What is the main difference between companies that are thriving and those that will become extinct like dinosaurs? There’s a simple answer to that question – trust.
Michał Szafranski in his book – Trust: The Currency of the Future talked about the importance of trust in our constantly changing, digital world. Infact, the book is a sort of manifesto of building a business based on trust, openness, frankness and transparency.
Why Is Customer Trust an Essential Part of Business?
Szafranski presents a valid point in the book. According to him, we are bombarded with options. What used to be a choice between two or three brands is now a mix of thousands of global companies fighting for our attention. Before we choose any product or service, we ask ourselves one fundamental question – which brand should we trust?
Customer loyalty can be the make-it-or-break-it factor for any business. Remember the huge scandal of Facebook losing personal data of millions of users to Cambridge Analytica in 2018. It has been a while since the US Congress’ inquiry but there is still a massive consumer gap between the platform and other social media giants. It is extremely hard to regain trust.
Brand authenticity is also a deciding aspect for many millennials. This is the largest generation in global history. They are reaching their prime working and spending years, so their impact on global economy is only going to increase. Millennials are unhappy with the old ways many companies operate. For them, quality or functionality of a product is not enough. The merchandise they purchase has to be something more than that. The old approach of focusing only on delivering the best product or service doesn’t cut it anymore. For them, the impact the company has on environment and society is an essential part of their decision-making process.
Read also: When Do You Need a Brand Refresh or Rebrand?
Building long lasting relationships, and turning leads into loyal customers requires authentically caring about clients and their needs. And, it goes without saying that one of their essential needs is having a beneficial effect on humankind and ecosystem.
The rise of social media has only strengthened the necessity to develop brand trust.
Consumers know much more about the brand and can pinpoint all inconsistencies in its messaging. Trusting a brand means identifying with their product or service. Mark McCrindle sums it up: “It’s not now just about price, feature and benefits. It is not even about history and legacy, it is about trust. Every brand must build and maintain trust, particularly because the customer is more sceptical and empowered, and not afraid to push back and question.”
This should get every business owner, brand manager and marketer thinking – what exactly has to be done to build and maintain customers’ trust? If it is the deciding factor in many purchasing decisions, then it must be done right.
Despite all the developments in marketing and technology, the key to successful customer relationship has always been authenticity. There is nothing more damaging to a brand’s reputation than promising and not delivering on that promise.
That seems like a truism, but surprisingly, customers still have the feeling that brands under deliver on promises they make. In a recent research by Accenture, 70% of respondents say a company promised them something in the past year, and upwards of 40% say that the promises were broken.
So, how exactly do you gain customers’ loyalty? The first thing that pops to mind is creating a loyalty programme. This has its pros and cons. What’s more; it seems a bit outdated.
Today, brands have to stand for something meaningful, that consumers care about. The activities of any brand have to be purpose-driven, so everyone can see that it is living and breathing its values.
That’s why companies now invest in projects with some added value. Besides the obvious profit they will make, the companies will also contribute in solving some major problems
Modern Solutions
How do you build trust in the 21st century? According to leading marketing expert, Bobby Umar, people demand authenticity. You have to truly care about the idea you’re communicating. That way you are able to create the change your clients are looking for. Customers have always been at the heart of every business, but with the rise of social media, they’ve gained even more power. It is businesses’ responsibility to align their strategies with new customers’ demands.
The Power of Connection
Many customers want brands to be authentic in their communications. Authenticity builds trust and trust creates lasting connection. So brands have to focus on how they can communicate their message in legitimate and convincing ways. Honest communication is the key to success in any relationship.
Appreciate the Feedback
It’s almost impossible to receive feedback from your customers. People almost never fill in surveys, mostly because it is insanely time-consuming.
The good news is that they leave the feedback voluntarily on the internet. Many times they put their experience with your products or services on social media, and this is strategic feedback.
Let me add here that there is nothing wrong in making mistakes. It is how you handle the crisis that matters. It might sound counter-intuitive but every negative event is an opportunity to show how much you care. And, that’s how you win faithful clients.
Last line: Trust isn’t given, it has to be earned. Companies have evolved from being just the product sellers to advisors and information providers. If you want to thrive in this changing market you need to be a trustworthy partner for your clients.
