Truspilot 5 trends that will define the future of fashion

Trustpilot 5 trends that will define the future of fashion

A survey from London Research and Trustpilot has shown that fashion shoppers are more cautious on spending this year, and are also acutely aware of the need to buy items from fashion brands with strong ethical and sustainability practices.

[London Research](https://www.londonresearch.com/) and Trustpilot's latest international survey has shown that not only are fashion shoppers more cautious on spending this year, they are also acutely aware of the need to buy items from fashion brands and retailers with strong ethical and sustainability practices.

Fashion brands and retailers now have an opportunity to reach out to consumers who are actively seeking to shop from companies that are kind to the people working in their supply chains, as well as the environment.

Those seeking to market themselves to modern shoppers need to listen to what consumers have revealed they are looking for in sustainable and ethical brands, as outlined in this research.

### Five key trends that will define the future of fashion brands

__1. Four in five customers are led by ethics__

Size and fit are not the only priorities. Fashion brands and retailers need to be aware that treatment of workers across their entire supply chain and environmental footprint are now a vital part of a customer’s purchasing decisions. 

More than four in five customers (82%) reveal they would definitely (31%) or probably (51%) stop buying from a brand found to be lacking ethical standards. 

__2. Shoppers are cautious on spending__

The recession looming over the global pandemic is shaping fashion spending habits. Just under three-quarters of consumers (72%) are spending less or the same as they did before.

As befitting markets where many are working from home, casual clothing and leisurewear is the category with the highest proportion of consumers having increased spend (21%). This figure is nearly double that seen in formal wear or luxury items.

__3. Fashion shoppers trust reviews and each other__

Consumers are eager to seek out fashion brands and retailers with solid ethical and sustainability strategies.

They are getting advice on which brands meet these criteria from many sources, but they trust each other above all else – 89% of consumers have a high or medium trust level in word of mouth and 85% in ratings and reviews.

The levels of high trust placed in word of mouth and reviews are two to three times greater than other sources, such as magazines, advertising and brand websites. The least trusted source is celebrity influencers. People are three times as likely to highly trust ratings as they are a well-known figure touting a fashion product on social media.

__4. Fashion shoppers are acting on a brand’s ethical record __

The research found brands must not think of ethics as an issue to be addressed in the future. Shoppers are already acting on their concerns right now. More than half (54%) of consumers say that coverage of working conditions and sustainability policies has influenced where they buy, or don’t buy, fashion items.

Nearly as many (41%) have been steered by coverage of a fashion retailer’s diversity and inclusivity policy and 33% by a brand pretending to be ethical but not backing it up with real action (‘slacktivism’).

Given that consumers trust word of mouth and customer ratings three times or two times (respectively) as much as the media, savvy brands should realize the need to communicate how their ethical and environmental strategies match the modern shopper’s concerns. This way, those credentials are more likely to be reflected in customer conversations and ratings.  

__5. Brands can tap into consumers’ ethics and sustainability wishlist__

Customers have revealed what they want to see from fashion brands and retailers. Joint top spot (46% each) goes to a commitment to good working practices throughout the supply chain as well as to environmentally-friendly packaging. A recycling service (41%) was just behind in third place.

Feeling inspired? Let's dive in!

## Introduction – cautious consumers tell brands their values are more important than discounts

Consumers are changing their mindset and behavior when it comes to buying clothes, and the effects are set to be profound for fashion brands and retailers.

The national and local lockdowns caused by the coronavirus pandemic have accelerated a change in attitude among shoppers to be more caring for one another and the environment. Communities have come together to fight a common foe and taken stock of the values they find important to them, which they want to see reflected in the brands they buy from.

This prompted London Research, in association with Trustpilot, to ask fashion consumers in the UK, the US, France, the Netherlands, Italy and Sweden to reveal the importance of brand values around issues such as sustainability, working conditions and diversity. What principles do they expect fashion brands and retailers to live up to? 

Just as importantly, how do they know they are truly committed to these causes, and whom do they trust in making those judgement calls?

### Sustainability over discounts

[Research from McKinsey](https://www.mckinsey.com/industries/retail/our-insights/survey-consumer-sentiment-on-sustainability-in-fashion) has already shown lockdown has forced fashion consumers’ priorities to change. They now place the welfare of employees and supply-chain workers, as well as protecting the environment, way ahead of being offered promotions and discounts.

This points to a significant change in consumer priorities, according to fashion writer Olivia Pinnock. She has created a series of events, called [The Fashion Debates](http://www.thefashiondebates.com/), through which the industry can come together to discuss how to clean up an industry with a poor record on worker conditions and sustainability.

“We had the sweatshop scandals of the ‘80s and ‘90s but the issue seemed to have been swept under the carpet,” she says.

“Now, though, we’ve got a generation who realize they can’t ethically buy a T-shirt for £5 when there are so many people in the supply chain to pay. There are also a lot of executives who are pushing for real change because they have been shocked by the industry’s record and don’t want to be a part of it any more.”

Pinnock believes the push for change is real and is relying on changing attitudes among shoppers. However, there are two major challenges.
“Fast fashion’s cutting corners on worker rights and the environment has got us all used to cheap clothing,” she explains.

“It’s skewed our perception of cost. Then there’s availability. The vast majority of clothes, outside a pandemic, are bought in stores and it’s only the big chains, who are highly competitive on price, that can afford to roll out chains of shops in every town.”

### Consumers are cautious on spend

It is not surprising that in the midst of the global coronavirus pandemic, the majority of respondents are not spending more on fashion. Instead, they are maintaining previous spending patterns or cutting back. 

On average, 28% of respondents say they are spending more. That leaves exactly a quarter who are spending the same amount as before (25%) and nearly half (47%) who reveal they are cutting back (Figure 1).


Figure 1: How has the coronavirus pandemic impacted your overall monthly spending on fashion and clothing products?

As shown in Figure 2, the standout category for increased spending is casual and leisure clothing (21% of consumers), nearly double the percentage of respondents spending more on luxury apparel (11%) and significantly more than the proportion of consumers increasing their outlay on smart clothes (13%).

Across all international markets surveyed, those going through lockdown and social distancing measures have clearly been prioritizing comfortable attire for home use over spending on formal clothes for the office or expensive luxury items for big nights out.


Figure 2: How has the Covid-19 crisis impacted the amount you’ve spent on the following types of fashion and clothing products?

- Consumers in the US are more likely than those in other countries surveyed to be increasing their spending on casual clothes (28%), footwear (20%), smart fashion (20%) and luxury products (15%) (Figure 9, see appendix).
- The UK, on track to have its worst economic downturn on record, leads the way for the most cautious shoppers. Just over a fifth (22%) reveal they’ve been cutting fashion spending by more than half (Table 1, see appendix).

### More careful? Or more thoughtful?

Consumers are clearly cautious when it comes to fashion spending. It will become clearer when the developing global recession caused by the global pandemic eases whether this is an economic decision or an environmental choice.

Dialing down consumption is what Olivia Pinnock refers to as ‘the elephant in the room’. In addition to looking out for fair trade labels and commitment to ethical and environmental standards, she believes modern consumers will soon realize they need to buy fewer clothes.

It is a message echoed by Laurel Wolfe, VP of Marketing at deferred payment platform [Klarna](https://www.klarna.com/).

“The pandemic has made us all think carefully about how, where and why we shop - whether that's online instead of in-store, or with smaller, local brands.” she says.

“For us, this has meant helping people be mindful consumers, to ensure they buy items they will truly use and love. We have been running campaigns, particularly with thought influencers, echoing the money management advice on our site and asking shoppers to ‘think thrice’. Do I love it, will I use it, is it worth it?” 

The message underlines how the market is evolving to row back from the days of fast fashion by being more considerate in how workers in the supply chain are treated and mitigating the industry’s impact on the environment.

## People trust ratings and each other, not celebrities and magazines

People are clearly cautious about their spending, given the massive uncertainty hanging over the global economy. With budgets curtailed, consumers are looking to make sure the items they buy are right for them. This no longer means right look, size and price.

As shown through our survey, customers are attracted to brands that share their ethical values and are kind to their workers and the planet.
With ethics, sustainability and environmentalism playing a large part in purchasing decisions, who are people trusting for guidance on purchasing decisions?

Here, the research provides a resounding answer. Consumers trust one another. Word of mouth from friends and family is the most trusted source, with 44% rating their trust level as ‘high’. Consumer ratings and reviews (36%) is a close second (Figure 3).


Figure 3: How would you describe your level of trust in the following sources of information when you are researching fashion products and retailers?

In all, 89% of consumers have a high or medium level of trust for word of mouth compared to 85% for ratings and reviews.

The two categories are two or three times as highly trusted as other high-profile sources of fashion information, such as magazines, advertising and social media.

Fashion is an industry filled with well-known designers, models and celebrities who are reported on daily for what they are wearing. However, a key takeaway from the research is that celebrity influencers are poorly trusted as a source of information by nearly two in three consumers (63%).

The research could not be any clearer. Consumers want to make the right decision on fashion, for fit, price and look as well as sustainability and ethics. When it comes to making these decisions, they trust one another’s spoken advice or ratings much more highly than the world of social media and advertising where brands pay a fortune hoping to be noticed.


The Savile Row Company website, displaying the company's Trustpilot rating. This research shows that ratings and reviews, along with word of mouth, are the most trusted sources of information.

The Savile Row
Company website,
displaying the
company's Trustpilot
rating. This research
shows that ratings
and reviews,
along with word of
mouth, are the most
trusted sources of
information.

- The US and Italy stand out as the markets where reviews are most highly trusted (43% of consumers) (Figure 10, see appendix).
- Sweden and the Netherlands show the highest trust for word of mouth, for nearly half (49% and 48%, respectively) of consumers (Figure 10, see appendix).

## Customer loyalty depends on ethics

Everyone needs clothes and it is fair to say that the driving force in purchasing decisions will depend on garments matching an individual’s sense of style and budget. Increasingly, however, image and price point are being joined by a new criterion. Customers want to know a business shares their values.

More of us want to know a business is run ethically and that it tries its best to ensure people in its supply chain are treated with respect and paid properly, while attention is paid to sustainability.

One of the major takeaways from this research is that more than four in five customers (82%) would either ‘definitely’ (31%) or ‘probably’ (51%) stop buying from a brand that was found to lack ethical standards (Figure 4).

Figure 4: Would you stop buying from a brand or fashion retailer you knew to be lacking ethical standards?

The finding should serve as a warning to brands who have yet to put ethics at the heart of their brand strategy. While nearly a third would definitely withdraw their business if non-ethical practices were discovered within the business or wider supply chain, half of the market would consider it.

This is not only a hypothetical question. For any fashion brand wondering when the market will evolve to a point where bad press around their ethics will lose them customers, the answer is we are already there.

More than half of consumers (54%) say that coverage of working conditions and sustainability policies has influenced which brands they buy or don’t buy fashion items from (Figure 5). Nearly as many have been steered by a fashion retailer’s diversity and inclusivity policy (41%) and 33% by a brand pretending to be ethical but not backing it up with real action (‘slacktivism’).


Figure 5: Has positive or negative coverage relating to any of the following issues impacted where you buy (or don’t buy) fashion and clothing items from?

Sophie Slater, who co-founded online women’s ethical fashion business [Birdsong](https://birdsong.london/), is not surprised by the findings. The company’s workers in London are paid the London Living Wage to produce garments made from organic cotton which are packed by a charity supporting adults with learning difficulties. Protecting staff from Covid meant closing down production, which has relied on customers accepting delays in deliveries because ethical fashion is not fast fashion.

“We’ve seen fashion businesses talk about sustainability for the past few years but the last year or so has definitely seen a rise in people thinking about ethics,” she says.

“People have seen how workers are treated in sweatshops in Leicester (in the UK) by well-known brands… there’s been a lot of bad press for fast fashion. We rely on good press and social media to get our message out to people who are motivated by social inclusion and treating people ethically and so will pay a little more for clothes made by people paid the London Living Wage.”

- Italy is the clear leader in customers making decisions based on media coverage (Figure 11, see appendix). More than three in four have been influenced by stories about a brand’s ethics (79%) and working conditions (77%). Perhaps this is a result of the country being the EU’s biggest producer of clothing so environmental impact and working conditions are factors that are far closer to home for Italian shoppers.

## Trust – winning over the ‘moderately trustful’ half by being kind to workers and nature

The good news for the industry at large is that more than a quarter of consumers (28%) have a ‘very’ (9%) or ‘quite’ (19%) high level of trust in fashion brands and retailers in terms of their ethical standards (Figure 6).

The bad news is this is negated by a quarter of the market (26%) which has a ‘very’ (7%) or ‘quite’ (19%) low level of trust. This leaves almost half of consumers (46%) sitting on the fence, with only a moderate level of trust in the industry.

Figure 6: How would you describe your level of trust in fashion brands and retailers in terms of their ethical standards?

With a quarter of the market trusting the industry and a quarter not trusting it, the battleground is clearly winning the hearts and minds of the remainder who are fairly neutral.

Given that four in five respondents have also revealed they are ready to dismiss a brand which treats workers or the environment disrespectfully, the focus should be on convincing customers with a moderate level of trust that a brand is truly committed to treating its workers and the planet with respect.

There are some novel ways of improving trust being deployed at eco-friendly fashion brand [SANVT](https://sanvt.com/) (which means gentle on nature in German). The company’s Head of Marketing and Co-Founder, Benjamin Heyd, reveals the company is dedicated to working with suppliers who use organic cotton and do not use toxic chemicals in the dyeing process. To underline the point, they have an unusual approach to transparency and promotions.

“We keep our environmental impact low and our ethical standards high by using a factory in the EU, in Portugal,” he says.

“We offer a virtual tour of the factory so people can see for themselves the high standards we adhere to. We also don’t run sales promotions, we just offer to plant more trees within our carbon offsetting program when people buy promoted items. I don’t think we’re quite at the point yet where sustainability is the most crucial part of a customer choosing a brand, compared to the design and fit of clothing. However, in the long term, we are definitely getting there and brands will soon need to be able to show consumers they are eco-friendly and ethical.”

- Sweden and the Netherlands stand out as the markets with the lowest opinion of fashion brands and retailers. In each market, only 4% trust them highly. France is close behind with a high level of trust reaching just 5%.
- The US has the biggest level of ‘very high’ trust in fashion brands and retailers at 14%, backed up by a 20% level of ‘quite high’ trust.
- Overall, Italy is the most trusting nation, with more than a third (39%) of consumers having ‘very’ (8%) or ‘quite’ (31%) high trust levels.

## Customers need ethical and sustainable fashion brands

It is clear today’s fashion customer is starting to look for more than items that suit their style. In particular, they are committed to avoiding brands found to be acting in a non-ethical and unsustainable way. They are also expecting brands to embrace diversity and inclusivity.

So, what does this mean in practice? What are the strategies, commitments and services modern customers are looking to see more of in the future from fashion brands and retailers? When allowed to suggest three proof points that companies are walking the proverbial walk, what do they pick out?

Joint top, for nearly half of respondents, was commitment to good working conditions throughout the supply chain (46%), along with environmentally-friendly packaging (also 46%). A recycling service (41%) comes in third place, with clothes made from recycled materials (38%) and initiatives aimed at reducing the carbon footprint (36%) completing the top-five wishlist (Figure 7).

Methodology note: Respondents could select up to three options.

Figure 7: What three things would you like to see more of in the future from fashion brands and retailers?

For menswear brand [The Savile Row Company](https://savilerowco.com/), it is not a major surprise that environmentally-friendly packaging tops the list, alongside ethics. 

Marketing Director Lee-Anne Harris reveals the business has replaced plastic with biodegradable and potato starch bags, with shirt collars and shoulders held in place by paper fasteners rather than the traditional plastic clips.

“The data we’re getting from our Trustpilot reviews shows customers are reacting well to orders arriving in recyclable paper packaging and a biodegradable bag,” she says.

“We didn’t ask customers first; it was just a no-brainer for us because it’s how we want to live and we were pretty sure it’s how our customers want to live as well. It’s more a question of why wouldn’t you? It’s just a base level of decency.”


The Savile Row Company has replaced plastic packaging (left) with a recyclable paper bag (right).

Despite the uptick in positive reviews, Harris confirms recyclable packaging is still a feature that customers appreciate rather than demand as standard. However, she believes it is only a matter of time before customers “truly hold fashion companies to account for their record on plastic waste”. Hence it makes sense to be prepared in advance.

- American customers are way ahead of their European counterparts on the values they want to see from fashion brands and retailers which did not make the top-five list above (Figure 12, see appendix). These include working with charities (35%), offering inclusive product ranges (27%), ensuring diversity in advertising (26%) and taking a stance on social issues (24%).
- It is likely a result of the deep social issues Americans are examining in the year the Black Lives Matter (BLM) movement gained massive national, and global, traction. Support for brands taking a stance on social issues, including BLM, is more than twice as high in the US as it is in all other countries surveyed, other than Italy.

## How brands can embrace ethics and sustainability

They know their size, they know their style and they have a good idea of what they are starting to want to see from fashion brands and retailers. But what indicators are customers looking for to find out if a brand shares their values on treating people and the environment with dignity and care?

The challenge for companies is there is no single standout attribute consumers are seeking out. Instead, there are four key drivers of trust which are being actively sought out by a little over half (58% and 59%) of fashion shoppers (Figure 8).

Respondents reveal transparent values and policies, fair trade badges and certification, on-site and off-site ratings and reviews are equally as important, on average.


Figure 8: Do you look for any of the following to give you confidence that you are buying from an ethically responsible fashion brand or retailer?

These are areas high on the radar for luxury online fashion retailer [FARFETCH](https://www.farfetch.com/). Its Director of Sustainable Business, Thomas Berry, explains the fashion brand not only helps customers make more ethical and sustainable purchases, it also has reselling schemes to extend an item’s life.

“As part of Positively FARFETCH, we have an extensive Conscious collection which customers can shop, using either filters, or our dedicated edits, to ensure they’re getting items that meet good independent sustainability standards and certifications,” he says.

“We also have two service offerings that help our customers extend the life of unused clothes. FARFETCH Second Life is a resale service, where customers submit their old hand-bags, get a price quote, we arrange a pick-up slot and, once the item is verified, the quoted price is added as a credit to their FARFETCH account.

“We do the same with our FARFETCH Donate service, where a customer fills a bag with any fashion item they no longer want, the items are sold in aid of their chosen charity, and customers get a third of the proceeds as FARFETCH credit. In both cases someone else gets to enjoy the items so everyone’s doing their bit to help the environment by reducing overall consumption of 'new' items."

The proof that customers are now looking to make more sustainable and ethical purchasing decisions comes from Berry revealing that the Conscious range is growing at a significantly faster rate than all other sales through the site. Additionally, across the industry, he estimates new clothes sales are predicted to grow at most around 3% whereas clothing resale growth is in the 15%-30% range.

## Conclusion

The primary motivators in fashion will likely always be the look, feel, design and price of an item. However, there is a growing consideration to filter fashion brands and retailers according to their action on sustainability and ethics.

This was always bubbling under the surface but it would appear the global pandemic has prompted consumers to take stock of what is important and to value brands who treat their workers and the environment with care and respect.

