Study reveals 40% of consumers would switch to brands with more transparency
Consumer demand for product transparency is on the rise, and brands that fulfill this demand by providing comprehensive product information are poised to grow market share and revenue. In fact, Label Insight's (labelinsight.com) 2016 Transparency ROI Study reveals that nearly 9 in 10 consumers say transparency is important to them across every food product category, and 40% say they would switch to a new brand if it offered full product transparency.
The study, released by Label Insight, a cloud-based data refinery for product data, examines the specific information consumers seek from brands, how they want to access that information, and how that information affects purchase behavior and brand loyalty. The study surveyed more than 2,000 consumers and reveals an overall desire for more product information, as well as an inclination to be more loyal to brands that provide more detailed insights.
"Label Insight has long believed that there is a tangible return on investment with transparency of product information between brands and consumers," says Patrick Moorhead, CMO of Label Insight. "This study reveals what matters most to consumers in terms of the products they use and consume, and draws a clear correlation between transparency and improved consumer trust, enhanced brand loyalty, and overall long term value in repeat purchase."
The report addresses the impact of transparency on consumer loyalty and purchase behavior, and provides guidelines for brands on how to develop trust among consumers. Key findings include:
Portfolio Potential: 81% of consumers say they would consider a brand's entire portfolio of products if they switched to that brand as a result of increased transparency.
- Brand Trust: 56% report that additional product information about how food is produced, handled or sourced would make them trust that brand more.
- Transparency and Revenue: 73% say they would be willing to pay more for a product that offers complete transparency in all attributes.
- Transparency Fosters Brand Loyalty: 94% of respondents say they are likely to be loyal to a brand that offers complete transparency.
- Millennial Moms Spend: 86% of 18 to 34-year-old women with children say they would pay more for food products with completely transparent information.
- SmartLabel Adoption and Trust: 79% say they are very likely or somewhat likely to use SmartLabel technology and 44 percent say they would trust a brand more if it participated in the SmartLabel initiative.
"For brands to succeed in today's marketplace, they must understand that consumers place transparency above many other factors, and switch to competitive products that provide detailed product information," adds Moorhead. "By providing information consumers want in one place, brands have the opportunity to create lasting trust and valued relationships with their customers."