or rewards.
● They may remain with the organisation as long as they continue to receive benefits or rewards but may switch to competitors if offered better incentives.
● Mercenaries may not have strong loyalty or emotional attachment to the organisation and may be less likely to advocate for it.
So from this model it’s clear that it is very important to help customers move from the T and H toward the M or at best the A category.
Both customers and employees can be viewed in this model, and it is important for the business owners to recognise this fact and try to help both customers and employees to move towards the coveted Apostle status.
Here are a few actions they could take in order to help this process.
For Customers:
Hostages (H):
● Action: Identify pain points and areas of dissatisfaction through customer feedback and data analysis.
● Action: Implement targeted improvements to address issues and enhance the customer experience.
● Action: Offer incentives or rewards to encourage repeat purchases and foster loyalty among dissatisfied customers.
Apostles (A):
● Action: Recognize and reward loyal customers for their advocacy and referrals.
● Action: Encourage apostles to share positive experiences through testimonials, reviews, and social media.
● Action: Provide personalised offers or exclusive benefits to further strengthen the bond with apostles and enhance their loyalty.
Terrorists (T):
● Action: Proactively address and resolve complaints or negative feedback from terrorists.
● Action: Implement measures to prevent future issues and improve communication channels for conflict resolution.
● Action: Offer apologies, compensation, or solutions to win back dissatisfied customers and mitigate potential damage to the brand's reputation.
Mercenaries (M):
● Action: Offer attractive incentives or rewards to retain mercenaries and encourage continued engagement.
● Action: Differentiate the organisation's offerings to make them more appealing and competitive in the marketplace.
● Action: Continuously assess and adjust incentive programs to align with the evolving needs and preferences of mercenaries.
For Employees:
Hostages (H):
● Action: Conduct regular employee satisfaction surveys and feedback sessions to identify areas of dissatisfaction or disengagement.
● Action: Implement strategies to improve workplace culture, communication, and employee well-being to address the concerns of hostages.
● Action: Provide opportunities for professional development and career growth to increase job satisfaction and retention.
Apostles (A):
● Action: Recognize and celebrate the contributions of apostles through rewards, incentives, and public acknowledgment.
● Action: Empower apostles to serve as ambassadors for the organisation by encouraging them to share their positive experiences with others.
● Action: Foster a supportive and inclusive work environment that values employee feedback, collaboration, and personal growth.
Terrorists (T):
● Action: Address grievances and concerns raised by terrorists through open dialogue, active listening, and problem-solving.
● Action: Identify and resolve underlying issues or conflicts that may be contributing to employee dissatisfaction or disruptive behaviour.
● Action: Provide opportunities for training, coaching, or counselling to help terrorists overcome challenges and reintegrate into the organisation positively.
Mercenaries (M):
● Action: Create incentives and rewards programs that align with the organisation's goals and values to motivate mercenaries to contribute beyond extrinsic rewards.
● Action: Foster a sense of purpose and belonging among mercenaries by emphasising the organisation's mission, vision, and shared goals.
● Action: Offer opportunities for skill development, advancement, and meaningful work assignments to engage mercenaries and increase their commitment to the organisation.
2.2. Introducing the Profit Cycle
The Profit Cycle model is a way of visualising the critical role of employee satisfaction and engagement in driving business growth. Besides the normal way of compensating employees, tapping into the 'emotional salary' of employees - factors beyond monetary compensation - business owners can create a work environment that promotes happiness and fulfilment among its staff. This heightened employee satisfaction translates into increased engagement and commitment to delivering exceptional service. As employees become more engaged, they contribute more effectively to the organisation, resulting in an enhanced value for customers. Excellent service, facilitated by motivated employees, creates a seamless and enjoyable 'shopping scenario' for customers, leading to higher customer satisfaction and engagement. Happy customers are returning customers, and maybe they will even promote the experience to others, creating an added value and minimising the need for expensive advertising. Ultimately, this positive cycle of employee satisfaction, customer experience and customer driven promotom results in business growth.
There are 7 “platforms” in the model where careful planning and actions can boost the dynamics between the stages in the model. These are:
1. Emotional Salary: Beyond monetary compensation, this platform encompasses the non-financial factors that contribute to employee happiness and fulfilment in the workplace.
