Brand Trust is More Important Than Ever for Consumers
Today’s consumers have more options than ever when it comes to choosing among a huge mix of hundreds of brands and thousands of products and services. In such a fiercely competitive environment, brand trust has become an important competitive differentiator.
What makes a brand trust-worthy to consumers? In research by Edelman, the top reasons included:
- Brand delivers quality products or services
- It receives good ratings and reviews
- Brand charges a fair price for its products and services
- It has always treated me and others well
Brands need to do a better job at winning a consumer’s trust, with only 34% of consumers stating they trust most of the brands they use. These numbers were fairly consistent across both global respondents and demographics such as age, gender and income.
The good news is that when brands are able to gain a customer’s trust, the benefits are huge. Consumers will turn to the brand first when making a purchase decision, are more loyal to the brand, will advocate and also defend the brand’s reputation when necessary.
While important to many facets of good business outcomes, trust has very clear ties to loyalty, with 62% of consumers stating they are loyal to brands they can trust. According to a report by Brand Keys, a loyalty increase of 7% can boost lifetime profits per customer by as much as 85%, and a loyalty increase of 3% can correlate to a 10% cost reduction, depending on the sector.
Corporate responsibility, in both this study and other research, can be a deciding factor or a deal-breaker as far as brand trust is concerned. Consumers evaluated items including the brand’s fair and responsible behavior when buying materials, products or services (79% global, 78% US), that it puts customer interests ahead of its own profits (78% global, 77% US) and that it is working to reduce its environmental impact (71% global, 69% US).
- 53% of consumers believe that every brand has a responsibility to get involved in at least one social issue that does not directly impact the business
- Only 21% of consumers stated that they know from personal experience that the brands they use to keep the best interests of society in mind.
In research by RetailMeNot, 66% of consumers 18+ believe that brands should take a pubic stand on important social values and 61% would recommend a brand to their friends that aligns with their social values.
Corporate responsibility is especially important among younger generations. A recent Nielsen study reports that 85% of Millennials say it is extremely or very important that companies implement programs to improve the environment, and 75% say they definitely or probably would change their purchase habits to reduce their impact on the environment.
The RetailMeNot study echoed these findings. Social sentiment is even more true for millennials—74% of respondents ages 22 to 37 said more brands should take public stands on important social values.
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Read more here:: B2CMarketingInsider