In a world marked by geopolitical divisions and misinformation, brands face record-low levels of customer satisfaction. Connection and trust are imperative for brand-side marketers wanting to drive brand loyalty, resiliency, and advocacy. Here are five key takeaways from Davos to help.
1. Deepen trust with purpose
This year’s WEF agenda highlighted the importance of purpose-driven organizations in shaping societal and environmental change. Organizations across other industries can work to integrate purpose to strengthen audience relationships. Research shows that consumers are four times more likely to purchase from (and six times more likely to protect from public criticism) brands with a strong purpose.
Marketers should work to align broader goals, and push to transcend traditional business objectives. Effectively communicating a brand’s purpose, rather than just focusing on profits, works to deepen trust; 72% of consumers say that relevant content delivered in a timely and appropriate way boosts their trust.
2. Gain trust through transparency
The WEF could take a leaf from its own book. One demonstration of the need to build trust is the frequent criticisms the summit attracts for its exclusive, invite-only feel. Global leaders and institutions alike need to work to regain the trust of constituents and customers.
Clear, honest storytelling can go a long way to building trust in an era rife with reactionary content and misinformation. Brand-side marketers should think carefully about how to achieve transparent and authentic communications, both to enhance brand credibility and to align with expectations that businesses should act responsibly and ethically.
3. Act on feedback
The need to act on feedback has gained greater significance against growing public sentiment about global leaders being out of touch. A case in point, the WEF summit receives almost as much criticism for its lack of results as for its poor transparency.
Such disapproval underscores a disconnect between high-level discussions and tangible, real-world impacts; Qualtrics has reported that while 80% of chief executives believe they deliver superior experiences, only 8% of customers agree. Even a modest increase in customer loyalty can lead to substantial profit growth; research by Bain shows that increasing customer retention rates by 5% can increase profits by 25%.
It is essential to actively seek and respond to customer feedback; implementing changes that address concerns can help trust and loyalty in an increasingly skeptical market. Acknowledging and acting on customer feedback is a powerful way for brands to show that they actively listen to (and care about) their customers’ experiences.
