Trust-based marketing is the practice of marketing through offering unbiased, trustworthy product advice. In theory, a company can build a customer base by developing rapport with its customers and helping them to make informed purchase decisions.
With this strategy, businesses build a solid relationship in a highly competitive marketplace by openly discussing that there are many alternative options available, then showing why their brand is the best choice.
CUSTOMER LOYALTY MEANS A LOT
Customers develop brand loyalty, because the company did not try to hide the fact that they can go somewhere else. They feel as if the product is superior because the campaign was open and honest. According to research, trust-based companies enjoy higher customer retention over longer periods of time with more stable revenue streams. The Honest Company is one that successfully uses this type of marketing tactic. General Motor’s TruckTown is another example of a trust-based marketing campaign. TruckTown provided vehicle purchasers with unbiased comparisons of various options, which ultimately led to an increase in vehicle sales.
Other companies that may benefit from trust-based marketing are insurance companies, day care providers, health care facilities, and schools. With so many similar options available, sometimes it simply takes gaining a customer’s support through feel-good techniques.
Once trust is established, a buyer will likely come back time and again for repeat purchases. The connection made is so valuable, they may never consider shopping around, even if there are readily available options elsewhere at lower prices.
Trust-based marketing induces positive word-of-mouth marketing as well. Once customers are convinced a company offers the best, he or she will likely tell friends and family members all about the product and service. So, the customer base can continue to grow exponentially. Of course, if trust is lost, this can have a reverse effect. So, it’s also important to continue nurturing repeat customers, ensuring never to leave a bad taste in their mouth.
Larger Michigan companies typically have a customer service complaint department that is available to immediately address any concerns. If a seal on a jar of salsa, for example, inadvertently gets broken during distribution and a customer purchases it only to find mold on its lid, he or she can call the toll-free number on the packaging and speak to someone directly. Usually the manufacturer will reimburse the purchase or provide coupons to use toward future purchases.