Research coordinated by Cardiff University found, for example, that the proportion of Britons who believe tackling climate change is urgent rose from 62% to 74% between August 2019 and August 2020. Additionally, nearly half the UK population (47%) is now vowing to fly less than before once restrictions are lifted. In the US, media reports have suggested taking a step back from the daily grind of driving to work has seen air pollution drop by 30%.

These issues should resonate with fashion brands and retailers, given that four in five consumers reveal they would not shop with a brand that lacked ethical and sustainable values. Hence, half of consumers have already revealed they have avoided fashion companies that have received poor media coverage over their ethics and sustainability record.

__Consumers have spoken clearly. They want brands to:__

- Treat workers throughout their entire supply chain fairly
- Produce clothes without damaging the environment
- Use recyclable packaging
- Embrace recycling schemes which extend garments’ lives
- Work hard on carbon reduction measures
- Operate according to transparent brand values

These are the action points fashion brands and retailers need to embrace to win over the half of the market that currently only trusts the industry to a moderate degree and the quarter which does not trust them at all.

When it comes to trust, they need to remember fashion shoppers highly trust one another’s advice and online reviews two to three times as much as glossy magazine articles, social media and advertising. As for celebrity influencers, these are the least trusted source available to fashion marketers.

The message is clear. Consumers want to see sustainable and ethical fashion, and they place their trust on which brands match these values in word of mouth and reviews, not the media and most definitely not on what celebrity influencers are paid to say.

If you'd like to find out more about Trustpilot, and how social proof can help you build trust with consumers, request a free demo below.


### Methodology

London Research was commissioned by Trustpilot to carry out surveys of 2,800 nationally representative consumers across the UK (n=1,000), US (n=1,000), France (n=200), the Netherlands (n=200), Italy (n=200) and Sweden (n=200) in September 2020.

The research was conducted using a Toluna research panel. London Research also carried out a series of interviews for this report.

### Acknowledgements

London Research and Trustpilot would like to thank the following people for their help in compiling this report:

- Thomas Berry, Global Director of Sustainable Business, FARFETCH
- Lee-Anne Harris, Marketing Director, The Savile Row Company
- Benjamin Heyd, Head of Marketing and Co-Founder, SANVT
- Olivia Pinnock, Fashion Writer and Creator of The Fashion Debates
- Sophie Slater, Co-Founder, Birdsong
- Laurel Wolfe, VP Marketing, Klarna

Why ethical fashion brands are future-proof

Health-and-Beauty-Hero - smaller

Combating misinformation in the health and beauty sector

Buying the right health and beauty products can be a minefield at the best of times, with consumers wasting millions each day on health and beauty products that are counterfeit, substandard and in many cases bought on the basis of fake reviews. 

## The cost of fake reviews and counterfeits

The harsh reality is that the products may well be counterfeit. This means customers have not only wasted hard-earned money on a fake product, they could also be risking their health.

If you need to get a hook on why people should be concerned about fake health and beauty products, a good place to start is the Netflix documentary ‘[Broken: Make-Up Mayhem](https://www.netflix.com/title/81002391)’.

In the show, police investigators and doctors list the heavy metals and carcinogens they have found counterfeiters use to create cheap copies of expensive ingredients. At one level, these cause skin diseases, such as dermatitis, impetigo and pustules. At the other extreme, heavy metals can cause fertility issues and lead to miscarriages. One interviewee revealed how a counterfeit Kylie lipstick got its shiny appearance from superglue which stuck her lips together.

### COVID-19 exacerbates the problem

Covid-19 is raising the stakes, considerably. Legitimate businesses and industry experts know that regardless of what is happening to the economy, consumers still want to feel good about themselves. When official outlets they trust run out of stock, as global supply chains come unstuck, even savvy consumers can be tempted to check out online stores they may not totally trust.

Wellness and beauty industry influencer and ITV This Morning guest presenter, Gina Akers, has warned of the dangers of counterfeit products on BBC’s ‘Fake Britain’ television show. She believes many consumers, especially young people, want to look like their favorite celebrity, but cannot afford the high-end prices required. When you add reputable stores running out of stock, you have a counterfeiter’s dream scenario.

*“The big issue is the celebrity influencers have their own lines of cosmetics which are high end and are prone to running out of stock, particularly with the supply problems around coronavirus,”* she says.

*“Young people wanting to look like these celebrities are sorely tempted to get something cheaper from somewhere online that claims to have stock. But they’re often fake and, even worse, they have been made in unsanitary conditions. My advice is that if it’s too good to be true, it probably is. Always buy from a reputable store.”
*

### Market overview: spending is up, so is waste

The [coronavirus pandemic](https://business.trustpilot.com/reviews/learn-from-customers/consumer-behavior-in-the-age-of-coronavirus-global-review-trends-by-industry) has prompted a significant leap in spending in the health and beauty markets. According to our research, 59% of US consumers and 55% of UK consumers say they are spending more on health products due to the coronavirus crisis.

Around a quarter of survey respondents in both markets (26% in the US and 25% in the UK) reveal they are spending more on beauty. As seen in Figure 1, almost half of those consumers spending more on beauty across both markets suggest the extra spending is rooted in wanting to treat themselves (45% in the US and 51% in the UK).



Why consumers have bought more health and beauty products as a result of lockdown and the coronavirus pandemic.

Figure 1: Why consumers have bought more health and beauty products as a result of lockdown and the coronavirus pandemic.

In unprecedented times, both American and British consumers (42% and 40%, respectively) are spending more because they fear that stocks could run out if they do not make a pre-emptive purchase and there is clearly a desire under lockdown to stay healthy and feel good about oneself through a treat purchase.

Consumers are also spending more because salons are closed (45% in the US and 35% in the UK).

In the health category, both markets are clearly showing the impact of the coronavirus pandemic and subsequent lockdowns. The most popular products so far this year have been hand sanitizer and soap, with pain relief, vitamin supplements, and prescription and over-the-counter medicines following closely behind (Figure 2).

Figure 2: Which health-related products have you bought since the start of this year?

A third of consumers in the UK and around two in five in the US had already bought plastic gloves and face masks when our survey was carried out in April. This is a new market for both countries which have no tradition of wearing face coverings in public, unlike some parts of Asia. This category will continue to grow as lockdown measures are relaxed, the use of face masks becomes increasingly recommended or enforced, and anxious members of the public return to busy public areas, particularly on public transport.

In beauty, hair and skin care are the most popular categories for spending so far this year in both the US and the UK, with bathing accessories, foot, hand and nail care, fragrances and makeup not far behind (Figure 3).

Which beauty products consumers have bought since the start of the year

Figure 3: Which beauty products have you bought since the start of the year?

The closure of retail outlets has led to an increase in online sales for health and beauty products

The closure of retail stores due to coronavirus has led to an increase in online sales, especially for health and beauty products

The closure of retail stores has led to an increase in online sales

According to Meghan Stabler, VP of Global Product Marketing and Communications at ecommerce platform [BigCommerce](https://www.bigcommerce.com/), ecommerce spending has increased significantly in 2020 as consumers are forced to rely on digital channels during lockdown.

She said: *“Whether specific to health and beauty, or looking broadly across industries, we’ve seen surges in ecommerce since the start of mass shelter-in-place guidance began in March. Consumer spending online has grown significantly year over year, with some recent days even topping sales numbers from Cyber Week 2019.”*

*“Though we expect YoY increases to remain strong for the foreseeable future – particularly in categories deemed essential like health and beauty – looking at week-over-week trends shows more consistency in sales numbers, indicating that consumers are finding their ‘new normal’ and pandemic panic-buying may be levelling out. We’ll continue to see slight shifts in consumer behavior alongside public health guidance, though one thing has been made crystal clear: ecommerce has cemented its role as a modern-day shopping staple, and will likely serve as a long-term foundation for the way customers interact with brands across channels.”*

The picture that emerges in both the US and the UK is of consumers significantly increasing their online spending on health and beauty products. This is attributable to anxiety surrounding the coronavirus outbreak. Anxious consumers reveal they want to secure favored items as shops are temporarily shut and online suppliers run the risk of running out of stock. As ever in the health and beauty sector, the motivation of a treat purchase is just as important.

### The impact of fake reviews and misinformation

When customers are concerned about trusted online sources running out of stock, there's a high probability they will look to new sources — for both new product suppliers and advice from fellow shoppers.

A third (33%) of American and 29% of British consumers reveal they are more cautious about the products they purchase because of online misinformation relating to health and beauty products (Figure 4). This can include fake or inaccurate reviews, spurious or exaggerated claims about a product’s efficacy and lies about its contents.

Just over half of consumers in both the US and UK (59% and 55%, respectively) feel confident they have not suffered from misinformation, but a further 12% in each country say they are ‘not sure’. This reflects the fact that consumers do not always know with certainty if they have received poor advice.



Figure 4: Has misinformation online relating to health and beauty products made you ore cautious about the products you purchase?

Trust is always a major issue in any health or beauty purchase because, more than any other decision, there is a real risk of not getting the desired result and even accidentally inflicting harm by ingesting a toxic substance or applying it to the skin.

Fake reviews are an everyday occurrence and Ed Saper, Director at [Pai Skincare](https://www.paiskincare.us/?gclid=EAIaIQobChMIlqWyjOvy6QIVGQiICR3hOgDFEAAYASAAEgLlHvD_BwE), believes far more should be done to punish brands who engage in what is called ‘astroturfing’. This is where a company’s own staff or third parties are encouraged to post positive reviews for their products and sometimes negative reviews for competitors.

*“When a major brand got caught ‘astroturfing’ recently, the view we heard back from the industry was that it was bad but everyone’s at it,”* he says.

*“Even when someone big is caught, they don’t suffer. We need big fines to ensure the public knows they are reading authentic reviews because it’s the consumer who suffers from being defrauded and honest companies who risk being squeezed out. It’s against our company policy for a member of staff to review our products. If they talk about us online, they have to be clear that they work for us.”*

But aren’t fake reviews plainly obvious? According to Thomas Vermeulen, Head of Fraud Investigations at Trustpilot, spotting dishonest reviews that don’t represent a genuine experience and deliberately attempt to manipulate consumer perceptions isn’t as easy as it sounds. 

*“One isolated review doesn’t tell much — it’s more about finding patterns and anomalies,” he says. “With that in mind, you should look out for more than one red flag within the reviews. When in doubt, compare reviews with other sources of information and don’t discount common sense — if it seems too good to be true, often it is.”*

He also suggests the following things to look out for. 

- Take note of the spread of scores within the ratings and the span of time in which the reviews were left. An honest company is likely to have both positive and negative reviews in the mix, and if all reviews were posted in a short period of time they might not provide a genuine representation of the business. 

- If a company only has five-star reviews, look at the total number of reviews a company has and their recency to make sure you harness the wisdom of the crowd and not just a select group. 

- Within those reviews, are you able to identify patterns or recurring structures? If the reviewer mentions the name of the business a number of times, or if it reads more like marketing collateral than a consumer experience, those could be red flags.

- Are the reviews invited or left organically? If all positive reviews are invited and the negative reviews left organically, this might suggest a biased invitation process. 

These are just a few ways to identify dishonest reviews. Lastly, Vermeulen recommends evaluating the company in question’s website and overall presence as a brand outside of reviews. *“Reviews are just one piece of the puzzle when it comes to a company’s trustworthiness,”* he says. 

### Consumers place trust in reviews

With only half of consumers feeling confident they have not been duped by online misinformation around health and beauty products, whom can the market look towards for sage advice? Whom can the public trust?

It turns out consumers are digitally savvy enough to know that advertising and information shared through social media and messaging apps aren’t always to be taken at face value. Depending on each channel and the market involved, these information sources are only highly trusted by between 10% to 14% of the public (Figure 5).



Figure 5: Proportion of consumers describing their level of trust in information sources as high for health and beauty products

Conversely, customer and expert ratings and reviews are the preferred sources for a significant proportion of consumers despite the issue of fake reviews in the marketplace. In the US, these are assigned the same level of ‘high’ trust (41%), whether they come from consumers or from experts.
The same sources of information are the most trusted in the UK. Britons are slightly more likely to trust experts over fellow consumers (35% versus 29%).

Interestingly, Figure 5 also shows that nearly twice as many consumers in both markets assign a ‘high’ level of trust to consumer and expert reviews as to news articles.

Perhaps even more telling for brands that are built around famous people or rely heavily on them for promotional activities, celebrity influencers are the least trusted channel for information. Digitally savvy consumers probably realize that the rich and famous have endorsement contracts in place and there is a risk their advice isn’t impartial and is limited to the brands they have a financial arrangement with. Such posts will typically feature the #ad (or similar) hashtag.

Both US and UK consumers are significantly more likely (four and three times, respectively), to assign a high level of trust to a rating from a fellow shopper than they are to a celebrity’s words of wisdom.

The clear trust-related takeaways are:

- The public places a significantly higher level of trust in ratings and reviews than in  news articles and retailer websites.

- Retailer websites are trusted only slightly more than advertising. Consumers clearly draw a comparison between advertising and skilled copywriting on a slick website.

- Advertising is only trusted ‘highly’ by around the same proportion of those who trust information shared on social media and messaging apps.

- Celebrity influencers have the lowest level of trust among consumers – two-thirds (67% in the US and 65% in the UK) describe their level of trust in this source of information as ‘low’.


ManCave Trustpilot Reviews

### How can retailers build trust?

As seen in the previous section, the promotional copy retailers have spent a great deal of effort perfecting is only trusted a little more than advertising. Customers are around twice as likely to believe the word of a fellow shopper or expert reviewer than they are the slick words and beautiful photographs on a retailer’s site.

This means reputable retailers need to find a way to show their credentials and prove to the public they are trustworthy and that their products are authentic and work in the way described. Showcasing customer approval stands out as the most effective way to achieve ‘[social proof](https://business.trustpilot.com/guides-reports/build-trusted-brand/why-and-how-social-proof-influences-consumers)’ authentically.
According to Daniel Durose, Brand Marketing Manager at male grooming business [ManCave](https://mancaveinc.com/), the key is to talk about the authenticity of the brand as well as be seen to actively embrace customer reviews.

On the company’s site, the pictures show models and the products in outdoor settings to underline the cruelty-free, sustainably resourced message, backed up with certification from the appropriate bodies, such as Cruelty Free International. However, as Durose points out, people expect a website to convey what a brand wants to show about itself. Where companies can go much further is encouraging reviews and, even more importantly, [engaging with them](https://business.trustpilot.com/reviews/learn-from-customers/5-reasons-why-you-shouldnt-remove-negative-feedback).

*“Reviews are essential for a retailer to show new customers they’re trustworthy,”* he says. *“Trustpilot is the Holy Grail of trust for us but we can’t just rely on good ratings and hide away from occasional unfavorable comments. We want to resolve any issues so we always respond to people and do what we can to help. We find people react really well when they see you take the time to engage with people and resolve issues rather than hide away. It’s a great way of showing you listen and care.”*

Tim Peckover, Content Marketing Manager at brand loyalty business [Smile.io](https://smile.io/), agrees. In his experience, the power of customer testimonials lies not just in what they say about a company’s products, but also the brand itself.

*“Reviews are powerful for health and beauty brands because of the social proof they attach not just to the brand, but to the quality of the products as well,” he says. “In today’s ecommerce world, health and beauty shoppers don’t just look for a fun and engaging brand, they also want products that are going to give them the results they want. Shoppers are looking for health and beauty brands that will become their go-to, and customer reviews show them how loyal other customers already are, and help turn potential shoppers into long-term brand advocates.”*

### Counting the cost of fake reviews

Reviews can represent a two-edged sword. On the one hand, as our research shows, they are the most trusted way for consumers to find out which goods experts and fellow shoppers rate highly.

However, if review systems are not properly overseen, they can provide a means through which an online business can try to appear more popular than it really is. Fake reviews are such a problem that nearly half (47%) of US consumers reveal they have been duped into wasting money on a health or beauty purchase by an inaccurate or fraudulent review (Figure 6).

Our research shows that the average American health and beauty shopper has wasted $39.6 in the past year – 9% have lost more than $100 over the same period.

This equates to 3.7% of their total spending on health and beauty, an industry worth $90bn in the US. That means a staggering $3.3bn is wasted every year due to fake reviews. That breaks down to $275m a month, or $63.5m a week or $9m every day.



Figure 6: How much money have you wasted on health or beauty products due to fake reviews?

Figure 6: (US Respondents) How much money have you wasted on health or beauty products due to fake reviews?

In the UK, more than a third of consumers (37%) have been duped into buying a product on the basis of inaccurate or fake reviews. The average shopper has wasted £19.7 in the past year alone (Figure 7).

This accounts for 3.3% of their spending on health and beauty products, which is a £9.9bn market in the UK. This means fake reviews lead to £327m of wasted expenditure each year, equivalent to £27m per month, £6.3m per week or just under a million pounds (£895,890) every day.


Figure 7: (UK Respondents) How much money have you wasted on health or beauty products due to fake reviews?

For Rebecca Hopkins, Founder of skincare brand [Balance Me](https://www.balanceme.com/), fake reviews are a common way for unscrupulous online retailers to try to hoodwink the public.

*“We find the occasional bad review on our site and third-party sites from purported customers that are difficult to verify and trace and we’re almost certain we didn’t actually sell them anything,”* she says.

*“When we investigate further we often find they can’t prove they’re a customer, even though we always offer to put things right. On third-party sites, such as Amazon, we can often see that they have left similar poor reviews on several other brands and then left a glowing review for a rival, often for a lesser known, non-high street brand. I suspect that there are individuals or businesses out there that provide this kind of service to less scrupulous brands but they are very hard to pin down, yet their comments can be quite harmful in the customer's eyes.”*

Hopkins also highlights the issue of non-authorized ecommerce businesses claiming to sell the company’s stock: *“We also have people using our brand name as a storefront in other markets, usually on third-party platforms. They seem to be able to get hold of some of our stock through the grey market and they then lift photos from our website. It’s very hard to police but we do what we reasonably can to stop it. It seems to be particularly prevalent where we are not actively operating in a specific market, such as America. We can’t be sure it’s definitely our products or not, we don’t know how old they are and, either way, consumers may not be buying from whom they think they are, and they won’t be getting our level of customer service or quality guarantee.”*

This issue is also of particular concern to Sarah Brown, Founder of Pai Skincare. She reveals the company spends hundreds of thousands of pounds protecting its formulas and the look and feel of its products. However, only a global giant, she believes, can afford to protect themselves in every market, regardless of how many sales they make in it.

She believes some businesses are ‘passing off’ counterfeit goods as original. The look and feel of their products and the packaging are copied, but the natural ingredients are not.

*“We have spent a dozen years building up a reputation for certified, natural products which are kind on skin,”* she says.

*“We run our own manufacturing and control our own supply chain to make sure every ingredient is stored and handled properly. Someone passing off our products will not do this and so the end result could well include skin irritants which are usually added to make the product last longer. It’s annoying. It’s damaging to our brand, but it also means people buying the product won’t get what they think they’re paying for and there’s a good chance it will cause skin irritation.”*

### Counting the cost of counterfeits

Wasting money is bad enough but the even more alarming impact of fake reviews for consumers is the purchase of counterfeit or poor-quality goods which damage their health. This risk is heightened when salons and stores are closed and people cannot talk to a professional for advice.

