2015 Example Brand Report

Trust in Institutions: 2014 vs. 2015

Source: 2015 Edelman Trust Barometer, based on data from 27 countries

Trust in authority is at an all-time low, so word-of-mouth matters now more than ever.

An Academic Expert

70%

46%

A Regular Employee

Credibility of Spokespeople:

34%

A CEO

54%

A Journalist

But I need to know what actually drives trust in my

industry and what I can do about it!

Consumer behaviour correlates with consumers’ trust in a company.

Social media and the Internet amplify & accelerate word-of-mouth— whether your consumers are recommending, or detracting from, your brand.

Recommendation from other people is more trusted than official company communication:

Source: Nielsen

“To what extent do you trust the following forms of advertising?”

Recommendation from people I know

Consumer opinion posted online

92%

47%

36%

Advertising on TV

Advertising on social networks

70%

A trusted brand can earn consumers' recommendations to other consumers:

Likelihood of Recommendation Survey respondents determine the likelihood of recommending a brand on a scale of 1-7

NEUTRAL OR INDIFFERENT 44%

EXAMPLE:

Net recommendation is the difference between a brand’s advocates and detractors:

26%

DETRACTORS

30%

ADVOCATES

Net Recommendation: 30% - 26% = 4%

Building

ADVOCACY & POSITIVE WORD OF

MOUTH is not like conventional

marketing.

You can’t BUY it, you have to

EARN it.

So how do brands earn CONSUMER ADVOCACY?

So how do brands earn CONSUMER ADVOCACY?

VALUE

QUALITY SOCIAL EQUITY

BRAND ENERGY BRAND TRUST

Brand trust shows the strongest correlation with consumer advocacy based on consumer responses to 249 brands in Canada.

The Gustavson Brand Trust Index measures consumer perceptions against five factors related to brand value:

The Gustavson Brand Trust Index measures consumer perceptions against five brand constructs:

VALUE: Good value for money and fair pricing.

QUALITY: Rating for high brand quality. SOCIAL EQUITY: A composite measure of a brand’s social and environmental performance. BRAND ENERGY: A composite measure of a brand’s strength in leadership, innovation and dynamism and its differentiation.

BRAND TRUST: A composite measure of a brand’s consistency, reliability, authenticity and ethical performance. It is divided into functional trust (value, quality for money) and emotional trust (honesty, sincerity, care, unselfishness).

60 280

280

60

Net

Rec

omm

enda

tion

Brand Trust

Canadians’ trust in a brand or company is correlated to word-of-mouth recommendation:

We use a statistically representative sample of 3,125 consumers to score 249 Canadian companies and brands against 40 attributes.

Measurement is expressed in an index form for each of the categories shown.

An Index of 100 implies that a brand’s performance is average on an attribute.

An Index of 200 implies that a brand performs twice as well on an attribute as the average for all brands in the survey.

Gustavson Brand Trust Index methodology:

Canadian Categories: Financial Services

Beer Cars

Coffee/Tea Confectionery/Snack Foods Consumer Packaged Goods

Dairy Energy Companies

Hotels Insurance

Media Natural/Health

Pharmacy Restaurants/Takeout Retailers (non-drug)

Soft Drinks/Juices/Waters Supermarkets

Technology Telecom/Cable

Travel Post/Courier

The Gustavson Index is based on an existing, proven methodology, developed by GoodBrand and Envero across over 20 countries:

20+ countries

30,000+ respondents

2,500+ companies &

brands

15+ industry sectors

Net recommendation % 2015 Top 20 of all brands rated

Brands that score highly on net recommendation also score highly on brand trust:

Net Recommendation and Brand Trust - All Brands

If you want to attract more advocates to your brand then you need to understand how your brand stands on the factors of brand trust:

Gustavson Brand Trust Index performance 2015 - Top 20 brands 16

Top 20 (excluding regional brands)

8 of the Top 20 most trust brands in Canada are regional brands:

Gustavson Index 2015 Top 20 Brands

Likelihood of Recommendation Commercial average based on over 2,500 companies and brands in more than 20 countries

NEUTRAL OR INDIFFERENT 42%

22%

DETRACTORS

36%

ADVOCATES

Net Recommendation: 36% - 22% = 14%

The average commercial brand has almost twice as many advocates as detractors:

But the range is wide!

