Posts Tagged ‘Consumers’

What your customers want now:  transparency

February 6, 2012 – Digit #3

Is it possible to think of two brands with less in common than Apple and Paula Deen? But now they share two important things: dedicated followers who love them (a huge, worldwide following in Apple’s case) and ethical questions that threaten their consumers’ trust. For both, the issue is expectations and transparency. Both are in-progress case studies in managing brand love in a world where trust is almost nonexistent and negatives are shared at the speed of the Internet.

 SCAN findings show integrity and transparency topping the list of criteria when consumers decide how they spend their money.

Among all adults, 81% say “has integrity and deals honestly” is extremely important when selecting companies to do business with. (Ranking close behind is “respectful of customers” at 79%, followed by “offers a quality product or service” at 74% and “fair price” at 63%.) DYG SCAN^® 2011

Even Paula Deen’s die-hard fans (no pun intended) never confused her with the culinary equivalent of Dr. Oz. Her calling card was her happy-next-door-neighbor-like authenticity as the joyful creator of such indulgent food as the infamous “brunch burger” (topped by a fried egg and bacon and housed in two glazed doughnuts rather than a bun). Her collision with expectations came when she simultaneously announced she has diabetes (a closely kept secret for three years) and is now promoting a drug to manage it. While many still love her, many more decry a confluence of money, timing, and disingenuousness in conflict with her honest, down-home buddy image. Current status: the words “unrepentant” and “Paula Deen” appear together frequently on the Internet.

And in another universe, there’s Apple. After reports of inhumane working conditions in Apple’s supplier factories overseas appeared in The New York Times, on NPR, and across the media, Apple-loving consumers started an online petition demanding that the iPhone 5 be “the first ethical iPhone.”  Mark Shields, author of the petition, included an open letter to Apple: “You’re supposed to ‘think different.’ I want to continue to use and love the products you make, because they’re changing the world, and have already changed my life. But I also want to know that when I buy products from you, it’s not at the cost of horrible human suffering.” CEO Tim Cook’s response emphasized Apple values:  “As a company and as individuals, we are defined by our values. Unfortunately some people are questioning Apple’s values today, and I’d like to address this with you directly…” He goes on to promise appropriate action.

Current status: Apple has committed to addressing supplier conditions with action detailed on http://www.apple.com/supplierresponsibility. Resolution in progress… with customers and media watching.

An enormous majority of American consumers think of themselves as ethical. Almost eight out of ten (79%) say “ethical” describes them “very well or perfectly.” When they identify with your brand, they expect the same from you.

 Business Implications:  In a culture and marketplace with a scarcity of trust, connecting with consumers in a lasting, profitable way means transparency first and always. When and if anything ever goes wrong, even more transparency.

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