Regaining Brand Trust in times of crisis

Blog Roderik Sorbi – Senior Client Consultant

“I believe, for the most part, you can trust respected medical authorities. I believe I’m one of them, so I think you can trust me.”, said Anthony Fauci, the American Infectious Diseases expert, not too long ago. You would think that with a strong, consistent reputation, you can take a hit. Which is the case for many companies and brands. But can we equally trust those companies and brands in times of crisis? And if not, how can you regain that trust as an organisation?

‘A Brand I Trust’ is a common term and statement used in many brand studies. And lately, we have been receiving this question more and more often: how can I improve that? When we look at the definition of brand trust: the level of consumers’ expectation that a brand’s product, service, trustworthiness, and company behaviour aligns with the promises the business has made. The basis primarily lies in the expectations people have in times of crisis.

Why is brand trust important?

Firstly, we must gain insight into the importance of brand trust. There has been a lot of academic research on the topic. The general conclusion is that brand trust has a major influence on brand engagement, commitment, and loyalty. At DVJ’S Brand Growth Event in 2018, Peeter Verlegh (Professor at the VU Amsterdam) referred to loyalty as a continuum: the more people trust the brand, the more it affects both Attitudinal Loyalty and Behavioural Loyalty. One can lead to a greater tendency to talk about your brand. While the other can lead to better a financial performance.

when times get tough, the tough get going

What distinguishes strong institutions, companies, and brands, is how they react in times of crisis. One may panic with the prospect of uncertainty. The other sees the bigger picture – there is more at stake than just the short term. Every brand, company or institution is part of a bigger community: consumers, employees, society. What you often see in crisis periods is that many institutions, companies, and brands are experiencing a shift from consumer-centricity to self-centricity. Profits are under pressure and cost savings are considered. Companies focus more on the short term, risking losing sight of their strategy, and, as a result, negatively impacting those carefully constructed brand perceptions.

The Chinese character for crisis “Wei Ji” has two meanings: danger and opportunity. It is moments like these where you need to look at the greater goal. The disruptions of the last few months have led people to both consciously and unconsciously think of what they find important. Call it a reassessment of our needs and aspirations. And that is precisely where the possibilities lie. Brands, companies, and institutions that can fit well within that, can emerge victorious from the crisis.

DVJ conducts vision interviews with top marketers and CMOs throughout the year as part of the Brand Growth programme. During these conversations, we see time and time again that marketers cite innovation as the strongest driver of growth. In times of crisis, ice becomes water under pressure. The chances of willing and being able to innovate increase, provided that the management board is on the same page. As it turned out, the Brand Growth Study revealed that 75% of marketers think innovations fail due to insufficient mandate and commitment from the organisation.

The road back to growth

Innovation cuts both ways. It offers new opportunities for growth. New services, products, and channels to get back on track. And at the same time, especially in times of crisis, a brand, company, or institution can be built by focusing on aspects that regain brand trust. For now, and for later.

This not only means that you should do something from visibility, such as communication, but also from innovation. ‘Old’ services and sometimes products, no longer meet new consumer expectations. Overall trust is damaged, and people want to see tangible evidence more often. And experience that everything you promise and do, matches those new expectations they have of you. These innovations must be implemented in a very careful and thoughtful manner. And that entails the necessary risks and opportunities, or: “Wei Ji”. It is a balancing act to look at opportunistic short-term results and strategic long-term goals. Trust is hard to gain, but easy to lose.

backfired

A recent example can be found in grocery shopping. From one day to the next, the daily grocery run evoked a completely different feeling. The first retailer to take visible and consistent safety measures was able to evoke consumer trust. Such measures show the consumer that they can shop in a safe environment. They can give people a sense of brand trust at the front of the organisation. As Peeter Verlegh points out, greater trust in a brand can directly lead to greater Attitudinal and Behavioural Loyalty. However, companies can also end up on a different path. A well-known case where a service innovation has not been successful is Corendon’s Corona-Free Holidays. With the promise “one test; protected for the entire holiday” the Dutch tour operator wanted to offer safe holidays abroad at the beginning of May. Although it made them a smart first-mover, Corendon unfortunately – amid the corona crisis – came under fire from the Dutch government, among others, who indicated that the tests in question were not yet reliable. A few days later, Corendon pulled the plug and suffered damage to their brand trust, the one thing they tried to regain. The plan backfired.

In times of crisis, innovations must look even better for elements that are credible and have reliable partners. Whether it concerns a test or a travel insurance including repatriation guarantee with fine print. In short, innovations must be properly substantiated, and when partnerships are made, the right partners must be found.

Regaining trust

Innovation also means that you must think carefully about the meaning of trust in the spirit of the times. And what people’s preconditions are for regaining that trust. But not only from the basic conditions, but also from the excitement factors that can boost that trust. The question is whether hanging up plastic screens is enough, or whether you need extra things to give that feeling of trust and security. So that people know that the brand or company has made serious effort. Brands need to look for fast innovations in which they can defend themselves, not only now, but also in the case of a second wave. Think of service innovations, which enable companies, brands, and institutions to continue business in a 2-metre economy and a second (intelligent) lockdown. So that they can still achieve sales.

It starts with the question what – in the current times – trust means for consumers within the category. Not what the solution should be, but what their emotional value and experiences are with the institutions, companies and/ or brands. This is where the power of storytelling emerges. Storytelling gives people the opportunity to share any and all thoughts. Through our MassQual technique we can collect, categorise, and quantify many stories. In this way, marketers and innovation managers quickly gain insight into what they should focus on.

Brand trust is an important parameter in brand health and tracking studies. For brands to see where they are, and what they need to work on. Brands that demand more consumer trust should therefore look closely at aspects that offer more service, deliver more and are more visible to consumers. Only then can a brand regain trust in these times.