Nearly two in three (64%) American consumers have lost money in the past year by buying fake or poor-quality health and beauty goods (Figure 8). The average loss in the past year has been $43.9.



Figure 8: (US Respondents) How much money have you wasted in the last year because health or beauty products were poor quality or fake?

In the UK, there is a similar picture, with nearly half of consumers (48%) revealing they have bought poor-quality or fake beauty and health products (Figure 9). The average loss was £25.2 in the past year.


Figure 9: (US Respondents) How much money have you wasted in the last year because health or beauty products were poor quality or fake?

It is here that campaigners are particularly worried. Losing money to a counterfeit or adulterated product is one thing, but consumers are risking far more than cash. As Janet Nudelman, Director of the Campaign for Safe Cosmetics, reveals, there are very real risks of people inadvertently jeopardizing their health with these bad purchases.

*“We regularly hear horror stories about what happens when health and beauty products are counterfeited or tampered with using dangerous chemicals,”* she says. *“There was [a recent case](https://www.usatoday.com/story/news/health/2019/09/12/california-woman-coma-after-using-face-cream-tainted-mercury/2300376001/) of a woman in California ending up in a coma because the skin lightening cream she had bought contained mercury."*

*“This is only going to be made worse as the lockdown and recession lead to more stores closing and more people shopping online and buying products they’re not familiar with that could be counterfeit, especially because they can’t see or feel the packaging to get an idea of whether the product is real or not.”*

## Conclusion: social distancing and recession raise the stakes

Covid-19 did not create fake reviews and misinformation that are employed by unscrupulous ecommerce operators to sell counterfeit health and beauty products. Nor is it the sole reason why people waste money and risk their health by using goods of unknown origin.

However, industry experts agree that the lockdown and inevitable global recession have, and will, exacerbate the problem. The unprecedented global pandemic brings with it lower wages and the real risk of reputable retailers regularly running out of stock. This is happening because international supply chains are already strained and some manufacturers are heeding the call to switch production to hygiene products to support communities emerging from lockdown.

The risk goes beyond supply chains being stretched, of course. Consumers are having to make important purchasing decisions without any access to trusted professionals running boutiques. Even when salons reopen, capacity is reduced by social distancing requirements, meaning access to advice is not as available as before.

As Robert Myers, General Manager for Memberships at the Professional Beauty Association, explains, the public has to be vigilant when buying products without the advice of a trusted professional.

*“Consumers must be careful about where they purchase their professional salon products,”* he cautions.

*“Counterfeit products, phishing campaigns, defective inventory and other deceptive business practices are ever-present and a risk when going outside authorized channels. False claims have been an ever-present issue and we recommend seeking the advice of a licensed professional to select the best products and solutions.”*

So, who can the public turn to for advice if stores and boutiques are moving from closure to social distancing measures which restrict the number of people a professional can assist? As international supply chain challenges lead to legitimate online and physical retailers running out of stock, customers run the risk of being conned. Misinformation about a product’s authenticity and efficacy are rife, so too are fake reviews.

The result? Nearly one in two US consumers and just over one in three UK consumers feel they have lost money on the basis of fake reviews and misinformation.

The solution? As our research shows it looks like the public already knows where it can go for advice – reviews from experts and fellow consumers. The digital savvy public understands how ecommerce and online marketing works and it has placed its trust firmly in expert advice and social proof.
This means reviews are not only clearly the most trusted source of information, they’re nearly twice as highly trusted as the news. Retailer websites only have trust levels comparable to advertising. The same applies to social media.

In fact, the public is passing on some social media insight here that an industry so heavily reliant on celebrity endorsement really needs to listen to. Two in three consumers do not trust celebrity influencers highly. They are nearly four times more likely to trust one another, than a superstar.
Clearly, the public has spoken. Pop stars and actors are not the go-to source to differentiate between trustworthy brands and those relying on fake reviews and misinformation to sell counterfeit goods.

The public is looking beyond the hype and glamour of slick advertising, beautiful copywriting and well-known faces. It’s even looking beyond the words of praise laid out by journalists in news organisations.

Our research is clear. Consumers are placing their trust in one another.

### Methodology

London Research was commissioned by Trustpilot to carry out surveys of 1,000 nationally representative consumers in the US and UK in April 2020, while both countries were under lockdown during the coronavirus crisis. The research was conducted using a Toluna research panel. London Research also carried out a series of interviews for this report.

### Acknowledgments 

London Research and Trustpilot would like to thank the following people for their help in compiling this report:

- Gina Akers, TV and radio presenter, and wellness and beauty expert
- Sarah Brown, Founder, Pai Skincare
- Daniel Durose, Brand Marketing Manager, ManCave
- Rebecca Hopkins, Founder, Balance Me
- Robert Myers, General Manager for Memberships, Professional Beauty Association
- Janet Nudelman, Director, Campaign for Safe Cosmetics
- Tim Peckover, Content Marketing Manager, Smile.io
- Ed Saper, Director at Pai Skincare
- Meghan Stabler, VP of Global Product Marketing and Communications, BigCommerce
- Thomas Vermeulen, Head of Fraud Investigations, Trustpilot







2020 Consumer Report: Combating Misinformation in the Health + Beauty Sector

Ratings and reviews in above the line advertising

Above-the-line (ATL) advertising refers to more conventional media such as television, radio, print and billboards, as opposed to digital channels such as websites, online display advertising and email.

The research seeks to understand the importance of ratings and reviews in consumer decision-making at a more general level, as well as the value of using specific Trustpilot assets, such as the logo, stars, ‘TrustScore’ (Trustpilot's proprietary rating) and reviews.

The key findings of the research are as follows:

__Ratings and reviews are the most important sources of information in the consumer buying decision- making process __

A survey of 2,000 UK consumers carried out by London Research has found that ratings and reviews are the most important sources of information for consumers when they are in buying mode, ahead of a range of other digital and offline touchpoints including search engines, ecommerce platforms and television advertising. More than three-quarters of UK consumers (77%) regard customer reviews as ‘very important’ or ‘important’, while 74% attach the same level of importance to consumer ratings (i.e. scores or stars).
Consumers are most likely to regard ratings and reviews as ‘very important’ in the context of buying holidays / vacations (43%), followed by financial services products and retail products (both 41%), and lastly property (35%).

__Trustpilot increases consumer trust and the likelihood that people will buy from a brand__

The consumer survey shows a high level of awareness of Trustpilot in the UK market, with more than half of consumers (58%) aware of Trustpilot ratings and reviews. More than a third (36%) said they had written a Trustpilot review. More than three-quarters (76%) of Trustpilot-aware consumers said they agreed that a good Trustpilot score makes them more likely to trust a brand, while 72% said that a good score makes them more likely to buy from a brand. The Trustpilot logo is the most important driver of likelihood to buy, mainly via its impact on trust.

__Many brands are missing an opportunity to harness Trustpilot in their above-the-line advertising__

A separate London Research survey of advertisers within Trustpilot’s database found that only 8% of businesses are harnessing Trustpilot for their above- the-line advertising, compared to 84% who are using it on their websites. The overwhelming majority of advertisers (91%) who are either using or considering the use of Trustpilot in ATL advertising activity regard trust-building as a ‘major benefit’, while a further 7% see it as a ‘minor benefit’. The second most important business benefit cited by advertisers is the creation of a more customer-friendly brand, cited as a major benefit by just under three-quarters (73%) of business respondents.

## 1. The importance of ratings and reviews in the customer journey

In a world of declining trust in advertising, ratings and reviews have emerged as the most important sources of information in the consumer decision- making process, ahead of other touchpoints such as social media and search engines. Ratings and reviews are important drivers of trust which, in turn, drives consumer propensity to purchase. This section also looks at the relative importance of ratings and reviews in different sectors, including travel and retail.

Trust in online advertising has declined in recent years, with growing numbers of consumers becoming intolerant of ads due to disruptive experiences and an avalanche of often irrelevant information. It was estimated last year that 11% of the global internet population were using ad blockers1. Furthermore, international research2 published by Rakuten Marketing last year found that the majority of consumers associate online ads with fake news, a phenomenon that has done much to damage the credibility of information sourced online.

According to the Rakuten survey of 2,500 consumers in the United States, United Kingdom, France, German and Australia, 80% of respondents said that online advertising had not improved over time, on any device or platform.
The display advertising industry has also been tarnished by ad fraud, and its association with inappropriate and sometimes disturbing content, which can be damaging to a brand’s reputation. Brands including Adidas, Mars and Diageo withdrew campaigns from YouTube last year after their adverts featured on exploitative videos. A study by London Research3 published in January 2018 found that 79% of senior executives with responsibility for ad buying were worried about levels of transparency in programmatic display advertising (79%).

It is against this backdrop of increased cynicism that customer ratings and reviews have become an increasingly vital source of information for consumers when they are interested in purchasing a product or service from a brand. Retailers and other brands have become mindful that shoppers can easily and quickly compare brands by cost, quality and customer experience, making it more difficult to stand out from the online competition.

As consumers, we often want reassurance that we are buying from a trusted brand and also that the product or service has been well received by others. If ratings and reviews are positive – and, crucially, also perceived to be authentic – then this kind of social proof can often be the tipping point for making a decision to purchase something. Research by BrightLocal4 has shown that 91% percent of people read online reviews, and 84% trust online reviews as much as a personal recommendation.

__Our research__

With this context in mind, a key objective of this proprietary research was to explore in more detail the relative importance of consumer-generated ratings and reviews in the purchase decision-making process, compared to other digital and traditional media touchpoints.

Figure 1

Customer reviews and consumer ratings emerge as the most important sources of information when consumers are interested in buying something (Figure 1). More than three-quarters of UK consumers (77%) regard customer reviews as ‘very important’ or ‘important’, while 74% attach the same level of importance to consumer ratings (i.e. scores or stars).

Over the last few years the customer journey has become increasingly complex and non-linear, with consumers often engaging with multiple online and offline touchpoints - often across multiple devices - before they make a decision to purchase something.

After consumer ratings and reviews, the next most important touchpoints in influencing a buying decision are search engines (e.g. Google or Bing), company websites and more generic ecommerce sites such as Amazon, which consumers routinely visit for information in the build-up to purchasing something. Separate research by BloomReach5 shows that consumers in the US are actually now more likely to start their product searches on Amazon than on Google.

It is important to note that not all these touchpoints are mutually exclusive. Ratings and reviews can themselves feature across other touchpoints, such as search engine results pages, company websites, within email campaigns, and on sites such as Amazon which sell products from multiple brands. In an offline context, the main focus of this research, they can also feature across offline channels such as direct mail and TV advertising.

This study finds that direct mail, social media, TV advertising and online display advertisements are the least important touchpoints when consumers are interested in buying something. That is not to say that they are not important for building brand awareness, with seeds of interest in products and services often planted sub-consciously. But there is no escaping
the fact that consumers regard these channels as less influential when they are on the cusp of making a purchasing decision.

Figure 2 shows the different touchpoints mapped against both their perceived importance (i.e. based on the percentage of respondents regarding them
as ‘very important’) and their impact on propensity to buy. The latter is determined through multivariate regression modelling, with the scores on the x-axis representing rescaled weightings for each touchpoint based on answers to a question relating to their likelihood to buy. As the chart suggests, marketers should be paying particularly close attention to promoting the touchpoints in the top-right quadrant, namely ratings and reviews, when it comes specifically to driving purchase intent.

While other touchpoints are not as strongly correlated to propensity to purchase, they can of course play an important ‘upper-funnel’ role in the customer decision-making journey, for example by raising awareness in brands and their products and services, most obviously in the case of brand advertising conducted through TV and online display media.

Figure 2

When it comes to influencing their decision to buy something, two of the least important channels from the perspective of consumers are direct mail and TV advertising. The statistical analysis confirms that they have relatively little impact on likelihood to purchase, and this reflects their diminishing importance as lower-funnel drivers of purchase in the digital age.

After ratings and reviews, search engines and social media are found to be the next most important drivers of purchase. Consumers are much more likely to acknowledge the importance of search over social because the former typically features much more prominently when consumers are in buying mode.

Research by marketing technology company Pardot has found that 70% of buyers return to Google at least 2-3 times during the course of their research, to get deeper and more detailed information6. According to a consumer study by Forrester, 74% of consumers use search engines for consideration and purchasing.

The same Forrester7 research found that social, while it doesn’t match search for volume, does provide impactful and trusted information to customers while they are engaged in shopping behaviour. Their study showed that 43% of consumers were influenced by a company’s social post when shopping, and 30% reported that they were influenced by paid social ads.

____

Based on our research, marketers seeking to convert consumers into customers should focus on touchpoints in the ‘promote’ top-right quadrant shown on Figure 2, namely ratings and reviews. Those touchpoints in the left-hand quadrants should be maintained and monitored. Advertisers should strive to understand how different touchpoints and channels work together to build trust and positively impact the decision-making process during the customer journey, and then invest accordingly.

Companies should also consider how they can do more to harness the power of ratings and reviews across other touchpoints, including offline touchpoints such as television and direct mail. As we shall see later in the report,
relatively few companies are using Trustpilot ratings and reviews in their above- the-line advertising or direct marketing.

____

Figure 3

__Comparing the importance of ratings and reviews for different types of purchase__

Figure 3 shows the relative importance of ratings and reviews across four particular categories. Consumers are most likely to regard ratings and reviews as‘very important’ in the context of buying holidays / vacations (43%), followed by financial services products and retail products (both 41%), and lastly property (35%).

The value of positive reviews for travel companies such as hotels and travel firms cannot be overstated, given the emotional importance consumers attribute to booking a holiday they can look forward to, and the amount of money often associated with this type of purchase.

Separate Trustpilot research8 found that 64% of consumers consider a company’s reviews before booking a vacation with them, and over one-
third (39%) say that they consider those online reviews more powerful when booking a trip than a recommendation from a friend or family member.

As with booking travel, the purchase of financial products and services can also represent a significant financial outlay, also commonly resulting in thorough due diligence for consumers before they take out a particular product. As can be seen in the chart, in the context of finance-related products, almost three- quarters (74%) of consumers describe good reviews as at least ‘important’.

An even greater proportion of consumers (78%) regard good customer ratings and reviews as being very important or important in the purchase of retail products, and (as we shall see later in the report) the ubiquity of reviews written and read by consumers provides further evidence of their influence.

While consumers also value reviews in the context of property, the customer experience typically relates to estate agents or online property websites, rather than the actual properties being purchased themselves. That probably explains why this sector lags slightly behind the others when it comes to
the influence of positive reviews, though two- thirds (66%) of consumers still regard them as at least important when considering property-related purchase decisions.

It is important to note that ratings and reviews are not restricted to these categories, with consumers turning to reviews for a range of products and services, covering everything from buying a car to booking a plumber or choosing a doctor.

## 2. Consumer awareness of Trustpilot and brand assets

Trustpilot has significant recognition in the marketplace among consumers. A survey carried out by London Research shows a high level of awareness of Trustpilot in the UK market, with more than half of consumers surveyed aware of Trustpilot ratings and reviews. More than three-quarters (76%) of Trustpilot-aware consumers said they agreed that a good Trustpilot score makes them more likely to trust a brand, while 72% said that a good score makes them more likely to buy from a brand. In the context of various Trustpilot assets, the logo is the most important driver of likelihood to buy, mainly via its impact on trust.

Trustpilot, founded in Denmark more than ten years ago, has emerged as a leading ratings and reviews platform with significant traction and recognition in the marketplace among both consumers and businesses. Consumers leave more than one million reviews on the platform each month, and the site is now ranked by Alexa as a top-100 UK website. There are now more than 40 million online Trustpilot reviews, with more than 200,000 businesses reviewed.

The consumer survey carried out by London Research shows a very high level of awareness of Trustpilot in the UK market, with 58% of 2,000 consumers surveyed in January this year saying that they are aware of Trustpilot ratings and reviews.

As well as exploring the relative importance of different touchpoints during the customer journey, the consumer survey also contained questions specifically about Trustpilot. Of those UK consumers who said they were aware of Trustpilot, more than three-quarters (76%) said they either ‘strongly’ (28%) or ‘somewhat’ (48%) agreed that a good Trustpilot score makes them ‘more likely to trust a brand’ (Figure 5).

Figure 5

Furthermore, 72% of Trustpilot-aware consumers said that a good Trustpilot score makes them ‘more likely to buy from a brand’, including 28% who strongly agreed and 44% who somewhat agreed.

Just as consumers are encouraged to buy from brands with good ratings, the reverse is also true. Consumers are discouraged by poor reviews. The survey also revealed that the majority of Trustpilot- aware consumers (54%) are unlikely to buy from a brand with a poor Trustpilot rating, defined as 0, 1 or 2 stars. Four in 10 consumers (40%) said they were ‘not very likely’ to buy something from a brand with a low rating, and 14% said that they were ‘not at all likely’ to do so (Figure 7).

The reality is that consumers will still buy products with poor ratings. For example, consumers will see that negative reviews may relate to specific features, services or types of design or product functionality which don’t matter to them.

However, as the research shows, poor ratings can significantly reduce confidence in the likelihood that consumers will make a purchase, especially if there are products and services available from other companies with better ratings.

The popularity of Trustpilot reviews is further highlighted by the proportion of consumers who have written a Trustpilot review. More than a third (36%) of Trustpilot-aware consumers said they had done so.

Figure 7

__Trustpilot brand assets and consumer recall__

The final element of the consumer survey was aimed at establishing the level of recall for different Trustpilot brand assets in adverts, including the logo, stars, reviews and the Trustpilot score (TrustScore).

For the uninitiated, consumers can leave a Trustpilot star rating from one to five stars. As explained earlier, the TrustScore (out of 10) is a related metric which takes into account star ratings, but also includes other factors such as the number and age of reviews. There is more information about TrustScore and its formula on the Trustpilot website.

As shown in Figure 9, the most recognised Trustpilot brand asset is the stars, cited by 42% of Trustpilot-aware consumers as something they can recall seeing in adverts featuring Trustpilot, closely followed by the Trustpilot logo (40%). A third of consumers (33%) recall seeing reviews in adverts, while just under a third (30%) remember seeing the TrustScore.

Figure 9

__Trustpilot drives trust, which increases propensity to buy__

On behalf of London Research, Bottom Line Analytics carried out structural equation modelling to understand in more detail the direct and indirect impact that different visual elements of the Trustpilot brand have on consumer trust for brands and propensity to buy.

A key finding of this research is that the Trustpilot logo and other brand assets drive both trust and also the likelihood that they will purchase something. Our statistical analysis found that the Trustpilot logo is the most prominent driver of trust, and closely linked to Trustpilot stars which are more of an ‘enabler’ than an actual driver of trust. The second biggest driver of trust is reviews from customers.

With regards to purchase intent, trust is by far the largest driver. The Trustpilot logo and other components of authenticity are relatively less important in driving purchases, but are important antecedents of trust, and, by extension, likelihood to buy.

Keeping in mind their importance for driving trust, advertisers should experiment with different combinations of Trustpilot visual assets, and also look to include reviews where the nature of the creative assets allows.

Figure 11

Figure 11 shows as rescaled percentages the impact of each Trustpilot asset on propensity to buy, an action which ultimately all companies harnessing Trustpilot assets are attempting to drive. The left-hand side of the chart shows the combined percentages for both direct and indirect impact, while the right-hand side of the chart shows the breakdown for ‘indirect’ and ‘direct’ impact.

