Sprout Social: A report on the evolution of social media transparency

Sprout Social released a report titled “The Evolution of Transparency in Social Media.”

Brands that prioritize transparency on social networks reap huge rewards in terms of consumer trust, increased sales, and improved brand reputation.

Consumer expectations for transparency are growing every day, and long-term relationships generate long-term trust. 86% of Americans believe that corporate transparency is more important than ever. When brands are transparent and have a long history of transparency, nearly 9 in 10 are more likely to give a second chance after a bad experience, and 85% are more likely to stick with a brand during a crisis.

Social amplifies transparency, which can either create challenges or greater rewards for brands. 40% of consumers believe brand transparency is more important than ever and attribute it to social media. Heightened expectations for transparency on social media come with significant benefits and risks. More than half of consumers (53%) are likely to consider repeat purchases from a brand that is transparent on social media. However, lack of transparency on social could see 86% of consumers switch to a competitor.

Brands have plenty of room to improve transparency across social platforms. 81% of consumers believe that companies have a responsibility to be transparent when posting content on social media, but only 15% believe that brands are currently “very transparent” on social networks.

CEOs have unique power to enforce transparency on social media. One-third of consumers say they will buy more from a brand whose CEO demonstrates social transparency. By setting an example of transparency, CEOs can lead employees to share and elevate the brand’s authenticity on social.

Millennials Raise the Bar on Social Transparency Best Practices

Millennials are most interested in hearing from brands and CEOs about their values. More than one in five millennials surveyed said that social transparency from their CEO would encourage them to consider a career in the future.