Distribution of Recommendation - Best Case/Worst Case

Technology brand in Russia

Major bank in Ireland

Net Recommendation: 92% - 3% = 89%

Net Recommendation: 7% - 54% = -47%

Brand X has slightly fewer advocates, and slightly more mild detractors, than the Canadian average:

Likelihood of Recommendation Brand X vs. Canadian Commercial Average

Bottom 2 = Detractors

Top 2 = Advocates

Brand X

Relative to the category best-in-class brand, Brand X has fewer advocates and more neutrals and detractors:

Bottom 2 = Detractors

Top 2 = Advocates

Brand X

Likelihood of Recommendation Brand X vs. Food Best-in-Class

Bottom 2 = Detractors

Top 2 = Advocates

Looking at those who are very familiar with the brand, Brand X is slightly ahead of average in terms of advocacy profile:

Brand X

Likelihood of Recommendation Brand X vs. Canadian Commercial Average of Top 2-rated Familiarity with Brand

Likelihood of Recommendation Brand X vs. Food Best-in-Class Top 2-rated Familiarity with Brand

Bottom 2 = Detractors

Top 2 = Advocates

…..but there is plenty of scope to improve further:

Brand X

Brand Trust Index Performance Brand X vs. Top 10 Food brands

Brand X is just below category average on Brand Trust, and well below the top 10 Food brands:

Ranked no. 88

of 249 Brands

Brand Trust Index Performance Brand X vs. Top 10 Food with Top 2-rated Familiarity with Brand

However, amongst those who are very familiar with each brand, Brand X does relatively better:

Ranked no.

38 of 249

Brands

Brand trust is both functional and emotional:

EMOTIONAL TRUST • Honesty • Consumer care • Authenticity

FUNCTIONAL TRUST • Brand hygiene factors • Product delivers • Consistency Positively

advocated brands deliver emotional trust as well.

Most brands deliver functional trust.

Functional Trust Performance Brand X vs. Top 10 Food brands

On functional trust, Brand X is well below category average:

Ranked no.

142 of 249

Brands

But amongst those who are very familiar with the brand, Brand X again does better:

Ranked no.

74 of 249

Brands

Functional Trust Performance Brand X vs. Top 10 Food with Top 2-rated Familiarity with Brand

On emotional trust Brand X does much better— just outside the Top 10 food brands, and achieving the Top 30 commercial brands overall:

of 249 Brands

Emotional Trust Performance Brand X vs. Top 10 Food brands

Ranked no.

29 of 249

Brands

Emotional Trust Performance Brand X vs. Top 10 Food with Top 2-rated Familiarity with Brand

of 249 Brands

Ranked no.

12 of 249

Brands

And, amongst those who are very familiar with the brand, Brand X is second amongst food brands:

Brand X is just outside the Top 10 Food brands for social equity, although Food as a whole does relatively poorly. The Top 5 Food

brands are all relevant benchmarks for Brand X.

of 249 Brands

Ranked no.

52 of 249

Brands

Social Equity Performance Brand X vs. Top 10 Food brands

However, amongst those who are very familiar with the respective brands, Brand X does much better, although other brands perform

even more strongly:

Social Equity Performance Brand X vs. Top 10 Food with Top 2-rated Familiarity with Brand

of 249 Brands

Ranked no.

26 of 249

Brands

Brand X comes in just below commercial average for quality:

Quality Performance Brand X vs. Top 10 Food brands of 249

Brands

Ranked no.

88 of 249

Brands

But again the brand does better amongst those who know it well:

Quality Performance Brand X vs. Top 10 Food with Top 2-rated Familiarity with Brand

of 249 Brands

Ranked no.

37 of 249

Brands

For consumer advocacy, there are brands inside and outside the category, in Canada and elsewhere, that could be benchmarks for Brand X:

Net recommendation best-in-class benchmarks for Brand X

The same holds true for brand trust…

Brand trust best-in-class benchmarks for Brand X

And last, holds true for social equity…

Social equity best-in-class benchmarks for Brand X

2015 Example Brand Report