To reiterate, the Trustpilot logo is the most important driver of likelihood to buy, but this is mainly via its impact on trust. After doing its job of driving trust, it has relatively little impact in the subsequent purchasing decision. At the buying stage, although it was seen that ‘trust’ itself is far more important as a driver, the TrustScore and stars assume greater significance, while the reviews (like the logo) assume less significance.

The survey also found that consumers remember seeing the Trustpilot logo and stars in advertising, with television emerging as the channel where consumers have by far the greatest recall (27%), versus 14% for print in second place, and outdoor advertising (13%), in third place.

In the next section of the report, these findings will be compared with the advertisers’ view on which offline channels are being used to feature Trustpilot.

## 3. The business perspective-advertisers missing the opportunity to build a trusted and customer-centric brand

London Research also carried out a survey of advertisers to understand the extent to which they are using Trustpilot in their above-the-line marketing activities, and what they perceive as the benefits of embracing this reviews platform. Many companies are missing out on an opportunity, with only a small minority of businesses surveyed using Trustpilot in their ATL campaigns. The advertisers surveyed regard the ability to build trust as the most significant benefit of using Trustpilot in their advertising. This section also includes viewpoints from some of the brands using Trustpilot in their advertising, including Glasses Direct, Lending Stream and PlantShed.

As well as exploring consumer attitudes to ratings and reviews and, more specifically, Trustpilot, London Research also sought to understand how advertisers are harnessing Trustpilot in their above-the-line marketing activities, and the benefits of embracing this reviews platform.

It is clear from Figure 13 that many companies are missing out on the significant opportunities afforded by the use of Trustpilot in above-the-line advertising. Only 8% of those businesses surveyed - predominantly advertisers using Trustpilot - are using Trustpilot in their ATL campaigns, compared to 84% who are using it on their websites.

The majority of companies surveyed are also using Trustpilot on social channels (56%) and in email marketing campaigns (54%). When it comes to
offline marketing, advertisers are much more likely to be using Trustpilot in direct mail, with a quarter (25%) saying they are doing this and another quarter (25%) considering this.

Only 14% of consumers recalling seeing Trustpilot in print marketing (direct mail), compared to 27% who recall seeing Trustpilot in television adverts.
Although 16% of advertisers are considering the use of Trustpilot in ATL activity, the high percentage of advertisers saying they have no plans to use Trustpilot in this way (76%) suggests a lack of awareness about the opportunities.

Figure 13

__Why advertisers aren’t using Trustpilot in this way__

A third of advertisers (33%) say they simply ‘haven’t got around to it yet’, while around a quarter (24%) say they ‘haven’t previously considered it’.
Interestingly, relatively few advertisers say that they are not using Trustpilot in their ATL advertising because their TrustScore isn’t high enough (only 7%), suggesting that this isn’t a significant barrier for the vast majority of businesses. Similarly, only 7% of businesses point to a lack of awareness of Trustpilot in their markets.

It should be noted that the vast majority of those saying ‘other’ (31%) say that they are not doing above-the-line advertising, with their focus purely on digital marketing activity.

Figure 15 shows in what types of above-the-line advertising businesses have included Trustpilot, though a small sample size of 29 companies for those using Trustpilot in ATL marketing campaigns should be noted.

There is more emphasis on print (60%) and outdoor (44%), than there is on television (36%), a channel where there is more than twice as much consumer recall than there is for print and outdoor (27% for TV compared to 14% for print and 13% for outdoor advertising).

The use of Trustpilot in radio advertising or podcasts (12%) is small compared to other offline channels, aligning with lower consumer recall for radio or podcasts (9%).

Figure 16

Figure 15

The vast majority of advertisers leveraging Trustpilot are using the Trustpilot logo and stars (92%). More than half (60%) say they have used their TrustScore, while 48% say they have included excerpts from Trustpilot reviews in their ATL campaigns.

This is more or less in kilter with the consumer recall shown in Figure 9, though consumers are marginally more likely to remember seeing reviews (33%) than the TrustScore (30%).

When it comes to including reviews in their adverts, for some brands there may an issue of over-cluttering their creative where ‘real estate’ is at a premium. As was seen in Figure 15, 13% of advertisers not using Trustpilot in their ATL advertising said the primary reason was that they didn’t want to dilute their creative or clutter their adverts.

__Voice of the advertiser – the benefits of using Trustpilot__

Trustpilot ratings and reviews are harnessed by many companies across a range of different business sectors for a variety of reasons, ranging from the desire to create a more customer-friendly brand through to more immediately commercial outcomes such as increased revenue from both online and offline sales.

The importance of ratings and reviews in helping to build trust among consumers is underscored by Figure 17. This shows the relative importance of a number of business benefits for companies in the context of their offline marketing activities. More than nine out of ten advertisers (91%) either using or considering the use of Trustpilot in ATL marketing activity regard trust-building as a ‘major benefit’, while a further 7% see it as a ‘minor benefit’.

A good example of a brand relying heavily on consumer trust is MyOptique Group, which is the company behind Glasses Direct, a leading retailer of glasses online. With a 9.4 TrustScore based on more than 65,000 reviews for Glasses Direct, the company regards this validation as particularly important due to the relatively small proportion of prescription glasses purchased online compared to many other types of product.

According to Jonathan Zetlaoui, Head of Customer Experience and Analytics, MyOptique Group, building trust is critical to business success: “Trust is key to MyOptique Group, especially for prescription glasses. Indeed, they are both a fashion accessory one wears every day, and a medical device. Emphasising our USPs - like free Home Trials and free returns - is important to build that trust; so are customer reviews. Ultimately, our customers are our best advocates.”

The second most important business benefit through the lens of advertisers is the creation of a more customer-friendly brand, cited as a major benefit
by just under three-quarters (73%) of business respondents. For many companies aspiring to become more customer-centric, ratings on trusted third-party sites such as Trustpilot can become a key performance indicator for assessing whether they are providing a better customer experience.

Lending Stream, part of GAIN Credit (formerly known as Global Analytics), is another good case study of a brand that has sought to differentiate itself through great CX. They are currently using Trustpilot in television advertising and direct marketing as part of a rebranding exercise which is aimed at cementing the brand’s position as a customer experience leader in the loans sector. 

Very much a data-driven organisation, the company has metrics and remuneration schemes based on its Trustpilot score which has become a core business goal. Alex Woodcraft, GAIN Credit’s Head of Customer and Market Insight, explains: “Our use of Trustpilot in our advertising is about building trust with the consumer - a high TrustScore shows that you will get a good user experience ... We will be using Trustpilot as a cornerstone in our ‘customer delight’ activities.”

PlantShed is another company that has embedded Trustpilot at the heart of its culture; According to the US-based florist’s Ecommerce Director, Ilias Iliadis, the authenticity of Trustpilot reviews is crucial. He told London Research: “Trustpilot has helped a lot with our online strategy because of the credibility it gives. We know that people feel more comfortable because Trustpilot is a well-known brand for reviews... It’s difficult to get good reviews on Trustpilot because they are real. Customers can see the difference.”

According to some brands interviewed for this report, Trustpilot has gone from being a differentiator used by disruptive brands with a customer-centric focus, to more of a ‘hygiene factor’ embraced by brands that recognise that a healthy Trustpilot score and critical mass of positive reviews are a necessity rather than a ‘nice-to-have’.

__The impact on harder metrics__

While brand and customer experience objectives are more top-of-mind for businesses considering the benefits of using Trustpilot in above-the-line advertising, advertisers are also very aware of the positive impact of the association on harder commercial metrics.

Evidence of the upside can be challenging for most companies to quantify with hard data, due to the difficulty isolating the specific impact of Trustpilot as part of their above-the-line advertising campaigns. Many advertisers have put their faith in Trustpilot because of qualitative input they receive from their customers about the importance of ratings and reviews, and also because of the upside they have seen when they use Trustpilot on digital campaigns, which are typically easier to measure, test and optimise.

Despite the challenges associated with quantifying the benefit, three in five advertisers surveyed (60%) point to improved online conversions as
a major benefit, while more than a third report an improvement in offline conversions (36%) as significant upside.

In the case of digital conversions, this shows the extent to which brands are taking a holistic approach to their advertising campaigns, with the use of offline advertising to promote ecommerce now very much part of a mainstream approach to marketing. The ability for brands to measure the uptick in online activity - for example the immediate impact of a TV ad on search and website activity - has accelerated this process.

Advertisers also recognise that the use of Trustpilot in both online and offline marketing can help them to integrate their digital and traditional activities, with 42% citing this as a major benefit, and a further 43% saying it is a minor benefit.

## 4. Conclusions

This section summarises the key findings of the report, and also contains some recommendations for advertisers about the implications of the research.

There is a significant opportunity for many businesses to harness the power of ratings and reviews in their above-the-line advertising campaigns, to complement how many businesses are already embracing this approach on their websites and through other digital channels such as email, search and social.

This research highlights the importance of ratings and reviews for building trust during the customer journey, and for increasing consumers’ propensity to buy. Among UK consumers, ratings and reviews are shown to be easily the most influential touchpoint in influencing their purchase decisions, ahead of a range of both digital and offline channels.

Consumer awareness of Trustpilot ratings and reviews stands at 58%. More than three-quarters (76%) of Trustpilot-aware consumers agreed that a good Trustpilot score makes them more likely to trust a brand, while 72% said that a good Trustpilot score makes them more likely to buy from a brand.
Despite the importance that most consumers attach to positive ratings and reviews, high levels of Trustpilot awareness, and good levels of recall for seeing Trustpilot brand assets in adverts (particularly on television), relatively few businesses are currently leveraging Trustpilot in their above-the-line advertising campaigns.

This is surprising as companies recognise the benefits of using ratings and reviews platforms to help improve trust, and to help cement the idea that they are customer-friendly.

Advertisers should seize the chance to mitigate rising scepticism for advertising by including consumer ratings which give their adverts more authenticity.

By including ratings and reviews in their digital and offline marketing activities, advertisers can present a more integrated and customer-friendly impression of their brands, which is ultimately likely to make them more commercial successful.

__Methodology__

London Research was commissioned by Trustpilot to carry out a survey of 2,000 nationally representative UK consumers in January 2018. The survey included questions about sources of information and touchpoints used during the buying process, and also specifically about Trustpilot. Of those people surveyed, using a Toluna consumer research panel, 1,162 (58%) said they were aware of Trustpilot ratings and reviews.

Further statistical analysis was carried out on the consumer survey data by London Research partner Bottom-Line Analytics, in order to gain a deeper understanding of the relative importance of different touchpoints in the customer journey, and also to understand the role of different Trustpilot brand assets - such as the logo and stars - in driving brand trust and propensity to purchase.

Additionally, an online survey of more than 300 businesses was carried out in December 2017 and January 2018. The survey was fielded to companies within Trustpilot’s international database of advertisers, predominantly including businesses already working with Trustpilot. Businesses using Trustpilot in above-the-line advertising were asked further questions. 

Senior executives at a number of brands were also interviewed in order to understand in more detail how they leverage the Trustpilot brand and assets in their above-the-line marketing activities.

Ratings and reviews in Above The Line advertising 

The critical role of reviews in internet trust

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Report: The critical role of reviews in Internet trust- How different types of online reviews create and damage consumer trust

Today’s cultural meme is one of failing trust. Whether it’s the authorities and institutions at the core of our society, technology companies trying to build and potentially break the internet, or the brands that people buy every day — we don’t know who or what to trust. However, one thing remains unwavering: the trust we hold in our peers.

### But what exactly do consumers want to see from reviews and review platforms to help them make better decisions?

Reviews have become ubiquitous, a guiding light when making purchasing decisions online, helping consumers tap into the views of ‘the many’ and providing brands with an opportunity to earn trust through the recommendations and opinions of others.

Trustpilot recently commissioned behavioural insights and research agency Canvas8 to explore further what role reviews play in Internet trust. The following report provides rich data from over six thousand respondents in the US, UK and France, as well as expert commentary from two leading academics and covers the following:

- Do consumers still have trust in brands?
- Which reviews or review environments create consumer trust, and which damage it?
- What should brands look for when using reviews?
- What will happen next in the review space?

__Sound interesting? Download "The critical role of reviews in Internet trust" today for free - enter your details to receive the US version of the report, as well as a Global version.__

### From the report introduction

As trust in society is eroding and people come to put their faith in the anonymous reviews of strangers, attitudes towards trust are impacting people's decisions and behaviour. 

In order to better understand Internet consumer trust, Trustpilot commissioned independent behavioural insights practice Canvas8 to explore what consumers value online and how reviews impact their behaviour. The following report illustrates the insights that emerged (...)

The critical role of reviews in Internet trust

the psychology behind trust signals - trustpilot

Social proof — reviews, social likes, online mentions, and testimonials for products, services, or brands — has a powerful psychological effect on customers. Because the feedback comes from other consumers, not the brand itself, the positive messaging surrounding a product or service can be perceived as more authentic and trustworthy. Consumers see social proof as an endorsement from their peers saying that the company, service, or product is great, and that the overall customer journey has satisfied previous shoppers. 

__So when customers see trust signals — visual representations of social proof such as badges, ratings, reviews, and logos — it understandably elicits a strong influence on shopping behaviour. __

According to our recent research, almost all consumers (98%) could identify at least one type of trust symbol that increased their likelihood to make a purchase. 

If brands want to effectively turn interested prospects into paying customers, they need to take advantage of external validation in order to influence potential customers, and understand how social proof impacts the way consumers make purchasing decisions. 

To find out exactly how social proof influences the purchasing process and which trust signals are the most important, we surveyed nearly 1,700 consumers across multiple regions (United States, United Kingdom, Australia, and many European countries) and generations (baby boomers, Gen Xers, millennials, and Gen Zers), and found that: 

- An average of sixty-six percent of customers said the presence of social proof increased their likelihood to purchase a product. 
- Positive star ratings and reviews were the most important trust symbol. Eighty-two percent said it made them more likely to make a purchase. 
- Positive star ratings and reviews on the homepage were the trust signals most likely to drive customers to make a purchase (86%). Positive star ratings and reviews on a product page were the second most likely, influencing 85% of customers. 
- Customers prefer different trust signals throughout the buying journey. Media mentions (52%) and endorsements from public figures (50%) were effective when customers performed initial online research, while testimonials (60%) and star ratings and reviews (50%) were effective when customers compared different retailers.

Want to learn more? Let’s dive deeper into the research to see which signals are most important to consumers, and how the appearance of signals affects different demographics during the purchasing process. 

## Breaking down how social proof influences consumers 

At one time, brands could use ads to inform consumers, build trust, and drive customers to buy. But this is no longer the case. Consumers are increasingly aware of and, therefore, [unaffected by ads](https://business.trustpilot.com/guides-reports/learn-from-customers/trustworthiness-in-advertising-what-consumers-have-to-say), and it is this change that led to the rise of user-generated content and huge influence of social proof.

__Customers used to rely solely on advertisements and word of mouth when determining what to purchase. Now, they also look to social proof.__

There are four primary principles of social proof that influence customers in ways that ads can’t (and never could):

- __[Uncertainty](https://www.sciencedaily.com/releases/2019/04/190422112746.htm)__: Customers look to social proof for guidance when they are in unfamiliar situations. 
- __[Similarity](https://blog.consumeraffairs.com/why-consumers-trust-each-other-more-than-brands-908a440ed8d7)__: Customers gather and use feedback from sources and people they personally relate to.
- __[Expertise](https://psychology.iresearchnet.com/social-psychology/personality/expertise/)__: Customers value opinions and verification from people who are more knowledgeable or experienced than themselves.
- __[Number](https://www.bakadesuyo.com/2013/06/robert-cialdini-influence/)__: Customers consider the number of satisfied customers before them, and the resulting trust signals they find, as a reason to buy or walk away. 

Social proof has technically been around since the [dawn of marketing](https://www.google.com/url?q=https://business.trustpilot.com/reviews/what-is-social-proof-and-why-is-it-important-for-marketing&sa=D&ust=1559573881230000&usg=AFQjCNFXhlDlpr_s_Q3L59dcHyRui49DMw). Quotes from happy customers have been appearing on marketing materials as long as marketing materials have been produced. 

But today, social proof is more influential than ever because sharing our own experience and reading about others’ experiences is a native element of life online. Customers need help with their purchasing decisions, and social proof offers the authentic, transparent guidance that customers want and crave. 

This is why 98% of customers could identify at least one trust symbol that would increase their likelihood to buy.

Our data only confirmed that social proof strongly influences consumers, but it also showed that some trust signals influence customers more than others.




The Most Effective Trust Signals

The most effective trust signals

## In the eyes of shoppers, some trust signals mean more than others

Of all of the trust signals mentioned, reviews, star ratings, and testimonials are the most important to customers. __Positive star ratings and reviews ranked as the most effective (82%)__ followed by positive star ratings alone (79%), and positive customer testimonials (78%).

On-site badges were the next most influential trust symbol. Customers were more likely to purchase when they saw an approved or authorised seller badge (77%), or a safe checkout badge (76%). 

Interestingly, the power of social proof appears to be universal. __Customers all over the world were similarly influenced by trust signals__. Overall, the region where a consumer lived didn’t significantly impact the way he or she was influenced by signals. Social proof was slightly more effective among Australians and Americans, but Europeans weren’t far behind. 

That said, our research did find that generational differences do impact the overall influence of trust signals. 


the effectiveness of trust signals when making a purchase

trust signals and influence on purchases

## Tailoring trust signals to customer demographics

Our survey results revealed an interesting pattern: the younger customers are, the more likely they are to be influenced by trust signals. In fact, there was a significant gap between Gen Zers, the youngest generation of consumers, and the other generations. In fact, 72% of Gen Zers were more likely to purchase based on social proof versus 66% of millennials, 65% of Gen Xers, and 63% of baby boomers. 

This data shows that __trust signals are becoming even more important__, as the next generation of shoppers clearly embraces them more than past consumers, and continues to age into greater spending and purchasing power. 

The different generations not only value social proof with varying degrees of importance, but they also value different types of trust signals. Baby boomers were more responsive to safe checkout badges than the other generations, showing they value security when purchasing online, which could indicate an enduring air of skepticism around life online that is noticeably absent in digital natives. In contrast, Gen Zers were much more receptive to media publisher quotes, influencer endorsements, social media metrics, and endorsements from public figures, showing they value third-party opinions from individuals over institutions.

As a brand, it’s essential to __understand who your customers are__ so you can identify and share the trust signals that matter most to them. 


the most effective location to use each trust signal

The most effective locations for trust signals

## How trust signals influence shoppers at each touchpoint

So far, we’ve established that social proof has a strong influence over customers, and this influence affects the way they think while determining if they want to buy from a brand. 

Even __where a trust symbol is viewed within the customer journey can influence the way a shopper thinks about his or her potential purchase__. In our study, we used A/B testing to show different combinations of trust signals in locations where a consumer might encounter a trust symbol during the purchase process: marketing emails, digital advertisements, and on the retailer’s home or product pages

We found that no matter where they appear in the journey, __star ratings, reviews, and testimonials made customers more likely to make a purchase__. Customers were most likely to make a purchase when they saw a positive star rating and reviews on the homepage (86%) and product page (85%), although reviews were also impactful in email ads, Facebook ads, display ads, and checkout pages as well. 


trust signals in the buying process

When are trust signals best to use?

