The climate crisis is forcing businesses across the world to adopt a more sustainable business approach. However, creating a business that is both profitable and sustainable provides challenges. In his presentation, Dries will guide us through some of his challenges in designing a circular business model.

1. CLOSING THE
LOOPDESIGN CHALLENGES OF A CIRCULAR
BUSINESS MODEL

3. 3 PILARS OF INNOVATION
DESIGN
VIABILITY
Make something that can be
part of a sustainable business
FEASIBILITY
Make something you can
actually make
DESIRABILITY
Make something that people
want
INNOVATION

6. CHAPTER 1
THE GREAT CRISIS

9. SHIFTING AWAY
FROM E-COMMERCE
WASTE
Many webshops are already
switching from polymailers to
cardboard mailers and boxes
• Cardboard packaging is much costlier
than polymailers
• Cardboard can still only be recycled 5-7
times

10. A SUSTAINABLE
SOLUTION
A reusable bag can be a cost-
effective alternative with less waste
• Online shopping is shipped in a reusable
bag
• Consumers return the bag after delivery
after which it goes back in the system

11. REPACK
Manage returns via mailbox
RETURNITY
Designs custom packaging
per client
LIMELOOP
Use up cycled billboards for
their bags

14. BPOST WILL DO IT
FIRST!

15. Fulfilment
Center
Consumer
Bpost Fulfilment centre
Delivery of
parcel*
Mail box
Empty return
of bag
Fashion store
Service
cost
€
Bpost
Bpost
€
Bag
mgmt
Cleaning
€
Service
€

16. CHAPTER 2
HOW MANY CIRCLES
IS FULL CIRCLE?

17. EVERY LOOP
REDUCES COST
The more loops you can make
with a product, the lower the price
difference.
• With enough loops, you become
profitable
• Theoretically you can do infinite loops
1 2 3 4
50g 50g 50g 50g
Uses
200g 100g 50g 25g
0,3€ 0,3€ 0,3€ 0,3€
3€ 1.5€ 0.75€ 0.37€

18. OPEN LOOP
The user has to reintroduce
the product back in the
system
CLOSED LOOP
The product does not leave
the supply chain, but stays in
the system
VS

19. OPEN LOOP
The user has to reintroduce
the product back in the
system
CLOSED LOOP
The product does not leave
the supply chain, but stays in
the system
VS
# loops depend on
operational
efficiency

20. OPEN LOOP
The user has to reintroduce
the product back in the
system
CLOSED LOOP
The product does not leave
the supply chain, but stays in
the system
VS
# loops depend on
consumer
behaviour

21. The million dollar question
How many loops do we need
to be sustainable?

22. CHAPTER TITLE
The #1 business designer tool on the market

23. VISUAL OF THE RETURN
RATES
The return rate determines the percentage of
bags that return after each loop
return rate Average uses
use
99.5 78
99 63
98 43
97 31
96 24
95 20
90 10
85 7
80 5
75 4
70 3.3
65 2,9
60 2,5
50 2
40 1,7

24. Glass Bottles
Recycling rate of glass bottles averages at 106%
in Belgium
Repack Bags
Repack says on their website that they have
a 60% return rate of their bags
Batteries
Bebat reports 76% of batteries are sorted at
home and returned to a Beat collection point.
SOME RETURN RATES

25. Let’s assume a 75% return
rate.

26. Polymailer Envelope Box
reusable
bag
10g 50g 100g 150g
Return
rate avg uses Av waste / use
40 1.7 10 50 100 88
50 2 10 50 100 75
60 2.5 10 50 100 60
65 2.9 10 50 100 52
70 3.3 10 50 100 45
75 4 10 50 100 38
80 5 10 50 100 30
85 7 10 50 100 21
90 10 10 50 100 15
91 11 10 50 100 14
92 12 10 50 100 13
93 14 10 50 100 11
94 16 10 50 100 9
95 20 10 50 100 8

27. The million dollar question
How do we encourage users
to return the bags?

28. CHAPTER 3
LET’S PAVLOV THE
SH*T OUT OF THIS

29. OPEN LOOP
The user has to reintroduce
the product back in the
system
CLOSED LOOP
The product does not leave
the supply chain, but stays in
the system
VS

30. THE OPEN LOOP
RETURN STRATEGY
The # of loop depends on
consumer behaviour
• Bags need to be returned by
consumers
• Consumers need to be motivated to
return the bags

31. TWO MOTIVATION MODELS
EXTRINSICINTRINSIC

32. TWO MOTIVATION MODELS
EXTRINSICINTRINSIC
The user is motivated to do
an action by an internal
motivation and personal
reward
The user is motivated to do
an action by an external,
tangible reward or to avoid
punishment

