Consumers are smarter than ever before. Thanks to the evolution of the internet and smartphones, there is a limitless amount of information accessible to anyone at any time.
As a result, brands can’t hide behind logos and phony advertisements anymore.
Consumers have become more informed. They’ve become more aware of what they are buying and where those products come from.
Younger generations, in particular, have become more aware of the environmental footprint that brands are leaving on the world and their ethical practices. They’ve become more health-conscious and concerned about sustainable living.
As The Guardian states, “Increasing awareness around these issues has led to a rise in what is known as conscious consumption, a movement of people who seek out ways to make positive decisions about what to buy and look for a solution to the negative impact consumerism is having on our world.”
Social media and online reviews help to hold businesses accountable for their actions and put everything out in the open, good or bad. One angry customer or review can irrevocably tarnish a company’s reputation.
The solution? Brand transparency.
Why Brand Transparency Matters
Nowadays, brand transparency isn’t an option—it’s a requirement.
Customers want to know everything about the products they buy—where they come from, who makes them, what they’re made of…
And they want to know all about the companies they buy from too.
Label Insight had a study of more than 2,000 customers that found that 94% of people are more likely to be loyal to brands that are completely transparent. The study also found that 56% of people would stay loyal to a brand for life if it was completely transparent and 73% of people would pay more for a product that was completely transparent. Transparency is particularly important to millennial moms between the ages of 18 and 34, with 86% of this demographic claiming that transparency was important to them.
Brand transparency therefore not only helps to attract new customers, but it also helps to retain existing ones by fortifying trust and increasing lifetime loyalty.
Brands That Are All About Transparency
Being transparent requires effort and intentionality. For some businesses, especially older ones, it’s not something that comes naturally. Every business should start by creating an internal culture of transparency. Leaders within an organization must pave the way.