Why Customer Trust Will Be Critical in 2021
Forrester calls it “the most important metric of success.”
What is “trust”?
Merriam-Webster’s Dictionary defines “trust” in both noun and verb forms. In noun form, “trust” is “assured reliance on the character, ability, strength, or truth of someone or something.” In verb form, “trust” means “to rely on the truthfulness or accuracy of ____.” A synonym for the verb “trust” is “believe.”
As humans, we have relationships built on trust. We put our trust in other people. We become frustrated when others betray our trust.
And what is a company? It’s a collection of employees — or people. By that definition, consumers’ relationships with companies can be viewed as relational — human-to-human — instead of impersonal and/or transactional — corporation-to-customer. As is the case with any relationship, the connection between people and the brands they love is built on trust. Often, people choose to change brands due to breakage or betrayal of that trust.
What builds customer trust?
Consumer trust is directly tied to customer retention. However, companies all too often take a short-term approach to building this long-term relationship by placing disproportionate emphasis on customer acquisition and singular transactions versus cultivating trusting relationships with customers over time.
Today, companies compete on more than prices, features, and even benefits. According to Forrester, consumers today “contend with more glitter than gold.” More brands claim to be entirely trustworthy than truly are. In the mind of consumers, the following qualities determine whether a brand is trustworthy:
- Authenticity
- Intentionality
- Truthfulness
- Relevance
- Consistency
It is critical for organizations to reflect these qualities throughout their customer experiences, particularly in this time when people are more skeptical than ever and are empowered to push back. This looks like delivering with consistency at all touchpoints, authoring messaging that conveys empathy and understanding, meeting needs online and offline, and exceeding expectations before the moment of purchase and after. The way that customers live, work, play, and interact is evolving — companies need to keep up with the pace. It’s important for teams to evaluate what’s changed, what hasn’t, and double-down on what’s most important.
When brands deliver on each of these qualities, consumers take notice. Consumers desire an emotional bond with brands more than ever before — and that emotional connection is built on trust. But, this relationship isn’t one-sided. Consumers are willing to bring value to the relationship too — in the form of feedback, loyalty, and referrals. People want to be included in the conversation. They want to be part of the process. They long to be active participants in these relationships.
Trust is built when a company listens to its customers, takes action accordingly, and keeps its promises. However, including customers in the conversation can be intimidating. The very action of soliciting customer feedback creates accountability for companies to act on what they hear and follow-up. If organizations invite feedback but take no action, customers feel that their trust has been betrayed for lip service. They see the company as being dishonest and disingenuous, which diminishes the hope for a lasting relationship.
How has 2020 impacted customer trust?
In March of 2020, Forrester conducted its Consumer Energy Index study, which measured “what kind of emotional toll COVID-19 is taking on consumers and how consumer sentiment will influence imminent behavior. The study found that, at that time, consumers were more distrustful of companies and other people than they were in 2018. Consumers, as a whole, are less optimistic that brands will keep the promises they make.
More than six in ten consumers consider a company’s ethical values and authenticity before buying their products. Once a brand displays unethical behavior or is the subject of controversy, 45% of customers say that a brand will never be able to regain their trust.
It’s no surprise, then, that Forrester’s Consumer Energy Index study identified consumer trust as the most important metric of success in 2020–21. In these turbulent times, consumer trust is earned as customers see companies prioritizing people’s well-being ahead of anything else.
According to the Edelman Trust Barometer 2020, 81% of consumers say that being able to “trust a brand to do the right thing” is a dealbreaker or deciding factor in their decision-making process. 60% of consumers said that they are “turning more and more to the brands that I’m absolutely sure I can trust.”
What obstacles do companies face to cultivating authentic relationships via customer experience?
Trust is built via shared experiences. A customer’s trust is not the result of a single transaction or moment in time; rather, it is the culmination of all of their experiences with a brand. Hence, why delivering an excellent customer experience is critical to raising brand trust.
Comparing the 2018, 2019, and 2020 Forrester Consumer Energy Index studies, five common organizational obstacles emerge that keep companies from transforming their customer experiences into ones that better deliver on the five qualities of “trustworthiness” listed previously:
- Companies sacrifice voice-of-the-customer (VoC) quality because it is challenging to switch feedback management vendors.
- Companies overemphasize convenience and make the customer experience less engaging by making it easier.
- Companies prioritize customer experience projects poorly.
- Companies dilute the quality of customer experience research by interpreting it with bias — which leads to action missteps.
- Companies fail to make the employee experience all it can be so that, in turn, employees can deliver an excellent experience for customers.
How can brands build trust in 2021 and beyond?
Here are four key principles that companies can apply to start building trust today:
- Put the focus on people versus products — a key part of being relevant.
- Invest in brand purpose and act with intention (a.k.a. “Show Don’t Tell”).
- Build authentic relationships with customers.
- Be consistent and reliable in all things.
- Champion truthfulness and transparency.
About What’s Next Labs: What’s Next Labs is a publication of INTO, an agency that empowers businesses to transform their aspirational goals into actual growth. Learn more about INTO at into.agency.
