Consumer Expectations Around Transparency
Over the past few years, transparency has become increasingly important to shoppers. And in 2023, 76% of shoppers said that having transparent information about the products they buy is crucial. This is up from 69% in 2018. This trend clearly shows that consumers are expecting more openness about what they are buying.
Consumers believe that the responsibility for providing detailed product information lies primarily with the manufacturers and brands of these products. However, less than a third of shoppers actually trust the information that is provided. This trust gap indicates that there’s room for improvement in how brands communicate with their customers.
But on a positive note, shoppers do reward brands that are transparent. When brands provide clear and comprehensive product information, it builds trust, loyalty, and encourages purchases. This shows that transparency is not just a consumer demand but also a business opportunity.
The Role of Digital In Transparency Trends
Digital tools are playing a big role in this transparency trend. More than 80% of shoppers are willing to use QR codes, websites, and apps to get more information about the products they’re considering or have already purchased. This means making detailed product information easily accessible through digital means is becoming increasingly important.
Next, there’s also been a shift in how shoppers view in-store versus online shopping. While shoppers are scrutinizing product labels more in-store, they also appreciate the ease of researching products online. The ability to compare products, check nutritional information, and verify ingredient lists online is becoming a key part of the shopping experience.
It’s also important to note that one of the biggest reasons shoppers abandon their online shopping carts is the lack of clear and useful information. Price concerns, difficulties in finding desired products, and incomplete product details are significant barriers that need to be addressed to improve the shopping experience.
What Consumers Look For
Finally, when it comes to transparency, shoppers look for several key factors. They want a complete list of ingredients, easily understandable information, detailed nutritional and production details, and sustainability information. Brands that provide this information clearly and concisely are more likely to be seen as transparent and trustworthy.
How Shoppers Determine Transparency
FMI and NIQ (NielsenIQ), Transparency Trends 2023: Food Shoppers Increasingly Prioritize Information
The Consequences of Not Being Transparent
Decreased consumer trust
When brands don’t prioritize transparency, they risk losing the trust of their customers. Trust is foundational in the relationship between consumers and brands. Without it, customers are less likely to make repeat purchases or recommend the brand to others. In a time when consumers are increasingly savvy and skeptical, the lack of transparency can quickly erode trust.
Missed opportunity for brand loyalty
Furthermore, brands that are not transparent often miss out on building customer loyalty. Shoppers today value honesty and openness, and they reward brands that meet these expectations. When brands fail to provide clear and comprehensive product information, they miss the opportunity to create a loyal customer base that feels confident in their purchases.
Negative publicity
Another significant consequence is the potential for negative public perception. In the age of social media, news about a brand’s lack of transparency can spread rapidly, leading to public backlash. Consumers today have platforms to voice their concerns and dissatisfaction, and a single incident can result in a significant hit to a brand’s reputation.
Regulatory scrutiny
Additionally, without transparency, brands may face increased scrutiny and pressure from regulatory bodies. Governments and industry organizations are becoming more stringent about the information brands must disclose. Non-compliance can lead to legal repercussions and fines, further damaging a brand’s financial health and reputation.
Higher cart abandonment rates
On a practical level, a lack of transparency can also result in higher abandonment rates for online shopping carts. When shoppers can’t find the information they need, they are more likely to abandon their purchases and look elsewhere. This directly impacts sales and the bottom line.
Missed opportunity for consumer insights
Also, failing to provide detailed information means missing out on key consumer insights. Brands that are transparent can gather valuable data on what consumers care about most, helping them to innovate and stay ahead of market trends. Without this feedback, brands may struggle to keep up with evolving consumer demands.
The Data Gap and Potential Solutions
One of the primary reasons brands don’t share detailed product information is the lack of reliable data. Without accurate and comprehensive data on ingredients, sourcing, and manufacturing processes, brands struggle to provide the transparency that consumers demand. This data gap can be due to various factors, such as outdated record-keeping practices, fragmented supply chains, and the complexity of gathering and verifying information from multiple sources.
Without this data, brands face significant challenges in ensuring the accuracy and completeness of the information they provide. This leads to hesitation in sharing details, as any discrepancies or inaccuracies can result in a loss of trust and credibility. Moreover, gathering and maintaining this data manually is not only time-consuming but also prone to errors, making it a daunting task for many companies.
Data Management & Sharing
This is where solutions like ezGMP and TruInsights come into play. ezGMP is designed to simplify and streamline the process of data collection and management. By digitizing and automating GMP compliance, ezGMP ensures that manufacturers and brands have accurate and up-to-date information on their manufacturing processes. This not only helps in maintaining compliance but also provides a solid foundation for transparency.
TruInsights takes this a step further by providing a platform for sharing batch-specific information on the quality tests, origin, and purity of ingredients. With TruInsights, brands can offer consumers detailed insights into the products they purchase. This information is accessible through a web portal and a QR code on the product packaging, allowing consumers to easily verify the authenticity and quality of the products.
By leveraging ezGMP and TruInsights, brands can overcome the data gap that hinders transparency. These tools provide a comprehensive and accurate data management system, making it easier for brands to gather, verify, and share the information that consumers demand. This not only builds trust and loyalty but also positions brands as leaders in transparency and quality.
Learn more
Watch the recording of our webinar, “Building Brand Loyalty Through Supply Chain Transparency,” for even more insights. In this webinar, Chris Jones of amni.ai and Mauro Costa of Bulkitrade explore benefits and strategies for implementing transparent supply chain practices.