2. Employee Satisfaction: Reflects the level of contentment and fulfilment experienced by employees in their roles within the organisation.
3. Employee Engagement: Represents the degree of commitment, enthusiasm, and involvement demonstrated by employees towards their work and the organisation's goals.
4. Value vs Effort: Refers to the balance between the value received by customers and the effort they need to exert to obtain products or services from the business.
5. Customer Satisfaction: Indicates the level of contentment and happiness experienced by customers with the products or services provided by the business.
6. Customer Engagement: Reflects the level of involvement, interaction, and connection between customers and the business.
7. Growth: The ultimate objective of the Profit Cycle model, growth signifies the expansion and advancement of the business, driven by the interconnectedness of the preceding platforms.
So how do business owners make sure they stay focused with both customer and employee satisfaction at each of these platforms? Below we have listed some initiatives that may help boost satisfaction and help bring both customers and employees into the Apostle category:
Boosting employee satisfaction:
● Introduce recognition and reward programs to acknowledge and reward outstanding employee performance and contributions.
● Offer employee development opportunities like skills training, and leadership development. Investing in employees' skills and career growth demonstrates a commitment to their success and encourages loyalty and advocacy for the organisation.
● Transparent communication between leadership and employees. Keep employees informed about company updates, goals, and initiatives, and encourage feedback and suggestions to make them feel valued and involved in the decision-making process.
● Initiate employee well-being initiatives like flexible work arrangements, and a supportive work-life balance along with team building events. Show genuine care for employees' physical and mental health, creating a positive work environment conducive to loyalty and advocacy.
Securing customer satisfaction:
● Provide outstanding customer service that exceeds expectations and leaves a lasting positive impression. Train employees to anticipate and address customer needs promptly and effectively.
● Tailor products, services, and interactions to meet the unique needs and preferences of individual customers. Use customer data and insights to personalise marketing communications, recommendations, and offers, enhancing the customer experience and fostering loyalty.
● Implement customer loyalty programs that reward repeat purchases, referrals, and engagement with the company. Offer exclusive discounts, perks, and rewards to incentivize customer loyalty and encourage advocacy among satisfied customers.
● Regularly solicit feedback from customers through surveys, reviews, and other feedback mechanisms. Actively listen to customer feedback, address concerns promptly, and make improvements based on their input, demonstrating a commitment to customer satisfaction and continuous improvement.
All of these dynamics influence the inner dynamic of the cycle and, if executed skillfully, create a positive effect of increasing the satisfaction and engagement of customers and employees alike.
Introducing circular drivers
The initiatives mentioned above should have a positive effect on all types of customers and employees, moving them toward the A in the Apostle model. But since we are looking at circular businesses we also want to revisit the triple bottom line as it was explained in Module 4.2.
By introducing circular elements to your business, the triple bottom line has shown us that the value for a circular business can not only be measured in Profits, but that you also have to vector in “social” and “planet” value into your bottom line. What has been less clear is how those two factors translate into growth. Of course you can advertise your circular endeavours and hope that customers will pay a premium for your service, but there is always the danger of overdoing it and end up getting blamed for “Greenwashing”.
The profit cycle helps us to visualise the inner dynamics of how we can move from satisfaction to growth, so let’s look at how circular drivers can contribute to that.
2.3. Circular Drivers for Customer and Employee Satisfaction
The main assumption that we make in the Profit Cycle is that employees can be “paid” in other means than salary, and that job satisfaction leads to happier employees that in turn creates a better shopping experience for customers. If this holds true, then we should be able to add to this “emotional salary” by introducing circular initiatives. Circular projects tend to create good stories, where we are all helping the people or the planet by doing things a little bit better or working in a more sustainable way. You are now part of a team who strive for a purpose, a larger cause, and that can be a powerful motivator. Many people actually decide to do volunteer work for free for this reason. So using circular initiatives as a driver to work toward a better world can also be seen as a way of motivating your employees, and add to the emotional salary.
The Profit Cycle will then explain the inner workings of how this can lead to growth. But at each platform in the model the business owner can boost the effect by knowing about the dynamics at play.
