A new report from PR and communications agency Brands2Life has revealed that both American and European consumers are prepared to walk away from dishonest and inauthentic online brands that don’t play fair. The report entitled ‘WALK THE TALK – What consumers expect from today’s online brands’ reveals that 41% of consumers have stopped using, or are using less of, an online brand that has a poor reputation or is engaging in malpractice. In fact, authenticity and honesty are highly important values for 46% of today’s online consumers on both sides of the Atlantic.
According to the report, privacy/security concerns and poor customer service are the top reasons cited for abandoning an online brand. However, broader concerns such as CEO behaviour, the way staff and vulnerable groups are treated, workforce diversity and respect for the countries that brands operate in, also rank highly.
Poor customer service (15%) is the top reason for consumers deciding to stop using or reduce their usage of an online brand. Other factors include: ‘because they treat their workers and suppliers unfairly’ (9%); ‘because they don’t pay enough tax in my country’ (8%); ‘because they haven’t taken action to reduce their impact on the environment’ (8%); and ‘because they haven’t taken enough action to protect a user’s privacy and security’ (8%).
DIVERSITY MATTERS
Consumers say that they are more likely to use an online brand if they reduce their prices (71%); properly compensate customers if there has been a problem (69%); make a commitment to protect users’ privacy and security (69%); and apologise properly if they do something wrong (63%).
Factors that influence a consumer’s decision to stick with an online brand include: good customer service (94%); protect data and privacy (94%), treat workers and suppliers fairly (90%); put safeguards in place to protect vulnerable groups (89%); truly care about countries they do business in (83%); give something back to society 80%, a diverse and inclusive workforce (73%), and a diverse and inclusive leadership team (70%).
In fact, having a diverse and inclusive leadership team is significantly more important to 79% of young consumers (18-24 years old) compared to 64% of older consumers (45-54 years old). A brand’s impact on the environment also matters, especially to 18-24 year olds. Around 78% say they will stop using a brand if they don’t think they are doing enough in this area. When it comes to marketing, 46% of all consumers want brands to communicate ‘authentically’ and ‘honestly’.
DIFFERING WORLD VIEWS
While consumers’ views are broadly the same across across both sides of the Atlantic, some national differences were observed. For example, attitudes to corporate behaviour around climate change vary considerably from country to country. Approximately 79% of the French would stop using a company on this particular issue compared to 63% of Americans. Also, both the French and Germans (86%) believe giving something back is important, compared to 80% of American and 76% of British customers.
In terms of differences in gender behaviour, the report found that 53% of female consumers are more likely to use a brand that takes a stand on political issues, compared to 43% of men.
AI SCEPTICISM
Finally, in terms of using AI as part of an online brand’s services, it appears that consumers are still sceptical about this development. While online brands are introducing AI to improve customer service and reduce costs (as reported), only 18% of consumers think this will be beneficial. Approximately 46% said that they would prefer to deal with a human. The UK was the most sceptical country with just 13% of its consumers considering it to be a ‘good thing’, compared to more than 20% of French, German and American consumers. Younger consumers are actually more enthusiastic about AI and robots, with 34% considering it to be a ‘good thing’ compared to just 10% of those aged over 45.
Commenting on the report results, Giles Fraser, Co-Founder of Brands2Life, states: “Online brands dominate all our lives today and we all know that their business models are under increasing scrutiny from regulators and politicians on both sides of the Atlantic. This report illustrates that they need to be alert as to how consumers see them and their behaviour. If they don’t offer best-in-class customer service and display the highest standards of corporate citizenship the consumers will simply stop using them.”
The report, carried out in partnership with Opinium, is based on a survey of 6,001 consumers across France, Germany, UK and US.
Click here to download a copy of the report.
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