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Why Sustainability Is Now a Core Driver of Retail Loyalty and Paid Media Performance

Khushi Wadhera
January 30, 2026
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Consumer loyalty in retail now reflects more than price sensitivity or convenience. It increasingly reflects value alignment. According to Capgemini’s What Matters to Today’s Consumer: 2025 report, sustainability has become a concrete decision factor rather than a stated preference. 67% of consumers say they switch retailers due to a lack of sustainability, indicating that environmental practices directly influence where spending flows.

Consumers no longer evaluate retailers solely on functional performance. They increasingly factor environmental responsibility into trust, repeat purchasing, and long-term preference. For senior leaders, this reframes sustainability from a corporate responsibility topic into a commercial lever that directly shapes demand, retention, and media efficiency.

How Sustainability Manifests in Real Consumer Behavior

The impact of sustainability on loyalty becomes clearer when examining how consumers act, not just what they claim to value. Capgemini’s research shows that sustainability already influences purchasing, support, and price evaluation.

64% of consumers report purchasing products from organizations they perceive as sustainable. This indicates that sustainability perception actively guides product selection, not merely brand favorability. Consumers incorporate sustainability cues into their buying process at scale.

62% actively support brands that demonstrate transparent food-waste reduction practices. This highlights that consumers reward visible and measurable actions. Transparency functions as proof, allowing consumers to validate sustainability claims through observable outcomes rather than general positioning.

38% of consumers are willing to pay up to 5% more for sustainable products. This willingness shows that sustainability reshapes value perception. Consumers do not treat sustainability as an external benefit; they integrate it into how they assess what a product is worth.

Together, these behaviours show that sustainability already influences purchasing decisions, brand support, and pricing tolerance. These are the same mechanisms that drive loyalty and lifetime value.

Why Sustainability Shapes Retail Loyalty

Retail loyalty depends on whether a retailer delivers predictable outcomes across repeated interactions. Sustainability now influences that predictability because it reflects how a retailer manages sourcing, production, and operations over time. According to a 2025 study named “Evaluating the Impact of Sustainability Practices on Customer Relationship Quality” by Nasser Ali M. Khalufiet al., retail sustainability practices - such as eco-friendly packaging, environmental impact reporting, supply-chain transparency, and sustainable product recommendations - strengthen customer engagement and customer relationship quality, which are key precursors to loyalty. This research shows that when consumers perceive consistent sustainability actions, they respond with higher engagement and stronger loyalty outcomes.

Analysis by NielsenIQ, conducted in collaboration with McKinsey, shows that products carrying environmental or social responsibility claims achieved faster sales growth than comparable products without such claims over a five-year period. This performance gap suggests that consumers repeatedly choose products with sustainability attributes, reinforcing demand through repeat purchases rather than isolated trial.

When retailers integrate sustainability consistently across product portfolios and operations, they reduce variation between promise and delivery. This alignment supports retention because consumers encounter the same standards over time. In categories with limited differentiation on price or assortment, this operational consistency provides a durable basis for loyalty.

How Sustainability-Driven Loyalty Impacts Paid Media Performance

Paid media performs best when it amplifies signals that already matter to consumers. Sustainability has become one of those signals. When environmental responsibility influences retailer switching behavior, it also influences how consumers respond to advertising.

Paid campaigns that reflect sustainability commitments benefit from higher relevance because they align with existing consumer priorities. Higher relevance typically leads to stronger engagement and more efficient conversion paths. This dynamic reduces wasted impressions and improves return on ad spend without increasing bid pressure.

From a performance perspective, sustainability strengthens paid media by improving demand quality. Consumers acquired through sustainability-aligned messaging tend to convert with clearer intent, which improves downstream metrics such as repeat purchase and lifetime value.

Relevant Article: Which Ad Channel Wins When? Your Guide to Smarter Digital Spend

How Retailers Can Translate Sustainability into Long-Term Loyalty

Position sustainability alongside core loyalty drivers in paid media

Anchor sustainability alongside price, availability, and experience within paid media strategy. When paid media reflects factors that already influence retailer choice, it can improve relevance and conversion efficiency.

Use sustainability-related attributes such as material composition (organic cotton, recycled fibers, FSC-certified paper), packaging characteristics (recyclable packaging, reduced packaging volume, refill formats), and responsible sourcing standards (certified suppliers, traceable supply chains) to provide context around product quality and delivery. When sustainability appears as concrete product information within paid media messaging, it can support relevance, help consumers evaluate overall value, and reinforce loyalty drivers without relying solely on price or promotional tactics.

