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BizReport : Ecommerce archives : September 05, 2016

Study finds brand transparency equals loyalty

When it comes to building loyalty, brands can achieve better results by being transparent with their shoppers. That's the takeaway from new Label Insights research which found that most (94%) consumers are loyal to brands offering transparency in their products.

by Kristina Knight

The study also found that consumers (73%) are willing to pay more for products from brands that are transparent about their products, and that switching to a brand because of one product's transparency is likely to lead to shoppers switching to all of that brand's products.

"Label Insight has long believed that there is a tangible return on investment with transparency of product information between brands and consumers," said 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."

Other interesting findings from the report include:

• 56% of consumers say having more information about how products are sourced/handled will increase their brand trust
• 86% of Millennial moms with kids say they'll pay more for food products that offer transparency
• 79% say they are 'likely' to use tech products like SmartLabel to learn more about the things they buy

Tags: brand transparency, Label Insight, product labels, product transparency

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