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Kira Karapetian

By: Kira Karapetian on September 7th, 2016

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Transparency Leads to Increased Brand Loyalty and Perceived Brand Worth

Trends & Research


We know that consumer demand for product transparency is on the rise, and brands that fulfill this demand by providing comprehensive product information are poised to gain favor with consumers.

But what does product transparency really mean to consumers and how does it affect shopper behavior, trust and loyalty? And, can it actually influence market share and revenue?

To find out, we launched the 2016 Label Insight Transparency ROI Study to take a deep dive into consumer preferences for transparency and how it affects their trust for and loyalty toward brands and ultimately their purchasing behavior.

In the coming weeks, we’ll publish a series of blog posts that break down our biggest learnings and the opportunities they create for CPG brands. Without further ado… welcome to our TROI Series!

Learning 1: Transparency Leads to Increased Brand Loyalty, Market Share, and Perceived Brand Worth

Transparency Leads to Increased Brand Loyalty

Label Insight’s survey of more than 2,000 consumers revealed that nearly all consumers - 94% - are likely to be loyal to a brand that offers complete transparency. What’s more transparency ranked highest in a list of factors that motivate consumers to be loyal to a brand.

56% say they would be very likely to remain loyal to a brand for life if it offered complete transparency. (tweet this!)

Transparency = More Market Share

shopper_behavior.pngThe survey finds that 39% of consumers would switch from their current preferred brand to one that offered more product transparency. What’s more, once a consumer has switched to a brand in favor of increased transparency, he or she is likely to remain loyal long term. (tweet this!)

Transparency also impacts consumers’ willingness to consider a brand’s entire portfolio of products. 81% say they would consider a brand’s entire portfolio of products if they switched to that brand because of transparency.

Download the Transparency ROI Study Now

Transparency Leads to Increased Brand Worth

Transparency is so important to consumers that it actually increases a product’s worth in their minds. Almost three in four consumers (73%) say they would be willing to pay more for a product that offers complete transparency in all attributes (tweet this!).pay_more.png

If this wasn’t big enough news, millennial moms - the emerging consumer powerhouse demographic that marketers have been under pressure to connect with - place an even higher value of transparency than the general population with 86% of 18 to 34-year-old women with children saying they would pay more for transparent products (stay tuned for more on this later in the series).


Simply put, transparency has very positive implications for brands -- fostering product and brand loyalty, leading to more market share and increasing the product’s worth in a consumer’s mind. In an age where consumers are more concerned about what’s in products and how they're made than ever before, brands that provide shoppers with the information they want, in one place, will have the opportunity to create lasting trust and valued relationships with their customers.

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download transparency roi study