The power of perception

Is perception 10% stronger than reality? One thing is true, we have control over perception while we don't always have control over reality.

We never want to visit a hospital, but when we do, nine times out of 10, someone is going up and down the hallways to clean the floors, wipe handrails, and keep the doors clean. We know a hospital has a mandate to clean away germs, but somehow seeing it makes us feel more confident they are upholding their premise more than not seeing a cleaner. This is not a mistake, we feel better about leaving our loved ones in a place doing everything they can to improve health, including prioritizing cleanliness. They could clean overnight, but the feeling is so much stronger seeing the reminder.

Many brands know this. They relentlessly focus on the perception of their brands to the audience, knowing that a piece of bad publicity could not only drop the value of the stock but also forever tarnish the value of the product/service.

60% of consumers will lose trust in a brand after a single negative PR incident, while nearly 60% will only buy from brands they trust, and 46% will pay more for items from a brand they trust.

Reputation can be a valuable tool, which is why brands invest in areas that help them reinforce their image and boost the perception of trust.

Coca-Cola Company, one of the most trusted and well-known brands, focuses on building consumer trust as part of its framework. The world's largest beverage company was ranked the most transparent Consumer Staples company by the 2020 Transparency Awards for the quality and accessibility of its disclosures.

Bud Light launched a campaign featuring a transgender influencer that sparked controversy, resulting in a drop in sales. While they were transparent and open about the gender of the spokesperson, loyal, avid drinkers of the brand felt that Bud Light switched the brand's image away from their long-term demographics. Bud Light has still not recovered, and while they have chosen more relatable and masculine spokespeople, the trust has not been fully built back. Blue-collar men are just not confident in the image of Bud Light.

It's not just brands, the scandal surrounding the personality of Ellen DeGeneres, the daytime show host known for dancing and humor, has severed the trust of many of her loyal followers.

Perception leads to a consumer's assessment of your value; this is how the perception of luxury reigns. Based on the messages provided, people develop a judgment that leads to a perceived or actual conclusion about a product, service, or brand. We make assumptions, for example, if a store is in a premium area, we may believe it's more upscale, or the reverse, whether it's true or not. Over 70% of customers admit to being influenced by packaging design, which does lend to being a strong primer for actual experience.

Brand marketers know this all too well, highlighting the importance of developing a polished brand, choosing colors, typefaces, visuals, packaging, language, and the brand's value or mission to reflect the image that enhances a brand's perception. Strong brands not only fetch more value, but products and services from a perceived 'stronger' brand can ask up to 25% more than lesser polished brands.

It's not just the consumer who is affected or persuaded by a brand's perception. It's been shown that a positive perception of brand image reduces turnover at a company and that a negative brand perception reduces the number of applicants to a company.

Consider how your brand is being percieved, it may only be a 10% increase but it is a 10% increase that can be managed vs the reality.

Julie Boake

(sources: PwC, Edelman Trust Barometer, theorg.com, Paper and Packaging Board)