Here is a list of some of the drivers for employee satisfaction and what type of circular projects could be used to strengthen them:
Social Aspect:
Sense of Purpose and Community:
● Circular projects focused on social aspects, such as hiring vulnerable people or supporting local communities, can provide employees with a sense of purpose and belonging.
● By actively contributing to initiatives that give back to society, employees feel proud to be part of an organisation that prioritises social responsibility, leading to increased job satisfaction and motivation.
Opportunities for Learning and Growth:
● Circular projects promoting training and lifelong learning opportunities, such as skill development programs or sustainability workshops, empower employees to expand their knowledge and expertise.
● Investing in employees' personal and professional development demonstrates a commitment to their well-being and career advancement, fostering a positive work environment and higher levels of satisfaction.
Safe and Healthy Work Environment:
● Implementing circular initiatives that prioritise employee safety and well-being, such as providing a safe work environment or promoting health and wellness programs, enhances job satisfaction and morale.
● Employees value organisations that prioritise their health and safety, leading to increased loyalty, engagement, and overall satisfaction with their work environment.
Planet Aspect:
Environmental Stewardship:
● Circular projects focused on the Planet aspect, such as ecological produce or sustainable energy initiatives, demonstrate a commitment to environmental sustainability and conservation.
● Employees who are environmentally conscious appreciate working for companies that prioritise eco-friendly practices, leading to increased satisfaction and pride in their organisation's efforts to protect the planet.
Resource Efficiency and Waste Reduction:
● Circular projects that emphasise reuse, waste management, and resource optimization contribute to a more sustainable and efficient workplace.
● Employees benefit from initiatives that minimise waste, reduce resource consumption, and promote responsible resource management, leading to greater satisfaction and alignment with the company's environmental values.
Innovation and Creativity:
● Circular projects promoting optimization and virtualization stimulate innovation and creativity among employees.
● Encouraging employees to find innovative solutions for resource optimization, virtualization of processes, and sustainable practices fosters a culture of innovation, leading to increased job satisfaction and engagement.
See the C-Tour database for Langhoff & Juul to read about how they use circular drivers for enhancing employee satisfaction.
Or see the digital story about Langhoff & Jull here: TIME BOTTLENECK - Sustainable dining.
Likewise we can think of circular projects that could boost the customers satisfaction and engagement. The ultimate goal being that your customers prescribe your business in their own network, without you having to pay them, or use a lot of money on advertising.
Social Aspect:
Ethical Consumption and Community Support:
● Circular projects that support local communities, hire vulnerable people, or contribute to social causes resonate with customers who value ethical consumption and community support.
● Customers appreciate businesses that prioritise social responsibility and community engagement, leading to increased satisfaction and loyalty to the brand.
Transparency and Trust:
● Circular projects promoting transparency in sourcing, production, and community impact build trust and credibility with customers.
● Businesses that openly communicate their social initiatives and ethical practices foster trust and loyalty among customers, who value transparency and accountability.
Sense of Contribution and Impact:
● Circular projects that engage customers in social initiatives, such as charitable giving or community involvement programs, provide a sense of contribution and impact.
● Customers who feel they are making a positive difference through their purchases are more likely to feel satisfied and connected to the brand, leading to increased loyalty and advocacy.
Planet Aspect:
Environmental Responsibility:
● Circular projects promoting ecological produce, sustainable energy, and waste reduction appeal to environmentally conscious customers.
● Customers value businesses that prioritise environmental responsibility and sustainability, leading to increased satisfaction and loyalty to brands that align with their values.
Sustainable Practices and Innovation
● Circular projects focused on resource efficiency, waste reduction, and innovation in sustainability practices demonstrate a commitment to environmental stewardship.
● Customers appreciate businesses that innovate to reduce their environmental footprint and embrace sustainable practices, leading to increased satisfaction and brand loyalty.
Quality and Value:
● Circular projects that optimise processes, reduce waste, and enhance product quality contribute to a positive customer experience.
● Customers perceive businesses that prioritise sustainability as offering higher quality products and services, leading to increased satisfaction and willingness to support environmentally responsible brands.
Most of the cases in the C-tour database can be used to get customers on board with the circular message. Nisi Camping are very aware of how to communicate the circular message to customers and to engage them via events and educational programs.
