The seemingly never-ending events of the past year or so have meant that we’re all dealing with challenges for which we were decidedly unprepared. That’s why authenticity and trustworthiness are increasingly important in terms of ensuring brand loyalty. Consumers need to be able to trust their favourite brands in order to continue wanting to use them.
In the 2020 Edelman Trust Barometer, 53% of respondents said ‘whether you trust the company that owns the brand or brand that makes the product’ is the second most important factor when purchasing a new brand, coming second only to price.
Sometimes being the best in terms of price doesn’t mean you’re the best full stop
Consumers are becoming progressively conscious of important political and environmental issues, for instance, meaning it is essential that brands are transparent with their beliefs.
Think about Amazon.com – when CEO Jeff Bezos was revealed to be earning as much in one second as some of his employees earned in five weeks of work, consumers everywhere began boycotting the site, favouring smaller businesses for their shopping needs.
It is becoming more likely for consumers to spend a little more than they usually would to ensure the brands they are buying from are trustworthy and ethical.
Consumers are real people – treat them that way
2020 was as difficult for brands as it was for consumers, but in shouldering the responsibility of being the institutions that consumers turn to in difficult times, brands should place emphasis on customer retention.
If there’s an issue with somebody’s product or delivery, rather than sending a generic email, brands should take the time to handle the situation in a sensitive and personal way.
Customer Lifetime Value
Customer Lifetime Value (CLV) is an ever-important metric; brands spend less by eeping their existing consumers, rather than acquiring new ones. But this doesn’t mean that new consumers aren’t as important as older, loyal customers – if a brand decides to offer up a discount for first time buyers, why not reward the people who have been around for a long time too?
Consumers have a huge amount of options, now more than ever, so to ensure security and loyalty, it is of paramount importance for focus to be on doing whatever is expected by consumers.
During these turbulent times, brands should be treating their customers with respect and adhering to their needs. After all, if a consumer feels they can trust a brand, they are more likely to form a strong relationship or to continue their loyalty.