In a cultural moment defined by uncertainty, unpredictability, and constant change, audiences’ confidence in the institutions they’ve historically relied upon has deteriorated to an all-time low. Many brands are struggling to meet their audience’s expectations for trustworthiness during this cultural confidence drought, and the consequences are becoming more and more apparent. Decreased brand loyalty, increased audience apathy, and the ever-present threat of replacement by the competition are all looming concerns. The brands who take the proactive steps of understanding and appealing to their audience’s mindset are the brands who will emerge from this cultural crisis of trust as leaders in their categories.
Institutional Distrust Driven by Personal Fears
Overwhelmed by the startling—and sometimes conflicting—headlines of the 24-hour news cycle and their unending social media feeds, the American consumer has never craved stability and truth more. The Chapman University Survey of American Fears indicates that the onset of the pandemic shifted people’s fears from concerns about broad, distant issues like climate change and cyber terrorism to fears that hit close to home like losing a loved one to serious illness or death. The rise of these immediate, personal fears is augmented by Americans' growing concerns about the stability of their futures on a societal level. Widespread civil unrest, pandemic, economic collapse, and biological warfare all made the top ten list of American fears in 2020 and 2021. The average person’s everyday fears are feeling more personal, present, and pervasive than they have in years past, and that reality is having a marked effect on the way audiences approach information-seeking, decision-making, and ultimately, trust.
Fear Breeds Skepticism and Skepticism Breeds Mistrust
While past generations looked to traditionally relied upon institutions for information and guidance in the midst of high volatility, in this era of “fake news,” audiences have adopted a widespread skepticism of the messages they’re receiving. Only 36% of Americans express trust in mass media, the second-lowest rating on record since 1972.
The pervasive undercurrent of skepticism with which audiences consume information from even traditionally trusted sources has powerfully impacted how audiences receive messages from brands. A mere 34% of audiences think companies are transparent about their commitments and promises and 63% of global consumers believe that business leaders are purposely trying to mislead people by saying things they know are false or gross exaggerations (up 7 points from 2021).
With the world around them feeling increasingly bleak, consumers have been frustrated by brands’ failure to leverage their influence to drive positive change. The apathy consumers may have felt toward brands pre-pandemic has evolved to become an active frustration. Now audiences are demanding accountability from the brands they purchase from, and the failure to take responsibility doesn’t come with an empty threat. Over half of U.S. adults say that they would boycott a brand if it were found to mistreat its employees or have unethical business practices. 1 in 4 Americans are currently boycotting a product or company they’d spent money on in the past. From a brand perspective, inaction on the environmental, social, and governance issues their audience cares about is essentially self-sabotage of their bottom line.
Yet Despite their Disillusionment, Audiences Still Look to Brands to Drive Positive Change
Amidst all of these concerning statistics, brands can find hope and opportunity in the fact that despite audiences’ deep frustrations with brands, they persist in believing that companies can be highly effective agents of positive change. 86% of consumers expect brands to act beyond their product & purpose, and more than half (53%) of people are willing to pay more to support companies who invest in brand citizenship. Now more than ever, brands have an incredible opportunity to actively invest in their audiences’ priorities and concerns—think community, safety, accessibility, equity, and sustainability. These environmental, social, and governance approaches will not only reinforce brands’ relationships with their customers but also boost their profits and safeguard their futures.
How to Bridge the Trust Gap
Trust is granted when audiences see brands investing in ethical improvement by consistently choosing to do the right thing. It’s obvious, but in many cases, it’s easier said than done. To gain trust, brands must first define areas for improvement by recognizing the imperfections and even failures that indicate where they should direct their efforts. While this task can be intimidating, the payoffs of radical transparency and trust-building are worth infinitely more than the initial cost. Audiences are nearly five times more likely to advocate for a high trust brand and twice as likely to share their personal information or pay attention to its brand advertising. The return on the relationship brands build with their customers by investing in ESG initiatives is exponential, and there’s never been a better time to invest.
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