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Consumer Trust: The Key to Business Growth
Forrester has been conducting extensive research on global consumers’ trust since the start of the pandemic. Our data reveals that a consumer’s level of trust in a company directly impacts revenue-generating behaviors, including repeat purchases, brand preference over competitors, product trials, and willingness to share personal data. In essence, trust is absolutely crucial for all companies, regardless of their size or age. It is not a one-time strategy, but instead requires proactive efforts to build and maintain trust, rather than waiting for a crisis to occur.
The Importance of Trust in 2023
In our Consumer Trust Imperative Survey, 2023, conducted across 13 countries in three regions, namely Asia Pacific, Europe, and North America, we gained insights into customer trust patterns. The countries surveyed included Australia, Hong Kong, Metro China, Metro India, and Singapore in Asia Pacific; France, Germany, Italy, Spain, Sweden, and the UK in Europe; and Canada and the United States in North America. Our global findings are as follows:
- Consistent trust levels despite volatility: Consumer trust remains relatively stable even during volatile periods, such as the war in Ukraine, economic turmoil caused by the pandemic, and concerns over artificial intelligence. However, European consumers tend to be more cautious compared to their Asian and American counterparts.
- Increasing trust in professional networks: Consumers are placing more trust in their colleagues and employers, even amidst news of layoffs or mismanagement. In most countries surveyed, trust in employers outweighed trust in colleagues, emphasizing the significance of positive employee experiences and their impact on brand perception.
- Immediate action when trust is broken: Trust needs constant nurturing, as failure to do so can lead to negative consequences. If trust is lost, consumers take action, such as warning others to avoid the company or ceasing business interactions with a long-standing partner due to a single product or service error.
- Financial rewards for trusted brands: On the other hand, trusted companies are rewarded by consumers. Consumers demonstrate loyalty to trusted brands by continuing to do business with them, making them the preferred choice over competitors.
Regional Trust Dynamics
Each country possesses a unique cultural fabric that influences citizens’ willingness to trust others and organizations. Our 2023 data shows distinct regional patterns in consumer trust:
- Optimistic view in APAC: Consumers in the Asia Pacific region, especially in Metro China and Metro India, exhibit a higher baseline of trust compared to their European and North American counterparts.
- Less faith in institutions in Europe and North America: European and North American consumers demonstrate lesser trust in institutions compared to friends and family. For instance, a significant difference exists between Chinese and Singaporean consumers who believe that social media companies fulfill their promises, compared to Canadian, French, and German online adults.
- Privacy regulations and data protection: While data privacy is a global concern, our analysis indicates that regions with stricter privacy legislation tend to be more vigilant against surveillance but do not prioritize individual data privacy. Notably, less than thirty percent of European countries (excluding Italy) are comfortable with companies sharing and selling their personal information, whereas Metro India has a higher acceptance rate. However, respondents from Metro India utilize more privacy tools to protect their online privacy.
This post was written by Principal Analyst Audrey Chee-Read and it originally appeared here.
About Forrester
Forrester is a leading research and advisory firm that empowers leaders across various functions like technology, customer experience, digital, marketing, sales, and product to achieve growth through customer obsession. Our insights are derived from annual surveys of over 700,000 consumers, business leaders, and technology experts worldwide, complemented by objective research methodologies, real-time feedback votes, and the collective wisdom of our clients. Visit our website or follow us on Twitter and LinkedIn for more information.
