NU-spaarpas, the sustainable incentive card scheme

NU-spaarpasThe sustainable incentive card scheme

Paul van Sambeek and Edgar Kampers - NU-spaarpas, the sustainable incentive card scheme - January 2004

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NU-SpaarpasThe sustainable incentive card scheme


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NU-SpaarpasThe sustainable incentive card scheme

An eighteen-month trial period in Rotterdam 2002-2003: background and results

Paul van Sambeek • Edgar Kampers


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Saving the world is your profit!

ColophonThe NU card scheme is an initiative of the Rotterdam Municipal Authority (Environmental Policy section of the Public Works Department, RET Transport Authority, Roteb Sanitation Department), Rabobank Rotterdam, and Stichting Points. The Rotterdam demonstration project was also made possible by the European Commission (‘LIFE III’) and the Province of South Holland (‘Learning for Sustainability’).

Authors: Paul van Sambeek and Edgar Kampers

Editors: Jur Grandiek, Micha Hes, Rob van Hilten, Miranda van Kuik, Jasja van Moorsel and Marc van der Valk.

Contributors:• Margot Wallström, European Commissioner for the Environment• Gert Spaargaren, Professor of Environmental Policy, Wageningen University

& Research Centre• Ton Kuijlen, Professor of Psychological Market Research, Tilburg University• Frits Hirschstein, manager of marketing and fundraising for Novib/Oxfam

Netherlands• Jan Hoitink, NIDO Market Opportunities for Sustainable Products pro-

gramme manager• Marleen Janssen Groesbeek, journalist/public-affairs writer• Dick Ouwerkerk, former Director of Environmental Policy, Rotterdam Public

Works Department, chair of the NU Card Scheme Steering Committee until the end of 2003

• Jean-Pierre Hannequart, Director General Brussels Institute for the Environment and chair of ACRR

Design: Lyudmyla Verbna (with thanks to Nadine van Mullem)Translation: Rob Breadley, Turnaround Translations. Original Dutch title: NU-spaarpas, het duurzame beloningssysteem.

Copyright 2004 © Stichting Points/Stuurgroep NU-spaarpas

No part of this publication may be copied and/or made public, whether by print, photocopy, microfilm or whatever form, without the authors’ prior written permission.

Stichting PointsNassaukade 421052 CL AmsterdamThe [email protected]

NU Card Scheme Steering Committee, RotterdamC/o DCMR Environmental Protection Agency RijnmondPO Box 8343100 AV SchiedamThe Netherlandswww.dcmr.nl

With the contribution of the Province of South-Holland and of the LIFE financial instrument

of the European community


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ForewordSustainable consumption and production are a central objective for the coming years. Economic growth remains necessary to provide jobs and economic welfare today and tomorrow. But this growth must operate within the ecological boundaries of our communities and of our planet. Our current patterns of consumption and production are not sustainable. We need to start consuming and producing differently and better – to make more from less. Otherwise our natural resources will continue to degrade.

The EU will put more emphasis on sustainable consumption and production in the coming years. During the Johannesburg Summit on Sustainable Development in September 2002, sustainable consumption and production was included in the Johannesburg Implementation Plan. Now we must move from words to deeds. Innovative approaches and good examples are needed more than ever.

The NU card in Rotterdam is such an example. It rewardsconsumers of goods and services that meet sustainability criteria.

Today 100 shops and municipal services in Rotterdam accept the card. Over 10,000 consumers use it to gather points that can in turn be spent on sustainable goods and services. The card shows that consumers can make a difference. It shows that the right incentives are important.

The European Commission has co-funded the project, because we are convinced that without a change of behaviour sustainable consumption and production will not be achieved. This book reports on the NU experiment, together with a more general discussion on similar approaches. I hope it will contribute to spreading the message that we can change our way of life, if we want to.

Margot Wallström, European Commissioner for the Environment


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Contents Foreword 5

1 NU CARD SCHEME: FROM CONCEPT TO PLAN 91.1 Introduction 91.2 Government developments 11

About motives and contexts of behaviour 141.3 Developments in marketing 151.4 The background of the NU card scheme 171.5 Partners 19

2 WHAT IS THE NU CARD SCHEME? 232.1 Introduction 232.2 How does NU work? 232.3 Applications of the NU card scheme 252.4 Target groups 272.5 The five Ps: Product, Price, Place, Promotion and Personnel 27

Marketing as a model for sustainable consumption policy 312.6 Technology 322.7 Saving and redeeming lists 34

Honest consumption? Be kind to others too! 352.8 Projected results 37

3 NU AND CONSUMERS 393.1 Introduction 393.2 Problem 40

Sustainable production: a matter of small steps 413.3 Rewarding the solution 433.4 Strategic choices in the demonstration project 453.5 Results 46

One label for all 49

4 NU AND THE SME SECTOR 534.1 Introduction 534.2 Sales arguments 54


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4.3 Strategic choices in the demonstration project 564.4 Results and recommendations 58

No proper behaviour without self-interest 60

5. NU AND THE GOVERNMENT 635.1 Introduction 63

Do we repeat mantras or do we offer a different way of looking at our actions? 64

5.2 Household waste 655.3 Support of small and medium-sized enterprises (SMEs) 66

Waste, now what? 685.3 Mobility 71

6 RECOMMENDATIONS 736.1 Practical experience 736.2 Opportunities for the future 76


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1 NU CARD SCHEME: FROM CONCEPT TO PLAN 1.1 IntroductionSaving the world is your profit! This is the motto under which the NU card scheme (‘NU-spaarpas’) was launched in Rotterdam in May 2002. The NU card is the first technologically advanced incentive system for sustainable behaviour and sustainable consumption. It was realized in a unique public/private collaboration between the Rotterdam Municipal Authority, Rabobank, and Stichting Points (formerly Barataria).

The NU card scheme is an attractive option for anyone wishing to encourage sustainability and quality of life at a local level: marketeers, waste processors, public transport companies and scientists. NU card is also attractive to those who think systematically about the changing role of the government and who are looking for appropriate instruments.

Implementing a sustainable incentive card can take the interests of various groups into account.

With the NU card scheme, private households gain immediate material advantages, because civilians/consumers are rewarded for sustainable everyday behaviour and for consuming sustainable goods. They gain a new, tangible way of acting and learn more about the sustainability of products and services.

Shops use the NU card to attract and retain customers; the card is a good opportunity to promote a shop and its range of sustainable products. The positioning of the NU card


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scheme is unique, and the card has the potential to win a considerable share of the market.

For government bodies, the NU card scheme is rewarding because not only is it a new instrument for influencing behaviour, it also doubles the effect of subsidy euros and generates valuable, detailed policy information.

The NU card scheme in Rotterdam came into being with the financial support of the Rotterdam Municipal Authority, Rabobank, the European Union and the Province of South Holland. When the NU card scheme was launched, the initiators allowed for the possibility of continuing the savings programme after the trial period. However, during the trial period, it became apparent that there was no future for the NU card scheme without structural and substantial contributions from various partners. At the end of 2003, with the exception of the Rotterdam Municipal Authority, none of the partners were prepared to contribute financially to a continuation of the project in Rotterdam.

However, the NU card scheme is not just the name of the Rotterdam pilot project; more than anything, it is the concept of a sustainable incentive system that can be introduced almost anywhere and that has the potential to become the sustainable incentive plan for the Netherlands. As matters stand, the subject is being discussed with the local authorities of a number of municipalities in the Netherlands, and plans are being forged to introduce the NU card scheme there in the near future.

This publication is our report on the development of the NU card scheme in Rotterdam and of the experiences with it to date. We hope that this will contribute to the further development of instruments that will help realize social objectives in a positive manner.


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How to read this reportThis first chapter sets out the background of the NU card scheme, in relation to broader developments in the field of government policy and marketing. Chapter 2 describes how the NU card scheme works in practice. What the NU card can mean to consumers, small and medium-sized enterprises, and the government is discussed in Chapters 3, 4, and 5, respectively. The results of the demonstration project in Rotterdam are also presented. Chapter 6 discusses the possibilities for increasing the scale of the NU card scheme.

1.2 Government developmentsDevelopment of government instruments aimed at sustainabilityA habitable world is an impossibility unless we create a system of sustainable production and consumption. This means that consumers must start buying sustainable products more often and manufacturers must start producing more products in accordance with sustainable criteria. Much is being done to achieve this: the availability of sustainable products has increased dramatically and many consumers in the Netherlands are aware of the consequences of consumption. However, it is not happening fast enough; the targets set are not being realized.

The government has an extensive arsenal of legal, financial and social instruments at its disposal with which to encourage sustainable behaviour. Over the last decade, the use of these instruments in the field of environmental policy has greatly changed. In the early 1970s, increased environmental awareness rapidly led to effective environmental policy, consisting mainly of regulations and legislation for industrial polluters. The emphasis was on end-of-pipe solutions and a top-down approach, starting


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from within the government. In the 1980s, it became more and more apparent that many of the environmental objectives were unattainable without the efforts of civilians and consumers. The government therefore reconsidered the educational and informational activities it had aimed at the general public. Those activities endeavoured to lend depth to environmental policy. The underlying idea was that if civilians became aware of the effect of their actions on the environment, this would lead them to change their behaviour. Evaluations of the informational campaigns revealed that the knowledge of a large number of civilians/consumers about environmental problems had grown, as had the understanding that everyone must participate. However, this process of giving depth to the policy only resulted in changed behaviour in certain aspects.

That is why a two-pronged policy was adopted: in addition to the informational activities, a pricing policy would also be used as an instrument for influencing consumer behaviour. The costs of environmental pollution would have to be reflected in the prices of products. Moreover, the informational activities would be aimed more at tangible behavioural perspectives; for example, clearer environmental labelling on products would make it easier for consumers to make the right choices. However, the implementation of these policies resulted in numerous practical objections. Although a number of concrete steps were taken, such as the introduction of an energy label, the Milieukeurmerk label and duties on fuel and waste, on the whole, the environmental behaviour of civilians/consumers continued to prove difficult to guide.

