A new Adobe study has found a strong correlation between brand trust and spending behaviour with more than half of consumers (54%) saying they would stop purchasing from brands that break their trust.
The study revealed that the majority (72%) of consumers plan to spend at least $700 more each year with trusted brands compared to the global average of 60%.
When asked whether they consider digital or in-person experiences to be more important in driving trust, only 16% of Australian consumers favoured digital experiences, compared to more than one-third of Asia Pacific consumers (35%). This compares to 32% who say that in person experiences are more important as trust enablers, and 48% that say that both are equally important.
“The importance of digital experiences to a trust exchange has come into sharper focus, and the stakes are high. Done right, many consumers will reward brands with loyalty and spend. When trust is broken, most consumers will walk away permanently,” Adobe president of Asia Pacific, Simon Tate said.
Despite the importance of building trust with consumers, the senior business leaders interviewed by Adobe suggest that earning trust is increasingly tricky, with eight in ten (81%) saying that it has become harder since the onset of the pandemic.
“Australian consumers’ experiences over the past two years and rise of the digital economy are combining to shift the fundamental drivers of brand trust. More than ever, trust relies on brands’ ability to make a positive impact, use data responsibly and deliver digital experiences on customers’ terms,” Tate added.
Brands’ use of personal data is a key driver of mistrust among Australian consumers. The research reveals that 74% are concerned with how their data is being used and 50% of consumers believe the benefits of providing their data to companies are greater than the risks.
Most consumers also say they’ll stop purchasing from brands if they experience data governance failures. This includes 70% who would stop purchasing from a company that used their data without permission and 66% who would do the same if they experienced a data breach.
Despite this, 94% of Australian leaders believe consumers trust them to keep their data safe and use it responsibly, and 79% say the benefits customers receive from companies collecting their data outweigh the risks.