Authenticity Gap Report 2021 (Press) The Netherlands
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Summary - About the Authenticity Gap - Authentic insights for brands and organisations in the Netherlands - Acting on societal issues - Methodology 2
What is the Authenticity Gap? FleishmanHillard, one of the advisory labels of Omnicom PR Group has been studying authenticity since 2012, when they first set out to explore the alignment between consumer expectations and experiences: what they like to call the ‘Authenticity Gap’. 1 80 Market Companies 10 1000 Industries Informed consumers FleishmanHillard|Authenticity Gap Report 4
Why authenticity matters For companies looking to make choices about where to focus their attention or shape brand campaigns, understanding authenticity “Knowing the right time to stand up, the has become a vital tool in the communications armory. But how to understand where tapping into their authentic voice will have the most right issue to champion and the impact with customers, partners and stakeholders? How to keep up with shifting expectations of brands? FleishmanHillard being one the Omnicom PR right words to say is MORE COMPLEX Group advisory labels marries decades of experience navigating these questions with leading brands with insights and data from Authenticity Gap to find the right path. THAN EVER” 5 FleishmanHillard|Authenticity Gap Report
What does the authenticity gap do? Omnicom PR Group’s work at the intersection of brand and reputation helps organizations create more authentic engagement with audiences. It allows companies to judge how authentic they are, where they fall short and how they compare to their sector peers. Expectations AUTHENTIC ENGAGEMENT Brand Reputation Managing alignment what you say and between brand and what others say about you how you behave reputation to achieve based on shared perceptions successful business results Experience FleishmanHillard|Authenticity Gap Report 6
The 9 drivers The Authenticity Gap studies measure the gap between stakeholder expectations and their actual experience of a company, using a framework of Nine Drivers that shape perceptions and beliefs about an organization. FleishmanHillard|Authenticity Gap Report 7
Driver descriptors Management Behaviors Customer Benefits Society Outcomes More committed Having more Communicating Offering products Taking better care Innovating new Taking better care Contributing to Taking better care to being a corporate consistent and stable more frequently, and services that of customers and better products of employees society in a way that of the environment role model that financial and consistently, are better value and services has a positive impact acts ethically and operational and credibly on my community’s responsibly performance well-being Communication is Invest in development Positively contributing Leads by Effective Understand current Care about physical Positively impacts on aligned to the Quality products of products and to the immediate example governance customer needs and mental well-being the local environment business services community Proactive in being Challenge and evolve Clear values Clearly articulated Care about professional representative of a Proactively leads on Operates effectively Value for money Put customers first product and service and purpose strategy and vision development diverse, equal, and sustainability issues offers inclusive society Stable financial Understand issues Consistently strive Understand the issues Positive influence on Environmentally Open and transparent Authentic leadership Trusted products performance customers care about to improve that matter to employees society responsible Creates value based Shows that it takes Innovates to meet the Does not sacrifice on understanding the Meets the needs of a Has a workforce that action to create a needs of a diverse, diversity, equality, and needs of diversity, diverse, equal, and reflects a diverse, equal, diverse, equal, and equal, and inclusive inclusion for profits equality, and inclusion inclusive society and inclusive society inclusive society society for profits FleishmanHillard|Authenticity Gap Report 8
Authentic insights for brands and organisations in the Netherlands How 80 brands and 10 industries in the Netherlands perform against the nine drivers of authenticity
What shapes brand love and drives 15 % 46 % reputation today? If you are predominately talking about your products and services, you are only telling half the story consumers want to hear. Only half (46%) of consumer perceptions and beliefs about a company are shaped by attributes related to a company’s customer benefits (products and services). The other half are shaped by a company’s impact on society (39%) and information regarding how a company’s management behaves (15%). 39 % FleishmanHillard|Authenticity Gap Report 10
Drivers of Authenticity 2018 2021 Customer 38% NL benefits Over time, we have seen a marked 46% NL shift in importance towards the three (51% INT) drivers that make up ‘society (47% INT) outcomes.’ The shift in importance over time from management behaviors to society outcomes seems to mirror both outcomes 35% NL Society heightened societal concern and the increased expectation of the companies and brands we value. (25% INT) 39% NL Has the role of the ‘celebrity CEO’ now been replaced by management (32% INT) teams that must focus on, and Management advocate for, the biggest issues of our 27% NL behaviors time – from climate change to cyber security and data privacy? (24% INT) 15% NL (24% INT) FleishmanHillard|Authenticity Gap Report 11
What drivers are most 15 % 46 % important today? Looking at the drivers we see that in 2018 drivers like Care of the environment, Employee Care and Innovation formed the top 3 of most important drivers. That has changed now. In 2021 drivers Care of the environment but also, Customer Care and Better Value followed by Innovation (on place 4) are the most important drivers influencing reputation. But the full top 3 drivers of reputation show a negative gap in 2021. The expectations are not met. Companies tend to overperform on drivers of lesser importance but do underperform on drivers that count the most. Be aware that the importance or ranking of drivers differ per industry. 39 % FleishmanHillard|Authenticity Gap Report 12