Changing behaviour by offering incentivesBy now, most people are aware of the fact that the environment and sustainability are serious issues. They often also know what they can do to help solve those problems, both as civilians and as consumers. Moreover,


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many people say that they are positive about various measures. In practice however, they barely act, if at all. The behaviour of civilians/consumers is much less sustainable than one might expect, based on their knowledge and attitude.

One of the barriers that civilians/consumers encounter in changing their behaviour is that the desired behaviour is often ‘punished’. Biological and fair trade products are generally more expensive than their less sustainable counterparts, and are also more difficult to obtain. Many people find this unfair and use it as an argument not to act in a sustainable manner.

The NU savings programme is based on the assumption that it is more effective to approach people in a positive and stimulating way than in a negative and restrictive manner. Rewarding desired behaviour, as often happens in marketing, is one of those incentives.

The NU card scheme uses rewards for sustainable action, taking into account the following assumptions for effective behavioural change:• The reward must suit the individual. • Immediate rewards are especially important in teaching

people behaviour, regular rewards are especially important in making behaviour become habitual.

• The reward must not be too small, or it will not have any effect.

• Neither must the reward be too great, or the behaviour will depend entirely on the reward, leaving no room for motivation.

• The more visible the reward, the better it works.• The reward provider must be believable and trusted.The reward serves as a stimulus to make people stray from their habits, without them having to make conscious choices all the time. People need not even be aware of having switched to a different track.


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About motives and contexts of behaviour

by Gert SpaargarenWhen the matter of changing behaviour arises in a discussion about environmental policy or sustainable development, it is not easy to take on the part of the optimist. But are we not being too negative about behaviour changes or the absence thereof? All these policy experiments and private initiatives that focus on civilians/consumers really yield so little result?

In my view, matters are not as drastic as they seem, with regard both to policy gains and to the involvement of civilians/consumers. We are slowly but steadily gaining headway, in breadth as well as in depth. In the fields of housing, food and even transport, a much better range of more environmentally friendly alternatives is available than a decade ago, and people are making better use of those alternatives as well. Of course, in ‘everyday’ environmental policy, just as in international environmental policy, setbacks occur in various areas alongside the breakthroughs. It is just that with everyday matters we seem inclined to magnify the negative experiences and remember them more clearly.

Looking at the results of the consumption study, I believe that two matters are of particular importance with regard to the future of sustainable consumption. Firstly, the modern consumption society must be accepted – even by environmental movements – as the framework within which sustainable development is to be discussed. The professionalization of environmental management must not stop at the gates of the civilian/consumer. The environment can and must be incorporated into our present everyday routines, which can then be accepted as the starting point for realistic policy.


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Secondly, we must cease regarding consumer behaviour in too individual a light. Of course behavioural change is a matter to be realized by individuals, but when it concerns the motives behind consumer behaviour, large groups of civilians/consumers display similar motives in areas of everyday life that can be defined quite accurately. We all shop, visit our parents, exercise, cook, do odd jobs around the house, garden, in other words: we all participate in everyday life in the Netherlands right NOW.

Sustainable behaviour can also be stimulated by placing a more sustainable ‘tailored range’ on the market, taking the motives of the average do-it-yourselfer, shopper or traveller into account, and supporting that range of products with positive instruments. I do not understand why policymakers are sometimes so sceptical about eco labels, or why everything is not being done to sell sustainable products and services. People’s hastiness, frugality and even environment-forgetfulness at times and in some areas have to be taken into consideration when developing policy, and not used as an excuse to simply do nothing. After all, we are all just ordinary people.

Gert Spaargaren is professor of Environmental Policy at Wageningen University & Research Centre

1.3 Developments in marketingRetention and loyaltyIt is often said that 20% of the customers are responsible for 80% of the turnover. In an age when consumers are less habit-bound than ever, ‘loyalty’ is the keyword. That is why businesses are making ever greater efforts


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to bind their customers to them. Loyalty programmes whereby regular customers profit more than one-off buyers are appearing all over the place. The Albert Heijn supermarkets, for example, offer price advantages with a Bonus Card, KLM offers quality advantages with Frequent Flyer Miles and Air Miles uses a savings programme to bind customers to a network of businesses. Where once loyalty programmes were distinctive instruments for binding customers, nowadays it is almost the case that firms that do not have a loyalty programme distinguish themselves in a negative way.

Loyalty programmes do not only ensure client retention or repeat purchases. The rapid developments in information technology have given rise to new opportunities to obtain information about customers and their purchasing habits. Businesses in the fast moving consumer goods sector are in the forefront of the developments. Using a savings card, shops can easily register each purchase their customers make and use this information to create customer profiles. Smart database links and Customer Relationship Management (CRM) then open up endless marketing opportunities.

Technical developments: coupons are replaced by electronic savings cardsThe Dutch are the ultimate savers. The idea of gaining some advantage by saving is more important that actually converting the savings into gifts or discounts.

Recent technical developments are making saving easier than ever. The first innovations were barcoding and magnetic strips. Stamps became unnecessary, the scanning of a barcode or a magnetic strip on a card raised the balance of virtual savings stamps in a database. The barcodes or magnetic strips represent nothing more than a customer number to identify the card holder.The next development was the smart card or chip card. This


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card contains a chip with the ability to store memory on the card itself. The chip card is more expensive in production, but the hardware system becomes cheaper because the online connection to the database is no longer necessary. The chip remembers simple data such as the card number and the balance; the registering equipment needs only send the data to the central database from time to time. Another advantage of chip cards over barcodes and magnetic strips is that they are easier to protect against abuse and copying.

1.4 The background of the NU card schemeIn various places in the Netherlands in the early 1990s, the idea arose for a sustainable incentive system. Even before the introduction of the electronic Air Miles saving card, Henry Mentink, supported by the Dutch Ministry of Housing, Spatial Planning and the Environment, developed the ‘Environment Participation Fund, green card for the environment’.

In 1996, Mentink won the Waste Award of the Province of North Holland. With these funds, he organized a conference that resulted in the National Steering Committee for Incentive Systems for Sustainable Products, chaired by Stichting Milieubewustzijn of ’s-Graveland.

This National Steering Committee comprised experienced managers from the government, the business sector, politics, universities and social organizations. The steering committee set itself the objectives of supporting the detailed development of sustainable incentive systems, of safeguarding the social character and of organizing upgrades to the national level. In 1999, with funds made


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available by the Dutch Ministry of Housing, Spatial Planning and the Environment, the steering committee studied the various initiatives that existed at the time. This resulted in the report ‘Incentive Systems for Sustainable Products; Blueprint for the Future’. The study recommended that support be granted to the Rotterdam incentive initiative. Early in 2001, the steering committee was merged into the new Stichting Duurzame Beloningspas.

Rotterdam demonstration projectDuring the opening meeting of the Rotterdam Local Agenda 21 in 1998, the idea was born to introduce a sustainable incentive card in Rotterdam. From the start, strong parties supported the enterprise: Rabobank, the RET Transport Authority, the Roteb Sanitation Department, and the Environmental Policy section of the Rotterdam Municipal Authority.Consultancy firm Barataria had been involved in sustainable savings systems since 1999. The agency took on the secretarial duties of the National Steering Committee for Incentive Systems for Sustainable Product, and at the same time developed the public support and funding for the Rotterdam initiative, which at the time was named PlusPunten. In 2002, Barataria was transformed into Stichting POINTS.

In 2000, the PlusPunten Demonstration Project was launched. The European Commission provided a subsidy as part of the LIFE III environmental programme. The partners in the project were the Rotterdam Municipal Authority (represented by the Environmental Policy section of the Public Works Department, the Roteb Sanitation Department and the RET Transport Authority), the local and national branches of Rabobank, and Barataria. The introduction of NU-Spaarpas onto the market in May 2002 was an important milestone after years of orientation and preparation. The project’s demonstration phase ran from May 2002 until October 2003.


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1.5 PartnersA public-private collaboration of government and the business sector allows social objectives to be achieved in a commercial manner. The partners in the demonstration project in Rotterdam each have their own aims and complementary qualities that help make the NU card scheme a success.

Rotterdam Municipal Authority: Environmental Policy, RET, Roteb Three departments of the Rotterdam Municipal Authority participate in the project. The Environmental Policy section of the Public Works Department uses the NU card scheme to raise environmental awareness, to stimulate sustainable behaviour and to support the local economy.

The regional RET Transport Authority encourages NU cardholders to use public transport outside of rush hours by offering day passes as one option for redeeming the NU points. In return, RET played an important role in the promotional activities of the NU card scheme, by offering advertising space in bus shelters and on trams.Roteb Sanitation Department makes the dumping of separated waste at the civic amenity sites (Milieuparken), lucrative by rewarding such behaviour with savings points. Roteb communicates with every household in Rotterdam and could use its channels for the benefit of the NU card scheme.

RabobankThe cooperative Rabobank Group places a great deal of emphasis on sustainability. Rabobank Rotterdam used the NU card scheme to enhance its image and to explore the possibilities of introducing a “green” financial product. The NU card scheme was able to make use of Rabobank’s legal expertise and technical experience, and could access


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the bank’s network of small and medium-sized businesses in Rotterdam and its account holders.

Stichting Points (formerly Barataria)Barataria, a consultancy firm for financial innovation and sustainable development, developed the concept and headed the project. Halfway during 2003 the agency was transformed into Stichting Points.

Sponsors: European Commission, the Province of South Holland and the Ministry of Housing, Spatial Planning and the EnvironmentAs part of the LIFE III environmental programme, the European Commission granted a one-off subsidy for the duration of the Rotterdam demonstration project. The Province of South Holland also made a financial contribution to the development of the NU card scheme, in connection with the ‘Learning for Sustainability’ programme. The Dutch Ministry of Housing, Spatial Planning and the Environment helped ensure that the NU card scheme remained operational for an additional three months at the end of 2003.


