Can I Really Trust You?
In a world where trust is harder to come by than a parking spot at Costco on a Saturday, it’s no wonder trust levels are shifting globally. According to the 2024 Edelman Trust Barometer, trust in institutions, businesses, and media is declining across North America and Europe. But, let’s get down to it…. what does that mean for your business? In this blog we’ll give you a cheat sheet to understanding how these trends impact your customers, their wallets, and your bottom line—plus what you can do to stay ahead of the game.
The Big Picture: Who Do We Trust?
The 2024 Edelman Trust Barometer paints a complex picture for trust in North America and Europe. Trust in government and media continues to erode, with many consumers viewing these institutions as unreliable or self-serving - not a shocker to most people. Meanwhile, trust in businesses is holding steady, making companies the "last trusted institution" in these regions.
Employees trust their employers more than they trust NGOs, media, or governments. However, there’s a catch: businesses are expected to take stands on societal issues. Staying silent is no longer an option without consequences. We’ve seen this more and more the past few years and is only expected to continue - employees and consumers want businesses to have an opinion.
Consumers in both North America and Europe demand more transparency and accountability from companies, expecting them to drive positive change on pressing societal issues such as inequality, climate change, and misinformation. Failure to meet these expectations leads to a rapid decline in trust, which is increasingly difficult to recover.
The Impact on Consumer Behaviour
Here’s where it gets juicy. Trust isn’t just a warm, fuzzy feeling—as we spoke about in our webinar a couple of months ago, it’s a driver of consumer behavior. Here’s how:
Brand Loyalty: Trust determines whether a consumer sticks with your brand or ditches you for the next shiny competitor. According to a PwC study, 71% of consumers in North America and Europe said they’re more likely to buy from a brand they trust.
Willingness to Spend: Consumers in these regions are willing to pay a premium for products or services from trusted companies. Edelman’s research found that over 60% of people prioritize brands that align with their values, even if they’re more expensive.
Word of Mouth: Trust fuels advocacy. Trusted brands see higher rates of referrals and social media love, which means your customers do the heavy lifting of marketing for you.
Skepticism Meets Activism: On the flip side, a lack of trust means higher scrutiny. Consumers are quick to call out what they perceive as “performative” values or greenwashing. And let’s face it, no one wants their brand trending on X for the wrong reasons.
What’s Behind the Trends?
Several factors are driving the shifts in trust across North America and Europe:
Misinformation overload: The rise of generative AI and deepfakes makes consumers wary of the information they receive. They’re looking for reliable sources and transparent communication. Consumers generally feel that it’s hard to know who to trust these days.
The big divide: Political and social divides are deepening, with people digging in on their beliefs. Consequently, consumers expect brands to take clear positions on key issues.
Economic uncertainty: Need we say more? Inflation, layoffs, and financial instability lead consumers to seek out companies that offer not just value for money but also a sense of stability and integrity.
Climate concerns: It permeates every industry now; sustainability is no longer optional. Consumers in these regions demand action, not just promises, from brands when it comes to environmental impact.
Soooo What Do We Do About It?
Let’s cut to the chase. If you want to thrive in this era of trust turbulence, here’s your playbook:
Be transparent (for real): Transparency is the name of the game. Don’t talk about it—show it. Whether it’s how your product is made, where your materials are sourced, or how you’re addressing sustainability, consumers want the receipts. According to a Havas Media study, 77% of consumers prefer brands that are honest and upfront.
Walk the walk on values: Consumers can sniff out inauthenticity faster than you can say “CSR.” If you’re going to take a stand on an issue, back it up with actions that matter. For instance, don’t just post about International Women’s Day; implement policies that support gender equality in your workplace.
Focus on community engagement: It’s more than just this year’s buzzword. Local engagement builds trust. Partner with community organizations, sponsor local events, and genuinely contribute to the areas where your customers live and work.
Leverage influencers wisely: The right influencer can build trust with audiences that traditional ads can’t reach. But choose carefully. Micro-influencers and niche creators often resonate more authentically than big-name celebrities. And make sure they’re really ambassadors of your brand and not just in it for the glory.
A Little Trust Goes A Long Way
At the end of the day, trust is your business’ most valuable currency. It’s the foundation that transforms casual interactions into lasting relationships. Without trust, even the most creative marketing strategies will fall flat, and flashy campaigns will fail to convert. But with it? The sky’s the limit. Trust builds loyalty, fuels word-of-mouth referrals, and strengthens your brand reputation. Consumers who trust you are more likely to buy repeatedly, remain loyal through challenges, and actively recommend your business to others. In a world of endless options, trust isn’t just a nice-to-have; it’s your competitive edge.
Looking to learn more about trust or chat with us about the impact these shifts have on your brand? Drop us a note… we’re always happy to talk all things marketing.
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