The Post-Truth Business Summary

Trust is the foundation of stable societies and successful brands, but in a post-truth world, how can businesses rebuild it?

1. The Collapse of Trust in the Post-Truth Era

Trust in traditional institutions like governments and media has eroded, creating a fragmented society. This breakdown began decades ago, with events like the Iran-Contra scandal in the 1980s, where emotional loyalty to leaders outweighed factual evidence. The internet has since amplified this distrust, spreading misinformation at an unprecedented scale.

Social media platforms have become breeding grounds for fake news, with millions of fake accounts pushing divisive narratives. For example, Facebook disabled 520 million fake accounts in just three months in 2018. This chaotic media environment has left people unsure of what to believe, further deepening societal divides.

Without shared truths, societies become fragile. This distrust doesn’t just affect politics; it spills over into economic life, where brands and businesses are also viewed with suspicion.

Examples

• The term "post-truth" originated from Steve Tesich’s essay on the Iran-Contra scandal.
• Gallup surveys show trust in media dropped from 72% in 1976 to 32% in 2016.
• The Rand Corporation’s 2018 report highlights global "truth decay."

2. Consumers Distrust Brands as Much as Institutions

The same skepticism that affects governments and media now impacts brands. A 2017 Havas Group survey revealed that most consumers find 60% of company-produced content irrelevant. Advertisers rank among the least trusted professions, just above politicians.

People now trust their peers more than institutions. A Nielsen report found that 83% of consumers trust recommendations from friends and family over ads. This shift has forced brands to rethink their strategies, as traditional advertising no longer resonates.

Brands must now work harder to connect with audiences. For instance, the Singaporean government uses social media to share relatable, helpful content, building trust with its citizens.

Examples

• Ipsos MORI’s Veracity Index ranks advertisers as one of the least trusted professions.
• McKinsey estimates 50% of consumption is driven by word-of-mouth recommendations.
• Singapore’s humorous TikTok infomercials foster trust with citizens.

3. Authenticity is the New Currency in Advertising

In an age of "infosmog," where consumers are bombarded with thousands of messages daily, authenticity stands out. Most ads are forgotten or ignored, with only 4% remembered positively, according to ad guru Dave Trott.

Brands that succeed focus on genuine connections. Microsoft’s "real people" campaign, for example, featured unscripted testimonials from actual users, creating relatable and honest advertising. Similarly, Adidas uses local influencers to spread its message through private, untrackable channels, making its campaigns feel organic and authentic.

These approaches show that consumers respond to brands that feel real and trustworthy, rather than those that rely on flashy but hollow marketing.

Examples

• Dave Trott’s research shows 89% of ads are forgotten entirely.
• Microsoft’s campaign featured unpaid testimonials from real users.
• Adidas leverages "dark" media channels like WhatsApp for authentic outreach.

4. Experiences Matter More Than Products

With the rise of online shopping, physical stores must offer something unique to attract customers. Many brands now focus on creating memorable experiences rather than just selling products.

French fashion label Sézane, for instance, designs its stores as lifestyle showrooms, resembling cozy apartments. This approach encourages customers to immerse themselves in the brand’s world. Similarly, a 2016 survey found that 83% of marketers believe customer experience has become more important in recent years.

By offering experiences, brands can build emotional connections with their customers, making them more likely to return.

Examples

• Sézane’s stores are designed as intimate, apartment-like spaces.
• A 2016 Marketing Week survey highlights the growing importance of customer experience.
• Retailers worldwide are shifting from transactions to immersive brand experiences.

5. Aligning with Consumer Values Builds Loyalty

Modern consumers want their purchases to reflect their values. Brands that champion ethical causes can differentiate themselves in a crowded market. However, this only works if the commitment is genuine.

Falcon Coffee, for example, builds transparent supply chains that benefit all parties, from farmers to roasters. TOMS Shoes pioneered the "giving company" model, donating a pair of shoes for every one sold. These initiatives resonate with consumers who want their spending to make a positive impact.

Brands that fail to back up their claims with action risk being accused of "purpose washing," which can damage their reputation.

Examples

• Falcon Coffee’s transparent supply chains support ethical trade.
• TOMS Shoes’ one-for-one model has provided millions of shoes to children in need.
• Havas found that 74% of brands could disappear without consumers caring.

6. Leveraging Culture Requires Authenticity

Cultural movements can be powerful tools for brands, but only if approached with care. Pepsi’s 2017 Kendall Jenner ad, which attempted to co-opt protest culture, backfired spectacularly. Viewers saw it as a tone-deaf attempt to profit from serious social issues.

In contrast, brands that respect and authentically engage with culture can succeed. For example, Parisian chic fashion embodies confidence and individuality, not imitation. Brands that understand this create products that align with the culture’s values, rather than reducing it to a stereotype.

Authenticity is key to leveraging culture effectively. Consumers can spot insincerity a mile away.

Examples

• Pepsi’s Kendall Jenner ad was widely criticized and quickly withdrawn.
• Parisian chic fashion celebrates individuality, not formulaic styles.
• Successful brands align with cultural values rather than exploiting them.

7. Word-of-Mouth is More Powerful Than Ever

In a world where trust flows horizontally, word-of-mouth recommendations carry immense weight. Consumers are more likely to trust their peers than traditional advertising.

Brands like Adidas capitalize on this by using influencers to spread their message in private, untrackable channels. This creates a sense of exclusivity and authenticity, encouraging others to join in.

Word-of-mouth isn’t just about influencers, though. Everyday consumers sharing their experiences can be just as impactful, if not more so.

Examples

• Nielsen found 83% of consumers trust peer recommendations over ads.
• Adidas uses local influencers to create buzz in private channels.
• McKinsey estimates 50% of consumption is driven by word-of-mouth.

8. Transparency Builds Trust

Consumers value transparency, especially in industries with a history of exploitation. Brands that openly share their practices can build trust and loyalty.

Falcon Coffee’s transparent supply chains, for example, show consumers exactly where their coffee comes from and who benefits. This approach fosters trust and sets the brand apart from competitors.

Transparency isn’t just about ethics; it’s also a powerful marketing tool. When consumers feel informed, they’re more likely to trust and support a brand.

Examples

• Falcon Coffee’s transparency highlights ethical sourcing practices.
• A Film About Coffee educated consumers on the journey of coffee beans.
• Transparency helps brands stand out in competitive markets.

9. Emotional Connections Drive Loyalty

Brands that connect with consumers on an emotional level are more likely to succeed. This means understanding what matters to their audience and addressing those concerns.

Suntrust Bank’s onUp movement, for example, tackled financial insecurity by providing free tools and resources. This approach resonated with millions of Americans, creating a loyal community around the brand.

Emotional connections go beyond products; they’re about shared values and experiences that make consumers feel understood.

Examples

• Suntrust’s onUp movement addressed financial insecurity.
• Sézane’s lifestyle showrooms create emotional connections with customers.
• Brands that align with consumer values foster loyalty and trust.

Takeaways

1. Focus on authenticity in all marketing efforts, from campaigns to customer interactions.
2. Build emotional connections by addressing the real concerns and values of your audience.
3. Embrace transparency to foster trust and differentiate your brand in a crowded market.