Circular Transformation of Industries The Art of Scaling Circular Supply Chains 2025

2.2 Customer: target the right segments with the right approach Not all customer segments are equally receptive, accessible or profitable. Identifying which ones to target first remains challenging. In the 2025 survey, more than 60% of organizations lack clear client prioritization, especially in machinery (74%) and medtech (67%). This section presents steps to help companies target the right customers. Prioritization is less clear for customer segments FIGURE 6 How would you describe your organization’s prioritization of circular initiatives for each of the following categories, in terms of clear prioritization? Clear prioritization Some prioritization but unclear No prioritization I don't knowLevel of prioritization (% of respondents) Customer segments Geographies Products Circular supply chain value proposition 62% 63% 39%61%33% 32% 51%32%4% 5% 9%6%1% 1% 1% 1% Companies must assess whether demand for circular products aligns with return flows. When these differ, each requires separate engagement strategies. Return patterns may vary by geography, sales channel or demographics, even with similar product use. Organizations can focus on existing customers or engage new ones, such as those who are environmentally motivated or price-sensitive. Price- sensitive clients may favour more affordable second- life products, while sustainability-minded customers value impact, such as lower-carbon offerings. Customers who already trust circular quality or are open to learning about circular options can serve as proof of concept and influence adjacent segments.For premium-priced products, demand may come from customers prioritizing repairability and longevity. Finally, some customer groups may be most relevant because they are priorities for growth or retention. Several strategies encourage the return of used goods, depending on whether customers are motivated by sustainability concerns, financial rewards or convenience. Online platforms and local collection points are helpful in this regard. Retailers The North Face and H&M offer collection bins in stores for customers to return used items and receive vouchers. These accept returns from multiple brands.Source: Global market survey by Bain & Company and the CTI initiative of 491 top executives (July 2025). Circular Transformation of Industries 12