Feb 26th, 2025 | Caleb Chovwen and Andrew Milton
Trust is a brand’s greatest asset, and its most fragile one. It takes years to build but only seconds to break.
Many brands rely on a strong reputation, compelling messages, or even past success without considering whether their trust factor is moving up or down. But even if you’re sending all the right messages, trust is not built on what you say. It is built on what you do.
We could look at Tesla as an example, where sales are tanking across Europe due to increased competition from Chinese manufacturer BYD, as well as Elon Musk’s behaviour [source]. But this is an extreme case. Most of the time, building or breaking trust is more nuanced and less obvious. We’ll cover these examples later.
First, let’s look at the two types of brand trust.
Transactional vs. institutional brand trust
Not all trust is created equal.
A customer might trust your brand to fulfil a basic promise. Deliver a product, process a payment, or provide a service. That is transactional trust. The kind you earn by doing your job well.
But does that same customer trust your brand as an institution? Do they believe you act in their best interest?
Consider the financial industry. Customers trust their banks to process transactions correctly. But do they trust those same banks to act with integrity? One type of trust is built on functionality. The other is built on belief.
Your brand needs both.
The fastest ways to lose brand trust
If building trust takes time, breaking it takes seconds. Here’s how most brands lose it:
Saying one thing, doing another
Nothing erodes trust faster than inconsistency. If your brand claims to value transparency but hides behind vague policies, or promises premium service but delivers a subpar experience, people notice. And they don’t forget.
Over-promising and under-delivering
Marketing that overhypes and underdelivers is a trust killer. Whether it is a “groundbreaking” product that turns out to be a minor update or an “exclusive” experience that feels generic, expectation mismanagement destroys credibility.
Failing to take responsibility
Mistakes happen. But trust is lost when brands deny, deflect, or downplay their failures. Customers don’t expect perfection, but they do expect honesty and accountability.
Prioritizing short-term wins over long-term relationships
Brands that chase short-term gains at the expense of customer relationships burn bridges fast. Aggressive sales tactics, cutting corners, or ignoring concerns all erode trust. Sustainable trust is built on long-term thinking.
Brand trust is earned in small moments and lost in big ones
Every interaction, from customer service to product quality and communication, builds trust gradually over time. But one big misstep can erase years of credibility.
That is why the strongest brands don’t leave trust to chance. They don’t treat it as a tagline or a PR exercise. They embed it into their culture, decisions, and every touchpoint.
Because in the end, people don’t trust brands because of what they say. They trust them because of what they prove. Over and over again.
