In business, brand trust is one of the most important things to have. Brand trust is the level of confidence consumers have in a company’s name and its products or services.
When a consumer has trust in a brand, it makes them more likely to buy its products or services, and it can make them loyal customers. According to a report by Oberlo, About 50% of consumers trust the brands that they know and recognize. With this, we will explore the importance of brand trust in a company and how to build it in this article.
What Is Brand Trust
A brand’s trustworthiness is an important factor in consumer behavior. There are a number of ways to measure trust, but one of the most common methods is to ask consumers how likely they are to buy a product or service again based on their past experience with the brand.
One study found that when a brand’s reputation is strong, it can lead to increased patronage even when prices are unchanged. In addition, high levels of trust also lead to more customer loyalty and word-of-mouth marketing. Therefore, it’s important for brands to maintain a strong reputation if they want to keep customers coming back.
Why Do We Trust Brands?
When we think of a brand, what comes to mind? For many, it’s the image of Coca-Cola or Nike. These brands have built up a level of trust in society by creating a positive reputation for themselves. Why do we trust these brands so much?
There are a few factors that contribute to this trust:
- These brands have always been committed to quality and consistency. They never change their recipes or launch new products without testing them first. This commitment has led to loyal customers who know they can rely on the brand for quality products.
- Another reason consumers trust these brands is that they are familiar with them. Coca-Cola and Nike have been around for decades, which means that most people have had some connection to them at some point. This familiarity breeds trust because customers know the brand is reliable and won’t try to scam them.
How Important is Brand Trust?
Why is brand trust important? Simple, it is mainly because it establishes a level of confidence between the brand and its customers. This confidence can lead to increased sales and loyalty, which in turn creates a stronger brand.
Additionally, trust can also be used as a marketing tool to attract new customers. Here’s how it works:
Customers believe that businesses should take a stand and will buy based on principles
Customers are willing to buy from businesses that stand for principles, regardless of whether those principles align with the customer’s personal beliefs. According to a study by Accenture, 75% of customers said they would switch to a business that took a moral stand, even if it meant the business lost money.
In addition, 66% of customers said they would buy from a company that shared their values, and 86% said they would trust a company more if it held strong ethical values. These findings suggest that businesses can gain customer trust by standing up for important causes and values.
Customers leave when their experience doesn’t meet brand promises
Customers with high levels of trust are more likely to renew their contracts and recommend the brand to others. This means that the quality of the product or service must be good, and the company must be trustworthy.
Customers also need to believe that the company will deliver on its promises. If a customer feels that the company is not dependable, they will likely distrust it and stop using its services.
Reputation can make or break a decision to purchase and it likely can’t be bought
Consumers today are more conscious of the impact their decisions have on their personal reputations, and they will not hesitate to punish brands that do not live up to their expectations. In fact, a recent study found that a person’s decision to buy a product is significantly influenced by how much trust they have in the brand.
When considering a purchase, consumers look at many factors, but trust always plays a major role. If they don’t trust the company or its products, they’re less likely to make the purchase. Interestingly enough, this holds true even if the product is cheaper or of lower quality.
Brands must work hard to earn consumer trust through transparency and consistency in their messaging. If a brand makes an error or engages in unethical behavior, it can damage its reputation and lead to lost sales.
The Benefits Of Trusted Brands
The importance of brand trust cannot be overstated. Below are a few benefits for trusted brands:
Loyalty
When customers trust a brand, they are more likely to continue purchasing its products or services, even in difficult times. In fact, research shows that 70% of loyal customers are more likely to recommend a brand to friends and family, and are even more likely to buy branded products again in the future.
Engagement
Engagement is s a key indicator of consumer satisfaction, and it drives customer loyalty. It helps build trust between a brand and its customers, which in turn helps create stronger relationships and drive more business.
Advocacy
Many people trust brands because they know the company will advocate for their best interests. When a consumer trusts a brand, it creates a positive relationship between them and the business. This trust creates momentum and encourages repeat business. In addition, when consumers feel like their concerns are being heard and acted on by the company, it builds customer loyalty.
