Have you noticed how closely people in the break room look at labels on products before buying them? Welcome to the information age—and the health conscious generation.
In recent years, consumer product manufacturers have added more nutrition labels and improved the way this information is organized. Many of these changes are due to government labeling rules. But product manufacturers also know that Chicago’s consumers want nutritional information because they are health conscious, and they are also in the habit of reading about ingredients and nutritional values in food, thanks to the growth of smartphones.
Label Insight’s 2016 Transparency ROI Study reveals that nearly 9 in 10 consumers say transparency is important to them across every food product category. Forty percent say they would switch to a new brand if it offered full product transparency.
The study surveyed more than 2,000 consumers and examined the information consumers seek from brands, how they want to access that information, and how that information affects purchase behavior and brand loyalty. The study points to an overall desire for more product information, as well as an inclination to be more loyal to brands that provide more detail.
Brands that fulfill this demand by providing comprehensive product information are poised to grow.
“This study reveals what matters most to consumers in terms of the products they use and consume, and draws a clear correlation between transparency and improved consumer trust, enhanced brand loyalty, and overall long term value in repeat purchase,” said Patrick Moorhead, chief marketing officer of Label Insight.
Key survey findings include:
- 81 percent of consumers say they would consider a brand’s entire portfolio of products if they switched to that brand as a result of increased transparency.
- 56 percent say additional product information about how food is produced, handled or sourced would make them trust that brand more.
- 73 percent say they would be willing to pay more for a product that offers complete transparency in all attributes.
- 94 percent say they are likely to be loyal to a brand that offers complete transparency.
- 86 percent of 18 to 34-year-old women with children say they would pay more for food products with completely transparent information.
- 79 percent say they are very likely or somewhat likely to use “SmartLabel” technology, and 44 percent say they would trust a brand more if it participated in the SmartLabel initiative.
The SmartLabel initiative is a food industry program that allows Chicago consumers to get additional details about products by scanning a barcode or doing an online search to reach a landing page with ingredient and attribute information. It marks one of many initiatives responding to consumer demand for transparency.
There is no question that product information about the food and snacks is important to consumers. Employee break rooms that have this information on or near the products will make life easier for today’s health conscious consumers.
“By providing information consumers want in one place, brands have the opportunity to create lasting trust and valued relationships with their customers,” Moorhead said.