33. TWO MOTIVATION MODELS
EXTRINSICINTRINSIC
• Finishing a task on a to-do list
• Mastering a new skill
• Defeating the final boss in a video game
• Receiving a pay raise
• Getting praise from co-workers
• Avoiding a fine

34. TWO MOTIVATION MODELS
EXTRINSICINTRINSIC
• Doing good for the planet
• Supporting the webshop that you love
• Returning the bag back in the community
• Receiving a 10% reduction on your next
purchase
• Getting your deposit for the bag back
• Getting a symbolic reward

35. Intrinsic motivation is more
sustainable in the long run,
but harder to achieve.

36. CHAPTER TITLE001
ECOSIA: DO IT FOR
THE PLANET
Search engine that attracts people
that are sustainably minded
• For every x searches they plant a tree
• A counter shows how many trees are
already planted

37. M&S: “DO IT FOR
THE CHILDREN”
Encouraged people to return their
plastic bags
• Added a return bin in their stores
• Plastics would be used to build
children’s playgrounds

38. HEINEKENS
INTRINSIC MODEL
Heineken came out with a smart
way to get people to return
reusable bottles
• Each bottle had a unique bar code
• An app showed you the history of
your bottle
• Consumers could add messages to
future possessors

39. SO WHICH IS BEST?
EXTRINSICINTRINSIC
BENEFIT
Builds a better relationship
with your consumer Can be used to develop
behaviour
LIMITATIONS
Works only if consumers are
performing task out of own
free will
Counter effective if intrinsic
motivation was already
there
WHEN TO USE
If the task aligns with your
consumer’s values
For tasks that the
consumer would not like to
do in the first place
HOW TO USE Communication strategy Loyalty program

41. SO WHICH IS BEST?
EXTRINSICINTRINSIC
BENEFIT
Builds a better relationship
with your consumer Can be used to develop
behaviour
LIMITATIONS
Works only if consumers are
performing task out of own
free will
Counter effective if intrinsic
motivation was already
there
WHEN TO USE
If the task aligns with your
consumer’s values
For tasks that the
consumer would not like to
do in the first place
HOW TO USE Communication strategy
Loyalty program
Deposits

42. Extrinsic motivation creates a
behaviour.
An established behaviour
needs only intrinsic
motivation

43. THE POWER OF
LOSS AVERSION
People react stronger to loss than
to gain
• Losing 5€ is more painful than
winning 5€ is rewarding
• Losing a deposit is more effective
than receiving a reward
• A deposit model is more complicated
to implement

44. MONEY VS MORAL
When money gets introduced it
changes the ‘contract’ and often
social norms get pushed to one
side
• A symbolic incentive will receive a
stronger reaction than a monetary
• People work harder for a “favour”
than for a monetary reward
• If the reward can be translated to
money (e.g. a 10% voucher), you will
get the amount of work equal to that
value

45. REMOVING THE
HASSLE OF CHOICE
Reducing the effort to choose for
reusable parcels will increase the
likelihood of choosing reusable
parcels
• People are lazy and will take the
quickest path to exit
• People often make intuitive decisions
and then fool themselves afterwards
that it was their choice
• However, people still need to be given
the choice or they will rebel.

46. CHAPTER 4
HOW TO GET YOUR
STUFF BACK

47. Fulfilment
Center
Consumer
Bpost Fulfilment centre
Delivery of
parcel*
Bpost point
Empty return
of bag
Bpost
Bpost
Service
€
THE DWELL TIME
OF A BAG
Dwell time it the time it takes for a
bag to get back in the system
• We want as little bags as possible to
be in the loop
• The more bags are in the loop, the
more “overstock” we need to have of
bags

48. The million dollar question
How do we encourage users
to return the bags as fast as
possible?

49. PERSUASIVE
MESSAGING IS KEY
The confirmation of delivery
email is the best trigger to get
your parcel back
• The first code seen is a 24-digit
barcode. In mobile versions you
don’t even see the QR-code or 6-digit
code before scrolling.
• This mail does not make it (visually)
clear if it concerns a bpost office or
locker.
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50. Addressing personally gives the feeling
of being watched
Clear messaging
Social herding
Social responsibility
Loss aversion

51. SOME TIPS FOR
PERSUASIVE
MESSAGING
• Highlight gain: Connect an (extrinsic) positive
result to the behaviour
• Social proof: Relate with other people
• Activate social responsibility: Intrinsically
motivate people to do the behaviour
• Loss aversion: Add a potential loss to a wrong
behaviour