“Reward Seats only on days ending with Y”. Southwest Airlines reportedly had 5% increased profits with their new initiative called “Transfarency.” With no extra, hidden or unexpected charges to be paid, the airline claimed to give customers a clear picture of the total fare.
Needless to say, it worked well as most customers were tired of bogus fees of various airlines.
So if organisations are able to brand themselves as an authentic and 'we keep our word' kind of company, does it help it generate direct revenue or indirect monetary benefits? What would it mean to a customer or an employee if any company talks about transparency and is also able to showcase it?
Weber Shandwick published a very interesting research data. It says that though it may seem a very difficult alignment to attain where an employee and a customer both see a brand as authentic and transparent, the organisations who were able to do so saved a lot.
Recruit and Retain: Also, those companies could create better recruitment drives and retain people as much. The difference was 76% higher when branding was of a transparent or authentic organisation. Retention of old employees and creating a loyal army is always lighter on budgets and heavier in sacks of profits.
Referral buying: The world is digital today. People check the reference on online portals before deciding any purchase. Happy employees or delighted customers, who believes that the organisation lived up to their expectations, are always going to recommend others to buy. Direct revenue has straight pipeline laid to an impression of authenticity. KRC Research puts this version of referral buying as high as 59% versus mere 23% in usual media publicity.
High productivity and sales: Longer working hours are not deterrent to employees, or a little wait for the right product does not hamper the shopping mood if the branding comes as 'we deliver exactly what is promised'. The Body Shop International limited, a British Cosmetics and Skincare company, began launching promotions tied to social causes, creating an image of authentic and fair trade-based organisation. This, in turn, made it gain a lot of public and media interest. Founder Anita Roddick started lots of campaigns for the cosmetic industry, in particular, criticising environmental insensitivity of the industry and traditional views of beauty, aimed to change the standard corporate practice of product testing on animals and creating cosmetics for every skin tone.
The Body Shop, in 1970, was run from a garage in Berkley, California. The company now has $1.4 billion revenue as on December 2017. A clear articulation helped them create an employer brand and authentic organisation.
Today, the companies and employees are global now. The world is shrinking in terms of connectivity and expansion happens in different geographical boundaries. The graffiti on the wall is “clean, and the authentic is here to stay.” A short-term vision may create small venture but to grow big, promises need to be kept with the leadership of values and vision.
The writer is a strategic advisor and premium educator with Harvard Business Publishing
