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