| Customer trust is a precondition for | | | | well-defined product, a commodity. In a world |
| prosperity. Yet, most businesses...- Act as | | | | of abundance and overwhelming choice, |
| if customer trust develops because the | | | | satisficing trust does not insure repeat |
| business believes it is honest. | | | | business. Customers buy commodities that |
| | | | offer the best trade-off between satisficing |
| - Build only a shallow type of trust that | | | | trust, price and convenience. Some companies |
| does not lead to profitable relationships and | | | | become complacent because they feel they |
| loyalty. | | | | offer the best combination of the three. |
| | | | Unfortunately for them, all it takes to lose |
| - Have no strategy to build the type of | | | | customers is for a competitor to create the |
| trust where customers increasingly value the | | | | perception of a better deal. No real |
| relationship.Now is an excellent time to | | | | relationship value has been accrued by the |
| aggressively and systematically work at | | | | company who wins business this way.The |
| building customer trust. Virtually all | | | | operative words in the second definition of |
| businesses have been tainted by the general | | | | trust are "hope" and "trust in the future." |
| rise in societal distrust of companies.- A | | | | Many purchases these days are not |
| recent Datamonitor study of consumers in the | | | | commodities; they are not well defined and |
| USA and Europe found that 86% are less | | | | may not have a track record. To make these |
| trusting of companies than they were five | | | | types of purchases the customer must take a |
| years ago. | | | | "leap-of-faith," and this requires trust. In |
| | | | this type of trust the customer must believe |
| - 80% of people stop buying products or | | | | that the vendor company is truly interested |
| services from companies when their | | | | in a win-win relationship. That is, they are |
| trustworthiness comes into question (Edelman | | | | interested a long-term relationship where |
| 2005 Trust Barometer) | | | | both parties benefit. This type of trust |
| | | | grows out of experience with a company |
| - People spread distrust to friends and | | | | demonstrating a real commitment to win-win. |
| associates, the people we trust most. | | | | Since virtually all customers have been |
| | | | "burned," companies often have to subjugate |
| - Over 33% who lose trust in a company, | | | | their short-term interests to stimulate the |
| openly campaign against that company on the | | | | development of faithful trust.Customer want |
| Internet.The Datamonitor and Edelman research | | | | to build relationships that help them more |
| demonstrates that it goes beyond a few | | | | confidently make "leap-of-faith" decisions. |
| isolated cases. Furthermore, according to a | | | | Being able to rely on this trust helps them |
| Yankelovich study, more than two-thirds of | | | | simplify things in an increasingly complex |
| people don't believe advertisers and | | | | world. When this happens, trust in the |
| marketing. They see it as self-serving | | | | relationship becomes more important to |
| distortions.Customers want to do business | | | | customers than price and convenience. It |
| with companies they trust but, don't know who | | | | starts with "hopeful trust." Customers want |
| to trust. Therefore, companies that | | | | the best for themselves. They want to adapt |
| proactively demonstrate trustworthiness stand | | | | and to embrace change, and they will place |
| to gain a tremendous source of competitive | | | | extremely high value in relationships that |
| differentiation.What is trust and why is it | | | | help. Customers are on the lookout for signs |
| important to customer relationships? Webster | | | | from companies that their "hopeful trust" |
| gives two definitions of trust that help | | | | will be well placed. But this "hopeful trust" |
| separate the wheat from the chaff.1. firm | | | | is just a test. If experience demonstrates |
| belief or confidence in the honesty, | | | | that trust in the relationships is justified, |
| integrity, reliability, justice of another | | | | faithful trust will emerge.When trust morphs |
| person or thing. | | | | from "hopeful" to "faithful," a very |
| | | | significant twist occurs. The main concern of |
| 2. confident expectation, anticipation, or | | | | customers shifts from price and utility to |
| hope; as in trust in the future.Most | | | | the seeking of advice and guidance. When |
| companies believe they are trustworthy but | | | | price is an issue, customers withhold |
| only measure up to the first definition. They | | | | information. When they seek guidance, they |
| want to be known as a company that is honest, | | | | openly share. "Faithful trust" enables this |
| reliable and fair. They expect their products | | | | openness. It also enables both parties to |
| live up to expectations and when they don't | | | | prosper and builds a basis for co-adaptation, |
| they think they treat customers equitably.Do | | | | now and in the future.The trustworthy company |
| you think your company measures up? If you | | | | gets the immediate sale, but they get much |
| say yes, ask yourself what you proactively do | | | | more. Snafus or mistakes that might have once |
| to build this trust. Many companies have no | | | | terminated a relationship are now overlooked |
| deliberate strategy.If you have a deliberate | | | | for the sake of the relationship. Customers |
| strategy, now might be a good time to | | | | become turbocharged advocates. They don't |
| question how well it is working. As mentioned | | | | merely tell others what you sell; they vouch |
| above, Yankelovich's research shows that most | | | | for you and the relationship value you |
| customers don't believe your marketing and | | | | deliver. They come to depend on your business |
| advertising. And, the Edelman Trust Barometer | | | | and, as a consequence, they want you to |
| concluded that when looking for a credible | | | | thrive.The real-life story of Billy Blue, a |
| source of information on a company or | | | | men's clothier in San Francisco illustrates |
| product, CEO's, employees, public relations | | | | the power of fully trusting relationships. |
| people and celebrities rank in the bottom | | | | Billy Blue's thriving business took a nose |
| half.Measuring up to the first definition of | | | | dive during the crash. The downturn was so |
| trust is essential to sustainable and | | | | severe its owner, Billy Bragman, considered |
| profitable customer relationships. However, | | | | closing his doors. Instead, he wrote his |
| even if customers believe your company is | | | | customers a letter explaining the situation |
| honest, reliable and fair, this is no | | | | and asked them to buy more clothes. Even |
| guarantee they will be loyal and profitable. | | | | though many of his customers had their own |
| To garner commitment, profitability and high | | | | business "trial and tribulations," they |
| lifetime value, a company must measure up to | | | | increased their clothes purchases. One guy |
| Webster's second definition as | | | | sent a check for $2,500 with a note saying, |
| well.Businesses that meet the first | | | | "You know what I like; just send me some new |
| definition but not the second, run into the | | | | clothes." Billy Blue customers could easily |
| Satisficing Trust Barrier. Satisficing trust | | | | have turned to other men's stores but they |
| is the trust that allows a customer to feel | | | | chose to support Billy Blue. They valued |
| comfortable in buying products or services | | | | their relationship with Billy Blue and didn't |
| from a company. It is a sense of confidence | | | | want it to go out of business.John I. Todor, |
| that the company will stand behind the | | | | Ph.D. |
| product. It is sufficient trust to purchase a | | | | |