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2.1 IntroductionThe NU savings programme is an incentive system for sustainable purchasing behaviour by consumers. ‘Sustainable’ is taken in the broadest sense: environmentally friendly and low on energy use, but also friendly towards humans and animals, and with regard to solidarity, social issues and quality of life. The system is primarily aimed at changing people’s behaviour, and to a lesser extent at changing their mentality.

The NU savings programme promotes sustainability:• consumers are given a new way of looking at sustainable

behaviour;• consumers are informed about sustainable products

and sustainable behaviour;• the visibility of the range of sustainable products in

shops is improved;• the market share of sustainable products is increased;• sustainability becomes a more integral part of the way

producers, suppliers, retailers and consumers think.

From May 2003 on, experiences were gained with the NU card scheme in Rotterdam. This chapter describes how the NU savings programme works, as well as the aims and target groups of the Rotterdam project, and how the project was developed in the marketing mix. This chapter also deals with the technology and the sustainability criteria applied.

2.2 How does NU work?Saving pointsEvery cardholder buying a product or service from a shop

2 WHAT IS THE NU CARD SCHEME?


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that participates in the NU savings programme receives NU points. These points are automatically credited to their chip cards by means of a terminal placed by the NU card scheme.

Purchases made at participating shops are rewarded with points equalling a set percentage (such as 1%) of the retail value. Conservationist and environmentally friendly products are rewarded at four times the number of points. This encourages customers to buy sustainable products.

Examples of sustainable products include products with a green label or with a Max Havelaar or EKO label. Purchasing second-hand goods and having items repaired also qualifies as ‘sustainable’. At shops with a very large proportion of sustainable products in their range, such as organic food shops and Fair Trade aid shops, all products give high rewards. Another important way in which cardholders can collect points is by separating waste for disposal and depositing second-hand goods at Roteb’s civic amenity sites.

Redeeming pointsCardholders can redeem the points they have saved for sustainable rewards at participating firms. In other words, sustainability is promoted on two fronts: when the points are saved and when they are spent. For the government, using subsidy euros to influence the behaviour of the populace, this means that the effect is doubled. Rewards include day passes for public transport, subscriptions to the art library and free admission to local attractions and museums. Points can also be exchanged for ‘green specials’ at participating shops: sustainable sample products that suit the shop’s range, so that some of the points spent are returned to the shop.

The ‘circulation’ of the NU savings points is illustrated below.


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Circulation of pointsFor each euro spent, the consumer receives a set number of NU points. These points can be spent as if they were euro cents: they represent monetary value.

The parties granting the points pay the NU card scheme 0.7 euro cents per point, plus a nominal fee for administration costs. The points that savers redeem are refunded to the receiving businesses by the NU card scheme at their trade value: 0.7 euro cents per point. Retailers that both issue and receive points may offset the issued and received points against each other. This means that the income from the issued points covers the costs of refunding the redeemed points. If the scale of the programme is increased sufficiently, part or all of the administration costs can also be paid from the proceeds because in practice, a large proportion of the points saved with savings programmes are never redeemed.

2.3 Applications of the NU card schemeMarket developments for sustainable products

CustomersCitizens

PresentsPublic

transport

Shopswaste

Points

Products

Euros


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Making the switch to sustainable production and consumption is an essential step in achieving sustainable development. This means that more producers and retailers have to manufacture and sell products that meet sustainable criteria. Consumers must purchase sustainable articles more often.

The NU card scheme was developed for the purpose of stimulating the sale of sustainable products. By rewarding sustainable purchasing behaviour, the NU card scheme encourages sustainable consumption.

Preservation of independent SMEsThe NU card scheme offers small and medium-sized enterprises an affordable marketing tool for attracting and retaining customers and generating publicity. This increases the chances of survival for small independent retailers, which in turn stimulates the social cohesion and quality of living in neighbourhoods.

Waste collection, reuse and recyclingThe costs of waste collection and processing in major cities are relatively high. The NU card scheme encourages people to separate their waste and turn it in at collection points. In addition, turning in reusable goods is also rewarded. These incentives help create a cleaner city while reducing the costs of waste collection. Recycling firms and second-hand shops also participate in the NU programme to encourage people to reuse goods.

Promotion of public transport and bicycle useOutside of rush hours, public transport has a large amount of extra capacity. Offering day tickets for off-peak hours as one of the options for using NU points can help put this extra capacity to efficient use. Other sustainable forms of transport, such as bicycles, are also promoted, by involving bicycle shops and bicycle parking facilities in the savings programme.


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2.4 Target groups The NU card scheme can be regarded as an exchange system that supplements normal monetary transactions. This system has both a demand and a supply side.

On the demand side, the NU card scheme is aimed primarily at consumers who, when it comes to sustainability, are passive. These consumers are open to environmental issues, although they do little about them in practice. The NU card scheme can break through their passivity, by making sustainable behaviour easy and offering immediate rewards. The next chapter will discuss in depth the relationship between consumers, sustainability and the NU card scheme.

On the supply side, all firms and organizations that are able to promote sustainable behaviour in the selected target group are essentially eligible to participate in the NU card scheme. These include:• Shops that offer or can offer sustainable products.• Producers of sustainable and relatively sustainable

products and services.• Government services.• Non-profit institutions that offer sustainable products.• Social organisations.

Chapters 4 and 5 deal specifically with what the NU card scheme can represent to the SME sector and the government respectively.

2.5 The five Ps: Product, Price, Place, Promotion and PersonnelThis section describes how we detailed the marketing mix for the NU card scheme in Rotterdam.


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ProductThe positioning strategy for consumers comprises three elements:• the NU card scheme is easy, fast and economical in

use.• the NU card scheme is suitable for decisive people who

care about themselves and about the world.• the NU card scheme makes sustainable consumption

accessible.

Most people participating in the NU card scheme rarely encounter difficulties. The consumer receives his personal NU savings card immediately upon registering. Sustainable consumption and behaviour become easy and attractive, because a relatively large number of NU points are issued. The points can be credited to the card effortlessly, and once the balance is high enough, various attractive rewards can be collected.

The positioning strategy for commercial participants and organizations is focussed on commercial benefits and behaviour options. These parties can participate in the NU savings programme either as issuers or receivers of points, depending on the products or services offered.

PriceUntil early in 2003, consumers paid € 1.50 for a NU savings card. In exchange, the consumer received an opening balance of 150 points (with a redemption value of € 1.50) on the card. The € 1.50 was deducted from the cardholder’s bank account by direct debit. This low purchase price created a low threshold, to increase the likelihood that participating consumers would actually use the card.

On 1 March 2003, this system was terminated and NU savings cards were issued free of charge. This change in strategy stemmed from a desire to attract new cardholders


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faster and more easily, so that participating shops could benefit from the savings programme sooner.

The costs of commercial participation in the NU card scheme comprise two parts. The first part is the fixed participation fee for the rent of the terminal and administration costs. The second part depends on the form of participation: as a point issuer or as a point receiver. Issuers incur variable costs in the form of the NU points issued. Receivers are paid money for the points received, but only 70% of the normal price of the goods and services offered.

PlaceWhen a savings programme is launched, it is important to both retailers and households alike that a critical mass be achieved as fast as possible. Consumers must be able to save at enough shops in their neighbourhood to make participation worth their while. Participating retailers, in turn, need to have sufficient cardholders amongst their customers. In view of this, a useful strategy is to work with sub-areas. In a neighbourhood-oriented system, entire shopping streets are approached at once, as are the residents.

To allow the broadest possible use of the NU savings card, exclusive businesses were excluded.

PromotionIn December 2001, communications firms Schuttelaar & Partners and Winkelman en Van Hessen, in close collaboration with the NU card scheme, developed a marketing and communications strategy for the launch of the NU savings card. This plan was the basis for further developments in communications media and instruments, partly by advertising agency BBK Informatieoverdracht and partly by Bureau NU-Spaarpas.

The initial communications were aimed chiefly at


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generating product familiarity and attracting cardholders. The principal message in the mass communications was the advantage of saving with the NU card. The sustainability aspect was not stressed until the next phase of communications.

After approximately a year, the emphasis shifted to encouraging the use of the card.

The following list summarizes the tools developed:• Basic instruments: the savings cards themselves,

stationery, registration forms, manuals, saving and redeeming booklets, vouchers;

• General familiarity: opening meeting, posters in bus shelters and on trams, publicity flyers, website, advertisements;

• Recruiting cardholders: booths, direct mailings, street teams, neighbourhood campaigns;

• Supporting the recruitment of commercial participants; presentation materials and folders;

• Supporting participating retailers and institutions: shop promotion materials, campaigns, advertisements;

• Encouraging the use of the NU savings card by cardholders: vouchers, the digital newsletter, mailings, the NU-magazine, and targeted mailings.

For direct recruitment of NU cardholders, in addition to the instruments listed, promotional teams were employed and direct mailings were sent to relations of commercial participants and sympathetic organizations. Another important recruitment channel were the retailers themselves, who issued cards to their customers free of charge.

The promotion of the NU card scheme towards the commercial target group was very intensive. Various informational seminars were organized to inform interested parties about participation in the NU card


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scheme. However, most commercial participants were recruited directly by personal conversations with the sales staff.

PersonnelAt the height of the campaign, more than 20 people worked for the NU card scheme (17 FTEs), largely for the Communications, Sales and Account Management departments, in the recruitment of cardholders and commercial participants. The organization was headed by a project director and a project manager. The principal was the Steering Committee, which included representatives of the parties involved.

Marketing as a model for sustainable consumption policy

by Ton Kuijlen

The present state of computer technology allows for efficient long-term relations with customers. With the tremendous computing power and memory capacity of modern ICT, it is easier than ever to register and analyse customer data. This in turn makes it possible to realize marketing objectives, such as the tailoring of the supply to precisely defined target groups, and at ever lower costs.