Most circular projects can be viewed within one or more of these categories, so it is important to get that message out to the customers. As explained in Module 4 the communication strategy is crucial in order to get the message out to the customers, but as the Profit Cycle shows, it is of equal importance to tell the good stories to your employees.
1. The Apostle Model:
○The Apostle Model examines customer loyalty through the lens of four distinct categories: Hostages, Apostles, Terrorists, and Mercenaries. By understanding the dynamics of customer loyalty, businesses can identify strategies to cultivate devoted apostles who advocate for their brand, thus driving sustainable growth and profitability.
2. Introducing the Profit Cycle:
○ Next, we'll introduce the Profit Cycle, a revolutionary model that highlights the relationship between employee satisfaction, customer satisfaction, and business growth. By prioritising employee well-being and customer satisfaction, businesses can initiate a positive feedback loop that leads to increased profitability and long-term growth.
3. Circular Drivers for Customer and Employee Satisfaction:
○ Finally, we'll explore the circular drivers that can elevate both customer and employee satisfaction within small tourism businesses. By focusing on initiatives that contribute to social and environmental well-being, businesses can create meaningful value for their stakeholders while bolstering their bottom line.
2.1. The Apostle Model:
Understanding customer satisfaction is the key to success. One critical aspect lies in the availability of competition from other service providers.
Essentially, the importance of customer satisfaction is much greater when customers have other options and can easily switch to competitors. If a business holds a monopoly or occupies a niche market with limited alternatives, customer satisfaction may not be as pressing, although it remains a fundamental aspect of maintaining a loyal customer base.In this section, we'll introduce the Apostle Model, a framework that segments customers into the categories: Hostages, Apostles, Terrorists, and Mercenaries. By examining the dynamics of customer satisfaction within this framework, businesses can gain valuable insights into cultivating loyal customers and driving sustainable growth. Let's explore how customer satisfaction intersects with the Apostle Model.
The Apostle model
Hostages (H):
● Hostages are customers or employees who are dissatisfied and feel trapped or compelled to continue their association with the organisation.
● They may remain with the organisation out of necessity or lack of alternatives, despite feeling unhappy or dissatisfied with their experiences.
● Hostages are unlikely to advocate for the organisation and may have negative perceptions that could potentially harm the brand's reputation.
Apostles (A):
● Apostles are highly satisfied and loyal customers or employees who actively advocate for the organisation.
● They are enthusiastic about their experiences with the organisation and willingly promote it to others.
● Apostles are committed supporters who contribute positively to the organisation's reputation and success.
Terrorists (T):
● Terrorists are customers or employees who are actively dissatisfied and may engage in negative behaviours or actions against the organisation.
● They may express their dissatisfaction through complaints, negative reviews, or disruptive behaviour.
● Terrorists pose a threat to the organisation's reputation and may discourage others from engaging with the brand.
Mercenaries (M):
● Mercenaries are customers or employees who are primarily motivated by incentives or rewards.
● They may remain with the organisation as long as they continue to receive benefits or rewards but may switch to competitors if offered better incentives.
● Mercenaries may not have strong loyalty or emotional attachment to the organisation and may be less likely to advocate for it.
So from this model it’s clear that it is very important to help customers move from the T and H toward the M or at best the A category.
Both customers and employees can be viewed in this model, and it is important for the business owners to recognise this fact and try to help both customers and employees to move towards the coveted Apostle status.
Here are a few actions they could take in order to help this process.
For Customers:
Hostages (H):
● Action: Identify pain points and areas of dissatisfaction through customer feedback and data analysis.
● Action: Implement targeted improvements to address issues and enhance the customer experience.
● Action: Offer incentives or rewards to encourage repeat purchases and foster loyalty among dissatisfied customers.
Apostles (A):
● Action: Recognize and reward loyal customers for their advocacy and referrals.
● Action: Encourage apostles to share positive experiences through testimonials, reviews, and social media.
● Action: Provide personalised offers or exclusive benefits to further strengthen the bond with apostles and enhance their loyalty.
Terrorists (T):
● Action: Proactively address and resolve complaints or negative feedback from terrorists.
● Action: Implement measures to prevent future issues and improve communication channels for conflict resolution.
