Every year, research is published on the state of brands in
Canada, analyzing which have gained in status and which have dropped from the “best-of”
lists. Here’s a summary of a recent Ipsos report’s key findings and
observations about the state of brand reputation in Canada, based off research
from September 2017.
The Ipsos report, Unlocking
the Value of Reputation: The Definitive Link Between Corporate Reputation and
Better Business Efficiency, dives
into the importance of reputation management in influencing consumer
decision-making. Brands are important for enabling businesses to actively
manage their reputations to grow both consumer trust and benefit of the doubt –
and to drive consumer action. Why? According to Ipsos, 87% of people globally use
a company’s reputation in some way to help them make purchase decisions.
Trust is an extremely important factor in building a strong,
positive reputation. When customers trust a company, they are more likely to
hear it out in challenging situations.
·
In general, 24% of Canadians are “definitely
willing” and 48% are “probably willing” to believe companies in crisis
situations – even when they are not sure if the company is telling the truth.
· But the proportion who are definitely willing to give the benefit of the doubt jumps to 59% when they already trust the organization and the brand.
The concept of trust also applies to a company’s advertising
messages. Consumers are more likely to believe – and act on – a company’s
marketing messages if there is a foundation of trust.
The Ipsos report indicates that
·
73% of consumers who are neutral toward a
company are likely to trust that company’s advertising messages
·
39% of consumers who distrust a company “a little”
are likely to trust that company’s advertising messages
·
Only 18% of consumers who distrust a company “a
great deal” are likely to trust that company’s advertising messages
Beyond receptivity to marketing messages, companies can also
charge a premium for their products and services when they have a trusted
reputation with their audiences. In fact, reputation accounts for 78% of the
difference in consumers’ willingness to pay a premium.
This is where high levels of
trust make an impact – people who are neutral toward a company may be willing
to believe its advertising, but this doesn’t mean they are willing to pay a
premium for the company’s products or services. When customers trust a company,
not only are they more likely to believe advertising messages and pay a premium,
but they are also more likely to feel good about using the product or service.
Fostering a trusted brand reputation is the most efficient
and cost-effective tool an organization can use to influence its audiences.
This is true regardless of the size of the organization.
Read our next blog installment, “The Impact of Reputation on
Your Organization – Part 2” for an essential how-to guide for business leaders on
establishing, fostering and growing brand reputation.
Halmyre President Christine Saunders is a marketing consultant to service-based organizations, a strategic advisor to marketing executives and leaders, an entrepreneur and a hobby farmer. In 2014 she founded The Marketing Strategy Group, which has recently rebranded as Halmyre. Prior to this, Christine owned a traditional integrated marketing and communications agency specializing in financial services, public services and not-for-profits. Her education is in politics, ethics and philosophy, and she is a proud Maritimer despite living in Upper Canada today.