Authenticity Gap Report 2021 (Press) The Netherlands

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Authenticity Gap Report 2021 (Press) The Netherlands
Authenticity Gap
Report 2021 (Press)
The Netherlands

January 2022
Authenticity Gap Report 2021 (Press) The Netherlands
Summary

    -   About the Authenticity Gap

    -   Authentic insights for brands and organisations in

        the Netherlands

    -   Acting on societal issues

    -   Methodology

                                                             2
Authenticity Gap Report 2021 (Press) The Netherlands
About the Authenticity Gap
Authenticity Gap Report 2021 (Press) The Netherlands
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
Authenticity Gap Report 2021 (Press) The Netherlands
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
Authenticity Gap Report 2021 (Press) The Netherlands
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
Authenticity Gap Report 2021 (Press) The Netherlands
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
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