Customers don’t trust marketing communications

Customer trust is important; however many customers have the mindset that they are being lied to by businesses.

In fact, 74% of customers believe that brands lie in their marketing communications.

“Brands invest so much in acquiring new customers,” says CEO of Customology, Mark James.

“…yet, they treat them like transactions and a marketing database. Customers are feeling lied to and over marketed to. Brands are not sending authentic messages to their customers which prevents them from activating the path to re-purchase.

“The irony is that their most profitable customer is a returning customer.”

Additionally, the research also reveals:

  • 77% of customers believe that new customers receive better incentives than loyal customers.
  • 55% don’t believe they are rewarded for their loyalty.
  • 63% believe they should be rewarded for referrals.
  • 82% could be tempted by a competitor.

Mr James continues: “It costs a lot more to acquire a new customer than it does to retain an existing one.

“It’s ludicrous that brands are still offering new customers a better deal.”

However, 64% of customers loyal to a brand that doesn’t have a loyalty program.

Customer communications is key

Another mistake present in the survey results, is that 51% of customer did not receive any form of communication after their first purchase.

  • 61% believe that stores are pushy in their marketing communications.
  • 51% believe they are being remarketed to, too often.
  • 48% believe they are being emailed too often.
  • 45% believe that brands are not targeting them in a relevant way.

“It’s like the customer is invisible,” says Mr James.

“Customers feel that when brands do speak to them, it’s a half truth. We were really surprised to hear just how vocal these customers were about how brands engage them.”

This information was gathered by a survey commissioned by Customology, among 2506 Australian consumers.


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