The results are a higher degree of customer satisfaction, loyalty and consequently increased turnover and profitability. This applies in particular to businesses that have proven capable of introducing loyalty programmes that manage to enhance the loyalty to the business’s own brand, and in doing so succeed in rising above the level of ‘saving coupons.’ The key is loyalty to a brand, not to the ‘coupons or the points.


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The project organization behind the NU card scheme took the accomplishments and knowledge of these disciplines as its example. For example, the MOA model (roughly speaking, the factors that determine the desire and ability to participate in sustainable consumption behaviour) from economic psychology was used.

In this fashion, the possible target groups and their ‘contributions to sustainability’ were determined. A data infrastructure was also constructed, for tracing and rewarding the participants’ behaviour. Finally, a communication strategy was developed that is needed to bring the programme to the target groups’ attention in a positive manner and to hold that attention.

Use of the most up-to-date marketing and communication techniques and of ICT laid a solid basis for the NU incentive system.

Ton Kuijlen is, among other things, professor of Psychological Market Research at Tilburg University

2.6 TechnologyThe NU savings card itself is a simple chip card, which needs only to remember a limited amount of information: its own card identification number, whether or not it has been activated, the transactions completed with the card and the resulting balance. Because the balance is recorded on the card itself, the system can work offline. This means that no dial-up connection is needed for every transaction, as is the case with PIN payments.

Participating retailers are given the use of a terminal and a scanner. The scanner reads the barcodes on those products for which points are awarded. If the shop does


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not work with product barcodes, a barcode sheet is made specially for that shop, listing the product categories and consumer prices.

The scanner is connected to a two-piece terminal: a base station with a removable handheld. The handheld contains a slot for the card. It reads the data from the chip card and writes the new data to the chip. The terminal records the information from all the barcodes and the related number of points of products sold in the shop, and of all transactions made since the last data exchange with the central database. At a set time every night, the terminal independently dials up and transfers the figures to the central database. This then returns certain information, such as numbers of cards that are to be blocked or unblocked, or if a particular transaction is to be debited or credited.

The Central System, where the central database is stored, is located in Doetinchem, at Smart Concepts. NU-CS, as this system is called, contains only the most elementary administrative data. In other words, all transactions are stored in the database.Every night, NU-CS sends a complete ‘dump’ to the Administrative Module of the NU card scheme: NU-AM. NU-AM contains the information about which household goes with which card identification number, which shop belongs to which terminal identification number, what number of NU points goes with which barcode, etc. Changes to barcode lists, addition of terminal IDs for new commercial participants, blocking and unblocking cards and orders for adjustment transactions are uploaded from NU-AM to NU-CS every day, after which NU-CS sends the necessary information to the terminals at night.

NU-AM holds all privacy-sensitive data, and consequently has very restricted access. NU-AM also generates all information needed for invoicing, replacing lost or stolen


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cards, if necessary, and analysing card use, as well as the relevant management information.

2.7 Saving and redeeming listsThe goods and services and the behaviour for which NU points are awarded are listed on the ‘Saving List.’ The ways in which points can be spent are set out on the ‘Redeeming List.’ Both lists are to be found on the website of the NU card scheme, in the Saving and Redeeming Book and in NU-magazine.

During the course of the demonstration project in Rotterdam, it became apparent that the system can work only if the participating consumers can rapidly achieve sufficient results with their saving. The greater the number of participating retailers and service providers, the greater the choice and consequently the greater the motivation to participate. This is why a broad definition of sustainability was adopted: environmentally friendly and low on energy use, but also friendly towards humans and animals, and with regard to solidarity, social issues and quality of life.

The criteria that a product or service must meet in order to qualify as ‘sustainable’ are set out in a list of criteria compiled by the NU card scheme. These criteria were drawn up with the aid of Stichting Duurzame BeloningsPas. The list can be adapted, partly because the subject matter is complicated and continuously is development, information is never complete, and interpretations can sometimes be subjective. The foundation strives to create a comprehensive list of products and services, based on clear-cut criteria with broad support.

Products, services and behaviour that are listed as deemed sustainable on the NU Saving List include:


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• products with an acknowledged environment quality mark, such as the biological food label EKO, the green label, the European ECO label, the FSC certification for timber;

• socially sustainable products such as Max Havelaar, Kuyichi, Rugmark;

• animal-friendly products such as those bearing the Graskeurmerk or Proefkoneen logos, or free-range meat;

• commissioning repairs and purchasing second-hand goods;

• borrowing/lending or renting/hiring (e.g. of art, tools, transport);

• green financial products;• green electricity;• energy-efficient products such as those bearing Energy

Label A or the Gaskeur or Zonnekeur labels;• depositing separated waste at the Roteb civic amenity

sites;• environmentally friendly mobility, such as bicycles,

public transport tickets and related products.

The NU Redeeming List comprises products and services that are deemed sustainable because they cost relatively little energy per euro spent. Examples include tickets to museums, the cinema, the zoo and the Euromast. NU points can also be donated to charitable causes, such as Novib/Oxfam Netherlands.

Honest consumption? Be kind to others too!

by Frits Hirschstein

Why does Novib support a savings programme for consumers? Is all that consumption in the Netherlands


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and the entire developed world not an important aspect of exploitation and inequality? Yes, when that consumption becomes irresponsible. But that is not the case with the NU card scheme. Our view on fair trade, sustainability and working conditions ties in well with the manner in which the NU card scheme encourages consumers to consume in a responsible fashion.

We believe that we will have come a long way if people become aware of the products they buy. Price is still an important consideration when choosing between products. Not only demand, but also trade barriers still make fair trade products expensive. And that means that many consumers who may be aware of exploitation and environmental issues nevertheless allow their wallets to decide.

Novib is of the opinion that the concept of the NU savings is in accordance with our modern manner of communicating. Informational programmes have always been a positive method of presenting issues to the general public. And that has certainly led to successes. One for Africa, in the 1980s, was an example of how the world is able to take the fate of others to heart. But these are always the media-genic and therefore most bitter examples.

In order to improve the everyday lives of people in Asia, Africa and Latin America on a structural basis, fair trade is essential; this means permanent support and dedication. Permanent support cannot be achieved by simply grabbing the cheapest products from the supermarket shelves.

The NU card scheme gives consumers an incentive to buy products that allow people in developing countries to build a better future for themselves. And, even better, the points saved can be donated to Novib. It is a small gesture. But


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it does mean admitting that consuming can and must change.

Frits Hirschstein is manager of marketing and fundraising for Novib/Oxfam Netherlands

2.8 Projected resultsThe NU card scheme defined the following projected results for the demonstration project:

Quantitative• 11,000 households will participate in the NU card

scheme.• The cardholders will save 7 million points by buying

products and services for a total value of € 1.7 million.• The points saved will be exchanged for products and

services with a value of more than € 50,000.• 100 businesses, mainly retailers in the SME sector, will

participate in the NU savings programme.

Qualitative• The market share of sustainable products will increase.• The public support for sustainability will increase.• The support from the business and industrial sector for

sustainability will increase.• Consumers will begin to view sustainable behaviour in a

different manner;• The informational campaigns about sustainable

products and sustainable behaviour will improve.• The visibility of the range of sustainable products in

shops will improve.• Sustainability will be incorporated into the way

producers, suppliers, retailers and consumers think.


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3.1 IntroductionThe NU card scheme distinguishes three categories of consumers: • active consumers;• passive consumers;• uninterested consumers.

Active consumers, estimated to constitute 20 percent of the population, are motivated and environmental considerations are often a deciding factor when purchasing. These consumers independently and actively seek out information about sustainability, and to a certain extent are willing to pay more. These active consumers are the first to be reached by the NU card scheme. However, they are not the group upon which the NU card scheme primarily focuses, though progress can be made here too. The market share of sustainable green products is generally much smaller than the size of the group of active consumers would lead one to believe: biological products 2 percent, Max Havelaar coffee 3 percent.

For uninterested consumers, estimated to be 25% of the population, sustainability information does not play a conscious role in the purchasing process. Part of this group will be indifferent towards sustainability, while another part – a small group – will explicitly reject it.

The NU card scheme is primarily an incentive system for the group of passive consumers between these two extremes, an estimated 55% of the population. For this group, the environment is not a priority. Although they are generally receptive to the sustainability message, they tend to wait and see how the proposed solutions are put into practice. With this group, the NU savings card can

3 NU AND CONSUMERS


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be used to appeal to people’s desire to be rewarded for appropriate behaviour.

3.2 ProblemThere are a number of reasons why passive consumers make few or no sustainable purchases:• The product’s function comes first. For example,

a consumer wants a washing powder that washes properly; if that product is also good for the environment, all the better, but that is not the reason for buying it. Conversely, potentially environmentally damage can be a reason not to buy it.

• Sustainable products are more expensive than their non-sustainable alternatives, primarily owing to the lack of market clout. Although passive consumers are not necessarily negative towards sustainable products, they are rarely willing to pay a higher price. This means that the difference in price with common products must not be too great. It should also be noted that consumers sometimes incorrectly assume that green products are always more expensive. Examples of sustainable products that are cheaper in the long term include green electricity, energy-efficient central heating boilers and energy-efficient light bulbs.

• The availability of sustainable products is not as good as it could be. It takes more effort to find them. In most shops, only a small selection consists of recognizably sustainable products. In addition, there are not many shops that specialize in the sustainable range.

• Changing behaviour takes a high psychological toll. Many consumers have negative feelings about sustainable products and services. Sustainability often calls to mind problems, restrictions, scarcity and discomfort. This image clashes with a fresh perception of life.

• Changing behaviour takes a high socio-cultural toll.


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In the past, sustainable products were sold chiefly in ‘green shops,’ such as health food shops and Fair Trade aid shops. The customers of these shops are mostly active consumers. Passive consumers often feel out of place in this subculture, which leads to the creation of a threshold for sustainable purchasing. However, a positive development is that nowadays more and more sustainable products are available at regular shops, such as supermarkets. However, in neighbourhood shops the range of sustainable products is still small or non-existent.

