Why Building Customer Trust Is Even More Important During Economic Hardship Although the consumer trust barometer is not looking good for companies at the moment, you can use this as an opportunity to make lasting relationships with them. Here's how.
By Christine Alemany Edited by Kara McIntyre
Opinions expressed by Entrepreneur contributors are their own.
Consumers and businesses are experiencing a major trust disconnect. When asked for PwC's 2022 Consumer Intelligence Series Survey on Trust, a healthy 87% of company leaders said consumers trusted them, yet only 30% of consumers reported a high degree of trust in corporations.
That is not a small gap. It is a gulf that may only get wider as inflation and a possible recession looms. Brand-buyer trust is being eroded every day as consumers and pundits blame corporate greed over supply-chain issues for rising profits. Certainly, they have the fuel to support their claims: Plenty of businesses have profited in what has been a tough time for average individuals and families.
Take oil companies like Chevron, Exxon and Shell. They have recently seen their net revenues increase tremendously, with Exxon clocking in at a record-breaking $17.9 billion in quarterly profits. Other brands such as Tyson are having banner years, too. Tyson posted more than $1 billion in quarterly profits in early 2022, all while raising prices on its meat products.
Stories like those make it easier to understand why consumers are having trouble trusting companies at the moment, but trust is essential. The businesses that are able to gain the trust of the public will automatically differentiate themselves as credible and authentic. For instance, let's look at Walmart.
Walmart has consistently committed to keeping its prices low. It is a smart move, even if it is not fully altruistic. Shoppers know that they won't feel burdened at the checkout line when they come to Walmart. Consequently, they're more likely to stick with Walmart rather than go to another store for the items they need.
Although the consumer trust barometer is not looking good for companies at the moment, you can use this as an opportunity to make lasting relationships with consumers. Try these methods to get the trust bump you need as you move into your next quarter.
Related: Lead Generation Without Brand Trust is a Losing Game
1. Take the temperature of your company values
Most companies these days have some kind of value statement. It is a good idea to circle back and review yours. Are the legacy values that helped launch your business still valid? Do you need to double down on them or better align your day-to-day business practices, programs and claims to buoy those values?
Be sure to examine your company's guiding light and ensure your roots are solid before moving forward. You may even need to challenge some of the original values that were created during different times, especially if you inherited your CEO seat.
Consider what happened to the publishing company Bertelsmann in 1998. It had long stood on the notion that the company resisted the Nazis. Turns out, that narrative was false. The company not only made money off the rise of the Nazi party, but it was a supplier to the German armed forces. Though Bertelsmann did the right thing and apologized for its hidden heritage, the scandal rocked its trust with buyers.
This is not to suggest that your company's history is shrouded in mystery or deceit — but it might not be as accurate or clear as it should be. It could be a good time to ensure your workflows, marketing and other touch points line up with your value proposition.
Related: Want Success? Define Your Company Values
2. Be transparent when the chips are down
When bad things happen at your company, strive to meet your challenges head-on. This may mean making tough choices. However, doing the right thing — and doing it transparently — can help you avoid backlash.
Not long ago, CNN found itself in this predicament. After a consensual relationship between president Jeff Zucker and a colleague came to the public's eye, CNN allowed Zucker to resign from his position. One of the main reasons was to try and further separate the media company from a series of sexual harassment accusations that had come to light.
Though the president had led CNN to improved ratings, his presence rankled consumers. The move to fire him cooled off a lot of tension that might have ended in an even greater loss of trust with viewers.
No matter what difficult decisions await you, deal with them swiftly and — when legal and appropriate — openly. Take it on the chin if you must but be focused and seek counsel so you can make the best decision possible during times of trouble.
Related: Admitting Your Struggles Can Build Trust With Customers. Here's Why.
3. Share information with stakeholders
How can you expect consumers to trust you if your employees and peers do not? Remember that transparency is not limited to what you write in a public email or say in a YouTube video. Transparency extends to your relationship with everyone in your company. When the people around you trust that they are getting the whole story, they are more likely to become champions of your brand. And when employees like their employer, the public hears about it.
Edelman's 2021 Trust Barometer reported 53% of respondents saying they were more likely to trust a person like themselves. Your employees are those people, which makes them poised to be your boots-on-the-ground influencers.
Some items you might want to start sharing internally that will not jeopardize your competitive position or valuation include key metrics. Depending upon your business model, some metrics you might want to pass along to workers, managers, executives, board members and investors include performance-against-profitability targets, revenue growth, customer-acquisition rates and client-retention statistics.
When you do not hold all your data to your chest, you show others that you trust them. In time and with constant transparency, the trust should be reciprocated.
Right now, people aren't certain which brands to put their faith in. They have been shaken first by the global health crisis, then by social unrest and now by inflation concerns. Take the time to readjust your playbook to help consumers see that within your industry, you can be relied upon.
Related: High Stakes Leadership: Meeting Your Stakeholders' Expectations In Times of Crisis
