In an ever-competitive market, brand loyalty is an increasingly important aspect of running and marketing a company. This could be influenced by many things, but a key aspect is consumer trust in the brand. After all, why would anybody choose to buy from somebody they don’t trust? Despite this, there is a growing downward trend of trust in brands amidst various scandals which blow up across Social Media. The 2019 Edelman Report reveals that only one-in-three respondents said that they trust most of the brands they buy and use. Perhaps part of the reasoning for this, in recent years there have been high-profile cases of brand dishonesty including the Volkswagen emissions test cheat and Facebook’s involvement in political campaigns making use of consumers personal data.
So if trust is such an important element of brand loyalty, then why are we brands lying to their customers and ultimately breaking this trust? Well there could be a number of reasons, but key driving forces include;
1. A surge of competing Brands
With new brands entering the marketplace every day, there is an increase in competition which puts pressure on brands to maintain their badge of being “best in field”.
2. Loss of control over coverage
The explosion of online platforms like Facebook and Instagram means that the image and reputation of a brand has been put in the hands of the customers. This means that brands need to create “shareable content”, which often involves bold claims.
3. Corporate greed
Another potential reason is that companies simply want to make as much money as possible, regardless of any cost to reputation. Or perhaps they feel that they have become so big that they are now essentially able to do as they please.
Whatever the motivation, it seems likely that at some point the lies spun to consumers will be unearthed with damaging consequences for brand loyalty. This is something that other brands can use to their advantage. by building a brand around the notions of honesty and authenticity a brand can grow a loyal following of customers who continue to support the company.
If you are looking to develop a brand for your own company to develop trust and customer loyalty, give us a call on 01204 467 866.