We tried to find an answer to this question together with Maria Galas (IKEA Group) and Adam Wysocki (LVLUP Media) during IAB Forum2020.
The fact that a customer who trusts the brand is worth more, is obvious. The question is – how much more? 5, 20, 100 times more? There has been no precise answer to this question so far, so we decided to give you one. The challenge was huge as we tried to measure something that is, by definition, difficult to measure –i.e. trust.
Our presentation was based on the results of analysis of the behaviour of real customers participating in IKEA Family program. Assuming that the highest form of trust is recommending the brand to friends, we have analysed the differences in behaviours between two groups of customers: brand promoters and critics. The analysis was based
on tens of thousands of receipts, interactions with thousands of mailings and advertisements in paid media.
The customers who trusted the brand turned out to be more willing to repeat purchases, came back more often and spent more. Additionally, the ROI on investment in advertising contacts with promoters was higher. A similar impact
on these customers could be achieved with almost 4 times fewer page views.
The conclusions of the analysis confirmed the thesis that it is worth taking care of customer trust, and also it is worth measuring it. This makes it possible to better anticipate the customer’s behaviour and to adapt the communication
to their needs and emotions.
Trust in a brand translates into sales, i.e. its specific financial results and how much the consumer spends.
And this is important for at least two reasons:
1. The customers who trust us spend more and more often
2. By building communication to a customer who trusts us, we have lower costs – we can achieve the same effect with less expense.
But what’s the most important, the customer who trusts the brand is the greatest added value.