In today's era of the Internet and Social Media, Brand Transparency has become increasingly important. Consumers are now, more aware than ever, of the behind-the-scenes picture of the brands they buy from.
Today, consumers want to know everything about the commodities that they buy and also about the company that they buy from. And they're not afraid to call out companies that aren't being truthful. As a result, many brands have been forced to re-evaluate their marketing strategies and choose to be more transparent if they want to win over consumers.
What does Transparency mean for your D2C Brand?
As the word literally means, Transparency is the quality to show the picture that goes on behind the main screen of your company. It means showing your customers how you produce the products, from where you extract the raw materials, the price breakdown, etc.
Customer Transparency emphasizes the qualities of ‘honesty’ and ‘integrity’ in all customer communications. This includes keeping the customer up to date on good news as well as bad news.
It also means keeping the customer informed and asking for their feedback, notifying them of improvements to your products and/or services, treating the customer's data as sacred, and making policies clear.
Benefits of Transparency in Business
Going transparent will serve your business the following benefits -
1. Enhances the Brand
When a brand is honest and transparent with its customers, they, in turn, will treat the company with respect. The marketplace will regard it with high opinion. By strengthening the bond of trust between the company and customers, companies establish brand loyalty.
2. Boosts Sales
Transparency will give your brand a good reputation, which is sure to give your business a boost, thus increasing sales. Hence, implementing transparency into your business will give you more business.
3. Customer Loyalty & Engagement
This is probably the most important point. In today’s age, customers want to know where the products come from, how it is made - everything. When companies are able to efficiently respond to their queries, not just their customer loyalty, but also chances of their retention increase to a much higher level. This also keeps the customers engaged with your brand.
4. Improves your Business’ Performance
When companies are transparent with their customers, they know that it’s of a high priority that they get order fulfillment of their customers right on time. They also focus on problem resolution because they know that their customers are keeping an eye on them. They work to get the customer experiences right on point.
Transparency also makes it easy for you to identify and monitor your potential supply chain risks. It also helps in their proper management, making use of insights, thus making informed decisions.
5. Identifies Operational Improvements & New Opportunities
Transparency permits finding and fighting inefficiencies as well as establishing improvement possibilities by collecting data in real-time. With the feedback taken from their customers, businesses can make adjustments and determine which products fit best for their customer needs, thus discovering new opportunities.
Example of a Brand that inculcated Transparency and WON!!!
McDonald’s
The McDonald’s project in Canada “Our Food. Your Questions” is a very good example of a transparency program that focuses on building solid relationships with consumers by giving them a chance to ask the company anything about its food.
Misinformation and negative rumors regarding the company’s ingredients have plagued it for years.
This campaign has received over 42,000 queries since its start in 2014. McDonald’s had posted a video from inside its Canadian meat processing factory, demonstrating that their beef patties are prepared from actual animals!
Conclusion:
As we move ahead with technological advancement, Brand Transparency will only become more important. Consumers are becoming savvier and more interested in the stories behind the products they purchase. So for any brand looking to stay ahead of the curve, remember, TRANSPARENCY IS THE KEY!