To command a price premium, brands must focus on trust and actions vs just image
For consumers to be willing to pay a higher price for their products, brands must focus on strong consumer trust and demonstrate action on a breadth of issues, more so than their brand image.
And they need to show this throughout the consumer journey.
With record high inflation, brands are challenged in how to manage their pricing. They must understand their consumers intimately, as behaviors vary. While some consumers may delay their purchases or trade down to lower priced options, there are others that are willing to pay a premium for what they want.
So, what does it take to have loyal consumers that are willing to pay more?
Edelman’s new research (Jun’22) on Brand Trust, has good data:
₪ Some brands are worth paying more for — even if two products are almost identical when it comes to their features, results, and customer service — because…
o 59% say They have Earned My Trust
o 57% the Good They Do in the World
o 47% of their Cachet or Image they convey
₪ Brand’s must visibly demonstrate their values and stands across the full Consumer journey, including when people are making purchases — not just on social media.
o 57% agree – “Brands should make it easier for me to see what their values and positions on important issues are when I am about to make a purchase”
₪ Brands must act on issues across their full business – not just those affecting customers. The top Issues where people believe brands are “obligated to take a stand” are:
1. 60% agree – affect its employees
2. 59% affect its customers (up from 50% in 2017)
3. 56% relate to the use of its products
4. 55% relate to how its products are made
5. 55% relate to the brand’s core values
The importance of building brand trust is critical. And what consumers expect from brands is widening. A lot of this is being driven by younger generations, but older have increasingly aligned values.
Do you know your consumers and shoppers intimately? What are your critical journey touchpoints where you must demonstrate trust and your actions?
Edelman Trust report: https://www.edelman.com/sites/g/files/aatuss191/files/2022-06/2022%20Edelman%20Trust%20Barometer%20Special%20Report%20The%20New%20Cascade%20of%20Influence%20FINAL.pdf