The reputational power of acting on issues 65% of Dutch informed consumers believe that for a company to be more credible than its competitors it must talk about its behaviours and impact on society and the environment, not just the customer benefits it offers. In fact, across all industries, brands are falling short on expectations on three of the nine drivers, most significantly on delivering better value, customer care and caring of the environment. Almost all industries doing well on the More than half of industries are drivers consistent performance & 9 out of ten industries are failing to performing well on expectations exceeding expectations meet expectations on caring for the of employee care – with airline environment brands but also medical devices & diagnostics the furthest ahead 8 out 10 industries studied are falling Delivering innovative solutions is quite short of expectations when it comes a top driver for a majority of to giving consumers better value industries. 6 out of 10 industries do deliver on this driver FleishmanHillard|Authenticity Gap Report 13
SNAPSHOT: Airline Industry Airlines need to commit to and act with care – both for customers and the planet ─ In the Netherlands, informed consumers overwhelmingly demand that airlines demonstrate the steps and actions they are taking to reduce their carbon impact and protect the environment, but to date they are falling well short of these expectations (-10.5% gap, with all airlines having a significant negative gap on this driver). Indeed, as a ‘new normal’ for travel emerges, the question for the industry will be how to successfully combine sustainable flying with financial recovery. ─ In this context, as the world begins to reopen, albeit slowly, for air travel, a focus on customer care is clearly paramount for long-term viability. And yet the industry has a significant performance gap (-5.7%) on caring for customers, underpinning the work that remains to reinvigorate the air- travel experience in a post-pandemic (or endemic) world. ─ One area of opportunity for the industry could be in better showing its Airlines NL commitments to doing the right thing (ranked 7th), and how the ethics Air France that guide carriers are inextricably linked to sustainability efforts. British Airways easyJet ─ Finally, showing strong financial and operational performance is, relative Transavia to the other drivers, unimportant in shaping perceptions underscoring the Lufthansa Group KLM Group demand for airlines not to sacrifice sustainability commitments and Icelandair actions in the name of making profits. Virgin Atlantic FleishmanHillard|Authenticity Gap Report 14
Acting on societal issues
What do consumers TOP ISSUES THAT ARE MOST IMPORTA NT TO INFORMED CONSUMERS (% of respondents who said “extremely important”) ISSUES INFORMED CON SUMERS EXPECT COMPANIES TO ACT ON (% of respondents who expect companies to take a stand on) expect businesses to Freedom of speech Data security 82% 46% Data privacy Data privacy 81% 45% stand for? Data security Minimum wage 81% 40% Public health policy and Protecting the environment/ cli - implementation 80% mate change 39% Access to affordable, Income and wage gaps 78% 36% quality healthcare Violence against women Public health policy 76% 35% Access to affordable, Freedom of speech quality education 74% 34% It can be hard for companies to prioritize Protecting the environ - ment/ climate change 73% Violence against women 31% the many issues that face them. Minimum wage 73% Disability discrimination, accessibility, and equal opportunities 31% Crime Racism 72% 30% Our research shows the difference between Poverty Poverty 71% 29% informed consumers’ ranking of the issues that are Disability discrimination, accessibility, and equal opportunities 70% Access to affordable, quality healthcare 28% most important to them, and those on which they Income and wage gaps 68% Unemployment 28% expect companies and brands to act. Unemployment 66% Gender discrimination 26% and equality Racism / racial justice Crime Interestingly, data security and privacy tops both 64% 26% lists, perhaps reflecting people being more fearful Ethnic discrimination and equality 64% Ethnic discrimination and equality 26% in uncertain times, combined with a growing Advocating for diversity, equity, and inclusion in society 62% Advocating for diversity, equity and inclusion in society 24% unease about how data is managed, shared The spread of Fake News 60% The spread of Fake News 23% and protected. It exposes the tension we all feel Acceptance of diversity - ethnic customs, 58% Technology and Artificial Intelligence repla - 22% between liking the product but worrying about traditions, and religious beliefs cing jobs Gender discrimination and equality Acceptance of diversity - ethnic customs, the process. 58% traditions, and religious beliefs 22% LGBTQ rights LGBTQ rights 54% 22% Impact of outsourcing Access to affordable, jobs to other countries 51% quality education 22% Immigration Impact of outsourcing jobs to other 49% countries 15% Technology and Artificial Intelligence Immigration replacing jobs 46% 8% FleishmanHillard|Authenticity Gap Report 16
The new CEO: a mobilizer of change 78 % say CEOs must speak up on issues that ‘may not have a significant impact on the business but have a significant impact on society’ Today’s consumers have a complex view about when and why they believe CEOs should take a public stance on issues that some may consider 82 polarizing or beyond their traditional remit. say CEOs must demonstrate % committing to DE&I both internally For instance, more than three quarters (78%) of and externally informed consumers say it is (very) important CEOs should speak up on issues that ‘may not have a significant impact on the business but have a significant impact on society’ – with particular focus on diversity and diverse representation within a 86 workforce and its leadership. of consumers believe CEOs must % have an active voice on Similarly, 86% say CEOs must have a voice on the supporting and influencing environmental policy change environmental policy debate. 84% say business leaders should have role shaping public health policy. 84 % say CEOs should play a role influencing public health policy FleishmanHillard|Authenticity Gap Report 17
