Brands fail to meet the expectations of connected consumers - distrust increases

Many consumers feel that the data collected about them is used primarily for the benefit of companies - rather than for their benefit. This results in a growing distrust of data collection on the Internet and a desire for a greater say in decisions about their data, even with negative consequences for convenience. 58 percent of consumers in Germany are against networked devices monitoring their activities, even if it would make their lives easier.

Kantar TNS surveyed 70,000 people in 56 countries and conducted 104 in-depth interviews as part of the Connected Life study. Among other things, the study examines consumer trust in providers and brands in relation to four topics: Technologies, Data, Content and E-commerce. European and U.S. consumers' trust in brands is undermined by low-quality and poorly played ads and content online, while consumers in Asia and Africa seem to accept branded content and messaging. This shows that there is a trust divide in our connected world from greater distrust in developed countries to greater acceptance in emerging countries towards branded content.

Trust in large, global brands varies just as much between emerging and developed markets: In China and Nigeria, more than half of consumers (57 and 54 percent, respectively) trust global brands. In developed markets such as Germany (21 percent) and France (25 percent), however, trust is significantly lower - here consumers prefer smaller or locally operating brands.

Walter Freese, responsible for Connected Life at Kantar TNS in Germany, commented on the results: "We now live in a connected, post-factual world, where for many consumers distrust rather than acceptance and devotion is the rule. In Germany and many other developed countries, a paradox is occurring: on the one hand, the intended connection between brands and consumers seems to have been achieved: New and existing target groups are addressed through the new channels and platforms, brand content is shared on social media, personalized addressing based on previous usage behavior is accepted, and even digital commerce is expanding. On the other hand, it is precisely these developments that seem to have undermined rather than built consumer trust in the long term."

Michael Nicholas, Global Lead of Connected Solutions, Kantar adds the global perspective: "The gap we see between consumers in developed and emerging markets around the world presents a real challenge to global brands: how to build and reinforce trust in this fast-changing world? This affects every brand, because the most successful ones are typically the ones that consumers trust. When trust is lost, it can hurt brands." He adds, "Consumers in emerging markets trust technologies and social media channels because they know their utility in everyday life. When it comes to their personal data, they are less skeptical and expect rewards from brands in return. In developed markets, the picture is somewhat different. Consumers are demanding and expecting more from companies, such as brands customizing the entire customer experience based on the data they have and tailoring the approach depending on the context - i.e., situation, location or platform used."

Connected Life looks at consumer confidence according to four different aspects:

Trust in technologies

The rapid development of technology is enabling brands to provide consumers with better and smoother customer experiences; but poor implementation or a lack of attention to basic consumer needs can undermine trust in brands. This year's results show that the use of artificial intelligence is polarizing among consumers. More than one-third (39 percent) of online consumers worldwide and 27 percent of Germans are willing to interact with a machine (e.g., a chatbot) if it means their request is processed faster. This has huge implications for the pace at which companies automate their customer service.

Consumers, however, are increasingly feeling overwhelmed by the same technological achievements that were supposed to make their lives easier and more convenient. This also applies to cell phone use: One-third (36 percent) of 16-24 year-olds in Germany believe they use their cell phones too often.

Trust in the handling of data

People are becoming increasingly aware that they are paying for their connected lifestyles with their data. Many feel like the losers of an unfair exchange. 40 percent of global respondents and 56 percent of those surveyed in Germany expressed concern about the amount of personal data companies hold about them. The concern is even greater among nearly three-quarters (72 percent) of Polish consumers, 60 percent in the United States and 59 percent of consumers in South Korea. However, concerns are much lower in markets such as Nigeria (32 percent), China (30 percent) and Indonesia (22 percent). However, consumers there also expect more in return (rewards) from brands.

Trust in content

Many brands use social media platforms to reach consumers quickly and easily. However, the content on these channels is increasingly discredited by fake news or other self-serving information. As a result, general trust in brand channels is declining. More than half (52 percent) of German consumers find 'branded content on social media channels irrelevant. In addition, general distrust in social media platforms is growing. While only 16 percent of users in Germany consider the content they see or read on social media to be reliable, 61 percent of consumers in Indonesia trust this information.

Around half of German (47 percent) and French (50 percent) consumers are concerned that social networks decide what content and news users see. As a result, users find themselves in a "filter bubble" without control over their own communication. By contrast, in Asian countries such as Indonesia and the Philippines, only eight and twelve percent respectively express concern about this.

Confidence in handling money

There are more and more brands that offer consumers various payment options - for mobile shopping or when purchasing via social media platforms. New technologies such as a 'buy now' button on the website or paying directly with a smartphone are making eCommerce run ever more smoothly. But many consumers don't see the benefits of these technologies. While 64 percent of consumers in China would prefer to pay for everything with their cell phones, consumers in Western industrialized countries are far less willing to pay with their cell phones or smartphones: 57 percent of consumers in Germany don't want to pay for anything with their cell phones, and only 17 percent are interested in paying for everything with their cell phones.

Walter Freese summarizes: "Trust is very volatile. Brands in emerging markets currently receive higher consumer trust than brands in developed markets. To build and maintain trust, brands need to put the customer first. This means understanding their motivations, knowing the right moments to engage with customers, respecting customers' time as valuable, and being more transparent with how they interact and collect personal data. This is something that many marketers today have forgotten."