Challenger brands must first earn consumers’ trust

Challenger brands do not have the history of established market leaders, but that does not prevent them finding ways to earn consumer trust, quickly. Trust is essential for any successful business relationship.

So when consumers are parting with their hard-earned cash and buying a brand's product/service, trust in the brand/consumer relationship is vital.

Trust takes time to build, so established brands with a large customer base have an advantage over challenger brands.

So what can young challenger brands do to win consumer trust?

Prioritise product

Trust cannot be engineered merely through great marketing; consumers only build trusting relationships with brands that deliver on their promise.

It is only natural that we’re attracted to brands of which we have positive memories.

This is why brands that experience fulfilment/execution issues often struggle to rebuild trust.

The demand for quality products and services is music to challenger brands’ ears.

Just because they are new to the market, it does not rule them out of the consideration of consumers, based on this criterion.

In fact, they frequently build superior-quality products and services because they innovate in ways traditional brands can’t or won’t.

Hipster or heritage

When you blend heritage, reputation and reliability you create a compelling case for trusting a brand.

This needn’t be bad news for young brands – heritage can be woven into the narrative and embrace elements that add an unexpected quirk to the norm.

A marketing strategy that ties your brand to traditionalism, old-fashioned values or “South Africanness” can speed up the process of developing heritage – and win consumer trust.

Social salience

What draws consumers to a new brand and helps to earn trust quickly?

Put simply: strong environmental credentials, reliability and clear terms and conditions.

For established incumbents which have loyal customers, social issues tend to drop away, because what’s most likely to keep consumer trust over time is product quality.

As a challenger brand, a progressive policy on environmental issues, multiple payment options and data handling can assist in earning initial trust, giving the opportunity for this trust to embed over time (through good-quality products and services).

When well-established brands experience a social, payments or data scandal, a challenger brand can swoop in and become a trusted alternative for socially aware consumers.

Ultimately, the strategy a challenger brand needs to adopt to build trust with consumers is dictated by its target audience.

So do your research, understand consumers properly, develop high-quality products and services, give consumers positive experiences to ensure repeat business and craft a brand message that resonates with them.

● Andrew MacKenzie is managing director of Boomtown