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The notion of trust-building in business is gaining lots of attention these days. People crave trust more than ever before. In a world of complexity and uncertainty, where our vaunted institutions are faltering, consumers are drawn toward trustworthy brands, and away from those which are unreliable.
During uncertain times like these, having a trustworthy brand is a strong competitive advantage. Yet few companies intentionally take steps to engender trust. Organizations ought to instill trust in their brands with the same fervor that they pursue new business or cut costs.
How does trust figure into business relationships?
Social scientists believe that individuals connect deeply with people they trust. Our desire to form bonds with those we trust is both universal and primal. Trust is necessary in forming all positive relationships, including business relationships. That affiliation extends to relationships with brands and their representatives.
One of the best definitions for trust doesn’t come from a social scientist but from mindfulness expert, Jon Kabat-Zinn. He says: Trust is a feeling of confidence or a conviction that things can unfold within a dependable framework that embodies order and integrity. That resonates because it applies to any setting. It works for any kind of interaction, human or machine, and it holds true for any industry or offering.
Customers look for order and integrity whether they’re talking to a company’s representative or interacting with its user interface. When customers find order and integrity, they’re likelier to form a relationship with the brand or company. Conversely, when order and integrity are missing from any touch points, the customer’s sense of trust is breached and it’s tough to restore.
Earlier this year, Edelman published its 10th annual Barometer of Trust and found that trust in businesses in the U.S. and other developed economies has fallen sharply and is at its lowest level ever. That comes as no surprise given the collapse of “cornerstone” institutions — banks, insurers, and manufacturers.
Meanwhile trusted brands like Apple, Toyota, Netflix, Virgin Group, and Zappos are outperforming their rivals. They realize a “trust dividend” because their customers tend to spend more for their offerings, tell their friends about their experiences, and even overlook occasional gaps in their services. It’s tough to quantify the “trust dividend,” but it’s worth a lot.
Instead of viewing trust as a powerful brand asset, many businesses engage in practices that undermine their trustworthiness. For example, companies — feeling the pressure to raise revenue — tend to exaggerate their claims, especially during tough economic cycles. Hype abounds when demand is low, but hype erodes trust.
In light of the growing trust gap, businesses are advised to step back and look at their offerings through their customers’ eyes. Companies that fall short on trust ought to consider steps to improve their reliability.
Trust is earned over time by companies that take steps to instill reliability in their offerings. It doesn’t happen quickly or easily, but the dividends can be substantial.
What can your company do to earn more trust?
Here are four steps:
– Focus on understanding and meeting customers’ preferences. Find out what your customers need, want and expect and be sure your offerings meet their preferences. Convert your findings to actions at every touch point.
– Under-promise and over-deliver. Hype and “marketing-speak” undermine your brand’s trustworthiness. Dispense with the hype and fulfill your explicit and implicit brand promises. Deliver work ahead of time.
– Foster a culture of transparency. Building trust begins in the executive office but it must extend to the “shop floor” and to every customer-facing employee. Keep things as simple and straightforward as possible. Open your books and let the sunshine in. Let your customers and employees know what your company is doing.
– Make it easy for your customers and employees to share their honest feedback. Receiving candid feedback is like taking medicine. It’s hard to swallow but it helps the patient. Let your stakeholders know that you value their honesty. Listen openly, validate their feedback, and take it to heart.
What do you think? Are your customer experiences fostering trust? How do the brands that you admire earn your trust? What steps do you take to engender trust? What are other key questions to consider regarding trust?
* Edelmen reported that perception of trust actually rose in “developing” economies, including Brazil, India, Russia, and China.
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Want more information on this subject?
The World Database of Trust by Harvey S. James, Jr., Ph.D features a variety of definitions, quotes and references about trust.
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Tags: barometer of trust, edelman, kabat-zinn, reliability, trust, trust dividend, trust-building, trusted brands, trustworthy