This is the third article in our Cost of Living series: a collection of blog articles examining the impact and implications of the cost of living crisis. Read our first and second articles to learn more.

The Lack of Consumer Trust and Need for Reassurance

Hard economic times continue to dominate headlines. It’s no surprise that consumers are all-consumed by the impact of the rising cost of living on their own finances. Even less surprising is that this crisis has pushed consumer trust in brands to an all-time low. So, how can brands regain the trust of consumers in times like this?

MetrixLab’s Cost of Living Study

MetrixLab launched a large-scale study across 11 global markets to uncover the impact of the cost of living crisis on consumers. A key finding was on changing consumer behavior: for example, in the Netherlands and the UK, we see a greater tendency for consumers to opt for the cheapest brands available.

In the previous blogs in our Cost of Living series, we discussed how brands can respond to changing consumer behaviors and adopt eco-friendly practices without increasing prices for consumers. Today, we’re focusing on how brands can build trust among consumers, especially during times when consumers are turning a skeptical eye towards brands. Let’s dive into the key takeaways from our study on this front.

What does this mean for brands? For starters, it means that being considerate of consumers who are struggling financially must be a priority. For example, supermarket retailer Tesco updated their famous tagline, “Every little helps” to “Right now, every little helps.” This change has made their reputation soar, particularly during unstable economic times. This motto – coming from a trusty, well-known brand – has garnered a great deal of affinity among consumers. It speaks directly to the struggle consumers are facing, especially considering that 72% reported that they are “more careful with money” and “only make purchases that are essential” for them or their families.

Consumers who are at least 55 years old trust brands that provide value, meaning their price are fair for the quality of their products. Younger consumers, on the other hand, trust brands that offer cheaper prices. What this tells us is that there is no one-size-fits-all approach to gaining the trust of consumers. Rather, brands must be agile, study their consumers’ behaviors, and experiment with different ways of connecting with their consumers.

This is especially important to do in today’s economic state. In fact, research on previous recessions shows that brands that don’t adapt and stick to their current plans lose momentum. On the bright side, brands that successfully navigate a recession build a stronger future, especially once the economy recovers and consumers’ regular spending patterns return.

Defining Brand Trust

Trust has always been integral to brand success but what does it actually entail? In our experience with helping brands grow, we’ve learned that trust requires keeping price and quality steady. It also means offering reassurance about safety, especially considering the Covid-19 pandemic and other adverse global developments that are still fresh in consumers’ minds.

But here’s the thing. Data from our Cost-of-Living study also reveals complications in brands’ ability to build that trust:

• More than three quarters of consumers globally feel that some companies are cashing in on the recession.
• One third of the study’s participants understand that cost increases need to be absorbed by someone; however, there are personal limits to that understanding.

What Consumers Want from Brands Right Now

Consumers are adapting their behavior to save money, but they also expect practical support from brands.

How Brands Can Provide Practical Support to Consumers

As brand leaders, there are several ways you can support consumers:

• Know your customers’ specific behaviors. Study your website traffic, in-store traffic, and social media engagement. Who is interacting with your brand the most? This will help you determine where to focus your marketing efforts.
• Stay in touch with your consumers. For example, send them weekly emails with useful, uplifting, non-salesy content. This will keep your brand top of mind for them.
• Restructure your offers to make them more affordable. Consumers are willing to accept bulk offers and value packs, for example.

% agree strongly/slightly with statement (Global)

Unleash your creativity and identify ways in which your brand can help consumers manage during this time while still keeping them in your community. For additional tips on supporting consumers during fragile times, check out our blog Delivering value is key for brands in a fragile economy.

Key Takeaway on Building Trust Among Consumers

Overall, if a brand does more to help and support consumers, consumers will feel seen and will therefore be more likely to trust you. Brand leaders must help consumers feel supported as they navigate this time. Doing so sets you up for success in a recovered economy, long-term brand equity, and a robust sense of trust among consumers.

This is the third article in our Cost of Living series: a collection of blog articles examining the impact and implications of the cost of living crisis. Read our first and second articles to learn more.