What Are the Main Pillars of Brand Trust?
Trust is an important factor in consumer behavior and it’s a key component of brand loyalty.
There are three main pillars of trust:
Perceived ability
Consumers trust brands that they perceive as being able to do what they say they can do. A study by GWI, for example, found that 60% of consumers would switch to a brand if it pledged to use more sustainable materials, even if the price was higher.
Another research found that 73% of consumers said their willingness to buy a product or service was influenced by whether the company seemed credible and reliable.
This level of trust is especially valuable for businesses in high-risk industries, like tech and food, where customers are more likely to be skeptical about new products or services. Credible and reliable brands can overcome customer skepticism and build a more loyal base of customers who are willing to evangelize their product or service.
Perceived Benevolence
There are many factors that contribute to a company’s reputation, but perceived benevolence is one of the most important. Customers trust companies that care about them and are willing to go out of their way to help, no matter what the situation.
This goodwill can be traced back to a company’s culture and values, which must be consistent throughout the organization.
Perceived integrity
Perceived integrity is the overall impression that people have of a company or individual. It includes both the actual performance and attitude of a company or individual, as well as the perception that others have about it.
There are several factors that contribute to a company’s perceived integrity, including how well it follows through on its commitments, how open it is with its customers, and how responsive it is to customer feedback.
How to Build Brand Trust?
A lack of trust can have a detrimental impact on a company’s bottom line, as customers may hesitate to buy products or services from a company with a low reputation. To increase brand trust, businesses must begin by establishing credibility and building relationships with their customers.
Here are some ways to achieve these goals:
Create clear and measurable goals
Building trust begins with setting measurable goals, communicating openly and honestly, and building a good relationship with customers. By creating clear, achievable, relevant, and time-bound goals, you can build trust and ensure your brand’s success.
Be authentic and present
When it comes to authenticity, companies must be truthful and forthright with their customers. This means never lying or hiding information from them, and always being open about how the product or service works.
Moreover, consumers today are savvier than ever with regard to the brand they are buying from. In order to maintain a high level of trust, brands must always be present in their consumers’ lives. By being constantly available and engaging with their consumers, brands can create a strong relationship that will keep them loyal and satisfied.
Maintain brand consistency
Maintaining brand consistency helps increase trust in a customer’s brand perception.
This consistency can be achieved through effective communication, product quality, and customer service. By maintaining these standards, businesses can improve their reputation and gain loyalty from customers.
Choose a brand trust lead
Choosing the right lead can be a difficult process, but it is important for brands to do so in order to increase their overall trustworthiness. There are several factors that must be considered when selecting a brand trust lead: their credibility, their experience, their expertise, and their relevance. It is also important to ensure that the lead is able to meet your specific needs and requirements.
Focus on building relationships rather than making the conversion
In order to build trust, companies must focus on building relationships with their customers, not just converting them into buyers.
One way to build trust is through transparency. Customers want to know what the company is doing behind the scenes and whether or not their information is safe. Companies should also be responsive and take action when customers have issues or concerns. Finally, companies should treat customers as valuable members of their community and invest in their long-term success.
Aim for a consistently mind-blowing customer experience
There is no doubt that a consistently mind-blowing customer experience can increase brand trust. A study by Superoffice found that customer experience is one of the most important factors in creating customer loyalty and repeat business. In fact, it was found to be more important than price, product quality, or delivery time.
The reason for this is simple – if customers feel like they are being treated well, they are more likely to recommend your brand to their friends and family. This increased popularity can lead to increased sales and revenue, which in turn helps to support the continued development of your brand.
Build social proof
Social proof is a powerful tool that can help build trust in a brand. One way social proof can help is by demonstrating the popularity of a product or service. If other people are using and enjoying a product, it can increase confidence in consumers who may be on the fence about whether to invest in it.
Additionally, if a large number of people have endorsed a product or service, it can provide assurance to potential customers that it is worth investing in.
