68% say trust the key factor when buying products - report

A new report from Harvard Business Review Analytic Services in association with Mastercard has found 68% of survey respondents indicated brand trust is paramount when buying products and services.

The AU-NZ Business Innovators Index 2022 draws on 397 business leaders' and 1,011 citizens' perspectives.

The report gives clear and compelling guidance for business leaders looking to innovate in 2023.

While many organisations choose to integrate the latest tech above all else, what consumers really want is a trusted solution that provides outstanding value, with the findings showing 75% claim they won't spend money with a business they don't trust.

"As consumers look for reliability, trust gives organisations a licence to innovate," says Dan Martin, Vice President and ANZ Digital Partnerships Head, Mastercard.

"They have shown that it isn't always the latest tech that excites them, but rather those solutions that are easy to use  and understand, prioritise their safety, and come from organisations that have earned their trust, time  and time again."

There are four key areas that consumers believe are most important to get from a business in ANZ. These include:

• Lower costs/pricing (76%)
• Prioritise the safety of consumers (63%)
• Offer convenience and ease of use (63%)
• Ensure data security and information privacy (62%)

Harvard Business Review Analytic Services says the findings emphasise the need for convenient, safe and lower-cost offerings while also bringing to light a potential disconnect between what innovation means to enterprises and what it means to consumers across the region.

The innovation areas that mean the least to consumers are:

• Having the most up-to-date technology (27%)
• Personalisation and customisation (23%)
• Touchless or virtual human interaction (12%)

"The most powerful innovation you can deliver right now is one that delivers more value to  consumers," Martin adds.

"After a couple of years where 'digital transformation' were the two words on almost  every business agenda, what's needed now is to meet consumers where they are – prioritising health and safety, making their lives easier and ensuring the security and privacy of their  information."

Martin also notes that the most successful innovators in the years ahead are likely to be those who can be "the best at the basics".

The finding reinforces this, with 78% of AU-NZ consumers claiming they don't trust businesses or brands whose product or service delivery is unreliable.

Further, 45% of those surveyed rate previous interactions or experiences with a business as a primary factor in evaluating trust, compared to 31-41% of consumers in other regions.

Martin says this indicates businesses should strive to provide the highest quality customer experience every time.

The report also uncovered a gap in expectations regarding what accountability means to businesses and consumers.

ANZ businesses are innovating their ESG approach, but this current top-down approach may not resonate with customers who build trust through how aligned their personal values are with an enterprise's.

61% of consumers agree they have a better customer experience when they know the company's values align with theirs.

"This report reminds us that when it comes to innovation, organisations should be looking to add value, build trust and ultimately, improve people's lives," Martin says.

"In today's market climate, if you lose sight of this  core objective, you're limiting your ability to make an impact."