Strong Brands Convert Trust into Cash

The paths to business success are as varied as pebbles on a beach. Each brand’s success story has its unique twists and turns and each one is as colorful as the entrepreneur that founded it. But for all of their variation, the one thing they surely have in common is that they were able to earn the trust of their customers. And customers reward trustworthiness by buying.

Trust is important for every kind of enterprise, but for different reasons. For commodity products like toothpaste or laundry detergent, trust commands higher prices. Trusted brands can charge more because they are including an implied guarantee of quality, consistency or efficacy in their price.

Remember grocery store “generics?” In the 1970s and 80s, in response to a sharp economic downturn, manufacturers started offering these at a lower price, even though in many cases the products inside were the same. They had plain white labels with blue or black lettering describing the product in simple terms –  "Yellow Cake Mix," "Tuna in Water," "Chocolate Flavored Syrup," "Deodorant Soap" – with only the ingredients and preparation details as appropriate labels.

They have all disappeared, replaced by store brands or house brands – lower-priced products that carry the labeling of the store. These sell better because house brands still enjoy a certain level of trust that is derived from the trust that the customer has in the store. Consumers desperately want to trust the brands they buy because lack of trust is so unsettling. Generic labeling implies that no one is taking responsibility for what’s inside. So who can you trust…or blame? 

For products or services new to the market, trust allows a first-time buyer to make that initial purchase, reserving the right to become loyal to the brand if their initial experience supports the claims that were made. Professional services rely heavily on the personal trust between the customer and the provider. The more positive experiences with a brand, the more trust. The more trusted and sought out, the higher the price can go.

But trust also derives from the behavior and attitude of the parent company. For Challenger Brands, doing things that build trust can give the company its competitive edge and lead to its profitability. This is especially true if the behaviors and actions of the company are truly part of its culture and business model. Today’s consumers are pretty savvy and business practices have become much more transparent. Customers can see right through attempts that are simply cosmetic. No longer can companies give lip-service to their responsible employment practices or green-wash their wastefulness. The blogerati are on it!

As you look for new opportunities to grow your business, pay careful attention to areas in which you can instill trust in your products, services and corporate culture. If you succeed, you’ll be making more deposits in the bank.

Andrea Fitting, Ph.D., is founder and President/CEO of Fitting Group, a strategic branding agency that specializes in Brand Spanking® for Challenger Brands. To read more of Andrea’s Challenger Brand advice, visit Fitting Group’s blog at blog.fittingroup.com.

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