Future-Proof leaflet policy: reducing paper waste without loss of revenue

Every week, piles of promotional leaflets drop through the letterbox. For retailers, they are an important way to showcase products and promotions, while for consumers they help inform shopping decisions. In an age of increasing digitalisation, printed leaflets are under scrutiny: are they still necessary? At the same time, public concern about their environmental impact is growing, as they are often discarded unread.

In recent years, several municipalities have revised their leaflet policies. Households are now required to actively opt in to continue receiving leaflets, typically by displaying the familiar ‘yes-yes’ sticker. This so-called opt-in policy significantly reduces paper waste: in Amsterdam alone, it has led to a reduction of no less than 1 million kilograms of paper per year. But what does this mean for retailers? This question lies at the heart of research conducted by Jonne Guyt (Amsterdam Business School, University of Amsterdam), Arjen van Lin (Tilburg University) and Kristopher Keller (University of North Carolina). The insights from this research support policymakers and retailers in developing a future-proof and more sustainable leaflet policy.

What happens when leaflets disappear?

Guyt, Van Lin and Keller conducted 2 consecutive studies. The first examined whether an opt-in policy changes household purchasing behaviour. The second study went a step further by analysing the effects of completely discontinuing leaflet distribution on consumer habits. It also explored whether resuming the distribution of printed leaflets would immediately reverse any observed effects. The researchers used panel data from more than 10,000 households, comparing households in municipalities with an opt-in policy to those in other municipalities. The second study focused specifically on a case in Utrecht, where Lidl temporarily stopped distributing printed leaflets altogether.

A favourable outcome

At the outset of the first study, the analyses produced a surprising ‘null result’: not receiving leaflets had no effect on purchasing behaviour. 'We initially thought we had made an error in coding or in the statistical analysis', Guyt explains. However, after multiple checks, the result proved to be robust. 'This means that an opt-in policy does not lead to revenue loss for retailers, while significantly reducing paper waste.'

'There is a well-known quote in our field: "half the money I spend on advertising is wasted, but the problem is that I do not know which half,” Guyt adds. 'What is remarkable about our research is that, for leaflet distribution, we were able to identify exactly which half. Under an opt-in policy, only half of households choose to receive leaflets, meaning retailers no longer need to produce—and therefore waste—leaflets for the other half.'

The second study showed that when a retailer completely stops distributing leaflets, there is a negative effect on purchasing behaviour. Consumers visited Lidl—the retailer in question—less frequently when they were no longer informed through leaflets. Even consumers who switched to the app during this period shopped less at Lidl. When Lidl subsequently resumed leaflet distribution, purchasing behaviour increased again.

The benefits of an opt-in policy

The studies convey a clear message: an opt-in policy is environmentally friendly without harming retailers’ revenue. It therefore represents a responsible and future-proof way to continue using leaflets. It reduces waste and ensures that promotions are targeted only at households that have indicated an interest.

Guyt, Van Lin and Keller actively disseminate their findings via LinkedIn, press releases, newspaper articles and conferences, ensuring that both retailers and consumers can benefit. In doing so, they have reached policymakers as well as a range of retailers. For example, the findings have been incorporated into an exploratory study on the nationwide implementation of an opt-in system for unaddressed advertising mail, commissioned by Rijkswaterstaat (part of the Dutch Ministry of Infrastructure and Water Management) and used to inform the Dutch Parliament. The research thus contributes to improved, evidence-based decision-making on leaflet policy, ultimately benefiting consumers, businesses and the environment.