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In today’s marketplace, consumer trust has become critical for businesses seeking sustained success. A study by Edelman found that 81% of shoppers cite brand trust as a deciding factor in their loyalty and purchasing behaviors. As information sources proliferate, companies can no longer maintain opaque practices that obscure key details. They must operate with full transparency to earn customer trust and loyalty.
As CEO of Carbliss, an alcoholic beverage brand, I have witnessed firsthand how radical transparency across all manufacturing and business operations drives strong consumer loyalty and business growth. From our earliest days, we have been committed to taking an unwavering open-book approach that has helped solidify valuable, long-lasting relationships with our customer base. Below are the four criteria and best practices we prioritize to maintain transparency and customer loyalty.
1. Direct dialogue with the customer
Today’s consumers can easily see through this false smokescreen. What they want from the brands they embrace is true sincerity about every key aspect, including the ingredients, sourcing practices, pricing rationale, regulatory challenges and more behind the products they consume.
One of the main ways I cultivate this culture of authenticity is by being directly involved in a huge volume of customer inquiries. Last year alone I responded to approximately 8,000 emails from Carbliss distributors, retailers, consumers and fans.
An honest and constant dialogue is essential to fully understand how customers perceive our brand identity, product qualities and customer service experiences in an unfiltered way.
Through raw, unapologetic honesty in these interactions, even when the facts may be unfavorable or unpleasant for the customer to accept, we actively cultivate invaluable trust. The simple truth is that you can’t build lasting customer loyalty through automated, impersonal responses or convoluted corporate jargon.
Related: Don’t Talk to Another Customer Until You Learn This Simple Customer Service Secret
2. Shed light on the complexities
Embracing this level of radical transparency means being prepared, at times, to face scrutiny from confused, perhaps deflated, customers searching for simpler truths. We have found that the end result is an extraordinarily powerful brand reputation, anchored in truth, which ultimately breeds sacred trust and loyalty.
At my company, we’re happy to highlight the very details that other brands might hide or try to downplay, like our need to use “artificially colored” labels on cans even though the colors come from natural sources, like the bright blue of pea flowers butterfly.
We take every opportunity to explain the nuances of regulatory complexities that result in mandatory labeling jargon. We balance this by reaffirming our core principles of prioritizing high-quality ingredients that we legitimately consume ourselves and provide to friends and family without hesitation.
3. A culture of authenticity
As you grow and scale, it’s important to maintain transparency across your entire team. This can come in the form of understanding the complexities of the product, the path to profitability, or the purpose of their unique role in the overall strategy. Our employees, regardless of role, deeply understand the ingredients, sourcing and production methods behind our products so they can convey that knowledge accurately and credibly in their customer interaction efforts.
Our detailed FAQ content clarifies the most common misconceptions, from our avoidance of artificial colors to premium pricing logic based on operating costs and premium product positioning. While some buyers may be dismayed by some of the realities we present, we insist on honesty because we have learned it is the only way to foster long-term customer understanding, respect and loyalty.
Related: How to Lead with Authenticity and Build a Thriving Workplace
4. Transparent best practices
For companies in any industry who aspire to foster strong brand loyalty while operating with complete transparency, below are my personal principles:
- Be unconditionally open about all business practices, prioritizing clear and frank communication with customers at every opportunity
- Require customer engagement teams to be prepared to personally respond to every inquiry with frank candor, without excluding unpleasant truths
- Thoroughly educate and train all employees on the critical importance of authenticity in all words and actions in their interactions with customers.
- Welcome both positive and negative customer feedback as a welcome opportunity to demonstrate a real commitment to constant improvement.
- Ensure that all content and marketing messages accurately reflect the true nature of your products, services and practices without ambiguity.
- Don’t be afraid to openly discuss your company’s real challenges, as this humanizes the relationship with the brand.
Related: 5 Examples of Companies Succeeding with Transparency
Weather resistance to cultivate loyalty
Of course, this radical embrace of transparency sometimes means facing backlash from those who are unhappy with newly revealed information that clashes with their expectations. The ironclad trust and loyalty cultivated far outweighs any short-term friction. When you deal truthfully and hide nothing from your customers, you attract buyers aligned with your values who appreciate your courage and unwavering integrity.
If you’re ready to drive true customer loyalty and drive sustainable growth, it’s time to embrace radical transparency throughout your organization. Don’t complicate reality; shed light on every aspect of your products, operations and business practices. Face the truth relentlessly, even in the face of scrutiny. Your authentic soul and unwavering integrity will attract devoted brand advocates who align with your values.