Climate-Conscious Consumers: Beyond Expectations | Northwind Climate

Unexpected Insights into Climate-Conscious Consumers

Often, surprising patterns emerge when analyzing everyday data sets. Northwind Climate, a startup founded by Doug Rubin, has identified a distinct consumer group they term “climate doers.” These individuals demonstrate concern regarding climate change and generally favor environmentally responsible purchasing decisions, aligning with behaviors like choosing organic products or supporting local businesses.

Interestingly, Rubin revealed to TechCrunch that the “climate doers” demographic actually exhibits a higher frequency of visits to fast-food restaurants than might be expected. Furthermore, approximately 30% of individuals within this group identify as Republicans, challenging conventional assumptions.

Northwind Climate's Origins and Funding

Northwind Climate’s development stems from Rubin’s prior experience in the political arena, where understanding public opinion through surveys is crucial for gauging sentiment and identifying potential voters. The company has successfully secured $1.05 million in pre-seed funding, as exclusively reported to TechCrunch. This investment round included participation from prominent angel investors such as Tom Steyer, Deval Patrick, and Alexander Hoffmann of Susty Ventures.

Rather than categorizing individuals based on traditional demographics like political affiliation, age, or geographic location, Northwind Climate focuses on analyzing survey responses to identify behavioral indicators. These indicators are then used to classify consumers into distinct groups.

Identifying Diverse Consumer Groups

In addition to “climate doers,” who represent roughly 15% of U.S. consumers, Northwind Climate has delineated four other behavioral segments. These range from the “climate distressed” – individuals with moderate climate change concerns and comparatively lower financial stability – to “climate deniers,” typically retirees who believe media coverage exaggerates the issue.

However, Rubin emphasizes that “even within the [climate deniers] segment, there are effective messaging strategies and approaches.”

Tailoring Messaging for Different Groups

Consider Northwind’s analysis concerning electric vehicles. For “climate doers” and the “climate distressed,” who are more inclined to purchase EVs, the startup recommends that automakers position these vehicles as a conscious choice. A suggested marketing message highlights the opportunity to “reduce pollution, save money on fuel, and address climate change.”

Conversely, for “climate doubters” and “climate deniers,” who are less likely to consider an EV, the emphasis shifts to personal freedom: “Americans deserve the freedom to choose the vehicles they prefer. We aim to make electric vehicles clean, affordable, and practical for those who desire them.”

Data Collection and Platform Features

The startup has amassed a database comprising 20,000 survey respondents across eight distinct surveys, with an ongoing growth rate of 2,500 respondents monthly. Northwind also conducts industry-specific surveys quarterly to gather more granular insights for its clientele.

Clients subscribing to the service, priced at $10,000 per quarter or $40,000 annually for a typical customer, can incorporate up to four custom questions into each quarterly survey. Rubin notes this represents a cost-effective alternative to conducting an independent annual survey.

The platform provides subscribers with access to Northwind’s collected data, the questions posed, and fundamental analyses such as cross-tabulations. Currently, the startup is developing a chatbot to enable users to request customized analyses using natural language.

Addressing Concerns About Greenwashing

Some consumers may express skepticism about such a platform, fearing it could facilitate greenwashing. However, Rubin is confident, citing survey data indicating that consumers are generally discerning. “Our data reveals a significant reputational risk for brands making exaggerated or misleading environmental claims,” Rubin stated.

Future Developments: A Virtual Focus Group

Northwind is also developing a “virtual focus group,” an AI model trained on survey responses. This model will analyze a company’s marketing materials – such as television commercials or social media content – and provide feedback, mirroring the insights of a traditional human focus group. Rubin anticipates its availability within the next four to five months, with continuous refinement through new data integration.

Rubin firmly believes that companies are overlooking opportunities to connect with environmentally conscious consumers. “The data clearly demonstrates a widespread desire for sustainable practices, extending beyond partisan lines. Companies that proactively address this demand will be rewarded by consumers,” he concluded.