Operationalize sustainability through measurable signals in paid media execution

Operationalize sustainability by prioritizing initiatives that produce visible, measurable outcomes such as waste reduction, responsible sourcing, or packaging improvements. When these outcomes appear clearly in ad creative and retail media placements, they provide consumers with concrete information to assess sustainability claims. Measurable signals allow sustainability to influence purchasing decisions rather than remaining abstract.

Examples of such initiatives can include reducing packaging volume or plastic use, introducing recyclable or reusable packaging formats, increasing transparency around sourcing and supplier standards, or implementing programs that reduce food waste across production, fulfillment, or store operations. These actions create tangible signals that can be communicated consistently across paid media touchpoints.

Align sustainability messaging with funnel stage and intent

Align sustainability messaging with the role of each channel and format within the customer journey.

In upper-funnel formats such as display or video, sustainable practices can be communicated through broader messages like“responsibly sourced materials,” “produced using reduced-water processes,” or “designed to reduce material waste” to establish context and differentiation.

In lower-funnel formats, including sponsored product listings or on-site placements, sustainability related attributes should appear through factual, product-level descriptors such as “made with 70% recycled polyester,” “organic cotton outer shell,” or “recyclable packaging,” allowing consumers to evaluate products without introducing abstract claims.

Incorporate sustainability attributes into targeting and segmentation

Incorporate sustainability-related attributes where they already exist within first-party data, retail media taxonomies, or platform signals. When audiences show interest in sustainable products or behaviors, reflecting those signals in targeting helps align media exposure with demonstrated consideration patterns, rather than relying on broad assumptions.

For example, a fashion brand offering a denim line made with low-water manufacturing processes and recycled fibers could use first-party purchase data to identify customers who consistently buy these products. These customers could be grouped into a dedicated audience segment for future campaigns. Sustainability-related messaging could then be prioritized for this segment based on demonstrated purchasing behavior rather than assumed interest.

Use product-level sustainability attributes to optimize paid media feeds

Optimize paid media product feeds by making use of product-level attributes that highlight your brand’s sustainability practices. For example, if an apparel brand’s USP is timeless fabrics, vegan leather, or garments made from 100% cashmere, these features can be reflected directly in product titles or key feed fields to help shoppers evaluate value beyond price alone.

Measure sustainability impact through retention metrics and act on the results

Track repeat purchase rates, customer lifetime value, and churn trends to assess whether sustainability initiatives correlate with longer-term customer behaviour. When retention indicators improve, sustainability can be treated as a contributor to loyalty and reinforced across strategy and execution. When retention indicators remain unchanged, teams should reassess how sustainability actions are communicated, whether they are sufficiently visible to customers, or whether other factors such as price, availability, or experience play a stronger role in that category. This approach ensures sustainability investments remain evidence-led rather than assumption-driven.

Relevant Insight: 4 Experts Break Down 3 Ways of Measuring ROI: Marketing Mix Modeling, MTA, and Incrementality Testing

Loyalty Follows Long-Term Responsibility

Sustainability influences loyalty because it reflects how retailers think about the future. Consumers interpret environmental responsibility as a signal of reliability, quality, and trust worthiness. When these signals align with transparent action, loyalty strengthens naturally.

The evidence shows that sustainability already affects switching behavior, purchasing decisions, and willingness to pay. For senior leaders, the opportunity lies in treating sustainability as a structural driver of loyalty rather than a messaging exercise. Retailers that do so build relationships that endure beyond individual transactions and support sustainable growth over time.

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Unsure how to make sustainability work across loyalty and paid media execution? Reach out to us.

Relevant Insights:

· Article: Why Branding Is Key to Marketing Success in 2025 and Beyond

· Article: Brand Marketing in 2025: 8 Power Moves Every Marketer Must Master

· Article: Think Bigger than just Online: Why an Omnichannel Strategy is Pivotal

About Crealytics

Crealytics is an award-winning full-funnel digital marketing agency fueling the profitable growth of over 100 well-known B2C and B2B businesses, including ASOS, The Hut Group, Staples and Urban Outfitters. A global company with an inclusive team of 100+ international employees, we operate from our hubs in Berlin, New York, Chicago, London, and Mumbai.

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