Climate companies are booming, but there’s a persistent, often overlooked challenge holding them back: understanding the customer. Despite billions in funding and the urgency of the climate crisis, many companies in the sector struggle to commercialize and scale their solutions. The reason isn’t a lack of innovation or ambition. In a lot of cases, it comes down to a disconnect between what these companies offer and what their potential customers need or want.
The Solution-First Trap
The climate sector is, by nature, solution-driven. It begins with identifying environmental problems—whether it’s carbon emissions, energy efficiency, or sustainable agriculture. From there, products and technologies are developed to tackle these issues. But this “solution-first” approach often sidesteps a critical question: Who is the customer, and what do they really need?
Too often, companies prioritize the technical or environmental aspects of their solution, assuming these attributes alone will drive market adoption. Yet, customers rarely buy climate solutions purely for their sustainability. They prioritize what any buyer would: cost, convenience, and quality. A company might create a groundbreaking method for reducing industrial emissions, but if it doesn’t align with the operational realities or business priorities of their target customer, it’s unlikely to gain traction.
This disconnect creates an all-too-common scenario in the industry: brilliant technologies that struggle to find buyers. It’s not that these solutions lack value; it’s that they lack resonance with the people who make purchasing decisions. Even the most technically impressive solutions fall short when they don’t fit into the lives or operations of the customers they target. And without the right resonance, it becomes even harder for companies to navigate the gatekeepers and decision-makers they need to access in order to scale.
Complex Ecosystems and Multi-Layered Decisions
Complicating matters further, climate solutions often operate within intricate ecosystems where the buyer isn’t always the end user. A building retrofit designed to enhance energy efficiency, for instance, may directly benefit tenants but requires investment from property owners. The motivations of these stakeholders don’t always align; tenants may care about lower energy bills, while property owners might focus on long-term building value or regulatory compliance.
Navigating these dynamics means companies must move beyond seeing the end user as their sole customer. Instead, they need to map out the entire network of stakeholders involved, understanding their differing priorities and developing solutions that speak to each one. This multi-layered understanding is not only crucial for product design but also for gaining market access. Companies that grasp the motivations of all stakeholders are better positioned to connect with the right partners and open doors with those who hold decision-making power. The Shift Towards Customer-Centric Design Some climate companies are starting to take a customer-centric approach, and it’s paying off. To overcome these challenges, they are shifting from a solution-first to a customer-first model. Borrowing from industries that excel in customer-centric design, they are building detailed customer archetypes and developing solutions that align with the needs, desires, and routines of those archetypes.
BlocPower, for instance, retrofits buildings with energy-efficient systems using a model that addresses the needs of multiple stakeholders. By offering flexible financing, they align the incentives of property owners (who shoulder the costs) and tenants (who benefit from lower energy bills). This approach ensures that all parties see clear advantages, leading to higher adoption rates and more sustainable revenue streams. It also demonstrates how aligning product design with stakeholder needs can facilitate the necessary market connections to scale effectively. The Path Forward: Putting the Customer First The climate industry must recognize that building a successful business isn’t just about solving an environmental problem; it’s about solving a customer problem. Understanding and engaging with the people who will use and pay for these solutions is crucial. By shifting the focus from the technology itself to the needs and behaviors of the customer, companies can create products that not only work but resonate with the market.
For climate solutions to achieve scale and impact, they must first fit into the everyday lives and business realities of the people they target. This alignment not only drives adoption but also builds the relationships and credibility needed to access key market players, allowing innovative ideas to transform into practical, widely adopted solutions that drive real progress.
At COMPANYMEN, we specialize in helping climate solution providers bridge the gap between their innovations and their customers. By developing detailed buyer archetypes, crafting effective market entry strategies, and aligning solutions with customer needs, we enable companies to commercialize and scale successfully. Ready to understand your customer and grow your impact? Contact us to learn how we can help.
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