Build Consumer Trust Online: How Branding Reduces Perceived Risks

We’re a society of crammers. Everything moves faster than an Instagram user scrolling through his/her feed and making decisions has become 10 times more complicated. Break it down for your audience by creating and inserting a strong brand into their lives.  Strong and clear online branding has the power to simplify a user’s buying decisions and build consumer trust online.

Branding is a key factor in the consumer’s decision-making process. That’s why in every business, good branding has an immense capacity to reduce the risks in customer’s buying decisions. It has the power to influence their perceptions and experiences with a product. 

But what are the risks that customers encounter during their buying decisions and how does your brand make it easier for your customers? To answer these questions, we have compiled the common perceived risks in customer’s buying decisions and how branding helps reduce it:

#1 Functional risk: The perception that the product may not live up to expectations

When a company prides itself on having high-quality products and has successfully conveyed them with an effective branding strategy, the risks of choosing products that don’t live up to expectations become avoidable.

Your business can build consumer trust online by encouraging users to leave reviews about your products. This allows the quality of products to be reflected in the form of peer reviews, which can reduce perceived risks, giving your audience confidence in your product.  

#2 Financial risk: The perception of poor value for money

Every customer wants value for their money. With this, financial risk often hinders potential consumers in pursuing a product or service. “What if the product is just a fluke?” or “What if I end up wasting my money?” These are some questions customers ask themselves when they become hesitant in buying.

Build consumer trust online by ensuring your product benefits are clear and a part of your branding. Demonstrate how your products align with their products to tap into your audiences’ lifestyle and demonstrate to them how your brand and products can help them live their best lives.  

#3 Social risk: Buying a product may result in embarrassment

Customers are becoming increasingly conscious of the social value attached to brands and their products. They wouldn’t risk buying a product that may cause them embarrassment and decrease their social currency.

Build consumer trust online by increasing your brand’s social currency through social media. Invest in quality content that demonstrates your brand values and what your brand stands for. By building a brand with value, you will be able to connect with your audience on an emotional level,  giving you top-of-mind awareness in their decision-making process by getting rid of any perceived risks during the decision making process.

Final Thoughts

The role of branding should not be limited to conveying messages, creating customer loyalty, and establishing emotional connections with the customers; it should also build consumer trust online by managing expectations about the products and services to reduce perceived risks in customer’s buying decisions. This will not only encourage the user to purchase your product once but encouraging repeat purchases through earned trust in your online brand.


Do you need help establishing your digital brand online? Contact us to receive your complimentary digital consultation today.


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