● Action: Offer apologies, compensation, or solutions to win back dissatisfied customers and mitigate potential damage to the brand's reputation.
Mercenaries (M):
● Action: Offer attractive incentives or rewards to retain mercenaries and encourage continued engagement.
● Action: Differentiate the organisation's offerings to make them more appealing and competitive in the marketplace.
● Action: Continuously assess and adjust incentive programs to align with the evolving needs and preferences of mercenaries.
For Employees:
Hostages (H):
● Action: Conduct regular employee satisfaction surveys and feedback sessions to identify areas of dissatisfaction or disengagement.
● Action: Implement strategies to improve workplace culture, communication, and employee well-being to address the concerns of hostages.
● Action: Provide opportunities for professional development and career growth to increase job satisfaction and retention.
Apostles (A):
● Action: Recognize and celebrate the contributions of apostles through rewards, incentives, and public acknowledgment.
● Action: Empower apostles to serve as ambassadors for the organisation by encouraging them to share their positive experiences with others.
● Action: Foster a supportive and inclusive work environment that values employee feedback, collaboration, and personal growth.
Terrorists (T):
● Action: Address grievances and concerns raised by terrorists through open dialogue, active listening, and problem-solving.
● Action: Identify and resolve underlying issues or conflicts that may be contributing to employee dissatisfaction or disruptive behaviour.
● Action: Provide opportunities for training, coaching, or counselling to help terrorists overcome challenges and reintegrate into the organisation positively.
Mercenaries (M):
● Action: Create incentives and rewards programs that align with the organisation's goals and values to motivate mercenaries to contribute beyond extrinsic rewards.
● Action: Foster a sense of purpose and belonging among mercenaries by emphasising the organisation's mission, vision, and shared goals.
● Action: Offer opportunities for skill development, advancement, and meaningful work assignments to engage mercenaries and increase their commitment to the organisation.
2.2. Introducing the Profit Cycle
The Profit Cycle model is a way of visualising the critical role of employee satisfaction and engagement in driving business growth. Besides the normal way of compensating employees, tapping into the 'emotional salary' of employees - factors beyond monetary compensation - business owners can create a work environment that promotes happiness and fulfilment among its staff. This heightened employee satisfaction translates into increased engagement and commitment to delivering exceptional service. As employees become more engaged, they contribute more effectively to the organisation, resulting in an enhanced value for customers. Excellent service, facilitated by motivated employees, creates a seamless and enjoyable 'shopping scenario' for customers, leading to higher customer satisfaction and engagement. Happy customers are returning customers, and maybe they will even promote the experience to others, creating an added value and minimising the need for expensive advertising. Ultimately, this positive cycle of employee satisfaction, customer experience and customer driven promotom results in business growth.
There are 7 “platforms” in the model where careful planning and actions can boost the dynamics between the stages in the model. These are:
1. Emotional Salary: Beyond monetary compensation, this platform encompasses the non-financial factors that contribute to employee happiness and fulfilment in the workplace.
2. Employee Satisfaction: Reflects the level of contentment and fulfilment experienced by employees in their roles within the organisation.
3. Employee Engagement: Represents the degree of commitment, enthusiasm, and involvement demonstrated by employees towards their work and the organisation's goals.
4. Value vs Effort: Refers to the balance between the value received by customers and the effort they need to exert to obtain products or services from the business.
5. Customer Satisfaction: Indicates the level of contentment and happiness experienced by customers with the products or services provided by the business.
6. Customer Engagement: Reflects the level of involvement, interaction, and connection between customers and the business.
7. Growth: The ultimate objective of the Profit Cycle model, growth signifies the expansion and advancement of the business, driven by the interconnectedness of the preceding platforms.
So how do business owners make sure they stay focused with both customer and employee satisfaction at each of these platforms? Below we have listed some initiatives that may help boost satisfaction and help bring both customers and employees into the Apostle category:
Boosting employee satisfaction:
● Introduce recognition and reward programs to acknowledge and reward outstanding employee performance and contributions.
● Offer employee development opportunities like skills training, and leadership development. Investing in employees' skills and career growth demonstrates a commitment to their success and encourages loyalty and advocacy for the organisation.
