Trust is critical to a company's success and if lost, often has financial consequences:
A company loses 30% of its value when it loses trust, at least in the short term. [Economist magazine]
Gallup found Trust in business and institutions has plummeted to its lowest point in decades.
But, Companies with high Customer trust gain high rewards. Highly trusted companies are:
> 2.5 times more likely to be high-performing revenue organizations
Outperform their peers ~400% in total market value.
Customers are 88% more likely to buy again; 62% will buy almost exclusively from the brand; 3X more likely to stick with it through a mistake.
So how can brands build Customer Trust?
Importantly: you can’t manage what you don’t measure! HBR’s article (Nov’22) shares research learning by Deloitte with an approach to help brands measure.
First, their definition,
Trust: “the promise of a meaningful, mutually beneficial relationship between an organization and its stakeholders.”
Through extensive research they developed “HX TrustID” platform, “for companies to “predict, measure, and increase trust between a firm and its employees, customers, partners; benchmark trust across industries; and better understand stakeholder behavior”.
HX stands for Human Experience.
To help Companies and brands they share their free, simple survey:
“TrustID survey asks respondents to indicate on a seven-point scale the extent to which they agree or disagree with the following statements:
Humanity: The company/brand demonstrates empathy and kindness toward me and treats everyone fairly.
Transparency: The company/brand openly shares information, motives, and choices in straightforward and plain language.
Capability: The company/brand creates quality products, services, and/or experiences.
Reliability: The company/brand consistently and dependably delivers on its promises.”
They determined these 4 areas are critical for a company/brand’s performances and highly co-related and predictive of actual Customer behavior. They determined high scores INCREASE likelihood of Customers:
Humanity: promoting the brand on social media by 2x, defending it against criticism by 2x and choosing it over competitors by 3x.
Transparency: promoting brand on social media by more than 2x.
Capability: choosing the brand over competitors by 3x.
Reliability: spending more on the brand by 3x.
“The connection between trust and loyalty is intuitive, and our research confirms a strong linear correlation between TrustID and NPS scores. In plain English:
The more customers trust your brand, the more loyalty they’ll have. This means that organizations can measure and improve customer loyalty — and therefore business performance — through specific interventions that enhance trust.”
Take the first step to unlocking the power of trust by using the TrustID survey. It's free, easy to use, and can help you drive growth and increase loyalty.
HBR Article: 4 Questions to Measure — and Boost — Customer Trust; November 01, 2022