Ever since the pandemic, the rise of online shopping has reshaped consumer habits globally, including in India. As the first wave of festival sales online has ended, this preference for premium brands, larger packs and surfing with intention to buy brands that are chosen but for better deals are all visible.
Looks like trust has emerged as the most valuable asset for brands aiming to capture the attention of cautious shoppers. With the online sales festivals, consumers are more careful about where they spend their money, seeking assurance of safety, reliability and values.
With the e-commerce sector expected to cross $180 billion by 2025, brands need to adapt to the evolving expectations of consumers who are now more tech-savvy and information-hungry than before. The trust factor has become even more critical, as consumers actively research brands online before making purchases.
KPMG India reports that 65 per cent of Indian shoppers prefer to read reviews or search for product ratings before buying online. Moreover, consumers in Tier 2/3 cities are more likely to rely on digital platforms and e-commerce websites to evaluate a brand’s trustworthiness.
Winning trust
How many brands can win trust when it comes to online sales? They must adopt comprehensive plans that go beyond simple advertising. Here are some effective steps:
Emphasise authentic reviews: A Local Circles survey found that 82 per cent of Indians look for authentic reviews and feedback before making online purchases, especially during the festive season when buying decisions peak. For brands, collecting and displaying reviews on third-party platforms such as Amazon, Flipkart, or niche product review platforms have proven to be crucial. Ensuring these reviews are recent and credible builds a trustworthy online image.
Engage actively with feedback: Brands engaging with both positive and negative feedback tend to have stronger consumer nods. A 2022 EY report on consumer behaviour suggests that 72 per cent of shoppers feel more connected to brands that promptly address their concerns, especially when dealing with delivery issues, returns, or exchanges. Effective responses turn negative situations into positive experiences.
Enhance online service: A Forrester study indicates that poor customer service remains a sore issue with customers for cart abandonment — 47 per cent consumers cite it as a critical issue. Brands need to invest in customer service infrastructure — multilingual support, live chat, and quick query resolution. This can enhance their service quality perception.
Leverage SEO and Google seller ratings: Strong ratings and reviews, combined with robust search engine optimisation (SEO), will have a direct impact on consumer trust. Brands using structured data for SEO and integrate Google Seller Ratings get higher visibility and more clicks.
Showcase reviews on product pages: Such displays will have a major impact on purchasing decisions. A Nielsen study points out that 58 per cent of consumers are more likely to buy a product if they see positive user-generated content on product pages.
In recent years, issues such as sustainability, ethical sourcing, and CSR have gained traction. The Indian Retail Industry Report says that 54 per cent of urban shoppers prefer brands that demonstrate a commitment to ethical practices, such as fair wages, eco-friendly packaging, and community support.
A 2022 PwC report suggests that brands using sentiment analysis tools to assess customer feedback can make timely interventions to mitigate negative experiences. In addition, predictive analytics enables companies to foresee purchasing trends and adjust their marketing plans accordingly, thereby enhancing trust.
In the virtual marketplace where trust is the ultimate luxury, those brands that build it will reign supreme.
The writer is a Fortune-500 advisor, start-up investor and co-founder of the non-profit Medici Institute for Innovation