## Using trust signals in the right place, at the right time

No matter the industry, all marketing efforts seem to __work better when they feature trust signals__. However, it’s important to note that __they can work differently at different stages of the purchasing funnel__. Customers look for — and value — different elements of social proof as they work their way closer to a purchase. 

Media mentions and public figure endorsements were perceived as most beneficial early in the buying process. Next, customers valued testimonials and star ratings while they shopped around and compared different brands. Then, once a consumer was ready to buy, authorised seller badges became the most effective trust symbol.

For a trust symbol to work effectively, it needs to be delivered to the right audience, and __used at each stage of the buying process,__ in order to give customers the sense of transparency they need to feel comfortable making their final purchase.

## Trust signals make the buying decision easy

Customers no longer base their purchasing decisions on what they hear and read in ads. In fact, they can often tune out these messages completely. In our networked and logged on culture, messaging from a company no longer provides customers the information and proof they need to trust a brand and buy from them – social proof and trust signals do. 

The ability to optimise one’s use of trust signals can even be seen between promoting a product or service. Although trust signals were comparably beneficial for both, positive star ratings saw slightly higher influence when paired with a product offering, while approved and authorised seller badges gave customers the ease of mind to consider a service offering.

Social proof, especially authentic third-party reviews and ratings, are now one of the most influential forces that guide customers as they make purchasing decisions. With __98% of customers saying they could identify at least one type of trust symbol__ that increased their likelihood to make a purchase, these factors influence consumers all across the world, in all generations, and all stages of the buyer’s journey. 

If you want your brand to stay competitive in your market, attract new consumers, and effectively turn interested prospects into paying customers, you need to take notice. 

Create a plan to give customers what they need to feel comfortable buying from you. __Start building social proof elements that consumers want, need, and trust__. 

Reviews and ratings are a great place to start. [Trustpilot](https://uk.business.trustpilot.com/reviews) can help you collect feedback that you can easily show off throughout the marketing funnel, making the purchasing decision as easy as possible for your customers. 

Built on honesty and transparency, Trustpilot is the people's choice for reviews. With over 300,000 businesses reviewed and 1.1 trillion ratings and reviews displayed in Google annually, companies use Trustpilot to create customer confidence and increase conversions by leading with reputation everywhere shoppers are looking. 



### Methodology

We collected responses from 1,697 consumers on questions related to their shopping behaviour and the influence of social proof signals. 30% of respondents lived in the United States, 30% lived in the United Kingdom, 9% lived in Australia, and 32% lived in other European countries.

### Limitations

Many other factors influence the shopping behaviour in relation to social proof. While we included many of these factors, every individual chooses to purchase a product based on his or her personal reasons. This study is based solely on means and self-reported data. No statistical testing was performed and as such, this data is exploratory.

### Fair Use Statement

Know a company leader looking to improve or begin building his or her online reputation? Please feel free to share the results of our study with them for noncommercial purposes. We also ask that you link back to this page to give credit to its authors. 

### Sources

https://fs.blog/2009/09/mental-model-social-proof/
https://www.sciencedaily.com/releases/2019/04/190422112746.htm
https://psychology.iresearchnet.com/social-psychology/personality/expertise/
https://www.bakadesuyo.com/2013/06/robert-cialdini-influence/
https://business.trustpilot.com/guides-reports/learn-from-customers/trustworthiness-in-advertising-what-consumers-have-to-say
https://business.trustpilot.com/reviews/build-trusted-brand/what-is-social-proof-and-why-is-it-important-for-marketing
https://www.fastcompany.com/3030044/how-to-use-the-psychology-of-social-proof-to-your-advantage
https://techcrunch.com/2011/11/27/social-proof-why-people-like-to-follow-the-crowd/
https://www.impactbnd.com/blog/whats-changed-with-social-proof-in-2019
https://grist.org/article/2010-01-12-never-mind-what-people-believe-how-can-we-change-what-they-do/
https://www.psychologytoday.com/us/blog/good-thinking/201602/how-get-people-change-their-minds



Why and how social proof and trust signals influence consumers

The psychology behind trust signals: Why and how social proof influences consumers

the importance of social proof in fintech trustpilot report 2019

The challenge is not just a technological one. They need to convince customers to switch from the wellknown names they are familiar with, by soliciting, and then displaying, positive ratings and reviews.

When London Research and Trustpilot surveyed start-ups and scale-ups, the conclusion was very clear. Customer experience is seen as the most important differentiator for emerging brands, ahead of product innovation.

This is because good ratings create a virtuous circle through which delighted customers encourage new users to sign up. This makes the fintech more investable, which then funds feature improvements which encourage more customers to sign up and rate the service highly.

The survey of 143 start-ups and scale-ups found that:

- More than a third (35%) find ratings and reviews ‘critical’ for converting prospects into new customers, and a further 57% said they are ‘important’ or ‘quite important’.
- Nearly a third (31%) believe that positive reviews and social proof are critical for generating interest from investors, and a further 52% said they were important.
- Around a fifth (21%) of those surveyed have been asked by investors to provide customer centricity proof points such as ratings and reviews, and a further 43% have proactively provided this information.
- More than half (52%) advertise their customer ratings on their websites, while 46% take to social media and nearly a third (31%) use email to display ratings.
- Around two-thirds (65%) of those surveyed strongly agree that they have built their business around an understanding of what customers really need.

The key for start-ups and scale-ups is to engage with and manage the review process, to make sure the resulting rating accurately reflects customers’ opinion of the business. This doesn’t mean removing bad reviews from view, since occasional criticisms reassure users that the good reviews are genuine.

As noted above, they also provide crucial feedback for improvement. Companies should be actively soliciting reviews from their customers, and use them to their advantage by funnelling that information back into the business to improve processes, products and services. The opportunity for a five-star rating is too important to be left to chance.

## Introduction

According to [KPMG](https://home.kpmg/uk/en/home/media/press-releases/2019/02/uk-remain-leader-in-fintech-investment-but-loses-global-crown.html), fintech investment across the world doubled to $111.8 billion in 2018, with the US, China and the UK leading the way. In the UK alone, total investment in fintechs in 2018 was almost four times higher than 2017 levels ($20.7 billion versus $5.6 billion).

These record-setting levels of investment show there is a clear appetite to try new services and fund them, but it means standing out in a crowded marketplace is a major challenge.

The ultimate aim of fintech start-ups and scale-ups is to repeat the success of a company like TransferWise. It has signed up more than five million users since launching in 2011 and, through its latest round of funding, saw its [market valuation double to $3.5bn](https://www.ft.com/content/812966e4-7bb2-11e9-81d2-f785092ab560) in May 2019.

A key element of TransferWise’s strategy was to use the ratings from its customers to demonstrate to potential investors it was meeting an unfulfilled need. This report is based on research conducted for Trustpilot by London Research, which shows that this type of social proof is increasingly used by fast-growing businesses, including those in the fintech sector, to show investors that they are highly investable, as well as to gain traction among customers.

The research also shows that companies are using ratings and reviews to improve their customer experience, and innovate on their products and services.

## Section 1: Building customer trust through social proof

Every disruptive start-up or scale-up needs to leverage consumer dissatisfaction with the way things are traditionally done in their sector, and channel it into engagement with their own challenger service.

These relatively small but ambitious companies are at an obvious disadvantage compared to globally known brands with huge advertising budgets. They are also competing against all the other start-ups in their sector, some of which will be spending their VC investments launching expensive marketing campaigns.

Persuading a prospect that a new market entrant is trustworthy is a challenge, particularly in the financial services sector where customers’ savings and future financial health can be at stake. Although fintechs can point out that they operate in a highly regulated industry, many say that their most effective message is the reassurance offered by existing customers giving their service a high rating or a good review.

Such is the importance of the customer experience that it outweighs innovation in the eyes of start-ups and scale-ups. 

According to the London Research survey, almost half (46%) felt the most important differentiator for their business was the quality of the customer
experience it offered, compared to 38% for ‘product / innovation’, traditionally seen as a startup’s raison d’être. Customer experience is also seen as significantly more important than brand awareness (7%), online reputation (5%) and price (4%).

Start-ups and scale-ups need to capitalise on the quality of their customer experience for marketing purposes. The research also showed that more than a third (35%) of the companies surveyed view positive ratings as ‘critical’ for turning prospects into customers, and a further 47% regard them as ‘important’.

### Ratings are crucial for establishing trust

Smart Currency Exchange helps people transfer money between different countries and currencies. The company’s Digital Marketing Manager, Ricky Bean, is all too aware how nervous customers can be when they are asked to hand over their life savings to a third party to help them buy their dream property in the sun.

The company, like any other currency exchange in the UK, is highly regulated by the Financial Conduct Authority. This provides reassurance for potential
users. However, Bean believes ratings are still incredibly important for its prospective customers.

“Our real differentiator is customer service and that’s what the Trustpilot ratings show,” he says.

“When we onboard somebody, we ask them to consider rating us and when we’ve made a transfer, we send them another email, from the person who helped them, asking for a rating and a review.

“Then when we talk to, or email, our next prospect, we always mention our five-star Trustpilot rating. For people to know we’re highly rated is crucial when it comes to such an emotional purchase using their life savings. It’s why we have our score front and centre on our home page.”

### Using ratings to improve customer service

Abba Newbery, CMO at mortgage broker Habito, agrees ratings and reviews are crucial. The company, which has already raised more than £27m in investment, uses ratings to reward staff for providing great customer care which, in turn, encourages better reviews to help persuade more new customers to sign up.

Habito aims to make getting a mortgage a lot simpler and quicker by matching customers with the best package and providing them with a customer care
assistant to hold their hand throughout the process. Customers can rate both the service and the assistant who helped them.

“User reviews are absolutely vital in getting new people to try your service,” Newbery says. “Broking has always been a part of financial services that relies heavily on word of mouth, and so we encourage our customers to rate us to show we make one part of buying a house a lot easier. Our customers build a close relationship with their advisers, who ask them to rate the service they receive.

“We value this Trustpilot score so highly we not only put in on our home page, but we also use it for members of staff in our employee reviews process.”

### How fintechs encourage reviews

The London Research/Trustpilot survey shows that 55% of start-ups and scale-ups actively encourage consumers to leave reviews. The most common method is by email (75%), followed by verbal requests for a rating (64%). One in three companies surveyed are also taking to social media to secure ratings from
their – hopefully – happy customers.

Once a fintech has secured some positive ratings, the next step is to ensure prospects know about them. The most common channel for displaying positive ratings is the brand’s website, used by just over half (52%) of scale-ups and start-ups. Social media channels are harnessed for this purpose by nearly half of those surveyed (46%), with email being used by one in three (31%).

## Section 2: The importance of customer ratings to investors

Ask any investor what they look for in a business asking for funding and there will be some common answers. A start-up or scale-up needs to have a great team behind it. Financiers ultimately invest in people they trust to turn a business plan into a thriving company that will offer good returns and, one day, a valuable exit route.

It must also answer a customer need. The London Research survey shows investors are now also looking for social proof to establish if a company
offers a good service which people rate highly.

Nearly a third (31%) of the start-ups and scale-ups surveyed deemed positive reviews and social proof to be ‘critical’ for generating interest from investors, and a further 52% said they were important.

### Ratings tell investors the real story

Every VC wants to find the next big thing. At techfocused VC Draper Esprit, Investment Director Vinoth Jayakumar explains that his firm, which takes a
longer-term view than many, looks for people who can break the mould. To judge how well a service is going down with consumers, he looks beyond the
metrics over which the company may have control to focus on what the public thinks.

For this, Jayakumar goes beyond the ‘organised sanity’ of Net Promoter Score (NPS) and marketing questionnaires, and delves into the live environment
of ratings.

“__Companies will show us their NPS figure, but I also always look them up on Trustpilot because it captures the essence of what it’s like for consumers using the service,__” he says. “It’s important that you know these are genuine people, who aren’t being paid in any way. They let you see the direction of travel is correct.

 “We know that a five-star rating is better than four-star but exactly how many new customers that attracts, we don’t know for sure. We invest in
companies for the long term. We know their score may change, hopefully for the better, and so we look for a rating to show that someone has built a
proposition that people want.”

Our research shows that not all investment companies are as tuned in to the importance of positive consumer sentiment as Draper Esprit. Around a fifth (21%) of start-ups and scale-ups surveyed have been asked by investors to provide customer centricity proof points such as ratings and reviews, but a further 43% have proactively quoted social proof such as ratings when dealing with investors.

Peer to peer lending company Funding Circle certainly understands the link between how investable a company is and its Trustpilot score. It has successfully helped more than 49,000 businesses access finance. It’s the job of Bernard De Barbeyrac, Head of Decision Science, to assess how suitable a
company is for investment and band them based on potential risk.

“In the first instance we take a quantitative approach to build up the risk profile of a business wishing to go onto our investment platform,” he says. “After this, the underwriting team take more of a holistic approach to assess creditworthiness. They also look at external facing proof points such as Trustpilot and customer reviews to see if there are any potential reputational problems for future investors.”

### When your users are your investors

Just as fintechs are changing the way the public
interacts with financial services, technology has also
disrupted traditional investment models by allowing
the public to crowdfund businesses they believe in.

That means some of the brightest ideas in financial services have many individual investors looking for a public-facing scorecard to gauge how well the business is doing in serving existing customers and, hence, attracting new ones.

Richard Cook, Online Community Manager at Monzo Bank, explains that a __fintech needs to look at its ratings not just for itself, but also to ensure its customers and investors are happy, because they are often the same people.__

 “We’ve now got 36,000 investors and our Trustpilot ratings and reviews are something that crops up on our forums all the time,” he says.

“People who have backed us want to talk about our latest scores and what we are doing to move them in the right direction because they understand new customers want a good reason to sign up to a challenger bank. They don’t come better than positive ratings and reviews.”

### Ratings reach an investment and marketing sweet spot

Crowdfunding also provides another huge benefit for fintech start-ups. As a growing company reaches out to the public for backing, they are also raising
awareness of their new service.

Hence, according to Roberto Napolitano, Marketing Director at Seedrs equity crowd funding platform, there is a virtuous circle developing. Platforms such as his are used by start-ups to raise awareness of their new service, attract new sign-ups, solicit positive ratings so they not only secure additional users, but also encourage members of the public to invest.

“We certainly see a lot of start-ups use the platform to help build awareness about themselves and get people to try them out so they can rate it,” he says.

 “These ratings show potential investors that a company is interested in engaging with customers and improving on what they have to say; that they’re not solely about raising revenue. __Ratings are a very powerful tool for investors to take the pulse of a potential investment to see if anything needs to be improved.__

“It’s also useful for allowing start-ups and scale-ups to see how other companies are doing, what scores they’re getting, where they’re doing well, and where they’re getting tips on how they could improve.”

## Section 3: Harnessing consumer feedback for improved CX and innovation

Start-ups and scale-ups are finding that developing a great solution to a nagging problem in financial services is a great start, but it is only a start. Moving beyond a great idea to build scale by listening to customers, and being seen to do this, are top priorities.

As can be seen in Figure 5, __two-thirds (66%) of companies strongly agree that a reputation for openness and transparency is crucial for their
brand__ and, encouragingly, a similar percentage (65%) strongly agree that they have built their business around an understanding of what customers really need.

To achieve this, they need to take control of their ratings, listen to feedback, act on it, improve their offering and then, crucially, encourage users to rate them so their scores evolve and more new customers sign up.

### The need to take control

Fintechs are going to be rated whether they have engaged with the process or not. It’s only by being proactive with review collection that you can get an
accurate picture of your customers’ views.

When Monzo’s Cook decided to explore the use of Trustpilot ratings, for example, he found that they were lower than he expected. The bank looked like it was providing an inferior service, which other evidence suggested was not the case.

“Trustpilot always came up first on a Google search for our reviews and we were shocked to see we were only a three out of five,” Cook recalls.

“We knew our customers generally thought we were doing a good job and that we were much better than a three-star rating. When we drilled down, we
were getting some bad reviews from people whose accounts we had to freeze. We’re a licensed bank and so we have to apply the law and that sometimes
means freezing accounts.

“That’s when we decided to really get to work on our ratings and we now regularly ask our members to review us, so the good reviews far outnumber the bad ones. We’re very nearly at a five-star rating and, when we are, we intend to use the stars in our advertising.”

### Listen and improve

The business side of banking shares many of the frustrations that consumers experience with traditional banking brands. Laborious form-filling and lengthy decision-making processes, combined with nontransparent fee structures, prompted Capital on Tap to launch a service that is upfront about fees and can let a company know if they qualify for a loan within two
minutes.

The business lender’s Head of Growth, Alex Miles, reveals that it is only by listening to customers that the company can take the initial discontent with the banks and turn it into repeat business from customers who are happy to spread the word about what they have found to be a better alternative.

__“We use our ratings to show prospects how popular we are with users but, crucially, we use the feedback from them to keep on improving our service,” he says.__

“We’ve made many improvements but the biggest we were getting asked about, in our Trustpilot rating reviews, was integration with accountancy packages, such as Xero. So that’s something we’ve done, and we’ve encouraged our users to try out the better service and rate us, so we create a virtuous circle of
better features leading to higher Trustpilot scores, which encourages more people to try out the service.”

### A barometer for business success

It may seem obvious that user ratings are a useful barometer for how a company is serving its clients, and that more people will sign up for a new service if existing customers have expressed their delight.

An interesting question, though, is what happens when the opposite occurs, and ratings dip? The mortgage broker, Habito, found that it could use its
Trustpilot score as a guide not just to how well it was performing, but how well other parts of the business were impacting that performance.

“We had a major marketing drive to get more people on the platform, which worked really well,” Habito’s Newbery says.

__“The problem was it probably worked too well, and we found that we had more customers than we could serve to our usual very high standard. We noticed our Trustpilot scores started to drop off a little, and so we knew we had to take immediate action and scaled down the marketing activity.__

“Our Trustpilot rating is too valuable to us in the longer term to allow it to go down and risk discouraging people to sign up and try us out.”

## Conclusion: Ratings help create unicorns

It is no secret that every fintech start-up and scaleup is trying to follow in the footsteps of the likes of TransferWise and Revolut to become the next billionpound ‘unicorn’.

This research shows that to do so, they are concentrating more on the customer experience they provide than on innovation (46% vs. 38%). Despite
the sector being crowded with emerging tech-driven companies that have a new approach to how legacy financial services are handled, providing customers with the best experience possible is the top priority.

It is clear that this is because they realise that focusing on the customer builds a virtuous circle, based on ratings and reviews. These are considered
as ‘important’ or ‘critical’ by a majority (82%) of start-ups and scale-ups. This is because praise from delighted users is fundamental in convincing
prospects to sign up. 

It helps grow the user base and provides compelling evidence that the company is answering a consumer need with a popular service that, in turn, helps it stand out as highly investable.

__It comes as little surprise, then, that nearly two in three of the fintech companies surveyed revealed they had been asked to provide ratings scores or they proactively decided to include them in presentations when seeking funding.__

The research shows that a great customer experience rates above innovation, brand awareness and price when it comes to winning new customers. This
means that ratings are a crucial tool in achieving fintech companies’ top-line strategy of both attracting new users and accessing the necessary investment to deliver on their vision of becoming the next unicorn.

