Brands that admit mistakes more likely to build customer trust

Transparency and humility strengthen consumer loyalty in a values-driven market.

As customers demand more transparency and ethical conduct from brands, businesses are learning the value of honesty in maintaining trust and loyalty, said Dipashree Das, Senior Marketing Leader for Entertainment & Consumer Tech.

Das explained that customers, particularly Gen Z, are increasingly vocal about ethical and transparent practices. “Today, everyone has a social handle, so there’s really no excuse for…hiding [policies] in some terms and conditions that you know no one’s going to read,” she said.

For brands, communicating openly can build credibility and foster customer relationships. “You could…make a fun read or a fun post out of it and communicate to your customers,” Das suggested, noting that a transparent approach in communication helps create a lasting connection with consumers.

Beyond openness in policies, Das emphasised that brands should seek direct feedback from their communities on how to improve. She said, “Some really big brands…actually ask their customers or their communities…for reviews and recommendations on how they can be better.”

Transparency also extends to showing customers behind-the-scenes operations, which can add authenticity. As an example, Das pointed to Lush Cosmetics, which frequently shares insights into its production processes. “Lush Cosmetics…does really well to take you behind the scenes to their factories,” Das explained. Through such visibility, customers can see a brand’s commitment to ethical practices firsthand, helping demystify operations and reinforcing trust.

“When you have failed, I think it’s important to own up,” she said, reflecting on her time at Netflix, “When we screw up, it’s always better to own up and say sorry because consumers and fans and customers love a brand that has humility and is able to accept what they have done wrong.” Acknowledging errors not only humanises brands but also strengthens customer loyalty by showcasing authenticity.