In addition, there are also indications that consumers do not adopt a more sustainable consumption behaviour if they observe only a low frequency of usage with others.

• The sustainability information is not accessible, reliable or clear enough. Consumers get mired down in the maze of quality marks and labels. An umbrella label that covers all aspects of sustainability would increase the success of the communications.

Sustainable production: a matter of small steps

by Jan HoitinkThe market share of sustainable products is practically never more than 5%, despite the fact that studies have shown that many consumers consider the environment and other people’s wellbeing to be important. Apparently there is something that stops consumers from buying sustainable products.

During a panel discussion with consumers from Rotterdam, the NIDO saw confirmation of what some marketeers had concluded earlier: consumers are unable to recognize sustainable products, there are not many, people think they are too expensive, they have no permanent place in consumers’ purchasing memory and people do not


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think that users of sustainable products are particularly nice people. Moreover, they see purchasing sustainable products as a drop in the ocean.

The selection of sustainable products on offer is very small. An important reason for this is of course, that in view of the lack of active demand, marketeers do not feel the need to make their products more sustainable or to devote any attention to the sustainability aspects of their products. They doubt that this would generate extra turnover, and that is what it is all about in business. At the same time, they assume that it would cost them extra funds or effort, particularly in the case of some labels, for which the requirements are sometimes considered to be much too restrictive. But are efforts to promote sustainability not good for a firm or brand’s reputation? And a reputation that is better than the competition’s can lead to a preferred position, while damaging a reputation can be disastrous. Most producers understand that, but the same producers also believe that the reputations of their large and familiar A brands are as solid as a rock. Consumers naturally assume that the production of those brands is reliable, decent and sustainable. But do all consumers really think along those lines? And do all those producers and retail organisations arrange their affairs so properly and decently? Perhaps the truth is not quite so palatable?

Some firms do make more of an effort than others. For them, it can be very useful to make their own customers aware of this, with a view to improving their business reputations. However, people are often wary of this, for fear of attracting the highly critical attention of some activist groups, who are not easily satisfied and might accuse firms that do their best and publicize the fact of ‘greenwashing’. The result would be that the firm’s reputation is damaged instead of improved!


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So how to make it more lucrative for producers to take the step to more sustainable forms of production and to communicate this as well? By not demanding too much of products at once. All products, regardless of the category or sector, that clearly exceed the legal requirements, are to be awarded a label of approval. This would support those producers who make an effort to help sustainability. Initially, the sustainability threshold would be relatively low, with the advantage that it becomes attractive and feasible for more businesses to devote attention to it.

At the same time, you offer consumers a real alternative that allows them to maintain responsible purchasing behaviour. If 20% of products sold distinguish themselves in a positive manner by their sustainable qualities, buying those products actually has a visible effect! This in turn will result in a larger market share for those sustainable products.

Just as automobile safety has improved slowly but steadily over the past forty years, so too can the sustainability requirements be raised gradually. If we take small steps, we will coax more consumers and producers along.

Jan Hoitink is NIDO programme manager for Market Opportunities for Sustainable Products

3.3 Rewarding the solutionThe NU card scheme negates many of the reasons that traditionally prevent passive consumers from making sustainable purchases. The practical approach of making up a list of sustainable criteria allows consumers to save points by purchasing more everyday products too. This ties in which the functional approach of consumers in selecting products. It also reduces the high socio-cultural cost of


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changing behaviour, because consumers are also able to buy sustainable products at ordinary neighbourhood shops. In addition, the higher price of many sustainable products and the effort it takes to buy these products are compensated by immediate stimulus in the shops: NU points. The prices of sustainable products and services remain the same, but awarding NU points for the purchase improves the price perception: you get more for the same price.

Another advantage of the NU card scheme is that the concept of sustainability now conjures up a positive image, rather than a negative image of problems and restrictions. It is rather more pleasant to be rewarded with NU points for good behaviour than to be punished by extra charges; the psychological behaviour costs are reduced.

An important element of the incentive system is that people are rewarded immediately. The reward comes directly at the shop’s cash register and not some time later, for example in the form of an energy subsidy reimbursement. Giving immediate feedback with NU points allows people to become accustomed to the connection between good behaviour and a feeling of satisfaction.

Finally, the NU card scheme ensures accessible and clear information, particularly when the decision to make a purchase is made. By providing information in shops, on the website and in the NU-magazine, the NU card scheme keeps cardholders informed about sustainable articles and about the shops that sell those products. The retailers themselves are encouraged to devote extra attention to their sustainable products by using in-shop promotion, such as cards on the shelves, stickers on the products, posters, etc. For example, by stickering the articles, the NU logo provides information about the conservationist and environmentally friendly nature of the products. It becomes an umbrella logo, as it were, for sustainable


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products with a conservationist or environmentally friendly label or quality mark. The inclusion of product groups for which no quality brand exists means that scope of the NU logo is very wide. So using the NU logo solves the pressing problem of the passive consumers target group.

3.4 Strategic choices in the demonstration projectCardholders contributionInitially, a low threshold was created when applying for the card, by asking a one-off contribution of € 1.50. This amount was credited to the card in the form of NU points, as the opening balance. This increased the likelihood that consumers would actually use the card. After ten months, the cards were issued free of charge. Completing the personal data was the only remaining threshold to ensure use.

Recruiting cardholdersAt the start, it was immediately clear that a certain mass had to be achieved if the savings programme was to function. From the moment of the launch, street teams were employed at civic amenity sites and in the city centre, to recruit as many new cardholders as possible. This method of recruitment was relatively expensive, although it did yield rapid results. In total, approximately a quarter of the cardholders were recruited by promotional teams.When the cards were issued free of charge, sales of cards ‘over the counter’ were also started. Shops were awarded a € 1 bonus for each cardholder recruited. This also generated a quarter of the total number of cardholders.Other recruitment methods used included:• direct mailings to client bases of commercial

participants;• neighbourhood campaigns;


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• the website, www.nuspaarpas.nl;• NU-voor-een-ander (‘now for someone else’) campaigns,

in which current cardholders were awarded points for introducing new cardholders.

Encouraging useIn the next phase of the demonstration project, the emphasis of the communications was shifted from recruiting cardholders to encouraging the use of the card. Cardholders regularly received mailings, digital newsletters and NU-magazine, which included a list of new commercial participants. Campaign vouchers were also regularly issued, granting additional points for certain sustainable products, or allowing products to be bought for fewer points. The vouchers, bearing texts such as ‘Now twice as many NU points upon purchase of natural paint,’ lured cardholders to the shops.

3.5 ResultsNumber of cardholdersBy the end of the demonstration period, ten thousand Rotterdammers had a NU savings card. The graph below illustrates the growth of the number of participants.

At the end of June 2003, active recruitment of cardholders was stopped. On 1 July, all cardholders received a letter announcing that lack of funds after 1 October 2003 meant that the savings programme would in all likelihood be discontinued as of 1 October 2003.


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Number of points in circulationDuring the demonstration period, a total of 1,577,905 points was issued and 140,084 were redeemed. By far the most points were issued at Roteb’s civic amenity sites. However, Roteb’s monthly share in the total number of points issued dropped from almost 100% at the start to 42% by the end of the demonstration period. The diagram below illustrates the cumulative development of the number of points in circulation and the number of points redeemed each month.

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In total, considerably fewer points were issued than had been projected at the start of the programme. The reason for this was that that forecast was based on 11,000 cardholders and 100 participating from the start of the project. In reality, it was many months before these numbers were realized. After adjustment for this incorrect assumption in the forecast, the number of points issued during the demonstration period proves to be 31% higher than projected.

Changes in behaviourThe lack of a zero measurement, the brief time span and the change in the strategy during the demonstration project make it dangerous to make any pronouncement about whether or not there was a change in behaviour in

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favour of sustainability amongst NU cardholders. However, the number of green points issued at various shops shows a visible increase during the project.

Information was also obtained by means of a telephone questionnaire in which 101 cardholders were interviewed. As regards purchasing biological products, second-hand products, and disposing of separated waste, 4 to 5 percent said that they had been doing this more often since obtaining their NU card. Some of these people stated that receiving NU points was the most important reason, or a nice extra: “The NU card scheme makes you more aware.” This view is confirmed by the information from the transaction database: with a number of shops, the number of green points issued increased during the course of the project.

One label for allby Edgar Kampers

This world will only continue to be fit for living in if we turn to sustainable production and consumption. Consumers must purchase sustainable products more often. Producers must start making more goods in accordance with sustainable criteria. Much is already being done in this respect. In recent years, the Dutch market for conservationist and environmentally friendly products has grown explosively. Approximately 1.3 million people use green electricity, sales of biological produce have doubled over the last four years, almost every household has a number of energy-efficient light bulbs, most indoor paints are water-based and 80% of all new refrigerators bears an Energy Label A. We have also started to behave in a more sustainable manner. Charities have millions of donors, most people regularly make use of the paper and bottle banks and we are still the number one cycling country in Europe. There are also more


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and more shops that sell Max Havelaar coffee, water-based paint and EKO-labelled carrots.

Yet things are still not happening fast enough: the goals agreed upon are not being met. One of the possible reasons is that information about sustainability is often difficult to access. Little is known about many products. And if the information exists, it is often difficult to find. Or it is hidden in one of the many logos. There are 80 different labels, each with its own claim. EKO, Eco, Milieukeur, Milieubarometer, Max Havelaar, Rugmark; it’s enough to drive anyone crazy. In addition, the increasing wealth means that the number of options continues to grow, while the products and services offered are becoming more differentiated and the selection becomes broader. With the developments in the information and communications technology sector, the available information has grown further. And not just the information we want, but especially unsolicited information in the form of advertisements with which people are flooded.

Another problem is that the group of consumers that actively seeks out information about sustainability is small. Not many people will consult a consumers’ magazine or visit the Milieu Centraal environment website before making a purchase. We have to accept it: most consumers are passive; this group will not make any effort to obtain any environmental information about products. Therefore, this is the group of consumers that the NU card scheme focuses on.

