The cost of trust

There is no question that trust matters. Trusted companies have more loyal customers and advocates, they’re more likely to receive institutional investment, their employees are more engaged and they’re more likely to outperform their respective sectors. This is according to the 2022 Edelman Trust Barometer Special Report, an annual trust and credibility survey that examines how business, media, government and NGOs must work together, innovate and lead society in addressing the challenges of our time and break the vicious cycle of distrust.

The report reveals that both globally and in SA Generation Z (aged between 14 and 26) is the most influential age group in terms of content creation and influencing how we consume that content. In South Africa, Generation Z is influencing what we buy, how we create change and what the work culture and financial behaviour are.

The report also reveals a number of interesting South Africa-specific insights, including that 86% of Generation Z respondents say they are more concerned about South Africa than they are about themselves. 

Societal issues are having an effect; 63% say rising inflation is affecting their brand choices while one in three respondents say they are boycotting brands still doing business in or with Russia. More than half the respondents in South Africa agree that brands are better partners for change than the government, although in many cases brands can do more to solve social ills and societal problems.

Two out of three Generation Z respondents say they buy or advocate for brands based on their beliefs and values and more than half say brands should make it easier for consumers to see what their values and positions on important issues are when the consumers are about to make a purchase.

Respondents say brands must take action on a range of issues across their businesses, including those that affect their employees and customers, are associated with the use of their products or how their products are made and relate to the brand’s core values.

At the same time, what a brand stands for must be evident in their actions both in terms of what they do (63%) and what they say (62%).

More than half of the South African respondents say if they don’t trust the company behind the brand they will soon stop buying it.

The barometer reveals that in SA, trust and brand action are more likely to command a premium than brand image. Even if two products are almost identical when to comes to their features, results and customer service, some brands are worth paying more for because they have earned consumer’s trust (67%) or because of the good they do in the world (61%). Only 48% say they are prepared to pay a premium because of the cachet or image they convey.

The majority of respondents say they are more likely to buy or use a brand that publicly supports and demonstrates a commitment to human rights (75%), health-care access (72%), racial justice (74%), gender equality (69%) and climate change (64%).

The report says brands can earn trust through a cascade of influence. Pointing out that Generation Z is the tipping point for action, it advises that if brands can activate this generation it tends to shape the behaviour of everybody. “Don’t make the mistake of thinking Generation Z isn’t your target. Plan and design for Generation Z to unlock action and activism at scale among older generations,” it says.

Secondly, it suggests building inside-out activism. “Brands are shaped as much by employee culture as by consumer demand. Don’t just take care of your employees; give them something to rally around. Activate them as advocates of your mission and business.”

Thirdly, the report advises using chief marketing officers (CMOs) as trust catalysts. “Marketing isn’t vertical, it’s horizontal. CMOs must collaborate with the C-suite to influence a broader set of issues beyond advertising alone.”

Lastly, the report says the marketing funnel has been upended and that brands that don’t act, don’t even make the consideration set. “Brands can’t just talk any more. They must act to earn trust and influence.”

The big take-out: In SA, trust and brand action are more likely to command a premium than brand image.