### Methodology

As well as conducting the interviews for this research, London Research also carried out a survey of 56 start-up and 87 scale-up businesses across all major business sectors, including fintech companies. The survey was promoted via email and social media channels by both London Research and its sister company Digital Doughnut in May 2019. The vast majority of responding companies were in the USA (43%) and the UK (35%). The breakdown by region was as follows: North America (45%), Europe (43%), Asia Pacific (5%), Other (7%).

### Acknowledgements

London Research and Trustpilot would like to thank the following people for their insights.

- Ricky Bean, Digital Marketing Manager, Smart Currency Exchange
- Richard Cook, Online Community Manager, Monzo Bank
- Vinoth Jayakumar, Investment Director, Draper Esprit
- Alex Miles, Head of Growth, Capital on Tap
- Roberto Napolitano, Marketing Director, Seedrs
- Bernard De Barbeyrac, Head of Decision Science, Funding Circle
- Abba Newbery, Chief Marketing Officer, Habito.

The importance of social proof in FinTech

the value of a great online reputation trustpilot report

Our research shows that 90% of online shoppers have chosen not to purchase from a company because of its bad reputation. Customers pay attention to brand reputation, and most decide to take (or not take) action based on what they hear about a company. 

Reputation management may have once been a passive tactic that brands used only if something went wrong at their organisation. But today, brands of all sizes must have a proactive reputation management plan that prioritises ongoing communication and transparency if they want to get customers to trust and buy from them. 

To see which parts of a brand’s reputation matter most to customers, we surveyed nearly 1,700 online shoppers from major markets around the world, and found that:

- Online reputation is the No. 1 way to improve trust with customers. Over 93% said they read reviews before buying online from an unfamiliar company.  
- Nearly 62% of online shoppers perform a search for the company when unfamiliar with it and few are likely to buy if they see negative reviews on the first page of the search results. 
- Nearly 48% of online shoppers had recommended a brand to others because of its stance on social issues. 
- Almost 83% of Gen Zers, the up-and-coming generation of consumers, said they’d recommended others stop purchasing from a brand with a bad reputation. 

If your brand wants to connect with new consumers, keep existing customers, and build lasting brand affinity, loyalty, and trust, building a strong brand reputation is key. To help you identify how to do that, here are the top brand reputation and trust trends you need to know. 

## Top brand reputation and trust trends 

### Online reputation has never been as important as it is today

Our survey found that customers care more about brand reputation than ever before. They are primarily influenced by information they find online and are more likely to trust brands with an active and modern online presence, transparent approach to feedback, and willingness to share their brand’s mission. 


Trustpilot - Factors that impact trust in your company

Transparency-and-trust-A1-A

Factors that impact trust

On the other hand, brands can quickly lose the trust of consumers when they are silent, secretive, or presenting an outdated online presence. Customers want to be able to search for and find information about a brand online, and they lose trust in brands that have outdated websites (77%), unsecured websites (88.4%), or no online reviews whatsoever (81%). 

Trust in advertising continues to plunge. According to a [study by Credos](https://mediatel.co.uk/newsline/2019/01/30/industry-bosses-warn-of-declining-trust-in-advertising/), an industry think tank, and Mediatel, a top UK publisher, favourable opinions of advertising hit a low of 25% during December of 2018.

As customers lose trust in traditional advertising, more and more buyers rely on online research to inform their purchasing decisions. Customers research brands before they buy, and what they find can have a big impact on how they feel about a brand and whether they want to do business with them.

Survey respondents said online reputation was the No. 1 way to improve trust with customers, and 61.9% of online shoppers performed a search of the company if they were unfamiliar with it. 


Trustpilot - Getting to know brand online

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Getting to know brands online

But the importance of an online presence isn’t something that only matters when customers are at home researching from their desktops. [Google research](https://www.thinkwithgoogle.com/consumer-insights/how-digital-connects-shoppers-to-local-stores/) shows that 42% of in-store customers conduct research online while in a store. Brands must realise that customers have access to their online reputation at any time, anywhere. As shoppers use their phones and tablets to research on the go, a brand’s online reputation and visibility are more important than ever.

Customers search to compare pricing (77.5%), look for secure payment processing (66.2%), perform a general search on the brand (61.9%), and look for coupons and discounts (60%). However, the most important thing customers look for are reviews (93.4%).  

### Reviews are the backbone of a brand’s reputation. 

Reading reviews is almost always a part of the customer research process. Today, 93% of customers read reviews before buying online, and reviews have become the second best way (next to having a strong online reputation) to build trust with consumers. 

How customer reviews shape trust in companies

Transparency-and-trust-A3

How reviews shape trust in brands

When brands collect reviews and make them public, consumers see that as an indicator of transparency and trustworthiness. Even just one customer review can drastically increase trust. Indeed, only 9.3% of people would trust a company with zero reviews, whereas nearly 60% would trust a company with only one review. 

Trustpilot - Transparency and trust facts A4

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How reviews shape trust in brands 2

When considering reviews, customers can see through fake or fabricated feedback, and trust ratings that look more authentic. In fact, customers are slightly more likely to trust a brand with a range of reviews than a brand that has only positive reviews. 

Today’s customers are also more aware that some fake reviews are out there. A recent [customer review study](https://www.cbsnews.com/news/buyer-beware-a-scourge-of-fake-online-reviews-is-hitting-amazon-walmart-and-other-major-retailers/) found as many as 52% of reviews on Walmart.com and 30% of the reviews on Amazon.com were fake, inauthentic, and unreliable. This is why it’s important for reviews to be on a platform that customers know is actively working to flag and remove fake feedback. 

Authentic, accurate, and truthful reviews lead to more trust, and even negative reviews can allow you to [rebuild relationships](https://blog.hubspot.com/service/respond-to-google-reviews) with your customer base, identify areas of development, and improve customer experience in the long run. Companies have begun to address these concerns offering through a [variety of best practices](https://www.entrepreneur.com/article/330528) including the ability for customers to flag fraudulent reviews, investment in machine learning to identify fake reviews, and the encouragement of a more open dialog between reviewers.

Our study also found that reviews aren’t the only thing that can substantially change customer opinions and alter their buying decisions.

### A brand’s stance on social issues can change customer opinion

Whether it’s leading the charge on large ethical issues ([Patagonia](https://www.teenvogue.com/story/patagonia-fair-trade-program-future-fashion)), or simply reimagining makeup as skin care ([Glossier](https://www.bloomberg.com/news/features/2018-08-30/millennial-makeup-brand-glossier-shakeup-makeup-routine)), brand reputation and values can impact customer buying decisions and brand affinity.


Trustpilot - taking a stand on social issues

Transparency-and-trust-A5

Taking a stand on social issues

In our study, 44.3% of British shoppers and 41.5% of American shoppers said their trust in a brand increased when it took a position on social issues. Younger generations, in particular, were more likely to care about a brand’s stance on social issues. Millennials were most likely to make purchases based on a company’s social stance, followed by Gen Zers (which are the two youngest demographics of buyers). 

Social responsibility increases trust in companies

Transparency-and-trust-A1-B

Social responsibility increases trust

When a brand takes a stand on social issues, it builds trust and increases customer recommendations. Nearly 48% of online shoppers had recommended a company to others because of its stance on social issues. On the other hand, a negative brand image can cause customers to tell others to avoid a company. Nearly 83% of Gen Zers, the youngest generation of customers, said they’d recommended others to stop purchasing from a brand with a bad reputation. 

Brands take a risk when they make a social stand. If they get it right, they can attract consumers, and if they get it wrong, they can risk alienating customers. When Nike took a stand on a social issue and jumped into the controversy surrounding Colin Kaepernick’s decision to kneel during the national anthem at NFL games, it took a risk – and, for some customers, [it worked](https://business.trustpilot.com/reviews/build-trusted-brand/the-rise-of-belief-driven-buying-3-ways-to-protect-your-online-reputation). 

While some customers did boycott the brand, many others embraced its message. Nike’s target customers – teen males – bought more Nike products after the commercial aired, which [led to a noticeable spike in its revenue](https://abcnews.go.com/Business/nike-sales-booming-kaepernick-ad-invalidating-critics/story?id=59957137). Nike took a stand on a social issue it believed mattered to its target customers, and it paid off. More and more brands are [taking a stand](https://www.bbc.com/news/business-41728542) on social issues and politics, like Jigsaw’s pro-immmigration fashion campaign. Jigsaw’s [Head of Marketing](https://www.marketingweek.com/2017/10/11/jigsaw-makes-immigration-statement-with-new-campaign/) said, “We were conscious we didn’t want to approach this with a Pepsi-Kendall Jenner mentality and to make a political statement just for the sake of it.”

Social stands definitely don’t always go as planned. When Pepsi released an ad featuring Kendall Jenner walking across a protest line to offer a police officer a soda, they were trying were trying to tap into the movement of protests happening around the world. But, the ad quickly received widespread backlash, ultimately resulting in the ad being pulled.

[As The Guardian reports](https://www.theguardian.com/media/2017/apr/05/pepsi-kendall-jenner-pepsi-apology-ad-protest), the company released a statement saying, “Pepsi was trying to project a global message of unity, peace and understanding. Clearly we missed the mark, and we apologise.” This example shows how important it is to be clear about your messaging and your audience before taking a social stand. 

### When a strong reputation becomes more important than a low price 

Our study found that customers don’t just choose brands, products, and services based on what they think about features, benefits, and pricing. How someone feels about a brand can also drive him or her to buy or walk away. 

For many shoppers, reputation matters even more than pricing. Even when products were slightly more expensive, shoppers tended to opt for the brand with a better reputation. 


Transparency-and-trust-A6

The value of a good reputation

Over 83% of customers would choose a product with good reviews over a product with no reviews, even if the price was slightly more expensive. And interestingly, 81.7% of customers would choose a product from a company known for being socially responsible over a product from a company known for a recent scandal, even if it meant paying a bit more. This highlights an opportunity for brands to grow their margins simply by collecting more customer reviews and putting more effort into social responsibility.    

Once again, this proves that even the most competitive pricing can’t fix a bad brand reputation, showing just how important it is to make your company more transparent, likeable, and trustworthy. 

### Take steps to build your brand's reputation

Now that it’s become clear that customers are more likely to trust and buy from brands that are transparent and have a good reputation, what can your brand do to build this type of trust with your customers? 

__1. Aim for radical transparency. __

Most customers search for information about brands, so the worst thing you can do is hide the information they seek. Put your brand out there, and give customers something to find when they search for information about your organisation. Share details about your brand’s values and mission, and openly share reviews that allow customers to learn about your brand from other perspectives. 

And whatever you do, don’t lie or manipulate information about your brand, as deleting reviews can decrease customer trust by a whopping 95%.

__2. Ask customers to talk about your products and services publicly.__

As a part of your transparency plan, proactively ask customers to share reviews and feedback about your products and services. Establish one-on-one relationships with customers through open communication channels and review monitoring systems that make it easy for customers to leave feedback. 

Don’t be afraid that reviews will hurt your brand. Customers want and need to see reviews in order to trust your brand, even if there are bad reviews mixed in with the good. Only 9.3% of people trust a company with zero reviews, whereas nearly 60% would trust a company with only one review. So remember, having no reviews is far worse than having an imperfect rating. 

__3. Monitor what your customers are saying and take it to heart.__

Don’t just collect customer feedback; actively monitor it and act on what you learn. Customer reviews help other customers learn to trust your brand. But reviews can also allow your brand to gain insight into customer perspectives, opinions, needs, and wants. Use the feedback you gather to improve your customer experience, innovate on your offerings, and grow your brand.

__4. Remain open about criticism and address it publicly.__

When you actively ask for feedback and use open communication channels to collect reviews, you will sometimes receive some negative comments. Don’t hide from the criticism. Publicly address negative feedback and react quickly, effectively, and in a way that’s on brand. Understand the sentiments of your detractors, learn from your mistakes, and never delete unflattering comments. Deleting negative customer comments caused 95% of customers to lose brand trust.

__5. Consider taking a social stand.__

If your target audience includes a young demographic, your brand may want to consider taking a stand on social issues. Because both Millennials and Gen Zers are most likely to make purchases based on a company’s social stance, your brand could find an opportunity by being more socially responsible. But, if you choose this option, carefully review your plans before you launch. Social stands can both drastically boost or decrease public option, so be clear on your goals and target audience before your brand takes a stand.

__6. Look for tools that can help.__

Empower your business to collect authentic customer feedback, read reviews, and respond appropriately by finding tools that help with the process. A platform like Trustpilot can make it easier for customers to leave reviews, and for your brand to internalise that feedback, learn from your mistakes, and quickly respond and engage with customers. Trustpilot also uses technology to fight against fraudulent and fake reviews. With new product features and a completely open and transparent platform, the software helps both you and your customers confidently internalise feedback you know is authentic.

## Build trust with your customers by being more transparent

With 90% of online shoppers in our study ready to walk away from a brand that has a bad reputation, companies simply can’t afford to ignore reputation management anymore. Today’s brands need to actively work on building and maintaining trust if they want to attract new customers, keep relationships with existing customers, and drive them to make purchases. 

Companies can do that by choosing to build a transparent online presence, actively work to collect reviews from customers, and learn from their feedback. 

Trustpilot helps brands build this honest and transparent online presence. Our open, third-party platform shares customer reviews while combating fake and fraudulent comments so that both brands and customers find accurate, authentic feedback. Customers gain insights that help them get to know and trust the brand, while brands gain insightful feedback that helps them improve and innovate. 

Visit [Trustpilot](https://business.trustpilot.com) to learn how we can help you build trust through a more transparent and open approach to online reviews and brand reputation management.  

### Fair use statement

Know a company leader looking to improve or begin building his or her online reputation? Please feel free to share the results of our study with them for noncommercial purposes. We also ask that you link back to this page to give credit to its authors. 

### Methodology

For this study, we surveyed 1,627 American, British, European, and Australian online shoppers. To qualify for the study, respondents had to speak fluent English and shop online at least once a year. 519 respondents lived in the U.K., 516 in the U.S., 455 in greater Europe, and 137 in Australia. 

Participants ranged in age from 18 to 77 with an average age of 35.8. The standard deviation was 11.6.

Two questions in our survey were A/B-test style. Participants were asked how much they’d trust a brand based on the number of reviews and the distribution of reviews shown in two separate sample images. For each question, participants randomly were shown one of five images. Each image in both questions was shown to 20% of the survey population. 

### Limitations

Many other factors influence trust in brands online. While we included many of these factors, every individual chooses to trust a brand based on his or her personal reasons. This study is based solely on means and self-reported data. It is purely exploratory. None of the data were statistically tested nor weighted. 

### Sources

- https://mediatel.co.uk/newsline/2019/01/30/industry-bosses-warn-of-declining-trust-in-advertising/ 
- https://www.thinkwithgoogle.com/consumer-insights/how-digital-connects-shoppers-to-local-stores/ 
- https://www.cbsnews.com/news/buyer-beware-a-scourge-of-fake-online-reviews-is-hitting-amazon-walmart-and-other-major-retailers/ 
- https://blog.hubspot.com/service/respond-to-google-reviews 
- https://www.entrepreneur.com/article/330528 
- https://www.teenvogue.com/story/patagonia-fair-trade-program-future-fashion 
- https://www.bloomberg.com/news/features/2018-08-30/millennial-makeup-brand-glossier-shakeup-makeup-routine 
- https://business.trustpilot.com/reviews/build-trusted-brand/the-rise-of-belief-driven-buying-3-ways-to-protect-your-online-reputation 
- https://abcnews.go.com/Business/nike-sales-booming-kaepernick-ad-invalidating-critics/story?id=59957137 
- https://www.bbc.com/news/business-41728542
- https://www.marketingweek.com/2017/10/11/jigsaw-makes-immigration-statement-with-new-campaign/
- https://www.theguardian.com/media/2017/apr/05/pepsi-kendall-jenner-pepsi-apology-ad-protest 

The value of a trustworthy brand reputation: 6 Ways to make trust your essential brand differentiator

Trustpilot - the growing importance of trust in online education and e-learning

Training and Education Report Trustpilot

Online programs have enjoyed massive growth in recent years, with the e-learning industry on track to triple in the next decade. In this day and age, many professionals see e-learning as essential to career advancement, gravitating toward “MicroMasters” or certificate programs to bolster their qualifications. As cynics of e-learning are quick to point out, online programs often have troublingly low completion rates and stunningly high prices. Researchers say student success depends on access to instructors, but e-learners often struggle without support.

In this modern digital age, online learning means democratised learning. Customers have no shortage of options available to them for whatever learning need they might have. Since most training and education companies deliver an online experience, potential customers for these companies are inherently tech-savvy and __know to research potential e-learning companies, which often includes seeking out third-party validation and social proof like online reviews.__

To better understand the current state of online education and e-learners’ motivations and frustrations, we analysed global industry data and surveyed over 2,000 previous and potential e-learning customers from the U.K. and U.S. Some findings include: 

- Although North America and Europe already have the largest e-learning markets in the world, these markets are still growing. In fact, around 9 in 10 consumers want to take an online course in the future. Only 13.6% of
U.K. and 9.2% of U.S. survey respondents had no desire to take an online course in the future.
- 87% of e-learners cite the reputation of the organisation administering their online experience is very or moderately important to them. Only 1% said reputation was not at all important to them.
- Nearly 8 in 10 consumers researched e-learning programs before committing to a course, with nearly 70% spending at least one to two hours or more on their research. 

Read on to learn more about the global landscape of online education, and what matters most to e-learners when evaluating their next course.

## Global Growth

As the appetite for online education has increased in recent years, the demand in many countries is on the rise. Among emerging nations in the Asia-Pacific region, the e-learning market boasted a 54% compounded annual growth rate, led by nations such as Myanmar and Mongolia. In many of Asia’s rapidly developing economies, e-learning offers an unprecedented degree of opportunity: If traditional schools can’t teach coding, mobile apps can fill the gaps. Growth was equally robust in Latin America, where the recent proliferation of smartphones has made e-learning more accessible. 

Even though the e-learning market is projected to expand in every region of the globe, some nations seem relatively cautious in their embrace of online education. Developed nations of the Asia-Pacific had a compound growth rate of 23%, well below that of Europe and North America. Interestingly, experts say wealthy Asian countries may particularly benefit from digital learning
and training programs. Japan, for example, must anticipate the automation of its lauded manufacturing industry, and digital learning may serve to “upskill” workers accordingly. Even with growing markets around the globe, Europe and North America still have the largest e-learning markets in the world.


## E-Learning Attitudes: U.S. and U.K.

In our own survey of individuals in America and the U.K., we found that consumers in these countries have considerably different e-learning
backgrounds. A much greater percentage of U.S. respondents reported having prior e-learning experience. In fact, more than 80% of Americans surveyed reported they had taken an online course and hoped to take more, whereas just under 60% of individuals in the U.K. said the same.

This gap may stem more from a lack of access than lack of interest since U.K. residents were far more likely to say they wished to take a course
online but hadn’t yet had the chance. E-learning is far more common in U.S. higher education than in the U.K., although that might soon change. Participation in online courses may increase in the coming years, though, as more U.K. students seek digital solutions to allay high university fees. 

