When a Brand Loses Trust: The Fallout and the Fix 😉
- Kyle Frazier
- Apr 15
- 4 min read
Trust is the Foundation of Every Successful Brand.
Trust transforms customers into advocates and businesses into household names. But what happens when that trust is broken?
One bad decision, a misstep in messaging, or an ethical controversy can undo years of hard-earned credibility in an instant. Sales drop, reputations crumble, and once-loyal customers start looking elsewhere. (LINK)
In today’s fast-moving digital world, where news spreads instantly, a trust crisis can hit harder than ever. While losing trust can feel like a brand’s downfall, it doesn’t have to be the end of the story. (LINK)
As a brand strategist (LINK), I’ve always been fascinated by storytelling and how brands use strategy to build trust with their audiences. Here’s what happens when trust erodes—and how brands can rebuild stronger than before.
“A brand without trust is a commodity.”
The Impact of Lost Trust
1. Decline in Customer Loyalty
🚨 The Risk: Customers start looking elsewhere. A great product isn’t enough—reliability matters. Once trust is lost, competitors with stronger reputations become more appealing.
🔹 Example: A beauty brand caught misrepresenting ingredients loses trust may see customers switch to more transparent competitors.
2. Losing Trust is a Damage to Brand Reputation
🚨 The Risk: A bad reputation spreads fast—especially in the age of social media. Negative press, customer complaints, and public backlash can go viral, making it harder to regain credibility. (LINK)
🔹 Example: A fashion brand accused of unethical labor practices will struggle to win back conscious consumers.
3. Decreased Sales & Revenue Loss
🚨 The Risk: A lack of trust directly impacts the bottom line. Customers hesitate to buy from brands they no longer trust, leading to declining sales and lost market share.
🔹 Example: A tech company experiencing a data breach may see subscriptions drop as users prioritize security.
4. Difficulty Attracting Partnerships & Investors
🚨 The Risk: A tarnished reputation makes it harder to secure partnerships or funding.
🔹 Example: A beverage company accused of false advertising may struggle to land key distribution deals.
5. Increased Customer Acquisition Costs
🚨 The Risk: Winning new customers becomes more expensive when trust is in question. Brands must invest in aggressive marketing, discounts, and incentives to regain credibility.
🔹 Example: A rideshare company facing safety concerns may need to spend heavily on PR and promotions to rebuild trust.
6. Internal Morale & Employee Retention Issues
🚨 The Risk: Trust issues don’t just affect customers—they impact employees too. A loss of credibility can lead to low morale, increased turnover, and difficulty attracting top talent. Think Quiet Quitting.
🔹 Example: A company embroiled in an ethical scandal may see employees leave for competitors with stronger values.
“Trust is everything. If you lose trust, you lose customers—and eventually, your brand.”
The Blueprint: EXAMPLES OF Trust-Building Campaigns That Worked
1. Ben & Jerry’s – "Save Our Swirled" (LINK)
✅ Purpose-Driven: Focused on climate change, aligning with their progressive values.(LINK)
✅ Transparency: Shared tangible actions to reduce environmental impact. ✅ Brand Alignment: Reinforced their consistent stance on social issues.
Example: SEE Rivian x Ben & Jerry’s (LINK)
2. Apple – "Think Different" (LINK)
✅ Authenticity: Positioned Apple as more than a product company—an innovation leader.
✅ Emotional Appeal: Connected customers to a movement of creativity and progress.
✅ Consistency: Apple’s focus on boundary-pushing ideas has built long-term trust.
3. Lego – "Rebuild the World" (LINK)
✅ Creativity & Imagination: Celebrated play and learning, earning trust from parents and educators. (LINK)
✅ Long-Term Loyalty: Generations of families trust Lego’s commitment to quality.
✅ Consistency: Messaging around creativity has remained unwavering.
4. Dove – "Real Beauty" (LINK)
✅ Authenticity: Used real, unretouched women to break beauty stereotypes.
✅ Emotional Connection: Built trust by promoting inclusivity and self-confidence.
✅ Consistency: Continues to champion diverse representations of beauty.
5. Patagonia – "Don't Buy This Jacket" (LINK)
✅ Transparency: Urged consumers to think before buying—prioritizing ethics over profits.
✅ Ethical Values: Strengthened its position as a sustainability leader.
✅ Consistency: Backed by real actions, like promoting repairs over new purchases. (LINK)
How to Rebuild Trust in Your Brand
🚀 Losing trust isn’t the end—it’s a challenge that can be overcome with the right approach.
1️⃣ Acknowledge & Apologize 🗣️
✔ ️ Own up to mistakes transparently.✔️ Issue a sincere apology—not just a PR statement.✔️ Show accountability by explaining what went wrong and how it’s being fixed. (LINK)🔹 Example: Tylenol’s 1982 crisis response—swift action, public safety priority, and transparent communication—restored trust. (LINK)
2️⃣ Take Meaningful Action 🚀
✔️ Implement real changes, not just words.✔️ Offer solutions, refunds, or improvements to regain credibility.✔️ Reinforce values through consistent brand behavior.🔹 Example: Patagonia donating all profits to environmental causes reinforced its authenticity.
3️⃣ Rebuild Through Consistency 🔄
✔️ Trust is rebuilt over time—every action must align with brand values.✔️ Engage directly with customers and stakeholders.✔️ Be transparent about progress and continuously improve.🔹 Example: Wells Fargo’s efforts to reform banking practices and restore reputation through policy changes.
Brands That Made a Comeback
🔄 Adidas – After cutting ties with Kanye West (Ye) over antisemitic remarks, Adidas faced financial losses and backlash from Yeezy fans. However, they regained trust by transparently handling remaining Yeezy inventory, donating proceeds to social causes, and reinforcing their brand values.
🔄 Crocs – Once mocked as "ugly" footwear, Crocs made a massive comeback through influencer collaborations, limited-edition drops, and cultural repositioning—turning their uniqueness into a selling point.
🔄 Dairy Queen – Once struggling with an outdated brand perception, DQ revitalized itself through modernized stores, an improved menu, and strong digital marketing efforts, making it a relevant and trusted brand again.
“Trust is hard to earn and easier to lose.”
Final Thoughts
Trust isn’t just a brand asset—it’s everything. Losing trust is damaging, but not irreversible. Brands that take accountability, act with integrity, and remain consistent can rebuild stronger than before. (LINK)
As a brand strategist (LINK), I’ve seen firsthand how strategic positioning, clear messaging, and authentic storytelling can transform a brand’s reputation. When trust is lost, it takes a deliberate and sustained effort to win it back—but with the right strategy, brands can emerge even stronger than before.