Social media transparency shortfall potentially impacts your financial performance
A new report from Sprout Social has shed light on the significance of transparency on social media for attracting and retaining customers. According to the report, honest and open communication on social media platforms is the top trait consumers associate with bold brands and is foundational for long-term loyalty.
The survey revealed that an overwhelming 81% of respondents believe businesses have an obligation to be transparent when publishing on social media. This obligation extends to nonprofits as well, with 77% of respondents believing they have the same obligation to be transparent on social media.
Transparency is not just about sharing positive news. More than 61% of respondents believe that admitting mistakes is a successful way for brands to demonstrate transparency. In fact, nearly 9 out of 10 people (89%) believe a brand can regain trust if it admits to its mistakes and is open about the steps to resolve the issue.
Marketing expert Jay Baer comments that openly and honestly engaging with audiences is important because customer service has become a spectator sport. Honest responses to customer's questions, as claimed by almost as many respondents (58%), is a positive way to show transparency.
Withholding information and ignoring customer questions are the two behaviors that most demonstrate a lack of transparency, according to 69% and 68% of respondents respectively. This lack of transparency can lead to a loss in customer loyalty, as 85% of respondents are more likely to remain loyal to a brand during a crisis if it has been known to be transparent.
The report also highlights the opportunity for marketers with the introduction of Facebook's pixel for groups. This feature allows marketers to track user behavior after clicking on posts, providing valuable insights into audience engagement.
The importance of transparency is not limited to businesses. 79% of respondents believe politicians have a responsibility to be transparent on social media. YouTube is also introducing features to help users track their mobile app usage, reflecting a growing awareness of the need for transparency in all areas of digital interaction.
In an era where video content is increasingly popular, video ad spend is expected to hit $103 billion in 5 years, up from the $90.7 billion spent this year. Transparency in video ads can set a brand apart, as illustrated by Snickers' creative use of a banner ad to demonstrate transparency.
The AR/VR Boom Is Real: Who's Using It, What's Next and iOS AirDrop Marketing are other topics of interest, but the report's findings underscore the importance of transparency in all aspects of digital marketing. Millennials, who prefer consuming content to creating it, are likely to be particularly responsive to transparent brands.
In conclusion, the Sprout Social report underscores the importance of transparency on social media for building trust between brands and their audiences, protecting brand reputation, and fostering stronger emotional connections, better brand reliability, and ultimately a more loyal customer base.
- Regarding digital marketing, the importance of transparency on social media platforms is seen as a crucial factor for businesses, nonprofits, and even politicians, as evident in the Sprout Social report.
- Transparency in video ads can give a brand an edge in a market where video content consumption is growing, and video ad spend is projected to reach $103 billion over the next five years.
