When we launched the 2016 Label Insight Transparency ROI Study in late August, the idea was to take a deep dive into consumer preferences for transparency and how it affects trust for and loyalty towards brands.
What we learned is that brands have the opportunity to improve their bottom line just by providing product transparency - from increased brand loyalty, new market share and even brand worth. Here at Label Insight, we call this Transparency ROI. We’re breaking down the study piece-by-piece in our Transparency ROI blog series. In Part 1 we learned how transparency leads to increased brand loyalty and perceived brand worth and in Part 2, we’ll look at just who’s leading the pack when it comes to demand for product transparency.
Learning 2: Millennial Moms Are Leading the Transparency Charge
Representing nearly $200 billion in spending power, millennial moms - mothers 18-34 years old - are technologically savvy and highly connected. And they are leading the pack when it comes to the demand for product transparency.
This demographic - otherwise known as Marketing’s Most Wanted - grew up online. 65% consider themselves innovators or early adopters and love brands that “get” technology. They gravitate towards brands that are authentic and align with their values. Their children’s health is a top priority for them when they shop. Our survey shows they are incredibly comfortable with technology and place more value on transparency than all other respondents.
83% of millennial moms said that product transparency would make them trust a brand more, compared with 78% of all respondents. (tweet this!) Additionally, 30% said transparency is their top factor for remaining loyal to a brand compared with 25% average among all respondents.
Millennial moms are also more likely to search for product information on third-party sites if a brand doesn’t provide them with what they need. 49% said they check third-party sites to verify brand claims compared with 42% of all respondents. Millennial moms are also more willing to pay a higher price for transparency. 86% said they would pay more for product transparency compared with 73% among all respondents. (tweet this!)
Not only does this demographic value transparency, they also prefer to access in-depth product information through digital channels. Nearly two-thirds of millennial moms (65%) consider themselves innovators or early adopters when it comes to technology, compared to 53% among all respondents. What’s more, more than half (53%) said they would use a mobile app to verify brand claims about being healthy compared to 35% of all respondents.
Additionally, nearly nine in ten millennial moms said they are very likely to use SmartLabel technology compared with 79% among all age groups. (tweet this!) The way for brands to influence millennial moms, and in turn their families and friends, is by offering extended product information in a way that can be accessed digitally. SmartLabel is one of the most effective channels through which a brand can convey that information and reach this powerful demographic of shoppers.
Stay tuned for the next installment of our Transparency ROI blog series to learn how consumers define transparency and how they expect to get their hands on this granular product information.
Subscribe to our blog so you don’t miss out on the rest of the series!