WHY ARE CONSUMERS LOSING TRUST IN BRANDS, AND WHAT CAN WE DO ABOUT IT?
Consumers are losing trust in brands - and that’s a fact according to multiple statistics. With 81 percent of consumers placing more trust in the advice of family and friends, businesses face an increasingly large obstacle if they want to achieve long-term success.
Before we look at ways of addressing this consumer distrust, lets first discuss what factors might be prompting it.
Breaches in privacy
In the past few years we have seen global businesses buckle to the news media cycle, with shocking scandals regarding privacy and the distribution of our personal information coming to light. Most notably perhaps was back in 2018 with Cambridge Analytica.
News broke in early 2018 that Facebook had allowed a data breach in which the private information of thousands of users had been leaked to other companies without consent. This included to Cambridge Analytica whom had used it for political advertising purposes in the 2016 Presidential campaign.
Facebook’s role in the scandal is particularly alarming considering it is a renowned and trusted social media platform with 15 million active users in Australia alone.
There was also serious doubt in the innocence of Facebook CEO Mark Zuckerbeg, generating grievous concerns for users and the expense of their privacy at the hands of large companies seeking personal and financial gain.
Misleading the public through false advertising
Many businesses have been caught out misleading the public, often through false or misleading advertising. One such practice is ‘greenwashing’, in which a company falsely claims to be acting in an ethical and environmentally sustainable way.
Examples include cosmetic companies like Avon that speak out against animal testing, yet sell their products in China - where cosmetics must be tested on animals by law (although this law may soon be lifted).
This kind of deceptive information has severely damaged consumer trust in brands. It has left many with the belief that anything circulated by brands about its processes has the potential to have been either manipulated or completely made-up.
The misuse of consumers’ personal information, along with false or deceptive advertising are just two of the factors that have generated widespread mistrust in brands. So, what can we do about it?
Transparency and credibility
It’s pretty obvious from the above examples that much of consumer mistrust stems from the unethical actions of other brands. So the first tip is pretty obvious: don’t be like them.
Don’t exaggerate your claims, try and fool your own consumers or make out your brand is something that it’s not. Perhaps it will work short-term, but the truth will eventually leak and damage the brand severely.
Instead, be transparent. Own up to your faults. Be realistic and open about how you will fix them. Say you will make ethical changes - except, actually fulfil them. Let consumers see you’re a brand that can be trusted, and develop a relationship from there.
Micro-influencers - putting a face to the recommendation
We noted above the amount of trust that is placed in friends and family for recommendations and advice, which is why micro-influencers can be incredibly effective.
Micro-influencers commonly focus on niche content, leaving followers with shared interests, hobbies and opinions feeling a stronger connection with them. Additionally, having a much smaller audience compared to macro-influencers (with just 1,000 to 80,000 active followers on a single social media platform) strengthens this connection, resulting in high engagement rates.
Brands are often seen as faceless corporations, which can make them hard to trust. Using micro-influencers, real people that users trust and admire, to recommend your brand can help build confidence.
Be active online
Particularly if you’re a small or relatively new business, getting set-up online and being active on all platforms is an easy and effective means of instilling confidence in your brand.
Encourage people to leave reviews and questions on your business Facebook page
Post frequently to your feed and stories on Instagram
Update your business website and introduce a blog with your expertise and comments
Create an identity for your brand using online platforms, and offer a warm and friendly demeanour to humanise it.
There are a myriad of other ways to build a trusting relationship between consumers and your brand. For more information and advice, contact POPCOM Director Amanda Lacey at amanda@popcom.com.au
