Close to half of consumers are more cynical about brands in 2023: Sefiani report
Consumers have become more cynical about brands in 2023, as many suggested that brands fail to cultivate a sense of belonging due to long response periods for issues and trends, according to a report by Sefiani.
The study was conducted with 100 Australian communications leaders, 500 Australian consumers and 500 employees to gain insight into their understanding and experience of brand belonging.
Close to half (45.96%) of consumers have become more cynical towards brands in 2023, while 45% said the biggest barrier for them to feel a sense of belonging with brands is generic and blanket communications.
70% of corporate communicators believe their employees have a sense of belonging to the company despite around half being open to moving jobs. Over a third (39%) don’t know if their customers have a sense of brand belonging with the company.
“Understanding and responding to themes like sustainability and climate change, diversity and inclusion, ethical supply chains, recognition of First Nations people, and acting with business integrity, are all contributing factors to fostering brand belonging,” said Sefiani’s managing director, Mandy Galmes.
“We know that building belonging is good for business. For employers, high levels of belonging have been linked to better job performance and higher levels of productivity, a decline in turnover risk and a significant reduction in sick days – all of which result in tangible bottom-line benefits.
“For brands, building belonging creates long-term customer trust and loyalty which in turn produces a deep connection to the brand, its products and services. As marketers and communicators, we play a critical role in helping realise this value.”
The report found several consistent attributes from brands with high levels of belonging, including open and honest communications, consistency and strategies to foster long-term loyalty.
“Marketing and communications teams typically have direct contact with both internal and external stakeholders and can serve an important role in helping organisations understand and respond to the key needs of their stakeholders,” said Galmes.
“We can be true agents of change and help create positive impact for the long term.”
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Darcy Song was a reporter at Mumbrella, covering media owners, adtech and social platforms. She left in October 2023.
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