The imperatives for retailers to build consumer trust

Retailers and consumer goods companies hold a privileged position in the eyes of consumers. When asked to score the trustworthiness of different industries, Canadian respondents ranked retailers and consumer goods companies third—behind health-care organizations and the hospitality and leisure sectors, but well ahead of social media companies and entertainment and media businesses.

Yet, there’s room for improvement. Canadian consumers, like their counterparts in other developed countries, are reluctant to trust businesses in any sector. And tensions are emerging between consumers and some of Canada’s largest brands. Despite ranking relatively high, retailers and consumer goods companies only garnered a median score of 6.5 out of 10.

We found an interesting pattern in the data: consumers who believe retail and consumer goods companies are very trustworthy (awarding the sector a score of nine or 10) are more likely to expect to increase their spending in the coming months (see graph on trust and consumers’ spending intentions).

What factors influence consumers’ trust? More than four in five (83%) cited protection of their personal data—a theme that runs throughout our survey results. That was followed by the affordability (78%) and quality (also 78%) of a company’s products and services.

These are perennially important considerations, of course. But pricing takes on added significance when consumers perceive inflation is running high. And quality is now under greater scrutiny as consumers learn more about how certain products are manufactured, such as the environmental impact of fast-fashion apparel and the health effects of eating ultra-processed foods (see sidebar on consumers’ changing grocery shopping habits).

Financial benefits and reputational excellence also help brands attract new customers. More than four in 10 (43%) Canadian consumers would switch to a competing brand that offers better value for their money. While that’s comparable to the global average (42%), Canadian consumers are more likely than their global peers to be swayed by promotional offers (36% versus 27%). That was followed by a company’s reputation for high quality (mentioned by 26% of respondents in Canada and 27% globally) and as a trusted brand (23% in Canada and 24% globally). 

Consumers also said they would consider switching brands based on enhanced in-store shopping features and customer service, seamless digital experiences and a company’s sustainability characteristics—topics we explore in the following sections of our report.

Connecting with health-conscious grocery shoppers

Canadian consumers are eating healthier, but not to the same extent as shoppers elsewhere. For example, 36% of Canadian consumers (compared to 53% globally) told us they increased their consumption of fresh fruits and vegetables over the last six months. And similar percentages (35% in Canada and 52% globally) expect to buy more produce in the months ahead.

Prices are top of mind for grocery shoppers, particularly in Canada, where 64% of consumers (compared to 52% globally) named it as a primary consideration in their dietary choices. Yet many respondents also cited their own health (57% in Canada and globally) and nutritional information (48% in Canada and 46% globally) as other factors that influence their grocery spend. 

Consumers have mixed feelings about using tools powered by artificial intelligence (AI) to help them shop. In Canada, 44% of consumers (compared to 55% globally) trust AI to collate product information before they make a purchase. And 42% (50% globally) are comfortable receiving AI-powered product recommendations.

This presents a powerful opportunity. Using generative AI (GenAI) to deliver hyper-personalized marketing based on a pattern recognition analysis of a customer’s buying history, content preferences and other information can create a level of customer service that differentiates your brand and increases revenue.

But first, you need to reassure customers that their personal data is secure. An overwhelming 87% of Canadian consumers (85% globally) are concerned AI development could infringe on their personal and data privacy—a relatively consistent sentiment across generations. And only 39% (49% globally) will share their data to receive a more personalized service or experience (see chart on sharing personal data).

Building trust with consumers starts with considering responsible AI practices at the beginning of your GenAI journey. We also see opportunities for cybersecurity teams to incorporate data security and privacy features into brands’ products, services and third-party relationships—a usual practice for just 22% of retail and consumer goods respondents to our 2024 Global Digital Trust Insights survey.

Building a data ecosystem for creating, sharing and retiring data securely and transparently helps you responsibly manage your data trust lifecycle, mitigate the risk of data breaches and comply with the growing number of privacy regulations around the world. Additionally, pinpointing your most valuable and sensitive data assets can be an important part of an effective cyber risk management program.

Our survey underscored the importance of communicating these and other efforts to safeguard customers’ personal information. For example, just 36% of Canadian consumers (53% globally) confidently understand how their data is shared when using apps or online services. 

Enhancing the effectiveness of chatbots

Many brands are exploring how GenAI can power more effective customer service chatbots. Consumers highlighted several capabilities that would enhance their experiences, including:

• providing more fluent and detailed answers (cited by 42% of consumers in Canada and globally)
• solving complex problems (cited by 40% of Canadian consumers and 44% globally)
• faster response times (cited by 39% of Canadian consumers and 42% globally)

There’s one chatbot feature consumers value even more: connecting them to a human customer service agent (cited by 50% of Canadian respondents and 49% globally). Worries about technology eroding social connections also appeared elsewhere in our survey. For example, 79% of consumers in both Canada and globally are concerned that future AI developments and capabilities could lead to less human interaction in daily life.

The journey toward building greater trust with consumers requires retail and consumer markets executives to focus on several imperatives:

• Navigate conflicting priorities in an economy with rising prices, meeting customers’ expectation of value while managing price increases effectively.
• Create and promote a product portfolio that reflects consumers’ desires for wellness, nutrition and more sustainable food production.
• Strike a balance between social media’s significance as a platform for sales and engagement, while being mindful of consumer concerns about its credibility.
• Incorporate GenAI into business operations while maintaining the human element.
• Safeguard personal data while using it to offer personalized services and elevated customer experiences.
• Create bonds with environmentally conscious consumers by connecting your customers’ intentions with sustainable impacts.

Brands that understand these opportunities can deliver meaningful value to consumers at critical points on their shopping journey—earning their sustained trust and brand loyalty.