By Denise Dahl, president of Epiphany Planning & Development and member of NAWBO Northeast Ohio
“Authenticity” isn’t just a nice-to-have fluffy, feel-good word; it’s a game-changer that builds trust, drives loyalty and ultimately fuels sustainable profit.
In a business landscape where client and consumer trust are king, authenticity has emerged not just as a buzzword, but as a powerful driver of profitability, reshaping how brands and services connect with their audiences. Trust, transparency and vulnerability are born out of authentic relationships. When we embrace these values, we create a space where true connection and understanding can flourish and with that, profit as well.
That all sounds great, but the reality is words like “authenticity” and “vulnerability” while being actual components of trust are often deemed as purely buzz words with very little value. And depending on when you started your career and/or business, there have been times when they were framed as not business relevant, and not traits that were seen as strengths. So, let’s look at a few of the studies supporting the validity of truly leaning into who you are and maximizing profit while doing so.
Stackla, now part of Nosto, is a marketing cloud-based platform that did a study finding that 90 percent of consumers prioritize authenticity when choosing which brands to support. Brands perceived as authentic equate to more loyal customers, leading to higher repeat purchase rates, and loyal customers often spend up to 67 percent more than new ones. Deloitte also found through their research that 83 percent of millennials say it’s important for companies to align with their values, and they are willing to pay more for brands that are transparent and socially responsible. And a Harvard Business Review report showed that consumers are willing to pay up to 10 to 20 percent more for products that feel authentic.
Further supporting profit through authenticity and all that it brings is when employees believe that their workplace culture is an authentic one in which they are more likely to stay. Employee retention increases anywhere from 27 to 40 percent depending on what study or survey you look at. When employees feel they are working within an environment that has all the pillars leading to an authentic workplace, including trust, transparency and vulnerability, they feel they are on a pathway to increase their own, and company, contributions in more meaningful ways, ranging from creativity to productivity. That level of belief and buy in leads to increased profits.
So how do you bring more authenticity into your business? First, whether it’s just you, as an entrepreneur, or if you have employees, make sure core values are established and communicated as well as practiced on a regular basis. Second, be open, if you have employees about what’s going on in good times and in bad times. People are smart, and they know when something isn’t quite right. You don’t have to look too far (think 2020) to see all kinds of mistakes when it comes to loss of employee engagement and loyalty when employees were experiencing limited communication from management. Third, engage customers and employees on a personal level to create an environment of connections over that of transactions. Prioritizing relationships over profit still results in increased profits due to the increase in engagement and rapport, along with the belief in reliability.
The simplified bottom line to building profitability through practicing trust, vulnerability, transparency and authenticity is that with them, work life for all involved becomes easier. Without them, workplace culture as well as customer relationships begin to erode. Results that come from operating authentically equate to the foundational components of any successful business, including positive relationships, collaboration, customer loyalty and organizational resilience. It is the difference between growth or decline. Sustainable business growth at the end of the day is not just about increasing numbers. It’s about building value for all involved, whether it’s suppliers, customers, employees or yourself. It’s creating value that resonates, in an environment people want to be part of.
About the Author…
Denise Dahl has over 25 years of experience in economic and workforce development and has helped thousands of people start a business, grow a business and/or better their workplace environments. Denise’s business, Epiphany Planning & Development is certified as an EDGE and WBE business in Ohio as well as through WBENC. You can contact her at [email protected].