With passive consumers, one encounters the following situation: information that is aimed at their role as a civilian will hardly affect people in their role of consumers. This stems from the simple reason that the information itself and the manner in which it is presented do not tie in with the role of consumer. Consequently, the undesirable


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environmental behaviour will not change noticeably.

As regards passive consumers, the way in which the information is presented must recognize their needs. Sustainability information must be available instantly and in an easily digested form, in the shop when the consumer is deciding upon the purchase. This is why, ideally, the sustainability information should be on the packaging. And this should not be a long list of chemical information, but a recognizable and trusted label. A label such as this on the package is the simplest source of information. It tells the passive consumer that the products and services are conservationist and environmentally friendly. So: One label for all!

Edgar Kampers is the Product and Business team leader at Stichting Natuur en Milieu, and formerly director of the NU card

scheme organization


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4.1 IntroductionIndependent retailers have a limited number of opportunities to distinguish themselves from competing shops and large chains. The market position of the small retailer has been under pressure for years. Cutthroat competition causes the defection of more and more customers to large national chains and leads to decreased turnover. SMEs have a limited ability to advertise, and the opportunities for customer retention, such as through special offers or neighbourhood loyalty cards, are similarly few.

With respect to the environment, a large number of regulations are aimed at SMEs, often with some expense attached. However, few of them are visible to the public. In addition, extending the range to include more sustainable products requires specialist knowledge, something which even wholesalers only have in limited amounts.

The slow decline in the number of independent retailers from shopping streets, as a result of a lack of customers, the changing composition of the population in the neighbourhood and unaffordable rents, for instance, does not make life any easier for those that remain. In the more popular shopping streets, the branches of national chains are on the increase, while in other streets the rise of mobile phone houses and snack bars cannot be stopped.

Essentially, shops would not only benefit from more opportunities to get to know their present customers better and to bind them more closely, but also to identify potential customers and approach them with customized effective marketing instruments. The NU card scheme offers these possibilities at very low costs.

4 NU AND THE SME SECTOR


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4.2 Sales argumentsMore loyal customersUsing the NU savings card, customers of participating shops are rewarded with attractive presents for buying products. This will bring those customers back more often to buy additional items. In this way, the savings card helps tap the latent consumer demand. The more products the customers buy, the larger the turnover and profits per customer. Not only that, but green products often have a higher price and comparable margin, resulting in higher gross profits after deduction of costs.

Direct incomeRetailers can issue cards free of charge. They then receive an allowance of € 1 for each cardholder they recruit. As expected, the retailers issue the cards to their regular customers. This enhances loyalty on a structural basis.

New customersThe Rotterdam campaign for the NU card scheme was held around the shops, in the neighbourhoods and throughout the city. As part of this large-scale promotion, participating shops are also regularly placed in the spotlight. Bureau NU-Spaarpas provides promotional materials for the shops, such as posters, flyers and a mention on the website. Cardholders are informed about the range of sustainable products in shops via NU-magazine. This can generate new customers as the rewards entice interested consumers to the shops. In addition, there are also special offer vouchers. These vouchers award bonus points for specific products, and are sent to the participants by E-mail or post.

Marketing informationBureau NU-Spaarpas can perform analyses of customer databases, allowing shops to better match their range of


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products to their customers. In this way, small retailers can actively approach consumers via the NU card scheme. Based on the database, the NU card scheme knows when, where and which cardholder made a purchase. Using this information, the NU card scheme can launch personalized campaigns, for example, aimed at all cardholders from a particular area that do not yet frequent a certain shop. The offer encourages the consumer to visit that shop. If the consumer is pleased with the purchase, the likelihood is greater that he or she will return. Bureau NU-Spaarpas always approaches the cardholders itself, using its own media; the retailers are never allowed access to personal data.

Inexpensive promotional opportunitiesFor many retailers, the affordable and extensive advertising opportunities are an important reason to participate in the programme. SMEs rarely have such a varied and advanced arsenal of communication channels at their disposal at so little expense. All commercial participants are permanently listed on the NU website and in the Saving and Cashing booklet. In addition, the NU card scheme offers retailers the possibility of advertising in the magazine. This system also allows mailings to be sent to specific groups that the database indicates might be worthwhile for a specific shop, such as people in the neighbourhood.

A positive image A great deal of attention is being devoted to Maatschappelijk Verantwoord Ondernemen (MVO: socially responsible business), although it is mostly large companies that adhere to this. For SMEs it is difficult to operate within the confines of MVO, despite the fact that the desire to work in a more socially responsible manner often does exist. The NU card scheme offers a simple and feasible way of doing business that allows small and medium-sized shops to incorporate MVO into their business, chiefly by promoting conservationist and environmentally friendly


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products and contributing to neighbourhood initiatives. The advantages are obvious: larger sales in the range of sustainable products, a positive image and a higher degree of customer satisfaction. In a lot of cases, the NU card scheme is an eye opener for everyday commercial participants, and the first step on the way to MVO.

Self-preservationThe NU card scheme is based in part on the success of ‘customer loyalty systems’, which are usually only viable for large chains. However, the NU card scheme focuses explicitly on SME shops, and the savings system contributes to the independence of these shops.

4.3 Strategic choices in the demonstration projectCriteria for participationAt the start of the NU savings programme in May 2002, points could be issued only for explicitly sustainable products and services. Although the definition of sustainable was broad, for many shops the number of eligible products was too small. Furthermore, point issuers were strictly separated from point receivers.

The market launch of a programme such as the NU card scheme will inevitably encounter a particular start-up problem: how to achieve a critical mass of both cardholders and commercial participants as quickly as possible. For households, the card becomes more worthwhile only when there are sufficient shops where points can be saved and when there are enough possibilities for redeeming in those points. Similarly, the more cardholders there are, the more rewarding it is for shops to participate. The


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greater the scale of the system and the more well-known it is, the easier recruiting becomes.

During the initial few months after the launch, the number of participating shops lagged far behind the objective, and the perspectives for a rapid increase were not favourable. The number of points that could be saved per shop visit also remained low, because most shops (with the exception of green shops) had only a few products that qualified. Shop owners had their doubts about the loyalty-increasing potential of the NU card scheme and cardholders did not have enough opportunities to save.

This is why several changes were made to the savings programme in October 2002, to make the programme more attractive to both retailers and consumers:• Participating retailers can issue a set number of

points (generally one point per euro) on all their ‘grey’ products.

• In addition, the retailers can award four times as many points for ‘green’ products as for ‘grey’ products, generally four points per euro.

• Furthermore, if they so desire, they can also offer one or more redemption articles. These are sample products (‘green specials’)¸ that are sustainable and match the range of the shop in question. The redeemed points are offset against the issued points.

This made the programme more lucrative to both retailers and consumers, while the stimulus to buy and sell more sustainable products remained.

StaffAt the same time, the sales team was expanded by three experienced sales persons who, while having an affinity with sustainable consumption, do not project that image. This makes them perfect people to talk to ‘mainstream’ SMEs. The recruitment of commercial participants became


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considerably more effective with their participation.

Neighbourhood activitiesIn May 2003, the retailers on the Peppelweg, a shopping street in the north of Rotterdam, collaborated closely with the NU card scheme to organize various neighbourhood activities. Through focused visibility in the neighbourhood (street teams, advertisements, etc.), the NU card scheme was used as a neighbourhood instrument: residents and retailers joined forces to create a neighbourhood where quality of life comes first. An important condition in this respect was that the neighbourhood retailers indicated that it should be possible to redeem locally issued NU savings points.

CostsPoint issuing shops generally reimburse 1 to 4 percent of the purchase price to the cardholders in the form of NU points. Receiving shops offer products in exchange for NU points, with discount percentages at an average of 30 percent. This is only possible if they can use their residual capacity effectively (low marginal costs), such as with cinema seats during off-peak hours or articles that do not sell fast enough. Another possibility is to work with special offers (‘green specials’) that have a higher margin.

4.4 Results and recommendationsNumber of participating shopsThe number of participating shops began to truly increase from October 2002 onward. In June 2003, the 100th commercial participant was welcomed aboard. This is illustrated in the graph below.


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A decline is noticeable after July 2003. This was caused by the announcement that the savings programme might be discontinued as from 1 October and by the fact that the recruitment of commercial participants was stopped in July.

The point issuing businesses include bicycle shops, health food shops, coffee and tea shops, bakeries, interior decorating shops, florists, tailors and butchers selling free-range meat products. The point receivers included an art library, several museums and a public swimming pool.

Visibility of participating shops and sustainable products The shops participating in the NU card scheme can be recognized by a sticker on the door and by displays in the shop. Discussions with retailers revealed that the visibility in and around the shops can be enhanced further by using such items as posters, doormats and flags, and that sustainable products can also be made more visible, using NU stickers on the products and signs on the shelves.

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point issuerspoint redeemers month

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Number of participating shops


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Shift in the range of productsThe NU card scheme made shop owners think about feasible and profitable adjustments to their range. The knowledge of and attitude towards sustainable products certainly changed for the better. However, actual changes have not yet occurred. This will probably require a much more intensive degree of advising and supervision by the NU account team. However, this team initially gave priority to increasing the number of participating shops in as little time as possible, and its hands were full just doing that.

No proper behaviour without self-interest

by Marleen Janssen Groesbeek

Businesses cannot be trusted when it comes to acting for the general good, unless they are bound by rules or unless that which is expected of them is also in their interests. To me, the key is how to approach socially responsible business: a centuries-old key. Scottish philosopher and father of the economic sciences Adam Smith already described it in the eighteenth century.

Businesses are not charities. They have to make a profit in order to ensure their continued existence. And that is definitely socially responsible. Without companies, there would be no jobs and none of the products we require. If we want appropriate behaviour from businesses, we have to create proper legislation. Or, and this is something that often works better, inappropriate behaviour should have negative financial implications. This can be arranged by way of a direct settlement of the damage done, by a roundabout way using reputation and the stock exchange, or by making bank loans more expensive for non-sustainable activities. Increased costs mean less profit.


