What is brand trust and how it affects the success of your brand

Trust is a fundamental pillar of business. If a customer trusts a brand, they buy from it repeatedly and don't skimp on positive reviews. A loss of trust will damage even a well-established company like Boeing or Facebook. How exactly do you perceive brand trust and what are the implications for your brand?

What is a brand trust?

Brand trust is a measure of a brand's credibility in the eyes of customers. It reflects how well the company's branding keeps to the promises and values formulated by the marketing strategy.

A trusted brand...

• Provides quality products at an optimal price.

• Words followed by actions.

• Achieves positive reviews over the long term.

• Respects its clientele.

• Has efficient and helpful customer support.

The results of a study of 16,000 adults from around the world showed what factors are most important for brand trust. The conclusion is clear - a trusted brand cares about the well-being of customers and employees, and actively addresses internal and social issues. Source: MarketingCharts.com

Why is brand trust important for the success of your brand?

A high brand trust is essential for business for several reasons:

• It influences purchasing decisions. 81% of people only buy from brands they trust. Conversely, more than half are willing to boycott a brand if they feel cheated.

• It provides stability in times of global crisis. People in danger prefer to use what they know. Research shows that in response to the current coronavirus pandemic, consumers have a strong preference for brands they trust. It is no wonder that sales of household names such as McDonald's, KFC and Oreo are soaring.

• It builds brand loyalty. Consistent quality, credibility and reliability of your service yields loyal customers. Never hesitates who to turn to when buying, never gets fooled by the competition.

• It builds a community that increases your reach. A satisfied customer will let you know how well they're doing. This results in positive reviews, social media posts, YouTube reviews or referrals to family and friends.

• It facilitates expansion and reform. Loyal customers who trust their brand are up to 50% more likely to buy a new product.

What happens when a brand trust is missing

The consequences of the loss of a brand trust will affect even otherwise highly successful companies. On average, they will lose up to half of their customers and around 30% of their value.

For example, Facebook faces charges for leaking the private data of up to 87 million users as of 2018. Volkswagen, Uber, Boeing, and Matell have all been through similar scandals.

Facebook lost 15 million users and lost a total of $80 billion. The crisis only culminated in an attempt to completely change its image.

Time will tell how successful it will be.