Sprout Social Reveals Brands Should Invest in Transparency

 Sprout Social, a producer of social media platform management systems, has published the results of a survey of 1,000 U.S. consumers, which sought to understand respondents’ beliefs surrounding transparency.
 
The report, entitled “From Risk to Responsibility: Social Media and the Evolution of Transparency,” finds that transparency can help brands build deeper relationships with customers and enhance their loyalty programs.
 
The survey asked respondents to define transparency by identifying, from a list of six words, the term’s most important features. The report states that almost 60 percent defined it as “openness,” 53 percent as “clarity,” and 49 percent as “honesty.”
 
In addition, 86 percent of survey respondents said that transparency from businesses is more important than ever before, and more than 50 percent said they want brands to be more transparent on social media.
 
“Our data shows that transparency makes the difference in forming lasting connections between businesses and consumers,” says Jamie Gilpin, CMO of Sprout Social. “But being a transparent brand is much more than a singular campaign or announcement. It’s an ongoing practice that showcases the humanity of a brand.”
 
Other important takeaways from the report include the huge gap between customer expectations and how they perceive brands acting. Eighty-one percent of respondents said they believe businesses have a responsibility to act transparently on social media, though only 15 percent said they think brands are actually acting in this way.
 
Given that almost 90 percent of respondents said they would give transparent brands a second chance after a bad experience, the importance of being open and clear on social media cannot be understated. 
 
Another telling result of the survey is the near-60 percent of respondents who said that companies are morally obligated to act transparently. If consumers believe that brands that don’t act transparently are acting immorally, then opaque brands will have trouble developing relationships with them.
 
And who can blame these consumers? Would anyone really choose to be in a relationship with someone who isn’t open or honest?
 
The report also states that, of all demographics, Millennials find the most value in transparency. When asked to rank the channels through which brands should be the most transparent, Millennials said that social media was the most important.
 
They also said that it is more necessary for brands to be transparent on social media than for politicians, which says quite a bit.
 
Considering these results, brands should definitely begin to move toward transparency. According to the report, this would mean withholding less information, answering customer questions more frequently and more quickly, responding to employee questions more quickly, admitting mistakes, and being open about company values.
 
It also means being open and honest not as a marketing effort, which consumers would find off-putting, but rather as a way to build a brand’s character.
 
Gilpin says, “Transparency builds a relationship that’s rooted in authenticity and honesty. Social media is a prime platform for brands to build this relationship and establish unwavering consumer trust.”
 
    
 

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