● Transparent communication between leadership and employees. Keep employees informed about company updates, goals, and initiatives, and encourage feedback and suggestions to make them feel valued and involved in the decision-making process.
● Initiate employee well-being initiatives like flexible work arrangements, and a supportive work-life balance along with team building events. Show genuine care for employees' physical and mental health, creating a positive work environment conducive to loyalty and advocacy.
Securing customer satisfaction:
● Provide outstanding customer service that exceeds expectations and leaves a lasting positive impression. Train employees to anticipate and address customer needs promptly and effectively.
● Tailor products, services, and interactions to meet the unique needs and preferences of individual customers. Use customer data and insights to personalise marketing communications, recommendations, and offers, enhancing the customer experience and fostering loyalty.
● Implement customer loyalty programs that reward repeat purchases, referrals, and engagement with the company. Offer exclusive discounts, perks, and rewards to incentivize customer loyalty and encourage advocacy among satisfied customers.
● Regularly solicit feedback from customers through surveys, reviews, and other feedback mechanisms. Actively listen to customer feedback, address concerns promptly, and make improvements based on their input, demonstrating a commitment to customer satisfaction and continuous improvement.
All of these dynamics influence the inner dynamic of the cycle and, if executed skillfully, create a positive effect of increasing the satisfaction and engagement of customers and employees alike.
Introducing circular drivers
The initiatives mentioned above should have a positive effect on all types of customers and employees, moving them toward the A in the Apostle model. But since we are looking at circular businesses we also want to revisit the triple bottom line as it was explained in Module 4.2.
By introducing circular elements to your business, the triple bottom line has shown us that the value for a circular business can not only be measured in Profits, but that you also have to vector in “social” and “planet” value into your bottom line. What has been less clear is how those two factors translate into growth. Of course you can advertise your circular endeavours and hope that customers will pay a premium for your service, but there is always the danger of overdoing it and end up getting blamed for “Greenwashing”.
The profit cycle helps us to visualise the inner dynamics of how we can move from satisfaction to growth, so let’s look at how circular drivers can contribute to that.
2.3. Circular Drivers for Customer and Employee Satisfaction
The main assumption that we make in the Profit Cycle is that employees can be “paid” in other means than salary, and that job satisfaction leads to happier employees that in turn creates a better shopping experience for customers. If this holds true, then we should be able to add to this “emotional salary” by introducing circular initiatives. Circular projects tend to create good stories, where we are all helping the people or the planet by doing things a little bit better or working in a more sustainable way. You are now part of a team who strive for a purpose, a larger cause, and that can be a powerful motivator. Many people actually decide to do volunteer work for free for this reason. So using circular initiatives as a driver to work toward a better world can also be seen as a way of motivating your employees, and add to the emotional salary.
The Profit Cycle will then explain the inner workings of how this can lead to growth. But at each platform in the model the business owner can boost the effect by knowing about the dynamics at play.
Here is a list of some of the drivers for employee satisfaction and what type of circular projects could be used to strengthen them:
Social Aspect:
Sense of Purpose and Community:
● Circular projects focused on social aspects, such as hiring vulnerable people or supporting local communities, can provide employees with a sense of purpose and belonging.
● By actively contributing to initiatives that give back to society, employees feel proud to be part of an organisation that prioritises social responsibility, leading to increased job satisfaction and motivation.
Opportunities for Learning and Growth:
● Circular projects promoting training and lifelong learning opportunities, such as skill development programs or sustainability workshops, empower employees to expand their knowledge and expertise.
● Investing in employees' personal and professional development demonstrates a commitment to their well-being and career advancement, fostering a positive work environment and higher levels of satisfaction.
Safe and Healthy Work Environment:
● Implementing circular initiatives that prioritise employee safety and well-being, such as providing a safe work environment or promoting health and wellness programs, enhances job satisfaction and morale.
● Employees value organisations that prioritise their health and safety, leading to increased loyalty, engagement, and overall satisfaction with their work environment.
Planet Aspect:
Environmental Stewardship:
● Circular projects focused on the Planet aspect, such as ecological produce or sustainable energy initiatives, demonstrate a commitment to environmental sustainability and conservation.
● Employees who are environmentally conscious appreciate working for companies that prioritise eco-friendly practices, leading to increased satisfaction and pride in their organisation's efforts to protect the planet.
