Aussie consumers demand honesty and transparency before trusting businesses with purchases

TRUSTPILOT

Melbourne, Australia: July 27, 2022 – New research by global review platform Trustpilot reveals half of Australian consumers say they now consider a business’ stance on ethical issues (social, political and environmental) before they go to checkout, with 95% of respondents saying a business’ honesty and transparency is a deciding factor in their purchasing decisions.

The latest study, commissioned for Trustpilot’s Brands that take a stand report, interviewed 600 marketers across the UK, US, Australia, France, Germany, Italy, Netherlands and Sweden to compare and contrast findings against Trustpilot’s Brand integrity: the new frontier for marketing study, which surveyed 7,000 consumers from the same eight territories about their attitudes to taking an ethical stance and being honest in brand marketing campaigns from September 2021.

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Cameron Buckley, Regional Director – APAC at Trustpilot, states “Australian businesses have a great opportunity to start promoting and talking about their ethical stance, which not only meets consumer expectations but it also fulfils a wider strategic marketing stance. While we are seeing some great local examples of Australian brands adopting this approach, there is still a gap in what consumers expect from brands. The brands that are willing to invest in explaining what they do, or don’t stand for, will be the ones that will stand out and ultimately win over consumers” he said.

While taking a stance and supporting ethical issues has perceived commercial value, ensuring businesses are honest and transparent about a position on issues is what adds value to consumers. Brands which vocalise support for social, environmental and political issues must do so authentically in order to resonate with savvy consumers, otherwise – as social media and reviews play an increasingly influential role in spending decisions – they risk turning customers away.

When asked how respondents verify a business’ ethics and values, social media (46%), friends and family (45%), and reviews websites (43%) were the joint top three sources consumers said they go to – demonstrating the growing influence consumers have on other consumers’ spending habits, in comparison to more traditional sources such as TV and radio.

In response to this, three quarters of Australian marketers agree that demonstrating support for ethical issues is important – with 73% saying that doing so can win new customers – with lack of internal support and buy-in halting progress, the research suggests marketers may be failing to move the dial and effectively communicate that importance to business stakeholders. Worse yet, 39% of Australian marketers surveyed believe that not demonstrating a stance on ethical issues can be detrimental to a business by leading to poor reviews and ratings, with 36% admitting that failing to do so can reduce sales – suggesting that pressure for marketers to win over stakeholders is mounting.

Yet whilst marketers agree on the value for a business in taking a stance on ethical issues, the research did warn brands to ensure they practise what they preach – as a survey of consumers found that unfair treatment of staff and suppliers, greenwashing and poor customer service top buying turn offs.

Trustpilot works to connect businesses with consumers by gathering open, honest feedback, which helps consumers shop with confidence and businesses improve their service. The report comes as part of the company’s aim of becoming a universal symbol of trust.