What is transparency in marketing?
The development of technology has provided an easier access to information in this digital era. As a result, this is harder for businesses to keep secret from the consumers. Due to the technological advancement, consumers have become more informed about what they are buying, who they are buying from, where those products come from. For example, they have become more health-conscious and more aware of the environmental problem to create a sustainable life.
Now, transparency in marketing is no longer an option, but a basic requirement for all businesses. When a business has a large degree of information or knowledge available to the public, there is a certain level of transparency.
Why does it matter?
More and more businesses start to share about their leaders, employees, company values, culture, strategy, business processes and the customer testimonials with their audience.
So, what are the reasons behind these actions? Based on a study done with over 2,000 consumers by Local Insight in 2016, the answers were revealed:
(i) 94% of them are likely to be loyal to a brand that offers complete transparency;
(ii) 73% of them will pay more for a product that is completely transparent;
(iii) 56% of them will stay loyal to a brand for life if it is completely transparent; and
(iv) 39% of them will even switch from their current preferred brand to one that offers more product or brand transparency.
Ultimately, more transparency in marketing means more market share. It helps to expand a business’ customer base and increase brand worth and brand loyalty.
Although it is clear that businesses can strengthen their reputation by truthful and responsible actions, they do not need to reveal 100% of the details to the public. They can still integrate privacy into their business operations and continue to be a trustworthy partner for other companies.
How to achieve transparency in marketing?
(i) Do your ads and marketing accurately reflect the experiences your clients/customers will have with your brand when they do business with you?
(ii) How can you make the experience of doing business with your company exceed the expectations of your clients / customers?
(iii) What is your company doing to conserve natural resources and be more green?
(iv) Is your company always acting in a socially responsible way to improve the lives of people outside your company? This can be those within your community, your region or people around the world, depending on the size of your company.
When you have answers for the questions above, you can start to create a culture of transparency and trust within your organization and do the same with your customers. Put transparency in marketing as your top priority to provide the best value for your customers.