Building trust with consumers is critical for brands

By Andrea Leigh

With the rapid advancement of AI, consumers aren’t sure what — or whom — to trust. Trust in institutions, including banks, governments, corporations, news organizations and social media companies, is declining. What’s more, nearly eight in 10 consumers do not feel in control of their personal data online, according to GWI (Global Wellness Institute).

As a result, a brand’s reputation has become the most critical factor in its relationship with consumers — even more important than product quality or customer service.

Trust is crucial for achieving customer loyalty and repeat purchases, as well as creating brand evangelists, and authenticity is a cornerstone of building consumer trust. 

Trust also has a direct impact on sales, often surpassing the importance of price. A survey by PwC found that 37% of consumers prioritize trustworthiness over price. What’s more, 83% of consumers who trust a brand or retailer are more likely to recommend it to others and remain loyal.

The complexity of the shopper journey is increasing. According to Google, “People are more loyal to their need in the moment than to any particular brand.” In addition, one-third of consumers in surveyed markets are now doing more research, with 60% taking six or more actions before making a purchase. These actions include searching online for reviews (75%) and visiting product or brand websites (67%). 

Keeping promises and maintaining transparency at every stage of the customer journey — and choosing AI initiatives for your organization that truly make shoppers’ lives easier — are essential practices for establishing and maintaining shopper trust. 

Add value across the entire shopper journey

Finding ways to add value across the entire shopper value chain is a brand’s new job. 

According to Google, 73% of consumers seek ways to simplify their decision making when faced with too much information. What’s more, one-third of customers say that lack of product knowledge is a barrier to purchase. 

User Generated Content (UGC) is a powerful tool for gaining shopper trust, with 88% of consumers citing it as trustworthy. Monitoring what shoppers are saying on various channels and forums is also essential for understanding customer sentiment and informing future product changes. 

Focusing AI investments on things that remove friction for shoppers and help them build product knowledge, such as improving search technology; product imaging; improving completeness or accuracy of written content; and customer service enhancements are ­critical. 

In addition, brands and retailers that effectively handle post-purchase issues, such as returns and complaints, can turn a negative experience into a positive one, reinforcing trust and loyalty.

At a minimum, don’t lose value. Consumer expectations of truthfulness extend beyond the brand to affiliates, too. Beauty influencer Mikayla Nogueira’s promotion of the L’Oréal Paris mascara faced serious backlash and criticism for potentially wearing false eyelashes in place of using the product, reflecting poorly both on herself and the brand.

Hitting the marks on digital shelf scores and having enough reviews on Amazon isn’t a UGC strategy anymore. Strategies must encompass online reviews, social media and shopper forums … and stay tuned in to what the shoppers are saying on these channels to help inform innovation.

Be relevant to shoppers

According to McKinsey, 75% of consumers said they want brands to demonstrate that they understand their needs, and 61% want that understanding reflected in branded ­communications. 

Just like in the physical world, recognizing your best shoppers goes a long way. Shoppers expect communications that consistently straddle off-line and online experiences.

Being relevant can encourage shoppers to break up routines and try something new, too. 75% of consumers say they get excited when they come across a new product perfectly aligned with their needs. 

Shoppers expect communications that consistently straddle off-line and online experiences, requiring a truly omnichannel approach for brands and ­retailers. 

Personalization also plays a crucial role. A study by PYMNTS found that 41% of Millennials are likely to switch brands for better personalization, followed by Generation Z (34%) and Generation X (26%). Baby boomers and seniors are less likely to switch based on personalized offers.

AI can provide worthy investments in this area. At The Lead Summit conference in New York in July, technology providers showcased many technologies that help retailers and brands improve shopper profiling and personalization, and marry data sources to help them better recognize and personalize experiences for customers.

For example, the natural deodorant brand Primally Pure sent sample boxes of new product lines to loyal customers. This strategy not only rewarded loyal shoppers but also drove product trials and created brand advocates.

Providing shoppers with relevant, inspiring recommendations at the right time and making sure to recognize them, even digitally, is crucial to trust building with shoppers.

Be inclusive of your shopper 

Inclusivity builds trust and loyalty, ensuring that all customers feel valued and understood … which in turn drives sustained business growth. Gen Z and Millennials are most driven by inclusivity and are more likely to engage with brands promoting diversity, including representation across race, gender and body types. 

For example, the beauty brand Live Tinted’s Hue­stick and other products are designed to address the needs of various skin tones, particularly those of underrepresented ­communities.

The soda company Poppi, for example, made consumers part of their advertising campaign by asking them to feature the brand on social media. Selected consumers were then showcased on billboards, urban panels and buses in New York and Los Angeles.

Inclusivity in advertising and assortment are important, but they aren’t the only way to include shoppers. Social listening is also a critical method for making consumers feel heard and respected, which builds trust and loyalty. 

AI and technology advancements have created a cottage industry of software providers that help brands and retailers monitor social media mentions at scale, providing summaries and insights to help inform product content, innovation and more. 

Conclusion

In an increasingly complex and AI-driven shopping environment, building and maintaining consumer trust is more critical than ever. Brands and retailers must focus on adding value throughout the shopper journey, being relevant to shoppers, and being inclusive of them to foster trust and ­loyalty. 

By ensuring AI advancements help advance these initiatives, and at a minimum don’t work against them, brands can navigate the evolving landscape and ensure long-term success. Trust is not just a buzzword; it is a fundamental driver of consumer behavior and business growth.

Andrea Leigh is founder and chief executive officer of Allume Group.