“Brands should be warned. In the future there will only be two types of business: the trusted and the extinct” - Ibrahim Ibrahim, managing director of Portland
Trust is one of the most important elements in human relationships, however hard to define.
At a basic level, trust is the hope and expectation that something is true, safe and reliable. It’s built on a foundation of honesty and consistency in words and actions.
When you trust someone you believe what they say and you don’t pause to question their intentions. For this reason trust is extremely powerful but at the same time complex. It relies on a set of rational facts and ephemeral emotions, and requires time and intentionality to develop.
This is true also in the relationship between consumers and brands. For enterprise-scale companies in the consumer product industry, trust is the foundational driver for long-term success.
I have witnessed the power of trust in the consumer-brand relationship in my decades working in the food industry. I had the privilege to work for one of the most popular and trusted ice cream brands - Ben & Jerry’s. The brand of “Peace, Love and Ice cream” uses “ice cream to change the world.” This brand is well known for its social and environmental commitment: ”We love making ice cream - but using our business to make the world a better place gives our work its meaning.”
Ben & Jerry’s commitment is credible and trusted because the brand’s mission and values are perfectly aligned with its products, and are well supported by transparent communication. Having set a strong purpose and cultivating an authentic connection with consumers since its founding in 1978, Ben & Jerry’s earned the trust required for its continuous growth and long term success.
How does your brand compare? And what investments of time and resources will you need to earn and retain consumer trust in the years to come?
In this article, I'll start by exploring the importance of trust and the difficulties in building and maintaining it for functional leaders working in consumer product enterprises. Next, I’ll share the values that underpin trust in consumer products. Finally, I will discuss how technology can boost resilience and transparency, empowering agile and efficient networks that are crucial for fulfilling consumer expectations and maintaining trust in turbulent times.
A Thousand Little Moments: How Consumer Trust is Hard Earned and Easily Lost
Trust serves as an intangible currency in society, enriching lives, fostering communities and propelling economies forward. In the realm of consumer products, trust hinges on transparency - the sourcing of ingredients, environmental impact, and manufacturing standards.
For over a year, Veeva's experts have delved into the essence of trust, recognizing its immense value despite the challenges of earning it. While businesses often overestimate the trust they inspire, the reality is that building trust demands a Herculean effort. PwC's research reveals a stark disparity: 87% of executives believe their companies are highly trusted, when in reality it is roughly 30%.
The 2024 PwC Trust Survey underlines the financial benefits of trust, emphasizing its role in improving the bottom line. Trust underpins brand-consumer relationships, especially amidst intricate supply chains and evolving consumer preferences. Establishing and nurturing trust is pivotal for shaping preferences, driving purchase decisions and fostering brand loyalty.
Navigating the complexity of trust-building requires tailored strategies for diverse stakeholders - consumers, employees, suppliers and shareholders. The aim is not universal consensus but a targeted approach attuned to the needs of each party.
The Values that Underlie Consumer Trust
Trust is built on fundamental values. First, it hinges on transparent, credible, and consistent communication, demanding brands to showcase reliability by honoring promises and fulfilling commitments. It involves taking accountability for actions, upholding integrity by staying true to the brand's principles even in difficult times.
A solid corporate reputation rests on integrity and attitude. “It’s no longer good enough to be the best of the best,“ said Elmwood chairman Jonathan Sands. “You need to be the only people who do what you do.” While technical aspects can be imitated, emotional distinctions are far more challenging to replicate.
Furthermore, trust is about honesty, ethical decision-making and prioritizing the best interests of the consumer. By doing so, a sense of trustworthiness is nurtured, fostering consumer loyalty.
“If there is a single defining attribute that all truly trustworthy brands possess — regardless of their product category or where they are from — it is a strong sense of purpose,” said Ibrahim. “Brands must know their reason for being and make sure they deliver this truth at every point in the customer journey”.
This highlights a crucial aspect shared by all trustworthy brands — a clear sense of purpose. Brands must understand their core mission and ensure it resonates throughout the customer experience.
Brands that strike a balance between rational and emotional trust, aligning their actions and communications with their higher purpose, have established enduring success and cultivated a deep bond of trust with their consumers.
Technology’s Value in Building Trust Under Challenging Circumstances
In the fast-changing business landscape, establishing and upholding trust amidst evolving challenges demands ongoing dedication and transparent communication.
“Acknowledging inflation demonstrates transparency and honesty,” said i2c Chief Marketing Officer Christine Alemany in the Harvard Business Review. “Honestly expressing how inflation is impacting business shows vulnerability. When this is perceived as genuine, this transparency encourages trust and begins to build customer loyalty”
In today's economic climate, companies that openly discuss their challenges or invest in modern technologies to enhance efficiency and alleviate economic pressures caused by socio-political factors can earn trust during tough times.
For instance, Barilla recently made a significant step of publicly reducing product prices to support consumers affected by escalating food costs, thereby lessening families’ economic burdens. The commitment on affordability and quality of their products was achievable through strategic investments in technologies and innovation, enhancing efficiency and reducing costs for consumers' benefit.
Across the consumer products value chain, technology stands out as a key element in fostering trust and aligning stakeholders with a unified strategy:
- Shareholders witness organizations investing in future readiness to navigate evolving challenges, instilling trust in their stability and leadership.
- Consumers' confidence grows as companies deliver superior and safer products and services.
- Employees experience enhanced job satisfaction and productivity through investments aimed at creating a modern and efficient work environment, attracting top talent and meeting the expectations of the contemporary workforce.
Digitalization cultivates trust by enabling consumer product companies to enhance adaptability across the enterprise amidst evolving challenges.
Join Us - Foundation of Trust in Consumer Products
In the coming months, my Veeva strategy team and I will delve further into how leading consumer product companies are building consumer trust. Collaborating with industry peers such as Unilever, Esteé Lauder, Reckitt, and Nestlé, our digital solutions enhance transparency, engagement and accountability among customers, consumers, suppliers and employees.
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