When looking at those who planned to take online courses in the future, whether they had previously participated or not, interest in both countries was about the same. Only 13.6% of U.K. and 9.2% of U.S. survey respondents had no desire to take an online course in the future. While there wasn’t a large difference in plans to take online courses by nationality, e-learners’ education levels did impact their desire to take additional online classes.

For those who have previously taken an online course and plan on taking more, education level can affect their likelihood of further online education. At every educational level, U.S. residents were more likely than individuals in the U.K. to have taken online courses and wished to take more. But among Americans with an associate, bachelor’s, or graduate degree,
enthusiasm for e-learning was particularly high.

For example, over 92% of individuals with an advanced degree said they had taken an online course and would do so again. This finding underscores e-learning’s benefits even after earning a diploma; skill-oriented courses are a popular means for established professionals to boost their earning power. Those with advanced degrees might be extra scrupulous when choosing an e-learning platform, since higher degrees and excellent research skills often go hand in hand.

As one might reasonably expect, experiences and attitudes related to online education differed significantly by generation in each country. However, 9 in 10 people in every generation were interested in future online courses, revealing that consumers of all ages find e-learning valuable. Although the majority were interested, their previous e-learning experience varied greatly by generation and nationality.

American millennials were the most likely to have taken online classes and wanted to take more, with just 5.5% reporting that they had not yet taken a course despite wanting to. In the UK, twenty-six percent of millennials had not taken an online course but wanted to, nearly five times as many as their U.S. counterparts.

The trend continued across the older generations, as nearly 25% of British Gen Xers were new to e-learning and looking to take courses, twice as many as American Gen Xers. Seventy-five percent of American baby boomers had taken online classes and wished to do so again, 20% more than British consumers in their generation.

Certainly, economic incentives exist on both sides of the pond: Experts recommend that baby boomers take online courses to remain relevant at work. While new and returning interest combined is equally as high in both countries, special attention should be paid to the high number of new consumers in the U.K. who will be carefully researching the best online courses and platforms.

## Platform and Pedagogy

So, how do those interested in online courses prefer to learn?, Most respondents favored engaging in digital learning platforms via their computers. This feeling was particularly strong in the U.S., where almost 73% of learners expressed a preference for using their desktops. In some ways, these attitudes may seem oddly outmoded: The majority of internet traffic now comes from smartphones and tablets, but some student tasks lend themselves to larger screens. When poring over reading materials or typing discussion posts, smartphones may prove inconvenient.

Additionally, a majority of U.K. and U.S. respondents favoured solitary learning, a natural preference for those studying online. However, approximately 32% of students in each country expressed a preference for social learning as well, suggesting a lingering desire for the conviviality of traditional classrooms.

Indeed, veteran instructors of online courses say that fostering engagement and interaction among students is a major challenge. Because social learners value opportunities for interpersonal communication and group participation, they may struggle with the independence of the e-learning experience. 

## Preferences and Priorities

When researching an e-learning platform or course, online students seek out information about the quality, specifically the quality of learning materials, user experience, and instructors. When asked which aspects of an
online course they regarded as very important, more than 6 in 10 users in each country identified the quality of learning materials as an essential concern.

E-learners considered learning materials more important than user interface or instructors – however, around 59% still regarded the quality of instructors as very important. If consumers can’t trust that the learning materials are high quality, then the instructor teaching on the platform hosting those learning materials may become less credible. When we took a deeper dive into the features of e-learning experiences, we discovered what truly matters most to e-learning consumers.

While the learning materials are important, respondents were generally concerned with the delivery of course content and overall user experience: The majority found the use of interactive or multimedia assignments to be
important. Nearly as many valued video lectures or live streams by real instructors. Beyond elements of the learning experience itself, nearly
three-quarters of respondents were concerned with obtaining a certificate upon completion. The financial opportunities resulting from these credentials are significant, especially in fields that prize concrete skills. Google recently established an IT certificate program in partnership with Coursera, noting the country’s largest employers are constantly seeking workers with this technical skill set.

In some cases, however, respondents in the U.K. and U.S. had substantially different perspectives. Americans, for example, were more likely to value the use of social learning methods, whereas U.K. residents placed greater emphasis on mobile accessibility. Interestingly, a minority of individuals in both countries found strict deadlines and well-established expectations
important to the e-learning experience. Online courses claim to offer greater flexibility, but a lack of structure can actually make time management more difficult for many students.

For e-learners in both the U.S. and U.K., 24/7 customer service was considered more important than social learning methods, mobile device accessibility, and deadline and topic variance. 89% of consumers have ended their business with a company after encountering poor customer service — a key reason that consumers lose trust in a business and leave a negative review.

While online courses can offer definite career advantages, professionals’ motives may differ according to one’s position on the corporate ladder. For those in middle management positions or lower on the totem pole, gaining a certificate upon completion was a top priority. Conversely, those in senior leadership positions were more concerned with the inclusion of video lectures and the constant availability of tech support.

For those in senior leadership positions, 24/7 customer service was more important than an official completion certificate. Those professionals might be completing their courses outside of standard working hours due to their busy schedules, so customer service, no matter the time, needs to be available.

## Price and Privacy

When researching potential e-learning options, consumers want to know the cost of the course and if the cost is worth it. When asked to assess the value of e-learning experiences relative to their costs, the largest segment of respondents found the pricing of online courses appropriate. Almost 29% of respondents felt even more positively about the value, regarding e-learning as a great deal providing considerable value at low prices.

Many certificate programs cost just a couple hundred dollars or less, pocket change compared to credit costs at most universities. But for those pursuing degrees, online students are often charged more than their peers on campus to cover technical and administrative expenses. That reality may explain the sentiments of almost 13% of respondents who felt online education offered high costs and relatively little value. 

Figure 4

In an era of concern about user data, consumers need to know that they can trust e-learning companies with their information. 32% of individuals in the U.K. and nearly 26% in the U.S. said they worried about how their personal information might be misused or mishandled by an e-learning platform.

This slight gap might be attributable to cultural attitudes: European nations tend to favour more assertive privacy policies. With so much course content available for free, it might be reasonable to assume that companies are looking for ways to monetise user data. So far, however, big players
such as edX have gravitated toward charging students, rather than selling their information to turn a profit. While data trust is important to consumers, company reputation has the biggest influence on their e-learning choices.

## Questioning Quality

No matter who the consumer is, or what course qualities they care about, the reputation of the e-learning organisation is important to consumers. The reputation of an organisation involved in an online class was an important
consideration for a staggering 99% of consumers. OOnly 1.1% said reputation was not all important to them.

Additionally, nearly 4 in 5 students said they researched online education programs before enrolling. Because some online colleges lack accreditation, failing to investigate in this way could lead to much wasted time and money.
Nearly 70% spent at least one hour or more on their research, with only 22% not doing any research at all. With the large majority of consumers caring about reputation and spending time researching their decision, e-learning
companies can’t afford not to care about their reviews and reputation.

## Online Education: Access Needs Accountability

Our far-ranging findings attest to the explosion of online education opportunities in recent years. As e-learning’s global scale continues to
expand, the sheer diversity of options can seem both enticing and overwhelming. IIn an industry evolving so quickly, how can consumers distinguish between excellent programs and those that fail to deliver on their promises? Which e-learning experiences are worthy investments,
equipping participants with the knowledge and skills necessary to succeed?

For many, the most important endorsements come from fellow students: In evaluating online courses, reviews are an essential source of relevant information. In this regard, the e-learning industry is much like many others – credibility depends on the feedback of real consumers. Trustpilot helps companies gather authentic reviews and share positive feedback with potential customers. Every day, we help thousands of businesses connect with the people they serve and improve to meet their needs. For a master class in managing your reputation online and gaining consumer trust with transparent reviews, explore our services today.

### Methodology

All survey data were collected via SurveyMonkey and hosted on Amazon’s Mechanical Turk and Prolific Research on Jan. 16, 2019. We surveyed 2,091 people in all: 1,044 U.S. adults and 1,047 U.K. residents. This sample included 1,041 men and 1,050 women and an age range of 18 to 74 years old. All other data were sourced from open online publications and are listed in the source list. The survey data we reported on here were all based on self-reporting, which is inherently limited by factors such as selective memory, exaggeration, response bias, and telescoping. 

### Fair Use Statement

Please share these findings with others who may find them interesting: In the ongoing conversation about digital learning, we hope these hard data are a welcome addition. With regard to sharing our work, we have two simple requests. First, please only use our information and images for noncommercial purposes. Second, link back to this page to properly attribute our team.

Training and Education Report Download Trustpilot

The importance of trust in online education and E-Learning

Trustpilot - building trust in financial services

Trustpilot - Building trust in financial services

Companies with familiar names used to be able to rely on consumers to trust them but they now face a wave of disruption. They must work harder than ever to earn that trust.

The global financial crisis of 2008 placed a huge dent in the public’s trust of financial services providers. The brands that had lectured consumers on fiscal prudence were suddenly exposed and, in some cases, needed taxpayer bailouts.

Over that same timeframe digital technology has empowered a fintech revolution, with new brands providing innovative online and mobile services built around delighting customers rather than plodding along with legacy technology and organisational silos. Established brands have had to raise their game to keep up.

The resulting increase in choice begs the question: how do consumers know whom to trust? London Research, working in association with Trustpilot, has
produced this report based on a survey of 1,000 consumers in five different markets: the UK, the US, France, the Netherlands and Italy.

The research has found that advertising is not particularly trusted by consumers for choosing financial services providers when used in isolation. Instead, trust is primarily established through two main sources of information, the brand’s website and customer ratings. 

## 1. Whom to trust. Bankers, ad execs or consumers?

According to a London Research survey of 1,000 consumers, carried out exclusively for Trustpilot across five different countries, the deterioration in trust in financial services is still evident, even a decade on from the financial crisis. Consumers are 50% more likely to say that their level of trust in financial services providers has decreased rather than increased over the last three years (30% versus 20%, see Figure 4, appendix).

In the age of the fintech revolution, the question on all financial service providers’ lips is how can they build or repair a trusting relationship with consumers, and through which means?

Brands who look at this conundrum have two major challenges if they decide to advertise their way into the consumer’s heart. Trust in bankers, and by implication, financial services more broadly, is low and ad executives behind campaigns are the least trusted of all professions.

That is according to the [2018 Ipsos MORI Veracity Index](https://www.ipsos.com/ipsos-mori/en-uk/advertising-execs-rank-below-politicians-britains-least-trusted-profession) which further warns that if brands were to switch tactics and get a PR to convince newspapers
to write good things about them, they hit another snag. Journalists are only trusted by one in four people.

Clearly, the answer to convincing the public a financial services brand is trustworthy is to rely on the ‘ordinary man or woman in the street’ who is trusted by 62% of the population, according to Ipsos.

This realisation shifts the onus for brands from paying for awareness to engendering positive ratings among consumers through providing best-in-class customer experiences. Devise an exciting proposition, execute it brilliantly to delight customers and they will tell peers what a great service they enjoy — both through word of mouth and its digital equivalent, ratings and reviews. 

## 2. Customer journey focus underpins trust

Trust in financial services is largely maintained through the work of industry regulators, including the Financial Conduct Authority (FCA) and Financial Services Compensation Scheme (FSCS) in the UK.

However, while this may help to engender faith in the industry as a whole, trust in individual companies is best established through understanding and
influencing the user journey, suggests financial services marketing expert Sanjit Badhan, formerly Head of CRM at money transfer company TransferGo.

“Historically, choice has been very limited in financial services,” he says. “That means trust is interwoven with customers’ learnt behaviour. There’s now more choice, but how do you get over that inertia and convince people it’s worth looking around and committing to one of these new exciting providers?

“For me, the key is a better user journey. Too many new brands are just intent on acquiring new customers, and they don’t devote as much time and effort to providing an excellent journey and customer experience that builds trust.”

Badhan believes that financial service providers need to be clear about their proposition in terms of whether they are price-led or experience-led. Either is fine, and will build trust, but consumers need to know which side of the price or service fence a brand sits on.

“You can be the brand that can’t be beaten on rates or you can be the brand that empowers customers to get on with their lives through the best service available,” he says.

“Brands have to be able to show which they are. Too many brands are trying to be both but it’s too expensive to offer the best service, a smart app in
every language available with telephone support, as well as not being beaten on price. Brands need to choose a side. Consumers understand, and they will pick which is more important to them and build trust around how well the company delivers its brand promise.”

## 3. Where do people find trust?

Financial services decisions used to be very simple. Most people would visit a local high street bank or call a highly familiar provider that had been in
business for generations and was likely to have been patronised by friends and family.

This centuries-old model has now been replaced by digital disruption through the fintech revolution.

However, our survey shows that the most important source of information in this new landscape is still what a company says about itself and, just like in the days of word of mouth, what other people say about
the provider and its service.

As can be seen in Figure 1, the top influencer for consumers is the company’s website (rated as ‘very important’ or ‘important’ by 68% of consumers), followed by consumer ratings and reviews (61%). In fact, ratings and reviews are more trusted by consumers making decisions relating to financial services and products than aggregators and search engines.

It is understandable that many brands surrounded by so many new names are trying to raise awareness, but our findings show that consumers are around three times as likely to regard the company’s own website and consumer ratings as ‘very important’ than for TV advertising, online display ads and social media.

Conversely, people are three times more likely to ascribe zero influence to TV and online advertising over their financial product decisions, compared to ratings. The same applies to social media, only five times over.

## 4. Data-driven services delight customers

The question around trust, then, is less about what brands say about themselves in traditional and digital advertising channels. Instead, it is more a case of what they can convey on their websites and apps, and how they back that up with high levels of service.

For Duncan Leslie, Head of Product Experience at investment platform Hargreaves Lansdown, this means the key to getting customers to trust a financial services brand is customer experience. This requires helpful customer services experts, available online and on the phone, but that is just the start.

In his experience, a brand needs to build a service around focusing every use of technology on customer needs. The benchmark is being set increasingly higher by companies in all sectors beyond banking, he warns.

“Expectations aren’t just set by financial services providers, they’re set by the likes of Amazon, that’s how simple and convenient you have to be to use,” he says.

“We use a lot of data from our customer interactions to understand what customers want and how we can give them the best experience possible. One
key learning from this approach was realising our first mobile app was a little ‘flat’. It offered a bit of everything, even though the data showed most people just want the quickest way to get logged on and check their balances.”

The result was a reworked, simpler app that allowed people to check in and out conveniently but can still offer further information for those wanting to explore further. It is here that the brand’s customer experience strategy is focused around intuitively knowing what the client is most likely to be interested in.

“We’re constantly updating our app and online service by using machine learning to understand what type of customer is logging on, and what they might be most interested in,” says Leslie.

“That way, we can personalise offers of additional products around their likely understanding and comfort with financial products. A seasoned investor may be shown a product that requires more understanding and confidence than someone who is less au fait with financial products.”

## 5. Relevance is key to personalised customer experiences and trust

Almost two-thirds of consumers (63%) agree that financial services providers personalise the online experience with relevant information and recommendations based on their needs (Figure 6, appendix).

Building products and services around the customers they serve is the new mantra all financial services operators must adhere to in order to be successful, according to Firas Khnaisser, Head of Decisioning at Standard Life.

He lives by the simple rule that “the customer has to be at the heart of everything we do”.

“Although we’re an established name we try to think like a start-up when we’re looking at delivering new products and services", he says. "It helps us to not get tangled up in organisational silos, processes and technology, and to really put ourselves in the customers’ shoes.

“We have invested significantly in our data, analytics and customer engagement capabilities. This allows us to develop a deeper understanding of our customers which allows us to better deliver against their needs. 

"We first used this capability in the marketing space but now we see it being used across the whole organisation, from customer service and operations, to sales and distribution, to fraud prevention. This goes to show that for good customer experience to happen the entire company needs to be pulling in that same direction.”

He says the data and technology available to the business allows them to have more relevant, timely and personalised interactions with their customers across multiple touchpoints.

“Organisations that are able to leverage the data and the technology available to them are able to deliver a far superior experience to their customers which will, in turn, deliver better business outcomes,” he adds.

Khnaisser agrees that online reviews give increased transparency into the type of service customers could expect to receive from a brand. The more
transparent brands are, the easier it becomes for customers to trust the brand. 

## 6. Consumers base decisions on ratings

Our research shows that three-quarters (75%) of respondents agree that positive consumer ratings would make them more likely to become a customer of a bank, compared to only 9% who disagree (Figure 2).

The importance of consumer reviews hasn't escaped the attention of challenger banks, including Atom Bank which displays its Trustpilot rating on its home page with the number of 'excellent' ratings constantly updated.

Atom Bank's Head of Marketing, Neil Costello, says: 

"We think smart brands should always let people coming to their site know how other people rate them.”

“We don’t really advertise but I always think brands like Purplebricks, that also include their ratings scores in their advertising, are really smart. There’s no better way of transparently showing the public what other consumers think of you than proudly displaying those stars. It shows you’ve got nothing to hide, that you can be trusted.”

Costello believes that many of the most familiar names in financial services, who were the only choices before digital disruption came along, are hamstrung by concerns the reviews may not be too favourable.

“The big brands are probably just waking up to the power of reviews, now that they tend to be used a lot more by challengers and disruptors to show the public how trustworthy they are,” he says.

“The trouble is, they may well have far too many bad reviews in the past that are holding back their averages and they may be worried by more coming in which they are not set up to deal with.”

Ratings are not just critical for choice of bank but across every service a financial services company provides. Mortgages are slightly ahead as the
product where most consumers seek confirmation from ratings (Figure 3). However, it is worth noting that more than half of consumers regard ratings as at least ‘important’ for choosing a wide range of products, including loans, credit card, pensions, life insurance and an investment platform. 

## 7. Ratings improve customer service

The cornerstone of a great customer experience is good customer service. This is where money transfer business Azimo believes it gets some of the best value from embracing reviews.

Its Head of Digital Marketing, Laura Bent, points out that in addition to reviews showing a brand is willing to have a transparent, open and honest relationship with its customers, there is also a lot to learn from what customers are saying.

The brand carries out regular Net Promoter Score studies to understand what consumers are thinking about its products and services, but these are, by definition, internal reviews. By displaying ratings on its home page, she believes Azimo is able to join in a conversation with consumers and show that it is willing to deal with any issues that arise. 

“Reviews and ratings are a great tool for both listening to our customers and then acting on those insights,” she says.

“We show ratings in real time and so if a customer has a concern we can deal with it there and then. That’s very useful for showing that we’re not just
there to show five-star ratings, but we’re also actively looking to address problems and put them right. It’s the best way to be open and honest but also helpful.”

Azimo displays customer reviews prominently on its website. 

Azimo example

## 8. Conclusion– Unlocking digital word of mouth

Success for financial services providers is no longer guaranteed by being a familiar name. Across every financial services niche, consumers are being offered a plethora of products and services by disruptors focusing on a better customer experience and personalisation of services.

And yet the old-fashioned way in which people have traditionally selected financial brands they trust is still alive and well. The big change is that word of mouth is now accompanied by its digital equivalent, ratings and reviews.

These are far more influential in consumer decisions than traditional and digital advertising channels and are second only in building trust to a brand’s own website.

