Businesses Face 'Authenticity Gap' as UK Consumer Expectations Go Unmet

Study Reveals Gap Between Expectations and Experience Among 160 Leading Brands and Businesses

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Nov 19, 2013, 08:00 ET

LONDON, Nov. 19, 2013 /PRNewswire/ -- New research, conducted by global communications consultancy FleishmanHillard and partner Lepere Analytics, reveals a significant 'authenticity gap' between UK consumers' expectations of leading brands and their experiences with them. This gap, observed most acutely in the area of innovation, undermines customer confidence and business performance.

The Authenticity Gap research identified nine fundamental drivers of reputation that are consistent across industries and geographies. The research polled expert UK stakeholders on their expectations and experiences of 160 businesses against these. Equivalent studies were carried out in the U.S., Germany and China.

Nine Fundamental Drivers of Reputation:
1. Doing Right	6. Innovation
2. Consistent Performance	7. Employee Care
3. Credible Communications	8. Community Impact
4. Better Value	9. Care of the Environment
5. Customer Care

Of these nine drivers, innovation was cited by UK stakeholders as the most critical driver of a company's reputation in 75% of the industries analysed – 60% higher than in the three other markets – yet experience fell short of expectation in 65% of cases.

Despite the intensely competitive focus on specs and constant cycle of upgrades, the largest gap between innovation expectation and experience in the UK exists in the smartphones and the tablets and e-readers sectors, suggesting increasingly bold claims about transformative technology are ringing hollow with consumers and undermining authentic engagement. The authenticity gap for smartphones, for example, was significantly more pronounced in the UK (-24.5%) than in the U.S. (-11.1%), Germany (-16.1%) or China (-3.5%).

In only five industry sectors did the UK consumer experience of innovation actually outperform expectations: 1) energy (highest), 2) hotels (second), 3) insurance, 4) social networks and 5) travel operators.

"Businesses and brands can say what they like about themselves, but there is no hiding place if the experience is out of step with the promise," said Richard Kanareck, managing director, FleishmanHillard London. "In a world where customers are able to share their actual experiences with greater speed, visibility and impact than ever before, measuring and managing reputation – what those customers are saying about you, in relation to what you're saying about yourself – becomes a business imperative. A gap between expectation and experience is, at best, an opportunity to enhance reputation and confidence and, at worst, can bring a business to its knees."

The Authenticity Gap research also reveals that industry leaders meet or exceed competitors across all nine drivers. They also exceed – by a wide margin – the expectation that stakeholders hold for the one or two differentiating drivers in that category.

"The more closely a company can align what it says about itself with what others are saying about it, across the critical reputational areas, the more lasting confidence and momentum it can build," said Kanareck. "Ultimately, reputation isn't just a marketing or communications challenge – it reaches into the heart of how organisations are structured and operate."

About the Authenticity Methodology

The Authenticity Gap research is a proprietary methodology for assessing authentic business engagement between organisations and their stakeholders. It has been developed by global communications consultancy FleishmanHillard in partnership with UK-based research firm Lepere Analytics. Field research is carried out by leading UK researchers Ipsos-MORI.

In the UK study, 160 companies from 20 industry sectors were examined using a patent-pending methodology developed by Lepere for polling Expert Stakeholders. Expert Stakeholders are customers, commentators, employees, partners or opinion-formers who have a higher level of interest, knowledge and engagement in selective categories or topics and so have greater influence with their peers. Data from these experts is forward-looking and more actionable.

More detailed breakdowns of the UK Authenticity Research are available for the following sectors: banking and investing; biotechnology; devices and diagnostics; energy; enterprise software; gaming; home improvement; hotels; investment firms; insurance; online shopping; packaged foods; pharmaceuticals; semiconductors; smartphones; social networks; spirits; supermarkets; tablets and e-readers; travel operators.

Further information on FleishmanHillard's Authenticity Gap research and Authentic Engagement Approach can be found at www.centreonreputation.com

About FleishmanHillard

FleishmanHillard is the world's most complete global communications firm, specializing in public relations, public affairs, marketing, paid media, and transmedia and social content. FleishmanHillard delivers on The Power of True, reflecting the firm's high values, and unique ability to guide clients through a world demanding unprecedented authenticity and transparency. FleishmanHillard was named "Standout Agency" on Advertising Age's 2013 A-List; NAFE's "Top 50 Companies for Executive Women" for 2010-2013; Advertising Age's 2012 "Best Places to Work"; and The Holmes Report's 2012 Global "Public Affairs Agency of the Year." The firm's award-winning work is widely heralded, including at the Cannes International Festival of Creativity. FleishmanHillard is part of Diversified Agency Services, a division of Omnicom Group Inc., and has more than 80 offices in 29 countries, plus affiliates in 42 countries. Visit us at www.fleishmanhillard.com.

About Diversified Agency Services

Diversified Agency Services (DAS), a division of Omnicom Group Inc. (NYSE:OMC) (www.omnicomgroup.com), manages Omnicom's holdings in a variety of marketing communications disciplines. DAS includes over 200 companies, which operate through a combination of networks and regional organizations, serving international and local clients through more than 700 offices in 71 countries.

About Lepere Analytics

Lepere Analytics is an independent research firm whose data forecasts company reputation and revenue. The methodology is US Patent Pending, is independently validated and is used by Wall Street investment analysts and portfolio managers. Lepere Analytics was founded in 2007. It is a privately held company, registered in the UK with partners based in London and New York. Polling is conducted for Lepere Analytics by Ipsos – the world's third largest research company with operations in 84 countries. Online panels are in compliance with International quality standards ESOMAR and AIMRI and certified on key ISO standards.

SOURCE FleishmanHillard