The new CEO: a mobilizer of change 75 % say CEOs must lead by example by their behavior. There are additional signals that business leaders should be a role model internally and externally as well. But looking at the (relatively) reduced 73 importance of management behavior in favor of say CEOs must a role model both society outcomes CEO’s should be focusing on being % internally as externally. an advocate for true change. 87 % of consumers believe CEOs should have impact on the company’s employees. 85 % say CEOs should reflect the collective views and actions of the organizations they lead. FleishmanHillard|Authenticity Gap Report 18
Societal impact: companies are expected to be part of the solution, not just the conversation 40 % The reality of systemic inequities in societies all 36 over the world has never been in sharper focus Four out of ten expect companies to take a public Consumers today are placing greater importance on brands stance on minimum wage. % demonstrating cultural awareness that reflects the diversity of their customers and, in a context dominated by COVID-19, playing an active role in society’s biggest employment and employee rights issues. More than a third of consumers expect companies to take a public stance on income and wage gaps. FleishmanHillard|Authenticity Gap Report 19
Societal impact: companies are expected to be part of the solution, not just the conversation 31 % The reality of systemic inequities in societies all 26 over the world has never been in sharper focus About a third of consumers expect companies to take a public stance on disability % There is an ongoing debate playing across multiple channels discrimination, accessibility and equal opportunities. and mediums on systemic racism and the impact of structural inequality on everything from economic prosperity and employment to healthcare access. The time for empty promises is over. Consumers want companies to provide a work environment that is more diverse, inclusive and equal, More than a quarter expect and to listen to the needs of a diverse customer base. This is an companies to take a public international trend which we see in the Netherlands as bit as well stance on ethnic discrimination but less dominant. and inequality. FleishmanHillard|Authenticity Gap Report 20
Authentic action on climate Brands can expect more scrutiny than ever when it comes to the environment – with the changes they drive making all the difference. 65% of consumers say it important for a company in order to be more credible than competitors, that it must talk about its behavior and impact on society and the environment, not just the customer benefits it offers. The top-3 actions companies must adopt to be authentic on climate are… 1. Have carbon offsetting practices in place 2. Commit to carbon or environmental standards for clients or partners 3. Switch to a renewable energy supplier for all office, plant, or warehouse locations FleishmanHillard|Authenticity Gap Report 21
Authentic action on DE&I There has never been a more important time for brands to take an honest look at how their actions either remove or reinforce barriers to equity, particularly standing up and championing minority voices and traditionally marginalized communities. Informed consumers expect companies to be credible and authentic, bold and true – acting and leading with empathy and taking actionable steps to advance diversity, equity and inclusion. The top-3 actions companies must adopt to be authentic on DE&I are… 1. Provide training and further education for all staff on unconscious biases and best in practice DE&I techniques 65% 59% 65% 2. Have a clear strategy regarding the companies aims and goals regarding diversity, equity and inclusion 3. Have confidential feedback and compliant systems Of consumers say that to The majority of consumers About two-thirds of be more credible say companies and brands consumers say companies companies need to must demonstrate they are must provide a work commit to advancing culturally aware and environment that is more diversity, equity and listening to the needs of diverse, inclusive and inclusion in the workplace. their diverse customer equal. base. FleishmanHillard|Authenticity Gap Report 22
Authentic Action What authentic action looks like when it comes to data privacy… 86 % on data privacy As digital natives make up more of our Companies must demonstrate global workforce, consumers report high 84 to me they have meaningful data levels of concerns on issues of data and consumer protection practices % privacy and security that go beyond mandated regulations. Privacy concerns have made me less likely to use products or services from companies that use 65 % data for their own benefit. I am willing to let companies collect my personal information to provide me with greater convenience and personalization. FleishmanHillard|Authenticity Gap Report 23
Methodology
Methodology The 2021 Authenticity Gap research was conducted by TRUE Global Intelligence, the in-house research practice Chemical Companies Agribusiness of FleishmanHillard and one of the advisory labels of Omnicom PR Group NL. Insurance Pharmaceuticals A 25-minute online survey among ‘informed consumers’ was fielded in the Dutch market in the table in October Biotechnology Medical Devices & Diagnostics 2021. Airlines Smart Home Products The ‘informed consumer’ is defined as individuals who are interested or involved in one of the 10 industries that were studied in the 2021 Authenticity Gap research. Food & Beverage Consumer Electronic Devices Interest and involvement was classified as being any one of the following: being a customer, an investor, working in an industry, knowing people in an industry, having subject matter interest in an industry, or having studied aspects of an industry while in school. Nationally representative sample targets were set on age and gender in each market. FleishmanHillard|Authenticity Gap Report 25
WANT TO KNOW MORE? LET’S CONNECT Tel + 31 20 406 5930 www.omnicomprgroup.nl Powered by Ketchum | Porter Novelli |Fleishman Hillard All rights of intellectual property will remain with Omnicom PR Group, unless stipulated otherwise.
You can also read