41% Of Consumers Have Stopped Using or Used an Online Brand Less Because of Poor Reputation or Malpractice

New ‘WALK THE TALK’ report from Brands2Life reveals consumers in the US and Europe want more from the web and app companies they use

LONDON--()--The online and social brands that dominate our lives need to watch out because the ‘cancel culture’ is growing fast. More and more consumers have stopped or will stop using their services because they don’t like the way they are treated. Personal issues such as poor customer service and privacy & security come out top but broader concerns such as CEO behaviour; the way they treat staff and vulnerable groups; workforce diversity; and respect for the countries they operate in also rank highly.

These are the key conclusions of a new report – WALK THE TALK – What consumers expect from today’s online brands today issued by leading PR and communications agency Brands2Life. The report is based on a survey of 6,001 consumers across France, Germany, UK and US and was undertaken in December 2019 by research firm Opinium.

WHY HAVE PEOPLE STOPPED USING AN ONLINE BRAND?

Overall 41% of consumers have stopped USING or use an online brand less because of poor reputation or malpractice. Unsurprisingly, poor customer service (15%) is the main reason why consumers have stopped using or have reduced their usage of an online brand.

Other factors why consumer have taken this action, in terms of importance, include: ‘because they treat their workers and suppliers unfairly’ (9%); ‘because they don’t pay enough tax in my country’ (8%); ‘because they haven’t taken action to reduce their impact on the environment’ (8%); and ‘because they haven’t taken enough action to protect a user’s privacy and security’ (8%).

REASONS TO USE A BRAND MORE

Top reasons consumers say that they are more likely to use a brand are: if they reduce their prices (71%); properly compensate customers if there has been a problem (69%); make a commitment to protect users’ privacy and security (69%); and apologise properly if they do something wrong (63%).

When it comes to marketing their key demand is that the brand is authentic and honest. Twice as many people (46%) called this out compared to the next three most important: ‘Marketing that educates and informs me’ (19%); ‘If friends and family use them’ (19%); and ‘If their marketing entertains me’ (14%).

Giles Fraser, Co-Founder, Brands2Life, comments, “Online brands dominate all our lives today and we all know that their business models are under increasing scrutiny from regulators and politicians on both sides of the Atlantic. This report illustrates that they need to just alert as to how consumers see them and their behaviour. If they don’t offer best-in-class customer service and display the highest standards of corporate citizenship the consumers will simply stop using them.”

The full report can be accessed at https://brands2life.com/walk-the-talk.

ABOUT BRANDS2LIFE

Brands2Life is an independent PR and communications agency with a passion for working with the brands that are transforming our world. Our clients range from corporations who are transforming with purpose; industry disrupters and online leaders; and the pure tech players who are powering these transformations. We have 150 staff in London and San Francisco supported by a network of partners: Brands2Life Global.

For more information contact – info@brands2life.com

Contacts

Emily Reid
+44 (0)20 7592 1200
info@brands2life.com

Contacts

Emily Reid
+44 (0)20 7592 1200
info@brands2life.com