- About 94% of consumers say they would be loyal to a brand that offers complete transparency, according to a recent study from Label Insight.
- The study unveiled trends surrounding ROI for transparency, with 86% of millennial moms saying they would pay more for completely transparent food products.
- Four out of 10 consumers said they would switch to a new brand if it offered full product transparency.
If consumers would go as far as to switch brands based on transparency alone, manufacturers that remain more secretive about their products could see their market share deteriorate in the coming years. This demonstrates the drive to not only respond to consumer demands for social reasons, but for fiscal reasons too.
As more manufacturers try to improve their top lines, transparency may play a larger role than many companies previously realized. Earnings reports demonstrate struggles with sales growth almost across the board for major manufacturers, but increased transparency could be a deciding factor in consumers' purchase decisions to those brands.
Aside from top-line impact, other key factors transparency can impact for manufacturers include portfolio potential, building brand trust with consumers and brand loyalty, according to the report.