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It is often still easy to make a profit in a socially irresponsible manner. National governments are sensitive to business lobbies that want to charge certain costs to society as a whole. The most recent example is the US government that – again – wishes to give businesses more leeway (i.e. lower costs) for polluting the air. And what is easier than going to a developing country that is desperate to attract foreign investors and building a factory that is not overly strict in implementing safety measures, and where the employees work more then twelve hours a day?

Luckily, more and more business owners and managers are becoming convinced of the importance of the environment and the human race for their profits and continued existence. Some took a long time to realize it (over the course of a hundred years), while others found out the hard way. Fast communications and international social organizations make it more difficult to put children and adults to work in degrading circumstances. Also, the employees themselves have greatly influenced the social image of their respective businesses.

Against the backdrop of the heat wave in the summer of 2003 and the loosening of the US environmental policy, the focus has to return from the social aspect (human rights, employee rights, child labour) to the environment. Perhaps we should start by suing the Bush administration and a number of American companies for the greenhouse effect.

Marleen Janssen Groesbeek is writer and editor of Het Financieele Dagblad


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5.1 IntroductionThe government is going to a great deal of effort to gain some form of control over the way civilians behave, which is proving very difficult to influence. That is why the authorities need new, effective instruments to drive people to act in a sustainable manner.

The NU card scheme is an example of a positive policy tool that promotes sustainable behaviour, and offers several advantages:• The NU card scheme entices people into new

(sustainable) behaviour through the use of incentives.• It can be used for a wide range of purposes. Most

civilians can benefit from it, and it covers various areas of policy.

• Subsidy euros that are used for the NU card scheme have a double effect: firstly, by the act of issuing points, for example by rewarding people who turn in separated waste; and secondly, when the points are redeemed, by offering the possibility of using the points earned for public transport.

• The NU card scheme can help increase the cost effectiveness of local authorities. Using the tool can create work-off effects, synergy benefits and lower expenditures. For example, the more civilians separate their own waste, the less it costs the authorities.

• Analysing the NU database, obviously within the stipulations of privacy legislation, generates valuable policy and control information for the government. The response to the specific policy stimuli built into the NU card scheme can be determined accurately, improving the effectiveness of government policy. This possibility was not tested during the demonstration project.

5. NU AND THE GOVERNMENT


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The government will become a NU client, because it can substantially contribute to the policy it has formulated. Although the NU card scheme does not receive any subsidy this way, it is paid to deliver specific services; thus, the government becomes a client.

This chapter discussed a number of concrete policy areas in which the NU card scheme can act as a stimulus. The areas dealt with are:• waste;• support of the SME sector; and• mobility.

Do we repeat mantras or do we offer a different way of looking at our actions?

by Dick Ouwerkerk

‘A better environment starts with yourself.’ Everyone knows this government mantra. But what does it mean for the average Dutch consumer? “I agree completely”, they will nod. “Of course a better environment starts with myself”. “But,” they will add, “why should it start with me if it doesn’t start with my neighbour as well?”

This was the government campaign that was aimed at the Dutch people for years, but in fact it is shooting blanks: everyone is addressed, but it is unclear who is actually hit. What it comes down to is that no-one changes their behaviour. And this means more waste and more CO2

emissions. Add to this the fact that civilians are increasingly being bombarded with stimuli to actually consume more and travel by car more often, and it will be clear to everyone that other measures are called for.


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Obviously, regulations and penalties may have some effect. A degree of success has indeed been achieved that way. However, restricting behaviour is only possible up to a certain level, because repressive measures often result in evasion and free-rider actions.

The advantage of an incentive system, such as the NU card scheme, is that it offers civilians a new way of looking at their actions. Good behaviour is rewarded and leads to repetition; civilians will slowly start displaying sustainable behaviour.

Actually, I am not interested in why people decide to start acting in a sustainable manner. I do not really care that much if civilians know that sustainable consumption will make the world a better place. What matters to me is that they do it. Not because the government tells them to, but because they like the sustainable behaviour. And that is when a better environment actually starts with yourself!

Dick Ouwerkerk is Chair of the NU Steering Committee

5.2 Household wasteWaste management a high-priority matter in the administration of large cities. A clean city is one where people can live comfortably; pollution makes people feel unsafe. However, the costs of waste collection and processing are high. A different behaviour toward waste management, on the part of civilians, can contribute significantly to reducing these costs.

In many smaller municipalities, the inhabitants’ waste management behaviour is controlled using differentiated rates (Diftar). Under the Diftar system, inhabitants pay for waste processing in accordance with their personal


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behaviour. The more waste they put out in the streets, the more they pay. However, these methods do not work in some large cities. They lead to avoidance, and the city can become polluted. An incentive system that is fully integrated within the waste policy may offer a solution.

In Rotterdam, the NU card scheme was successfully used to help the populace find its way to the civic amenity sites. During each visit to a civic amenity site, civilians receive 200 points for turning in their separated rubbish and 100 points extra for turning in second-hand goods. The average Rotterdam family normally visits a civic amenity site 0.2 times per year on average. People with an NU card visit the sites three times as often. The perspective that this reveals is a cleaner city and lower operating costs for waste management, because fewer rubbish vans are needed on the streets. Materials are also separated better, allowing them to be reused and reducing the costs for processing the residual waste.

The Rotterdam sanitation company Roteb directly operates a number of recycled-goods shops, the Piekfijnwinkels. Consumers can redeem points for second-hand goods in these shops. This encourages reuse and delays the purchase of new products, sometimes making it entirely unnecessary to do so.

5.3 Support of small and medium-sized enterprises (SMEs)Conducting business is getting more and more difficult for small retailers. The shop owner and his family work overtime to complete all their work, and they often


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see nothing of the world beyond their front door. Collaboration with fellow retailers is frequently difficult, and the competition from large chains is tremendous. Many retailers see their turnover drop and more and more of them have to give up the struggle. The spaces once occupied by the discontinued shops are then generally taken over by the chains. New small retailers often have trouble getting started, lead a difficult existence and mostly only cater to a small – generally immigrant – market sector. The changes in the sector consequently follow each other at a high rate. Shop concentrations start to look more and more alike, become less attractive and slowly but surely vanish; resulting in nothing but chain formulas in a row.

For a long time, the government has been looking for tools to support small retailers, without hampering their freedom. The motive for this is society’s need for neighbourhoods to continue to offer a wide and varied range of shops. Shopping streets with many different shops, peopled by shop owners who care about their customers and their street help create a general sense of prosperity, safety and a high quality of life, as well as bolstering the local economy.

The NU card scheme supports shops by offering them an affordable loyalty programme. Small retailers can bind customers to themselves and attract new customers, particularly if they expand their range, and so become more interested in taking advantage of the NU promotion tools. The NU account managers help retailers look for new sustainable products that match their range of goods.


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The introduction of the NU card scheme to retailers encountered a delay from the initial choice only to reward purchases of green products. Once the proposition had been changed and a more commercial proposition was adopted, recruitment speeded up. Within a short period of a few months, the objective of 100 shops had been attained.

Waste, now what?

by Jean Pierre Hannequart,

The time when we could dump out household waste without worrying about it is history. At present, Europe still dumps half its waste. In London, 72% was dumped in 2000, however no new dumpsites will become available from 2007 onward. The European Commission has limited the possibilities for dumping by imposing strict conditions.In order to reduce our usage of raw materials and achieve the Kyoto CO2 objectives, a change in behaviour is needed. Take, for example, the reduction of dumping organic waste. By 2006, no more than 75% of all organic waste may be

Food products

Personal care and hygiene

Home and garden products

Waste and energy saving

Hobbies

Transport (bicycles)

Second hand

Point issuers, broken down by sector

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9%

8%

28%

25%

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dumped as compared with 1995, by 2009 no more than 50% and finally in 2016 only 35%.However, in practice these objectives seem almost unobtainable.

Illustration: Dumping waste as the final resort in the waste pyramid

How can we reduce the amount of waste that is dumped? What are the alternatives? The best way is to prevent waste from being produced. This goes contrary to present-day mentality: many producers tend to use increasingly excessive packing materials. Laws and covenants can stem this waste stream to some extent. But consumers can do their bit too, by buying sustainable products and remaining mindful of packing materials. Another way is by sticking a notice on their letterbox announcing that advertising material is not wanted.

Waste that is unavoidable should be separated as much as possible. Waste contains many valuable raw materials that can be used in industry. These materials should then be

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(Environ–mentally

friendly) dumping

7 Incineration (according to environmental

regulations)

6 Generating energy

5 Recycling lower-grade materials

4 Recycling materials in the original condition

3 Reusing parts

2 Reusing the entire product

1 Waste prevention


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reused if possible. Currently, part of plastic, paper, glass and organic waste is separated. In Rotterdam, 50 percent of glass is separated, and in Europe as a whole, half the waste paper is reused. Ideally, all our waste should be returned to the cycle.

If any waste remains after restrictions and recycling, we have to incinerate it cleanly. It is a shame that many raw materials are lost in the incineration process, but it is better than dumping it. Waste incineration provides electricity and heating. In the Netherlands, electricity generated in this way is even called green. In Rotterdam, all non-separated waste is incinerated.

Politicians and policymakers are facing a major challenge. How do you bring about this change? How do you get consumers to change their purchasing behaviour? How do you encourage your people to increasingly separate their waste? Particularly for countries and cities that are lagging behind the European average, this is an immense task.

The answer lies firstly in a good infrastructure. The delivery and removal facilities should be sufficient, and separated waste should be processed properly. Separated waste should be kept apart from the rest of the cycle, and not added to it because industry is not yet ready for it. This could seriously damage people’s willingness to keep separating their waste.

