Customer loyalty is a priority and goal for all companies in existence. How to create those loyal customers is much easier than you may think, and it all has to do with transparency. According to the social media company, Sprout Social, 86% of surveyed U.S. consumers think it is more important than ever for businesses to be transparent.
Customers are much more willing to show loyalty to companies that are consistent with being clear in communication, open, and honest. For example, an 89 percent of U.S. customers are willing to give a transparent brand a second chance after a bad experience, and 85 percent are willing to stick with them through a crisis. These astonishing numbers prove that transparency is key to business success.
Gaining Trust and Sales From Transparency
Customer loyalty will come with your ability to communicate the message of transparency in the most effective manner. Customers that also purchase from you only on occasion poses an opportunity to convert them into being a loyal customer.
Typically, organic brands are very transparent because that information in their ingredient lists is crucial to their brand message. If you take a look at Horizon, the organic milk brand, you can locate any of their organic farms on their website as well as seeing their manufacturing processes, stories about the farmers and shipment processes. This is all given directly on their website with 100% transparency, making them an elite brand that does millions of dollars in sales each year.
The Role Of Social Media
In this same report, 81 percent of the group consumers say that businesses must be transparent on social media. This is more than they expect out of politicians (79 percent), friends and family (66 percent) and even themselves (71 percent). This adds a significant amount of pressure to a brand’s plate making sure they are proactive with mistakes and responding to customers at all times.
Here is an example of the makeup brand rising in popularity daily, Morphe, disclosing a mistake in production via Twitter to all 526,000 of their followers. It is statements like this, in addition to publicly addressing customer concerns, that consumers expect from businesses.
As relationships are continuously built through social media channels between brands and consumers, people want business to be more open and honest than ever, especially in public settings. Marketing teams that accept this expectation and do their best to treat transparency as a mandatory business practice are the most likely to retain customers and increase sales in doing so. Long-term, transparency is a differentiating factor that will motivate consumers to stick with your brand through a difficult times and to remain loyal over time.
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