Insights

There is nothing more important for companies than gaining the consumer's trust. It is the ultimate goal and the high art of brand management. But on the internet, the promising platform of the future, of all places, this crucial factor for success is in dire straits.

Our study on digital brand management » "Beyond the Digital Hype – wirksames Markenmanagement in der digitalen Welt" (Effective brand management in the digital world) shows: Consumers are quite skeptical about online offers by brand companies. Instead they trust independent online sources, primarily recommendations by acquaintances (38.5 %) and articles in independent magazines (28.3 %).

Facebook brand pages: As trustworthy as TV spots

By contrast, only 4.4 % of respondents consider companies' Facebook pages to be very trustworthy. This puts their trust level nearly on a par with TV, radio, or print ads (3.8 %). For social media managers committed to authentic and transparent communication on platforms like Facebook, this judgement must be a tough blow.
The low trust level also shows in the way consumers research information before making a buying decision: Only one in ten respondents visits a company's or brand's Facebook page, and only half can be convinced to buy by the Facebook page. For comparison: Even banner ads are considered more convincing.

Instead, consumers appreciate advice in (offline) stores most: About 60 % use it, and an impressive three quarters of those decide to buy based on that advice. Consumer reviews in forums, blogs, and social networks are also consulted frequently: Half of the study participants read them and over 70 % of those decide to buy a product based on them.

The brand web site – the low-performing star among information sources

Consumer behavior toward brand web sites is remarkable: On the one hand, it is the source of information most often used by consumers for making buying decisions – even more often than recommendations by a friend. But only 57 % of them decide to buy based on the information they find there.

That means: The web site is the star among information sources – but it has very little power of conviction. Brand enterprises should therefore take a good hard look at their web sites – there could be great potential for brand communication here.

The low trust levels shown by the study illustrate that brand managers are not sufficiently addressing consumer demands for transparency and openness on the web. To do so, they have to bid a firm farewell to the idea of manipulative illusions marketing, because every lie is revealed on the social web.

We are witnessing the end of the classic PR show and no-substance lifestyle ads! Or, to put it another way: The internet is teaching companies how to behave.
How should brand enterprises proceed online?

Companies have to shine on the web with proof of performance, and not – as they have been doing – with iPad giveaways. They have to manage the reputation of their brand resolutely and consistently and build non-contradictory brand experience chains. They may never promise too much, so that they will never disappoint. Only then will their brands become beacons consumers trust because they provide orientation in the online sea of possibilities.

You can access our » study on digital brand management free of charge on our study information page. We have introduced our eleven core insights in a video.