Next, a solid educational campaign is needed, presenting clear information. Campaigns that are limited to providing information are generally not enough. Information does not reach every part of the population to an equal extent. That is why campaigns can be supported with enforced regulations, differentiated rates and an incentive system. Particularly in rural areas and in small towns, a system of differentiated rates for different fractions of waste can


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be useful; let the polluters pay! An incentive system can supplement this; reward civilians if they behave well!

A system of rewards should also help combat street litter. And in large cities, an incentive system can mean a tremendous boost for the campaign.

Jean-Pierre Hannequart is Director-General of the Brussels Institute for Environmental Protection, and Chair of the ACRR

(the Association of Cities and Regions for Recycling)

5.3 MobilityThe NU card scheme can contribute to the traffic flow by helping reduce car use by rewarding the desired behaviour: using bicycles, public transport, taxis, car pooling, travelling during off-peak hours and along less travelled routes. Public transport has a large residual capacity during off-peak hours, which could be put to better use.

In the demonstration phase, use of public transport was encouraged with off-peak travel cards that could be bought with NU points. Many bicycle shops and sheds were also involved in the NU project.


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6.1 Practical experienceThe lessons learned from the Rotterdam project are extremely valuable, and will prove their importance when new initiatives are launched. It is not yet certain how these will be given shape. In the present economic recession, many businesses and government bodies are very cautious about making extra investments. Conversely, however, both the public and the commercial sectors recognise the NU card scheme as an instrument that allows communal problems to be dealt with in a modern manner. The NU card scheme’s trial period and the dissemination of the results show that there is a great deal of interest, both in the Netherlands and abroad, for a savings card for sustainable behaviour.

What can we learn from the experiences gained with the NU card scheme, and what elements should future initiatives take into account?

Distinguishing featuresIn order to achieve any degree of success, the NU card scheme must remain in clear distinction from other savings programmes. The most important aspect in this regard is the social impact that the programme aims at. This distinguishes it from the numerous ‘normal’ loyalty programmes. Also, the NU card scheme’s wide range of possible applications gives it added value.

Local implementationOne of the attractive features of the NU card scheme is that its basic form can be copied in various places while the precise implementation can differ with each local

6 RECOMMENDATIONS


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scheme. Each region, town and city has its own problems and aims. The NU card scheme can tie in with these. However, it is important that the technology and marketing techniques remain broadly the same, to allow exchanges between different places and to limit the development and administration costs.

Knowledge and experienceIt goes without saying that complex and innovative pilot projects have a large potential for error. That is why it is essential to thoroughly prepare such projects, with a detailed and realistic time schedule. Both during the preparation and development stage and during the operational phase of the incentive system, people with the necessary know-how – specialists and generalists – will have to cooperate intensively. Specific knowledge is necessary in the fields of management, consumer communications, marketing and sales, sustainability aspects of products and services, terminal and database technology and legal affairs. It is also essential that the right subcontractors (e.g. for communications, technology development, administration) be selected, that concrete agreements be concluded with them about time, financial matters and quality, and that their progress be monitored intensively.

Public-private collaborationAlthough collaborating with partners from both the public and the private sector yields many benefits, there are also matters that require specific attention. The culture in the different organizations can be both a source of great creativity and a threat to the progress, because the language and approaches are so different – and also because the interests of the various parties might differ. There are definite benefits in working with a clear organizational structure with clearly defined lines of decision-making. It is also vital that there is


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sufficient support for the project at all the parties in the collaboration, to help weather rough periods.

Fast startIt is important that significant market penetration be achieved and a large number of participants be reached as quickly as possible. One risk of loyalty programmes is that a sufficient mass is not reached fast enough. The trick is to get beyond the initial chicken/egg situation. The chicken/egg situation means that retailers are hesitant to participate until a sufficient number of consumers have a savings card, while many consumers do not want to apply for a card until they can use it in a large number of shops. That is why it is advisable to distribute the savings card to everyone free of charge when the programme is launched. Distributing the cards on a large scale and within a short time span generates sufficient momentum to recruit commercial participants as well. At the same time, the threshold for commercial participants to join (subscription fees etc.) should be kept as low as possible.

Securing the idealistic objectivesThe unique aspect of the NU card scheme is the fact that it combines social objectives with commercial goals. The programme’s credibility stems largely from the idealistic objectives. That is why it is important that those objectives be upheld and that any pressure arising from commercial interests be withstood. Securing the objectives with social organizations is therefore advisable.

Measurable objectivesIt is the aim of the savings programme to help realize the idealistic objectives. Empty talk and unattainable announcements are of no use to anyone, and will ultimately come back to haunt the partners in the project. Choosing measurable aims and conditions beforehand allows the effect of the programme to be measured. If possible,


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therefore, a zero measurement should be performed before the savings programme is introduced.

Sufficient savings valueIt should be possible for active cardholders to quickly save a reasonable number of points. Experiences with other savings programmes show that a savings value of approximately 10 euros per year is the minimum amount necessary to keep the savers motivated. If the savings turnover is sufficient, the programme will reward its commercial participants and it will be possible to finance the exploitation of the programme largely or even entirely from the market income. Consequently, for various reasons, the marketing communications of the programme should focus on frequent use of the card.

6.2 Opportunities for the futureA number of social parties must be appealed to: consumers, the commercial sector and government bodies. Each of these groups will have its own reasons for participating in the NU card scheme, although the benefits of joining must be substantial enough.

Civilians/consumers use the card and reap several benefits from it. The fact that civilians/consumers like to use the card makes it an attractive tool for the government for providing information and influencing behaviour; and not just in connection with environmentally friendly shopping, but also with waste, for example, or with protecting small retailers in inner-city areas or with mobility. The commercial sector is interested in a savings card that primarily stimulates customer retention and ultimately generates increased turnover. The fact that the


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NU card scheme serves different groups of clients with their respective aims and objectives (and creates synergy between the groups) raises the programme above other loyalty programmes. The card has added value for the way people experience prosperity, for the economy and for policy realization. The NU card can truly be termed a ‘multicard’: it can be aimed at a wide range of objectives and target groups.

ConsumersConsumers try to spend their money as efficiently as possible, based chiefly on function and price. Sometimes they actively seek out additional information to help them make their purchasing decisions. Consumers are constantly bombarded with all manner of information from the market (including advertisements), which sometimes makes it difficult to get a clear picture of the information’s integrity, completeness and relevance. The NU card scheme is also a source of information. The information that the NU card scheme provides the consumer is of a ‘different’ nature, however: the NU card scheme can present itself as a reliable channel for sustainability, and also offers low-threshold information that the consumer needs at the time of the purchase.

BusinessesThe commercial sector wants a card that above all promotes customer retention and ultimately leads to higher turnover. The social aspect will be of lesser importance to many retailers. It is up to each individual retailer to decide how to use the NU card scheme to meet their social responsibilities. The NU card scheme can help them in achieving a greener range of products – which becomes more attractive as more savers start asking for green products in their shops, to earn more points.


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Large businessesLarge market players will wish to make use of the image and social function on the NU card scheme. However, this will always run parallel to their commercial interests. With the NU card scheme, an energy company that wants to reward its loyal customers will also have a tool that allows them to contribute to the movement towards sustainable energy.

For the demonstration project, mainly businesses were selected that matched the objectives of the NU card scheme, such as waste processing and public transport. Energy and water companies are also perfectly suitable as partners.

Large companies are necessary to make the NU card scheme a success, because with their mass the objectives and economic viability of the system can be achieved faster.

Another group of large businesses that might be interested are producers and manufacturers of sustainable goods. They can be called upon for special offers and campaigns in combination with the sales channels. For example, using the NU logo for special offers creates a direct link with the existing savings programme.

GovernmentThe government plays a guiding role in social processes. In many areas where the national or local government has a guiding function, the NU card scheme can help. The NU card scheme gives consumers and businesses a positive stimulus to change their behaviour. Behaviour as regards waste, energy consumption, transportation, sustainable consumption and culture and recreation can be steered in the direction the government wants.


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The government currently faces major social problems in a rapidly changing environment. Vocal citizens demand more from the government, and the authorities are more aware of a changing relationship with the populace. On the one hand the government starts to act more strictly, drawing up more regulations and attempting to enforce them, while at the same time it wants to place more responsibilities with the civilians. The function of a reward is interesting in this context. Rewarding good behaviour by awarding points is a personalized subsidy, an encouragement to civilians to take responsibility for their actions. Whether it is a matter of more frequent use of bicycles or public transport, turning in waste or buying a sun boiler, the government rewards this behaviour and simultaneously registers and analyses the change created by the reward. The NU card scheme gives the government an instrument to maintain its relationship with the populace, without becoming paternalistic or patronizing.

The NU card scheme offers local authorities the possibility of campaigns, personalized communication and market research, using a single comprehensive programme. Ultimately, this programme is a service, and the government will have to pay for it like any client, subject to objectives and conditions agreed upon in advance. In this fashion, the NU card scheme offers government bodies solutions for interaction and communication with the populace for a certain price, which, compared with general communication programmes, will prove to be quite cheap and effective.

Rotterdam, January 2004


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Spaar de wereld, beloon jezelf!met de spaarpas

www.NUspaarpas.nl

Wanneerga jij

dubbelgenieten?


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NU-spaarpas,the sustainable incentive card scheme

Saving the world is your profit! Under this motto, the NU card savings programme was launched in Rotterdam in May 2002. The NU card scheme is the first technologically advanced incentive system for sustainable behaviour and consumption. It was realized by way of a unique public-private collaboration between the Rotterdam Municipal Authority, Rabobank and Stichting Points, formerly Barataria.

The NU card scheme is an interesting option for everyone who wants to promote sustainability and quality of life at the local level: marketeers, waste processors, public transport companies and scientists. The NU card scheme is also compelling for people who systematically think about the changing role of the government and are looking for appropriate instruments.

This book sets out the experiences gained during the demonstration phase. How does this incentive programme work in practice, what lessons were learned, but also, how to proceed from here?

NU-spaarpas, the sustainable incentive card scheme

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Transcript of NU-spaarpas, the sustainable incentive card scheme