Brand trust is imperative in making businesses successful in the global market, and, with half of consumers saying they stopped purchasing from a brand during the pandemic, brand trust is more important than ever. Recent data from YouGov reveals several reasons why consumers in 17 global markets have ditched brands. Here’s what the survey found.
Product Failure Main Factor in Brand Switch
Poor product experience appears to be a main contributor when consumers switch brands or service providers. Some 3 in 10 (31% of) global consumers say they have switched brands because the brand lied about product performance, and an additional 23% say they have sidelined a brand due to a product failure or recall.
Earlier reports show maintaining brand promises and delivering good products can help maintain long-term relationships with customers, as well as help with overall brand reputation. While they are more likely to leave reviews for positive experiences, 4 in 10 consumers say they will leave a review if a product was unsatisfactory. And, since three-quarters consider online reviews during the buying process, failing to uphold promises can negatively impact a brand’s reputation.
Consumers Look For Ethical Practices
More and more, consumers are leaning towards supporting brands they believe operate ethically. Indeed, some consumers say they have abandoned brands that have a history of poor treatment of their employees (23%), are making excessive profits from customers or public services (22%) and have taken extreme steps to minimize their tax bills (14%). Some even say they have changed brands that had too dominant a position in the market and, therefore, restrict competition (14%).
Additionally, consumers expect a lot from brands when it comes to sustainability. A previous report from Wunderman Thompson shows that 8 in 10 consumers say companies should put people and the planet above profits and even more believe sustainability should be standard practice.
So, it’s no surprise that YouGov found that 1 in 5 (21%) say they have abandoned a brand because it had a poor environmental record.
Data Security is a Major Concern
Some 15% of consumers surveyed around the world say they have dropped a brand due to a loss of their personal data. The percentage is higher in the US (18%) where other research shows that 7 in 10 consumers feel their data is less secure than it used to be despite assurances from businesses.
Despite being low on the list of reasons people have switched brands, data loss can have a serious impact on the long-term relationship a brand has with its customers. More than half say they would never use a brand again if their data was compromised and many consumers say they would be hesitant to provide data to a company that experienced a public data scandal.
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About the Data: Findings are based on a May 2021 survey of adults aged 18-years and older in 17 markets. Sample sizes varied between 509 and 2,012 for each market.