Page 14 - Retail World Tob - May 2020

NEWS ENSURING BRAND TRUST AFTER COVID-19 New research outlines the biggest drivers of brand trust in the ‘new normal’ and how consumers want to be engaged with. Brand actions in a time of crisis will have a major impact on brand trust for almost two thirds of Australians, according to new research from Qualtrics. Only eight per cent of survey respondents said brand actions had no impact. With lockdown measures continuing to impact how brands position themselves in the market, the study revealed that more than 80 per cent of people surveyed believe it’s important for brands to take care of their employees and customers, and to not take advantage of the crisis to maximise profits. A similar sentiment showed when respondents were asked what behaviour increases trust during the crisis. Taking care of employees was the top ranked trust builder (43 per cent of respondents), followed by not taking advantage of a crisis (43 per cent), and taking care of customers (40 per cent). What respondents found less impactful included messages of hope and optimism (13 per cent) and statements about strong moral principles (16 per cent). A third of respondents said that during the COVID-19 outbreak, their trust in the brands they regularly engage with had increased. “Trust has a fundamental role to play as businesses begin to reopen their doors and rebuild operations,” Qualtrics Brand and Research Lead Asia Pacific and Japan Lisa Khatri said. “In these uncertain times, high levels of trust mean consumers can feel confident in choosing to engage with your brand. “While the operational impact of the restrictions is temporary, their influence on consumer behaviour and attitude will be long lasting. Over the past month we’ve seen huge changes in the ways consumers engage with brands, and these will continue to evolve each time restrictions change. “For businesses to remain relevant, they need to keep a pulse on consumer behaviour, drivers of brand preference, and how their actions at each stage can positively influence how the brand is viewed.” Identifying the right message and medium When it comes to brand communications, Qualtrics found that Australians are more interested in the operational impact of COVID-19 compared with sales and promotional marketing. The top three messages respondents wanted to hear were how the business is responding to the crisis (66 per cent), the impact on distribution (48 per cent), and information on products and services (45 per cent). The study findings also revealed how Australians want brands to communicate with them, highlighting a strong preference for tried and tested channels. Email came out on top as the most preferred communication channel (59 per cent), followed by TV advertising (48 per cent), and Facebook (36 per cent). At the bottom of the list were Twitter, WhatsApp (both eight per cent), and TikTok (five per cent). “Social distancing restrictions have limited the ways businesses can interact with their consumers, which means regular and effective communications through traditional channels is critical to keeping people engaged,” Ms Khatri said. “For communications to be effective, however, brands need to find a balance in how often they’re communicating, and the topics being discussed. This approach actively demonstrates the value brands bring to keep their customers’ attention in rapidly changing markets.” 12 RETAIL WORLD MAY, 2020