Brandmovers Loyalty Blog | Brandmovers

Why Building Brand Trust Is Important for Customer Loyalty

Written by Cara Panosian | 11/03/21

Why Building Brand Trust Is Important

 

Being a brand that people trust is a key component of building brand loyalty. Trust is what turns a one-time buyer into a returning customer and an advocate: the Edelman Trust Barometer's brand-trust research finds that most consumers would recommend and advocate for a brand they trust (roughly 61 percent), and many will stay loyal even when something goes wrong (around 43 percent). It also finds that trust now matters more than ever, with 88 percent of consumers saying brand trust is important and nearly a third calling it a dealbreaker in their purchase decisions.

If people do not trust a brand, they are less likely to become returning customers or promote it to others, and today, when consumer opinions spread quickly and at scale, that lack of trust makes it hard to grow. In a market with endless options, a reputation for being trustworthy makes a brand stand out immediately from its competitors. This guide covers why trust drives loyalty, the practical ways to build it, and how a well-designed loyalty program can strengthen trust rather than simply reward transactions.

 

Key Takeaways

  • Trust is a loyalty engine: consumers are far more likely to recommend, stay loyal to, and pay for brands they trust, and most now say trust is important to their purchase decisions (Edelman).
  • Transparency, especially around data, is foundational. Consumers will walk away over privacy and security concerns (72 percent would stop buying over privacy concerns per Salesforce; 87 percent avoid companies they distrust on security per McKinsey), so how a brand handles data is a trust decision.
  • Great customer service builds trust through responsiveness and genuine, thoughtful engagement (not bot-only replies), and through how a brand responds publicly to both positive and negative feedback.
  • Listening matters: acting on customer feedback before problems spread prevents churn and signals that the brand genuinely cares.
  • Loyalty programs build trust when they reflect the brand's values and respect the customer, not just when they hand out points. A values-aligned program earns deeper engagement, as Brandmovers saw with a nutritional CPG brand's program (62 percent member engagement, 3x transactions per user, 25 percent year-over-year member growth).

 

How Trust Contributes to Brand Loyalty

If you are shopping with a company and cannot trust its delivery or quality, there is a much smaller chance you will keep buying from it. But when a brand consistently proves dependable, delivers great service, and behaves with integrity, you keep coming back. Edelman's research makes the payoff explicit: trusted brands are rewarded with purchase, loyalty, and advocacy, and trusting consumers are more likely to buy new products from the brand even irrespective of price. Trust, in other words, starts a virtuous cycle: it earns the repeat purchase, the loyalty, and the recommendation that compound into durable customer relationships.

Ways to Build Trust With Your Customers

Transparency, especially about data

When a brand is transparent about its goals and values, it puts customers at ease about who they are dealing with. That includes laying out all costs up front rather than adding hidden fees along the way, and it increasingly means being clear about data. When customers provide personal information, they want to be sure it is safe and in the right hands, and the stakes are high: Salesforce research finds that around 72 percent of consumers would stop buying from a company over privacy concerns, and McKinsey finds that roughly 87 percent would not do business with a company they had concerns about on security. Handling customer data transparently and giving customers control over what is collected is now one of the clearest ways to earn or lose trust.

Customer service

It cannot be said enough that great customer service speaks volumes about a company, and part of that is how a brand engages publicly. Consumers pay attention to how a company responds to reviews, both positive and negative, and they value thoughtful, human responses over a quick automated message. A brand that answers genuinely, owns mistakes, and helps resolve problems signals that there are real people who care behind it, which is exactly what builds trust.

Listen to your customers

When customers share opinions and suggestions, it is important to take them seriously, because others are often feeling the same way and quietly taking their business elsewhere. A brand that takes the initiative to fix problems before they spread avoids the reputational damage that drives customers away for good. Listening and visibly acting on what you hear tells customers the relationship goes both ways.

How Loyalty Programs Help Brands Build Trust

It is easy to tell when a brand truly cares about its customers, and a well-designed loyalty program is one of the clearest signals. A program fosters a stronger relationship and, in return, creates returning customers, but only when it is built to reflect the brand's values and respect the customer rather than simply hand out points for purchases. Perks such as receipt validation, tiered programs, and digital promotions strengthen the tie between customer and brand, and because receipt validation captures first-party data directly and transparently, it lets a brand deepen the relationship while being clear about the value exchange. By offering different program elements, a brand can also learn which its customers respond to best and make sure there is something for everyone.

 

Brandmovers Case study: a values-aligned program that earned engagement

The trust challenge. A large nutritional CPG brand had an existing influencer rewards experience and wanted to evolve it into a full loyalty program, but it specifically wanted to avoid a generic points-for-purchase design that would feel transactional and off-brand. It needed a program that reflected the brand's values and fit its community's lifestyle, and richer first-party engagement data. This is a Brandmovers client program, cited as first-party documentation.

The approach. Brandmovers built an activity-based loyalty program on the BLOYL platform where members earn points for both purchases and brand-engagement activities (social shares, missions, challenges, and referrals), powered by a promotions hub, gamified leaderboards, receipt validation, and a Shopify integration. The design rewarded genuine participation and shared values, not just spending.

The result. The program drove a 62 percent engagement rate among members, a 3x increase in average transactions per user, and 25 percent year-over-year member growth, generating more than 35,000 transactions in its first six months. Respecting the customer and reflecting the brand's values, rather than defaulting to transactional points, is what earned that depth of engagement.

 

Conclusion

Trust is one of the most valuable assets a brand can build, because it is what turns customers into loyal, repeat advocates and sets a brand apart in a crowded market. It is earned through consistent, transparent actions: clear pricing and data practices, genuinely helpful customer service, and a visible willingness to listen and improve. And it can be reinforced by a loyalty program, provided the program is built to reflect the brand's values and respect the customer rather than simply dispense points.

Trusting a brand makes it easy for customers to keep choosing it, and a well-designed loyalty program gives them a reason to. As the nutritional CPG program shows, a values-aligned, transparently run program earns deeper engagement and stronger loyalty than a purely transactional one. Build the trust first, reinforce it with a program that respects the customer, and the returning customers and their recommendations will follow.

 

Want to Earn the Trust and Loyalty of Your Customers?

Brandmovers helps brands build trust-based customer relationships through loyalty and promotions programs designed around real value and transparency, from receipt validation and tiered programs to values-aligned engagement, on the BLOYL platform.

Tell us about your customers and your goals, and we will show you how a program built on trust can turn them into loyal advocates.

Get in touch