Authenticity with consumers now paramount for brands

New report commissioned by Sitecore shows how US shoppers’ mindset has shifted

It goes without saying, but the world has been through a lot the past couple years. Everyone has had to adjust to a new way of doing things. For many businesses, it meant their digital transformation had to kick into high gear seemingly overnight to ensure they could meet the demands of consumers who suddenly had to do more shopping online than ever before.

That consumer has now become very savvy. They know a good digital experience from a bad one. And now that we’ve seemingly gotten back to a certain level of normalcy, Sitecore wanted to gauge how much consumers had shifted their brand focus beyond good digital shopping experiences. We wanted to know just how much “authenticity” factored into a customer’s perception of their favored brands?

In April, we commissioned a study through Advanis, asking over 1,100 US consumers how they felt on a range of issues – Empathy & Understanding, Brand Representation, Transparency & Communication, Brand Loyalty, and Shopping Experiences and have just released Sitecore’s 2022 Brand Authenticity Report.

Empathy & Understanding

It’s been a hot topic in marketing circles since the start of the pandemic, and consumer attitudes around empathy have only become more entrenched. A full 8 in 10 US consumers in our survey said it’s a powerful factor when deciding which brands get their business.

American shoppers prefer companies that illustrate empathy, offer insightful recommendations, walk to walk when it comes to their core values, and can seamlessly provide experiences based on previous actions they’ve already taken with the brand.

One very interesting data point that came out of the survey involved customer service. More than 82% of respondents said they would be more loyal to a brand if their customer service representatives were empowered to solve problems that didn’t simply follow the company’s script.

Brand Representation

Our research showed one undeniable trend – 81% of consumers want companies to make a conscious effort to ensure they are represented in their marketing and communications. In addition, 68% feel it’s important for brands to show how the support causes they care about, with action and not just words. And 85% say they want brands to show “real life” vs. “perfect life” experiences.

What’s clear is that shoppers are paying attention to things beyond traditional factors like quality, price, and great experiences. They want to know what their favored brands stand for. In the US, 68% of people said they think a brand should be transparent about the political parties and social issues they financially support. And speaking of transparency …

Transparency & Communication

Inflation is not just a hot topic in the US, it’s a global issue right now. Supply chain issues, the war in Ukraine, the pandemic, and other factors have all combined to cause price hikes seemingly across the board. So how do consumers view what their favored brands are doing about it?

The data point I found most intriguing was that 62% of Americans consumers said they would be willing to pay more for a company’s products and services if they knew it had a direct correlation to the employees being well-paid. On top of that, 84% feel that brands should prove they treat their customers and employees fairly. It’s clear that consumers want their favorite brands to conduct themselves ethically.

When it comes to price increases, 91% said they want brands to clearly communicate the reason for the hikes. They also want brands to seek out alternatives to help offset just jacking up prices. A majority of shoppers say they would be OK with getting slightly less product for the same price or waiting 7-10 days for a delivery if shipping was free.

Brand Loyalty

Quite simply, the report shows that US shoppers are fickle. The rise of digital has given them the power of choice and they’re going to use it to find the best deals. Only 4 in 10 in the US say they are a “fan” of their favorite brands and only 1 in 10 say they’re an “advocate” or “influencer”. The industry that’s most likely for someone to say they’re a fan? The runaway leader was Consumer Goods at 32% and no other industry was even close.

But I take that to mean there is a huge opportunity for companies to make serious inroads with their customers to gain their trust and loyalty by being authentic, meeting their needs, conducting themselves ethically and fairly. After price, respondents said the most important attributes a brand can have are offering products with high quality (58%) and reliability (43%).

Shopping Experience

Loyalty has a lot to do with the overall experience a shopper has with a brand. And despite best intentions and best efforts, mistakes inevitably happen. So, what does that mean for a brand? The good news is that not all is lost. More than one-third of shoppers have returned to a brand after vowing never to shop with them again following a bad experience. Under the right circumstances, some consumers are willing to give you a second chance, and the main drivers cited are good services (42%), lowest prices (41%), and most convenient (39%).

As mentioned earlier, there has been a dramatic uplift in digital shopping. But doesn’t mean there isn’t pent up demand to get back in stores for a wide swath of American shoppers. Roughly 46% said in our survey that they “live for the experience” and love to shop in a store for most of their purchases. On the other end, 30% said they are complete digital converts and want to purchase nearly everything online.

We also asked what aspects of the online shopping experience had improved the most in the past two years. The most popular answers were payment processing, quick click purchasing, and the speed of ordering and delivery.

Key Takeaways

The Sitecore 2022 Brand Authenticity Report shows that having an empathetic approach and ensuring your brand has a balanced, inclusive look and feel in its marketing and communications will go a long way toward increasing loyalty among your customers. Personalizing your outreach so your customers feel like they’re having a conversation with you, not just talking at them, is a cornerstone of authenticity. And being transparent about pricing, where you stand on social issues, and the steps you can take to solve a customer’s bad shopping experience will lead you on a path to repeat business while standing out from your competition.