“Circular business models don’t fail because they’re unviable; they fail because they lack a strategic roadmap and a clear financial narrative.”
— Ellen MacArthur Foundation
n°1 - Forgetting the “business” function of the model
So consumed by the technical cycle, they forget to ask the most fundamental question: how does this new model actually create commercial value and make money?
The truth: Without a clear commercial engine running at the core of a circular business model, circularity is merely an operational add-on and a sunk cost to the existing linear business model.
At iceep, everything starts with the customer loop - keeping the technical component simple, reliable and agile and re-engineering circularity into something commercially irresistible. When money flows, the business grows, and the technical functions of the model will evolve naturally.
n°2 - Customer Participation Intent Vs Effort.
The elephant in the room!!! Despite everything brands have learnt from perfecting linear business models, they somehow have the illusion that consumers will commit more time and effort to participate in circular ones. This false assumption is a business model killer.
The truth: Consumers have busy, short-attention lifestyles and will not hunt for hidden landing pages, jump to third-party websites, or fill out lengthy forms. Goodwill is not something your business model's survival should depend on.
At iceep, we stick to the rules of the game - seamlessly integrating circularity touchpoints into the customer journey, making participation frictionless, exciting, and rewarding.
n°3 - Siloed Circular Activities
Believing that running circular capsule collections, recycling programs, and resale side business units will serve as a catalyst to make the business model shift from linear to circular.
The truth: Circular pilots help, but only if they are designed to drive incremental behavioural and cultural change across the company towards the new business model. If not, they will most likely be a side business or something of a marketing gimmick.
At iceep, we build habit loops, not technology - we use technology as a tool that gently chisels circular habits into the day-to-day activities of shoppers, business units, teams and employees. Wanna know how – here is a great read, The Power of Habit: Why We Do What We Do in Life and Business by Charles Duhigg.
The bigger picture
Circular business models are one of the most exciting business opportunities of our time. Get them right and they create a powerful customer-centric business culture, maximising the full potential of each customer touchpoint to deliver value, retention and longevity.
Once you see circularity from this angle, the penny drops, you get that AHA moment, and you will never look back on your linear model again.
We built iceep for the brands that realise that placing their customer at the heart of everything they do is what makes them stand out in the market, will keep them a step ahead of everyone else and remain relevant in the minds and hearts of shoppers across the length of time.
Call us, let's get started. You only lose if you never get started.