A home page with ratings prominently displayed, then, combines the two most effective ways of showing consumers that people trust a brand. If a company is open and transparent in its relationship with the public, it will happily point to what people are saying about it in real time.

Atom Bank displays its five-star Trustpilot rating above the fold on its home page. 

Atom Bank Example

Figure 6

Figure 8

## Methodology & Acknowledgements 

London Research was commissioned by Trustpilot to carry out a survey of 1,000 nationally representative consumers in January 2019. The sample comprised 200 respondents in five different countries: the UK, the US, France, the Netherlands and Italy. The survey was conducted using a Toluna research panel. London Research also carried out interviews for this report.

London Research and Trustpilot would like to thank the following people for their insights.

__Sanjit Badhan__, consultant and former Head of CRM, TransferGo

__Laura Bent__, Head of Digital Marketing, Azimo

__Neil Costello__, Head of Marketing, Atom Bank

__Firas Khnaisser__, Head of Decisioning, Standard Life

__Duncan Leslie__, Head of Product Experience, Hargreaves Lansdown

Building trust in financial services

Banner report - The age of the consumer: building trust in the home and garden sector

Home and Garden Report Trustpilot

Today’s shoppers are savvy and informed, cynical and questioning. They have access to a wealth of brands and products at the touch of a button, and many now begin their research online, placing growing importance on user-generated content (UGC), including online reviews and ratings, and social media.

[The home and garden sector](https://business.trustpilot.com/industries/home-garden) faces all these challenges, and more. Globally, more people are renting rather than buying – particularly cashstrapped millennials – while urbanisation, coupled with a growing population, is creating a need for smaller homes with smaller gardens. Both human behaviours and needs are changing, and businesses must change too. People are more demanding of brands, increasingly craving authentic content. Retailers in this sector must engage consumers both online and offline, forging relationships with them at the start of their journey. 

Physical stores still play a pivotal role in the final purchase, particularly when it comes to high-value items such as kitchens, bathrooms, sofas and beds, but building trust early in the customer journey is crucial.

London Research, in association with Trustpilot, has produced this report based on a survey of 1,000 UK and US consumers.

## 1. The Amazon effect

In 2018, Amazon became the UK’s fifth largest retailer by spending market share, accounting for £4 in every £100 spent on retail, with the top four spots held by Tesco, Sainsbury’s, Asda and Morrisons, according to Verdict. Figures from eMarketer also show that, in the US, Amazon accounts for 5% of all retail spend. With a sophisticated online presence and a huge profile, coupled with a comprehensive logistical infrastructure, Amazon can quickly and easily introduce new products to meet demand. It is an ongoing challenge for businesses in every sector, and the home and garden industry is no different.

As the pioneers of speed, convenience and personalisation, they have set the bar high across the board. “Companies like Amazon, Netflix and Spotify are spoiling us by treating us better and fulfilling our core needs for relevance and convenience by delivering the right content in front of us at the right time,” says Patrick Obolgogiani, Global Head of Customer Success at ecommerce personalisation platform Nosto. “These days if a brand is not relevant, the tolerance is really low — I will jump to other products really quickly.”

There is room for improvement in the home and garden sector. Our consumer survey of 1,000 consumers (including 500 in the UK and 500 in the US) shows that only 22% of all respondents ‘strongly agree’ that retailers in this sector personalise the online experience with relevant information and
recommendations (Figure 1).

Another significant impact of Amazon has been to shine a spotlight on the power of ratings and reviews.

Customer reviews are a key part of what drives the Amazon machine, and positive customer reviews increase a product’s search ranking on the site. An Amazon User Study in 2018 revealed that almost 90% of Amazon customers said that they would not consider purchasing a product with less than three stars, and 79% said they often check third-party seller ratings before buying.

According to Simon Weigh, Head of Marketing at Swift Direct Blinds: “I often spend time looking at Amazon and figuring out ways that they do things. Not everything they do is applicable to us but there are certainly things we can learn from, particularly around reviews, recommended products and personalised content.”

Amazon has undoubtedly helped to ingrain the practice of reviewing products and services into the public consciousness. According to our research, over a third (34%) of both UK and US consumers have personally written consumer reviews for home and garden products (see appendix, Figure 7).

Retailers in the sector need to tap into consumers’ growing willingness to share in order to demonstrate their quality, trust and transparency.

## 2. The appetite for user-generated content

According to analyst firm IDC, more than 50% of commercial content will be created outside of the marketing function by 2020. The growth in UGC has been exponential in recent years, fuelled by a proliferation of social media platforms and increasingly sophisticated smartphones.

Sharing – opinions, experiences, recommendations – has become second nature. It is a shift that has impacted the home and garden sector, changing the way consumers shop for products.

Rachel Finn, Head of Customer Journey, Showroom Marketing at Wickes says: “We have seen online become much more an integral part of the journey. It is something we are thinking about more and more – the way people research and compare retailers online – and social media is particularly relevant. 

“In particular, people are increasingly using Pinterest to search for kitchens because it’s very visual. They start that journey very idly almost, by loving someone else’s kitchen and pinning it, and it sows the seed of an idea. Before they know it, they want a kitchen — that is becoming more important for us.”

Angela Hsu, Senior Vice President, Marketing and Ecommerce for California-headquartered Lamps Plus has also seen this shift towards customers doing more research online. “As a result, when they come to our stores, they are asking more educated questions. We see the benefits of this because our customers are further in their buying process, more knowledgeable on the topic and have a clearer understanding of what they want to purchase when they enter our stores.”

Nosto’s Patrick Obolgogiani adds: “There is a big trend of UGC and people trusting the opinions of other people more than those of companies, which makes sense. Younger generations, in particular, tend to like to see what their peers think about something – it is about social proof.”

As can be seen in Figure 2, consumer ratings and reviews rank as the most important source of information when buying items for the home, with 69% of all respondents saying this source was ‘very important’ or ‘important’, while a quarter of respondents ascribed the same level of importance to social media.

Obolgogiani says UGC is a key data source for retailers looking to deliver an enhanced customer experience. “If you combine the social proof of UGC with behavioural insights — what people are actually buying and looking at — it can be a really big influencer in finally making a purchase.”

But while UGC often begins the journey, final sales – particularly of larger home items – are still made on the high street. More than three-quarters (77%) of respondents said they buy sofas mainly in-store, compared with 70% who said the same for beds and 56% for homeware/furnishings (see appendix, Figure 8).

## 3. Consumers turn to reviews for emotive purchases

Our research shows the importance of ratings and reviews in the purchase journey for a variety of home and garden-related purchases. This is particularly evident for beds, with consumers ascribing a particularly high level of importance to consumer sentiment for this category of purchase (Figure 3). Furthermore, three-quarters (75%) of all respondents said they agreed that positive reviews make them more likely to buy a bed from a retailer, increasing to a resounding 80% in the US.

Beds are a hugely emotive purchase, and with 92% of adults internationally viewing sleep as a crucial component of their overall health and wellbeing (according to the Philips Global Sleep Survey), it is easy to see why consumers so keenly seek others’ opinions on this prized piece of furniture.

Indeed, the mattress market has been disrupted by a slew of newcomers, with leading brands including Casper, Tuft and Needle, Purple and Leesa all selling direct to consumers online. According to Forbes, the online retail segment is now responsible for more than 5% of the mattress market and is expected to soon reach 10%.

## 4. Peers drive trust

Word-of-mouth recommendations have always been powerful. They bring the authenticity of someone impartial, rather than the loaded endorsements of a company itself – even if the company’s claims are true. The internet has supercharged this, empowering consumers to quickly and easily seek out the opinions, not just of friends and family, but of other like-minded individuals, reaching a wider network of ‘trusted’ sources.

Swift Direct Blinds taps into this human need to seek and share opinions, giving its customers a referral code that enables friends and family to benefit from a discount. “I don’t think people necessarily rush round to friends and say, ‘I have just had an amazing blind fitted’, but if someone visits a friend’s home and they remark on the new blind, you can see how the
conversation evolves,” says Simon Weigh of Swift Direct Blinds. “Our ‘recommend a friend’ approach works really well and is a significant part of our revenue stream.”

Wickes also recognises the huge value of word-ofmouth recommendations. “People who are referred to Wickes as a result of seeing a friend’s kitchen are a really important part of our business,” says Rachel Finn, of Wickes. “They are the customers who are most likely to buy from Wickes. That close circle of friends who recommend us directly is really important.”

Of course, social media provides a platform for such word-of-mouth recommendations too. As highlighted earlier, a quarter of respondents said social media was at least ‘important’ as a source of information when buying home products. 

As Angela Hsu says, Lamps Plus customers will regularly share a room they have remodelled or redesigned that includes the brand’s lighting. “It’s in those ‘micro-moments’ that we often earn our reputation and customer referrals.” As a result, the company encourages customers to share experiences and product recommendations on social media. “We have seen the positive impact of this as the number of customers coming to our website and purchasing from social media continues to increase.”

## 5. A valuable source of customer insight

The growth in consumers sharing feedback on brands, products and services – whether via ratings and reviews, in person or via social media for example – can provide a valuable source of data for retailers.

As Nosto’s Obolgogiani points out, the impact, not only of Amazon but of other digital disruptors in the home and garden sector, means companies have to make their data work hard to compete. “Every business needs to make sure they leverage whatever data they have to meet those changing expectations from the consumer.”

It is not just positive reviews which provide valuable insights. At Swift Direct Blinds, the company’s head of customer services monitors all reviews in order to deliver an optimum experience, but also to pinpoint potential problems.

“Not so long ago we noticed that a number of customer reviews were commenting negatively on the quality of one particular fabric we were using in one of our blinds,” says Simon Weigh of Swift Direct Blinds. “We flagged it up and the factory looked at it and noticed a minor problem, but it was an important thing to correct. We ended up changing fabric suppliers as a result of that insight.”

Monitoring reviews is an area Wickes is looking to improve. “The reviews will happen whether you read them or not, but from our side it is really important that our customer service team are looking at every single one and considering a response, whether someone has given a one or two star review and a problem needs a resolution, or whether someone is giving a four or five star review which needs to be acknowledged,” says Rachel Finn of Wickes.

There is a clear opportunity to provide real-time responses too. Lamps Plus puts a huge emphasis on feedback, receiving thousands of comments each month. “What sets us apart is that we act on that feedback in real time,” says Angela Hsu. “When we receive a negative review, our store managers are notified immediately and they reach out to that customer to try and address their concerns within minutes of the negative feedback being given. Similarly, when a customer gives us a glowing review (5 stars) our managers are also encouraged to contact the customer and thank them for their purchase and review.”

## 6. Emerging technologies impact consumer behaviour

Virtual reality (VR) and augmented reality (AR) have both become part of the lexicon. As the price of VR headsets comes down and AR becomes more familiar, these technologies are starting to find valuable uses within the home and garden sector.

Wayfair, Ashley Furniture and IKEA all launched AR apps in 2017. IKEA’s Place app allows consumers to scan items from its online store and place them virtually into their own homes, allowing them to visualise them in situ, true to scale. Launched in September 2017, it is the most popular free non-gaming app.

Nearly a fifth (18%) of all respondents to our research had already used both VR and AR to help them make a purchase decision for their home or garden, with this figure marginally higher in the US than the UK for both
technologies (see appendix, Figure 9). There is also much talk about the connected home, or internet of things (IoT), a concept driven by yet more convenience and efficiency.

The technology is still in its infancy, but some areas are gathering pace quicker than others. Our figures show that connected speakers are the most common IoT device in the home, with 20% of all respondents owning these (Figure 4). This figure was higher in the US than in the UK, with nearly a quarter (24%) owning connected speakers stateside.

While prices might currently be prohibitive for many, and interoperability with other appliances is a concern, the appetite is clearly there, with Gartner predicting a sharp increase in the number of smart home devices in the average household over the next few years.

It creates an opportunity for retailers to integrate with smart speakers, and to invest in voice search. A study from InfoScout last year shows that people who buy an Amazon Echo increase their spending on Amazon by 29% after purchasing an Echo. Connected speakers are undoubtedly becoming part of the consumer buying journey

## 7. Conclusion

The retail sector is in a state of flux as digital continues to transform the way consumers research and make purchases, while the way people live globally is also changing. 

There are huge opportunities for retailers who listen to what today’s audience really wants. In a tough climate, the companies who survive and thrive will be those who understand what consumers like – and dislike – and deliver accordingly. Retailers have an unprecedented opportunity to hear customers, through social media, UGC and ratings and reviews, effectively giving them a hotline to their audience’s innermost thoughts, wants and needs.

But it isn’t just about encouraging consumers to share their opinions – it is about brands reassuring audiences that these opinions are being listened to and considered, with key insights being fed back into the business.

There is no hiding place. Consumers today crave transparency, authenticity and honesty, and home and garden sector brands who can prove this will win out.

## Appendix & Methodology

London Research was commissioned by Trustpilot to carry out a survey of 1,000 nationally representative consumers in January 2019. The sample comprised 500 respondents in the UK and 500 in the US. The survey was conducted using a Toluna research panel. London Research also carried out interviews for this report. 

### Acknowledgements

London Research and Trustpilot would like to thank the following people for their insights.

- Rachel Finn, Head of Customer Journey, Showroom Marketing, Wickes
- Angela Hsu, Senior Vice President, Marketing and Ecommerce, Lamps Plus
- Patrick Obolgogiani, Global Head of Customer Success, Nosto
- Simon Weigh, Head of Marketing, Swift Direct Blind

Building trust in the home and garden sector

reputable brands personality

Have you ever wondered how your brand's personality could impact your reputation and trust with customers? To find out, we analyzed the key traits  of the top 50 most reputable global brands to see what their “brand personalities” had in common.

To find out, we analyzed the key traits found in the press release strategies of the top 50 most reputable U.S., U.K., and global brands using IBM’s Watson Personality API to see what their “brand personalities” had in common:

- Openness was one of the most recognizable traits among the most reputable brands. On average, brands ranked in the 87th percentile for openness, which could indicate a propensity to take risks on new ventures and initiatives.
- Rolex, Barilla, and Fruit of the Loom, among other top brands, scored in the 99th percentile for openness. 
- Trust was also a key trait for reputable brands. On average, the top companies scored in the 92nd percentile for trust and the 94th for uncompromising standards.
- Brands in the food industry showed particularly high levels of conscientiousness in their press and branding efforts, and technology companies had the highest levels of emotional range.  

### Building transparency and trust

In many industries, especially food, retail, and apparel, an increasing number of brands are popping up – [making brands’ reliability essential](https://www.businessinsider.com/brands-with-most-loyalty-morning-consult-2018-9) to maintaining customer loyalty and reaching new buyers.

In today’s climate, companies’ actions can create shockwaves in an instant – for better or worse. One tweet from a employee or customer can [turn into a public relations nightmare](https://www.pcmag.com/feature/335422/19-massive-corporate-social-media-horror-stories/6), making trust a key personality trait that brands need to possess if they want to thrive in the long term. For customers, trust establishes a sense of openness and transparency that’s [just as important as the price](https://www.inc.com/rhett-power/trust-is-as-important-as-price-for-todays-consumer.html) of a company’s goods or services.

There are many reputable brands out there that have built loyal followings by showcasing traits like trust, imagination, and friendliness. Using IBM’s Watson Personality Insights tool, __we took a look at the press releases of the world’s most reputable companies as determined by the Reputation Institute’s U.S., U.K., and Global RepTrak studies.__

Let’s take a look at the personalities of brands with the best reputations and how you can improve your own brand’s voice and identity based on our findings. 

### Reputation matters 


the most reputable brands 2018

The most reputable brands 

While the most reputable companies differ between the U.S., U.K., and globally, all of the brands listed above share several qualities. According to the Reputation Institute, [the most reputable brands are determined](https://cdn2.hubspot.net/hubfs/2963875/_PDF/RepTrak/2018-GlobalRT100-Presentation.pdf?t=1535145221533%20target=) by examining the quality of their overall performance, products or services, innovation, workplace environment, company governance, citizenship, and leadership. 

__The Campbell Soup Company was the No. 1 most reputable brand in the U.S., and Rolex took the top spot on both the U.K. and global list__. Campbell Soup Company has been around for about 150 years, but its renewed focus on [corporate social responsibility](https://www.forbes.com/sites/vickyvalet/2018/04/17/americas-most-reputable-companies-2018/#220c3a1b294e) and more natural product offerings may have boosted it to the top spot in 2018. As one of the most [loved brands in America](http://knowledge.wharton.upenn.edu/article/campbells-can-rebound/), Campbell Soup Company seems to have discovered how important it is to adjust its product lineup according to its target audience.  

Rolex, a company known for its luxury watches, scored highest with U.K. consumers. The company is often a sponsor of [successful athletes in sports like golf and equestrian events](https://pressroom.rolex.com/en/sports-and-culture.html), which means consumers may associate the brand and its products with [desirable qualities](https://www.forbes.com/sites/vickyvalet/2018/03/15/the-worlds-most-reputable-companies-2018/#5c61021926d5) like wealth and victory. 

### Five key personality factors 

In the same way that friends and family can have distinct personalities, brands might have traits that set them apart. The five basic personality traits – openness, conscientiousness, extraversion, agreeableness, and emotional range – are known as the "[Big Five](https://www.businessinsider.com/big-five-personality-traits-2016-12)."

__On average, the top 50 most reputable brands in the U.S. and U.K. had higher levels of openness than the global top 50__. The most reputable brands in the U.S. and U.K. scored around the 91st and 89th percentiles for this trait. Openness may be common among reputable brands because it could indicate a [propensity for risk-taking](https://console.bluemix.net/docs/services/personality-insights/openness.html) in marketing efforts, whether in an advertising campaign or the innovative delivery of a product or service. 

A high level of openness and emotional range combined with conscientiousness may allow for brands to meet consumers on a deeper level through their public relations or marketing efforts, building loyalty and trust through their customer communications. The top brands did, however, score in the lower percentiles for agreeableness, which could indicate independence in branding and marketing. 

### The “big five” traits


the big five brands

The big five brands traits

Rolex ranked No. 1 in the U.K. and globally as the most reputable brand. Rolex also scored in the highest percentile for openness (99.8 percent), which could indicate that this brand embraces change and innovation while remaining steadfast in its pursuit of providing a high-end experience. 

Although most brands in our analysis scored in a lower percentile for agreeableness, __Barnes & Noble exhibited this trait more so than other brands, with The Hershey Company coming in second__. In a world of two-day free shipping and lower prices from goliath retailers like Amazon.com Inc., Barnes & Noble has used its [brick-and-mortar presence](http://fortune.com/2016/03/03/barnes-noble-results/) to help boost otherwise slumping online sales. And while sales of its e-book devices have trended down in recent years, Barnes & Noble maintains the device is an important part of its lineup.   

Mastercard Inc. scored highest for emotional range. The brand is a great example of a company that knows how to reach its customers on an emotional level. Its well-known “Priceless” campaign [focused on tugging heartstrings](https://www.inc.com/adele-cehrs/if-a-credit-card-company-can-emotionally-connect-with-their-audience-you-can-too.html) with the idea that experiences are more important than things – an interesting tactic for a brand focused on finance. 

### The making of a great reputation

__Ranking the personality traits for the most reputable brands in the U.S. and the U.K.__

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