Hong Kong – As the rise of scam messages from fraudulent entities begin to overwhelm consumers, users in the Asia-Pacific region now have their trust with brands slowly erode once brands get entangled in any form of scam messages, the latest survey from digital trust company Callsign shows.

According to their latest insights, around 52% of APAC users lose trust with the brands they are loyal to once a scam message sent to them claims to be associated with their favorite brand, regardless of any real association to the message itself or its actual content.

Such loss of brand confidence also unveils a reason that 28% of APAC users state that they receive more scam messages than personal messages from friends and family. On a global scale, the insights puts out the ratio of people receiving scam messages at around 4 out of 5 people.

As 51% of APAC respondents admit that they have fallen victim at some point in their lives to these SMS fraud or scam messages, 29% of the respondents say that they have stopped using the brand mentioned or allegedly associated with the fraud message.

“The problem has become so pervasive that consumers mistrust the technology, processes designed to protect them from fraudsters and confirm identities with many adamant that users must prove beyond doubt who they are when logging in to use a platform, and that there should be an online identity system to quell the surge of scams,” Callsign said in a press statement.

With these issues in mind, 45% of APAC respondents say they think identity is the problem and that people should prove who they are when signing into any platform, which includes authentication measures like two-factor authentication (2FA) and third-party app authenticators.

For Stuart Dobbie, senior vice president for innovation at Callsign, the insights shows that consumer trust in our digital world has vanished and, rightly or wrongly brands, are being blamed. He added despite all these sentiments,little is being actually done to purposely re-establish digital trust through complete and accurate digital identities.

He further explained that with consumers feeling the brunt of perceived inaction by organizations, it is no surprise that they are asking for more protection, and that if we continue to be unable to know and trust that the person is who they say they are online, large parts of society will stop working.

“Digital trust is about the confidence we have in the technology, processes, and people to secure our digital world. Digital trust is underpinned by digital identities, and the fact that scams are running wild proves that our digital identities are well and truly broken. It’s time to re-think fraud prevention strategies, identifying genuine users through their behaviors will allow us to identify users online and re-establish digital trust,” Dobbie added.

Meanwhile, Namrata Jolly, general manager for Asia-Pacific at Callsign, commented, “The solution lies in re-thinking how we fight fraud and how we identify people online. Current approaches tackle both challenges by only identifying fraud. The problem with this approach is that a fraudster using stolen credentials looks like a genuine user gaining access to accounts or executing transactions. If instead fraud strategies look to positively identify only genuine users, this automatically and simultaneously prevents fraud.”

In the age of always-on e-commerce and notoriously short attention spans, it can be tempting to downplay your branding in favor of acquisition-focused digital advertising. Branding, however, is an important aspect of all marketing campaigns, regardless of the objective.

Think of branding as your foundation. Taking the time to build a strong brand, investing time and money into your brand strategy, will ultimately result in more successful performance over time. While sales activations and offer-led initiatives will provide short-term sales uplift, brand building will result in long-term growth and stability.

Your brand represents the reason your business exists – your ‘why’, what you do, and why you’re different. It is about everything that makes you a better choice than your competitors and when done well, can portray all of that in a shade of Cadbury purple or a Nike ‘swoosh’.

While there are many arguments for developing a strong branding strategy, here are the top four reasons why branding is such an important element in reaching your performance objectives:

Brings new customers

Strategic brand awareness campaigns introduce your business to new potential customers. It’s often said that an audience needs to see your brand at least 7 times before they will consider purchasing. This number is reduced if you have a strong, unique brand positioning. If your brand is memorable, you won’t necessarily need as many impressions to be effective.

When you have both a strong brand identity and are consistently marketing, you will improve your reach and consideration. Brand awareness helps to bond new customers to your brand.

Builds trust

Customers are more likely to purchase from brands that they know and trust. A strong brand identity helps to build a connection with your target audience as they will recognize, know, and understand your product and point of differentiation via brand messaging.

A trusted brand also leads to brand loyalty and repeat purchases. Customers will rebook or rebuy your product with little to no forethought. These sales are far easier and more cost-effective to achieve than first-time sales. If they like your product and your brand, customers are also more likely to recommend you to their family and friends, exponentially improving your ROI.

Establishes target audience

Starting with a clear brand identity will help to position your offering and to target the customers you want to attract. Brand strategy will help to develop a deep understanding of your ideal customer’s demographics, attitudes, and behaviors, helping to tailor your products and messaging. It is expensive to market to everyone, and so having a strong understanding of who your brand is ‘for’ will help to specify your campaign targeting, therefore reducing advertising waste and making your dollar work harder.

Builds resilience

Research has shown that brands with high brand equity are more likely to be insulated in times of economic uncertainty, with a faster recovery when the market returns. A strong, clear positioning, along with loyal customers and consistent messaging helps a business to weather bad times while preparing them to accelerate during the good times.

Working on your brand identity and awareness cements your spot in your customer’s mind and will help to protect your business and ensure it can bounce back more quickly in times of turbulence.

Brand awareness is a core indicator of marketing success. It is your base and marketing ‘foundation’, upon which actionable sales promotions should sit. Every piece of communication should look, feel and sound like your brand, reinforcing who you are and why you are the best choice.

An effective brand strategy will increase your overall return on investment. While it can be more difficult to measure brand awareness compared to lead generation or revenue targets, campaigns that allow for both are more likely to have improved performance outcomes and ultimately reach their objectives.

Brand awareness is a slower path than the sugar-hit of a sales-focused goal, however, it is vital for long-term stability. A strong brand foundation will improve the results of your promotional and lead-focused activity, across all channels.

This article was written by Charlotte Ward, director of Agnes Media.
Agnes Media is a measurement-first marketing agency that regularly recommends their clients incorporate a combination of both brand and performance activity to maximize efficiencies using a holistic approach.