Study: 56% of APAC consumers will quit brands they do not trust

Over 56% of consumers in APAC will quit brands they do not trust. This signifies that brand trust is becoming a key determinant in whether consumers engage with a brand. 

With the number of deepfakes growing by an alarming 1,530% in APAC between 2022 and 2023, differentiating trustworthy sources and scams have become more challenging for consumers, resulting in an erosion of consumer trust. 

This is according to a report by Twilio titled "2024 Consumer preferences report" where it surveyed 3,900 consumers, including 900 individuals from APAC. 

Don't miss: Study: 60% of APAC customers trust organisations that use gen AI 

To meet the rising demand for trust, brands must ensure their interactions are easily recognisable and secure. This could come in the form of a verification badge or incorporating branding into their communications to consumers. 

In fact, 68% of consumers in APAC will trust a brand's communication more if it includes a verification badge, while 57% report that receiving a branded text message will make a brand more trustworthy.

Beyond branded communications, brands now have an added responsibility of ensuring that their communications are compliant, transparent and secure to win and build trust.

This is especially since consumers in the region indicated they would trust a brand more if they used trust building measures such as two-factor authentication (2FA) (55%), and having a quick response time (54%). 

Using a recognisable phone number (49%) can also enhance trust. 

In addition, channel selection has become part of the formula for creating lasting customer relationships, said the report. This is since reaching consumers on a channel they prefer is equally important in keeping customers happy. 

According to the report, 86% of APAC consumers expect brands to use their preferred communication channels. However, brands only manage to do so 48% of the time, presenting a significant opportunity for businesses in APAC to improve and measure up to consumer expectations.

Some of the top channels that consumers prefer to receive communications from businesses include email (81%), text messaging (SMS/MMS) (46%) and social messaging apps such as Facebook Messenger and Instagram (31%).

Push notifications from brand mobile apps were the least valued (20%) channel in the region.

That said, connecting with consumers on the wrong channels can have serious consequences with 20% of consumers saying they would switch to another business if their preferred channel is not used.

In this age of digital engagements, consumers are also paying greater attention to how quickly brands respond to their inquiries. Unfortunately, the majority of brands are missing the mark, with just 31% of APAC consumers reporting that brands meet their response time expectations, revealed the report. 

In APAC, 43% of consumers expect brands to respond within an hour, but the average expected response time can extend up to 27 hours. Delayed responses can lead to customer churn, with 53% of consumers choosing to purchase from another brand due to slow response times.

Conversely, 39% of APAC brands that prioritise rapid communication have seen higher customer retention rates, demonstrating the importance of responsiveness in business success, said the report. 

When executed effectively, customer communications can enhance engagement, drive conversions, and strengthen relationships at every stage of the customer journey, it added.

In a separate study by Vodafone Business earlier in September, it found that 60% of APAC customers trust organisations that use Gen AI.

In fact, more customers in China (35%) and India (29%) say that the use of gen AI will increase their trust in an organisation, as compared to customers in Singapore (23%) and Australia (19%). 

Conversely, 39% of APAC customers say that the use of gen AI would make them trust an organisation less. 

While new technologies such as AI have the potential to increase customer trust, the study revealed that a gap in how much customers agree that technology is being used in a way that adds value to them or safeguards their interests. 

85% of APAC businesses believe their use of technology adds value to customer interactions, while only 67% of customers in the region share the same view. 

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