Social Media

According To The Study, Consumer Loyalty Increases When Businesses Are Open And Honest On Social Media.

Businesses have a higher transparency bar than politicians, friends, and even consumers themselves.

Sprout Social released a survey claiming that the majority of customers are seeking more openness from brands.

A poll of 1,000 customers in the United States revealed that 86% believe it is more essential than ever for firms to be transparent in the report Social Media and the Evolution of Transparency (free, registration needed).

According to these customers, transparency means being open (59%), straightforward (53%), and honest (49%).

According to the findings, consumers are more loyal to brands that demonstrate these traits, while they are quick to abandon those that fall short.

For instance, an incredible 89% are willing to try again with honest businesses after a negative encounter, and 85% will continue with them even through a crisis.

When it comes to a company’s social media presence, the stakes couldn’t be greater. 53% of respondents think they are more inclined to consider purchasing from a business that is honest on social media. If they don’t feel like they can trust you, 86% of customers will go elsewhere.

Surprisingly, 81% of customers believe that businesses should be honest and open on social media, holding them to a higher standard than they would for politicians, friends, or even themselves.

There is a need for stakeholders to make the connections between the report’s assertion that “increased accountability elevates the role transparent and authentic social strategy plays in successful brand-consumer relationships and the underlying findings.

Taken from the report:

Many parties miss the connection between openness and the credibility they convey to customers. Companies need to accept that the vast majority of consumers want personal, one-on-one interactions with the businesses they patronise. Businesses are under increased pressure to commit to upfront transparency in many formats and in real time due to the “always on” nature of social media.

Director of content and communications at Sprout Social Kristin Johnson once remarked, “think of transparency as Teflon for your brand.”

As Johnson put it:

Our data shows that almost nine out of ten customers are more loyal to a brand in times of crisis if it has a reputation for being honest and open with its customers. A brand’s reputation, customer retention, and long-term loyalty may all benefit from consistent proactive and reactive openness.

People now have higher expectations of businesses being accessible and transparent than ever before as social media becomes the primary means through which brands and customers interact. Marketers who recognise this expectation and make openness a priority in their operations will earn their clients’ respect and loyalty. Transparency is a distinct characteristic that will encourage customers to stay loyal to your business even when circumstances are tough.

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