Welcome transparency
Customers want to know what their company is doing, how it’s doing, and why. And they want this information presented in an open and honest way.
So how can companies increase trust through transparency? Start by making sure all communications are clear and concise. Communicate the facts, not just the rhetoric. Be responsive to feedback whether it’s customer questions or concerns about your brand’s performance. And be consistent in your approach don’t change your policies or practices based on what might work in one situation but not another.
Get customer input
To increase brand trust, companies need to get customer input early and often. Doing so allows customers to feel like they’re a part of the decision-making process and helps them feel like their opinions matter.
Providing transparency about how decisions are made can also build trust. For example, telling customers how long it took team members to make a decision can show that their input was considered seriously.
Make sure your brand acts responsibly
In order to build trust, a brand must act responsibly in all its interactions with customers and stakeholders.
Here are some ways to ensure your brand is acting responsibly:
- Make sure all communications are transparent and accurate: Be clear and honest with people about what you’re doing, why you’re doing it, and how it will affect them. If something goes wrong, be open about what happened and how you plan to fix it.
- Be responsive to feedback: Take customer feedback seriously, even if you think it’s contradictory or inconvenient. Respond quickly and accurately, both in person and online.
Spread the word
If you want your brand to be perceived as trustworthy, it is important to communicate that message in a way that resonates with your target audience. There are several ways of building trusts online such as through social media and direct outreach to customers.
The most effective approach depends on the brand’s goals and what kinds of trust issues it wants to address.
Breaches of Brand Trust and Common Mistakes
A brand’s reputation is its most valuable asset, and it must be treated with the utmost importance. There are a number of ways to lose brand trust, and these breaches can have a lasting impact on a business’s bottom line.
Here are a few common mistakes businesses make that damage their brand trust:
Failing to read the political climate
When brands fail to pay attention to how politics is impacting their customers, it creates a breach of trust. Customers may begin to associate the brand with negative political events and stop buying its products or services. This can have a negative impact on both company revenue and customer loyalty.
It is important for companies to stay up-to-date on political events and how they are affecting their customers. By doing this, they can ensure that they maintain their brand trust and continue to serve as an important source of information and advice for their customers.
Regulatory violations
Regulatory violations can undermine a company’s brand trust and have a significant impact on its ability to compete in the marketplace. Studies have shown that when consumers perceive a company to be careless or unprofessional in their dealings with government regulators, it has a negative impact on their overall opinion of the brand.
This may lead consumers to avoid purchasing products or services from that company, which can result in decreased revenue and loss of market share.
By damaging a brand’s reputation, regulatory violations can quickly put a business at a disadvantage. This is because customers are more likely to switch brands if they believe that one company cannot be trusted to follow the rules.
In some cases, this perception can create long-term damage for companies as it creates an obstacle for them in gaining new customers and retaining current ones.
Data breaches
When data is stolen, it can damage the reputation of a company and its employees. This can lead to lost customers, decreased stock value, and more lawsuits. It’s important for companies to protect their data in order to maintain their brand trust.
There are several steps that companies can take to protect their data from being stolen:
- Use strong security measures, including encryption and password protection.
- Make sure that all data is properly stored and backed up.
- Regularly audit your security system to make sure it’s protecting your data effectively.
- Communicate with customers about data protection measures they should take if they experience a breach. By taking these steps, companies can protect their brand and avoid significant financial losses as a result of a data breach.
Final Thoughts
Brand trust is important because it builds consumer loyalty and encourages them to return to a product or service. It also creates a sense of security for customers, as they know that the brand they are using is reputable and will provide the quality service that they expect.
Ultimately, this encourages businesses to continue offering high-quality products and services, which can lead to long-term success. Should you need more help in building your brand trust among your customers, don’t hesitate to contact LeadOrigin. We have years of experience in helping businesses build and maintain their brand trust.
We can help you understand the different methods available to you so that you can create an effective strategy to protect your brand, increase customer loyalty, and ultimately, gain a competitive advantage.