In an era when negative trends such as fake news are dominating headlines around the world, consumers and businesses are increasingly looking for products and services that encapsulate their own personal values.
As a result, the concept of authenticity is becoming increasingly perceived as giving businesses a competitive advantage in a number of key markets, especially at a time when personal and working lives are increasingly influenced by the social world.
So what is authenticity?
Some have noted that being authentic is essentially staying true to what you are and what you do and if your customers see that if you truly believe in what you are doing, then they should as well.
This is not surprising as people now need to feel there is something genuine in their lives and that they can get a more honest and transparent experience for their money.
More relevantly, if socially connected consumers feel they are not being offered the genuine article, then they will increasingly make their feelings known on social media and through their networks.
In fact, the growth in websites such as TripAdvisor - which not only provides information but enables customers to feedback on their experiences - means that businesses that are not authentic in what they deliver are increasingly being found out.
According to various studies, authenticity can provide a number of advantages to businesses including differentiating it from the competition, giving substance to services and products, and building a unique and relevant image in the marketplace.
As people then relate to what the business does, it also enables you to show that your offer is of benefit to them and is of high quality. Most importantly, your business is seen as being trustworthy which is critical in an increasingly diverse and demanding marketplace.
However, authenticity is not just about the business itself anymore but about the leaders of this businesses and how authentic they are in what they do.
According to a recent article in Forbes Magazine, most studies believe that authentic leaders are self-aware and genuine individuals who are aware of their strengths, their limitations, and their emotions.
More importantly, they do not act one way in private and another in public so there is a misconception about who the real person is and what they stand for. Indeed, people can quickly sense who is authentic (and who is not) and this can quickly build or erode trust in the business and what is stands for.
This has been seen as particular problem for new businesses where some founders adopt a “fake it ‘til you make it’ approach to their business i.e. they oversell their own capabilities and that of their new venture to ensure their business gets off the ground.
It could be argued such an approach is entirely acceptable when trying to establish themselves in the marketplace although if continued beyond the start-up stage, it can lead to problems and a lack of confidence by investors, customers and other stakeholders if the initial promises do not materialise because they have been exaggerated.
Simply put, authenticity is not only about talking the talk, but walking the walk and the simplest way to show that you are an authentic business is to be able to honestly demonstrate that you are able to do the very thing you are selling to your potential customers.
For example, if you’re a social media agency and your whole business is based on helping customers to get the best impact online, you need to ensure that your own presence is as good (if not better) than what you offer your customers.
If you’re a training business, then being able to demonstrate that you practice what you are preaching in terms of the behaviours you are trying to engender in your clients is critical for credibility going forward.
Therefore, any perceived falsehood or phoniness in a business (or by the leader of that business) can undermine the confidence that people have in its products and services and where this is in danger of happening, radical action must be taken to alleviate any immediate impact and address these issues in the future.
On the other hand, if you can truly adopt an authentic approach to what you do then it can be the key to success if approached honestly and openly and can help your business to make a real and relevant impact in the marketplace.