Resource Efficiency and Waste Reduction:
● Circular projects that emphasise reuse, waste management, and resource optimization contribute to a more sustainable and efficient workplace.
● Employees benefit from initiatives that minimise waste, reduce resource consumption, and promote responsible resource management, leading to greater satisfaction and alignment with the company's environmental values.
Innovation and Creativity:
● Circular projects promoting optimization and virtualization stimulate innovation and creativity among employees.
● Encouraging employees to find innovative solutions for resource optimization, virtualization of processes, and sustainable practices fosters a culture of innovation, leading to increased job satisfaction and engagement.
See the C-Tour database for Langhoff & Juul to read about how they use circular drivers for enhancing employee satisfaction.
Or see the digital story about Langhoff & Jull here: TIME BOTTLENECK - Sustainable dining.
Likewise we can think of circular projects that could boost the customers satisfaction and engagement. The ultimate goal being that your customers prescribe your business in their own network, without you having to pay them, or use a lot of money on advertising.
Social Aspect:
Ethical Consumption and Community Support:
● Circular projects that support local communities, hire vulnerable people, or contribute to social causes resonate with customers who value ethical consumption and community support.
● Customers appreciate businesses that prioritise social responsibility and community engagement, leading to increased satisfaction and loyalty to the brand.
Transparency and Trust:
● Circular projects promoting transparency in sourcing, production, and community impact build trust and credibility with customers.
● Businesses that openly communicate their social initiatives and ethical practices foster trust and loyalty among customers, who value transparency and accountability.
Sense of Contribution and Impact:
● Circular projects that engage customers in social initiatives, such as charitable giving or community involvement programs, provide a sense of contribution and impact.
● Customers who feel they are making a positive difference through their purchases are more likely to feel satisfied and connected to the brand, leading to increased loyalty and advocacy.
Planet Aspect:
Environmental Responsibility:
● Circular projects promoting ecological produce, sustainable energy, and waste reduction appeal to environmentally conscious customers.
● Customers value businesses that prioritise environmental responsibility and sustainability, leading to increased satisfaction and loyalty to brands that align with their values.
Sustainable Practices and Innovation
● Circular projects focused on resource efficiency, waste reduction, and innovation in sustainability practices demonstrate a commitment to environmental stewardship.
● Customers appreciate businesses that innovate to reduce their environmental footprint and embrace sustainable practices, leading to increased satisfaction and brand loyalty.
Quality and Value:
● Circular projects that optimise processes, reduce waste, and enhance product quality contribute to a positive customer experience.
● Customers perceive businesses that prioritise sustainability as offering higher quality products and services, leading to increased satisfaction and willingness to support environmentally responsible brands.
Most of the cases in the C-tour database can be used to get customers on board with the circular message. Nisi Camping are very aware of how to communicate the circular message to customers and to engage them via events and educational programs.
Most circular projects can be viewed within one or more of these categories, so it is important to get that message out to the customers. As explained in Module 4 the communication strategy is crucial in order to get the message out to the customers, but as the Profit Cycle shows, it is of equal importance to tell the good stories to your employees.
Interactive exercises/reflective questions
Exercise: Multiple choice
Exercise: Multiple choice
Exercise: Multiple choice
Further resources: videos and/or useful links
References
The Apostle model:
https://www.startquestion.com/blog/understand-customer-loyalty-with-the-apostle-model/
Services Virtuous Circles and the Tripple Bottom Line
https://www.tradigenia.es/uploads/BRDBhUXD/SERVICE_PROFIT_PEOPLE_PLANET.pdf
Drivers and barriers of circular economy business models: Where we are now, and where we are heading
https://www.sciencedirect.com/science/article/pii/S0959652621042153
https://www.startquestion.com/blog/understand-customer-loyalty-with-the-apostle-model/
Services Virtuous Circles and the Tripple Bottom Line
https://www.tradigenia.es/uploads/BRDBhUXD/SERVICE_PROFIT_PEOPLE_PLANET.pdf
Drivers and barriers of circular economy business models: Where we are now, and where we are heading
https://www.sciencedirect.com/science/article/pii/S0959652621042153
