Trust between a consumer and brand is a fragile entity and according to a new Adobe report, it has become harder to earn since the pandemic.
In the 2022 Adobe Trust Report, it showed 81 percent of Australian business leaders are finding it harder to gain consumers’ trust since the emergence of the pandemic.
Billy Loizou, area vice president at CDP brand Amperity told Digital Nation Australia that customers want retailers to live up to their brand promise.
“If you are communicating that your brand wants to create healthier Australians, better yet help you become a healthier Australian, then their motivations should help the cause.
“Trust is built by delivering against the brand promise and that is reflected today by simple things like how they collect and use your data to create memorable experiences,” he said.
54 percent of Australian consumers said they will stop purchasing from brands that break their trust, while 72 percent plan to spend at least $700 more each year with trusted brands.
Simon Tate, president Asia Pacific, Adobe said, “The importance of digital experiences to a trusted exchange has come into sharper focus, and the stakes are high. Done right, many consumers will reward brands with loyalty and spend.
“When trust is broken, most consumers will walk away permanently.”
Tate said Australian consumers’ experiences over the past two years and rise of the digital economy are combining to shift the fundamental drivers of brand trust.
“More than ever, trust relies on brands’ ability to make a positive impact, use data responsibly and deliver digital experiences on customers’ terms,” he said.
Loyalty and trust
Loizou highlights the importance of trust in loyalty programs, “Loyalty programs are now a great hook in having a customer share their data — but trust can be quickly eroded if that value exchange is not clear.”
According to the report, 16 percent of Australian consumers favoured digital experiences, compared to more than a third of APAC consumers (35 percent). This compares to 32 percent who say that in-person experiences are more important as trust enablers, and 48 percent that say that both are equally important.
Brands’ use of personal data is a key driver of mistrust among Australian consumers. The research reveals that 74 percent are concerned with how their data is being used and 50 percent of consumers believe the benefits of providing their data to companies are greater than the risks.
Adam Posner, customer loyalty specialist and CEO at the Point of Loyalty said brands need to be clear, transparent and simple in sharing with customers all aspects of their data collection, use and security.
The majority of consumers also say they will stop purchasing from brands if they experience data governance failures. This includes 70 percent who would stop purchasing from a company that used their data without permission and 66 percent who would do the same if they experienced a data breach.
Posner explained that a loyalty program is a promise.
“It sets a level of expectation between the brand who has the program and their members. Meeting expectations of what the program promises maintains trust. Exceeding expectations enhances trust,” he said.
“For loyalty programs, the enablers of trust are based on three fundamental program design experiences — how simple the program is (join and engage with), how personal the program is (sensitive and smart use of data provided) and how valuable the program is (the rewards, experiences, utility and community connection the program provides).”
Despite this clear message from consumers, 94 percent of Australian leaders believe consumers trust them to keep their data safe and use it responsibly, and 79 percent say the benefits customers receive from companies collecting their data outweigh the risks.
From those surveyed, half say their trust in brands increases when technology is used to personalise their experience. However, 76 percent say poor personalisation erodes trust, with top examples including ‘contacting me in a creepy way’ and ignoring their preferences.
