Opinion: 6 ways to reverse declining customer trust

Realizing the importance of trust in producing business results is crucial.

Do customers truly trust your company? How does their trust in your brand’s products or services stack up against the competition? And what happens if that trust is absent?

When I consider today’s hypercompetitive business atmosphere, I believe that nurturing trust is a leader’s top job, especially in a trust-declining world.

The 2020 Edelman Trust Barometer study highlights a constant decline in trust across media, government, business and other institutions. Picture it like a steep waterslide – with trust taking an endless plunge.

Despite this trend, there’s a silver lining in Edelman’s findings. Customers still crave deep trust in their chosen brands and the people representing them. The Trust Barometer shows that nearly 7 out of 10 customers now place a higher value on brand trust than ever before. Trust may be dwindling, but its importance in decision-making is rising, offering challenges and opportunities.

If you prepare your spokespeople and sales teams to build high trust with customers, you will profit. However, tolerate stationary trust levels and you risk losing sales and market share due to declining customer loyalty and rising customer indecision.

Case in point: According to research by a 2022 study by Harvard Business Review, customer indecision accounts for 40% to 60% of missed sales opportunities – with 87% of all opportunities involving moderate to high levels of customer indecisiveness. This is a significant shift and an ominous development that the HBR calls “toxic” for business because it will probably worsen.

Still, apart from the warning signs about trust, it’s the impressive rewards of trust-building that should motivate leaders to refocus efforts and reverse the present trust deficit.

According to the Trust Barometer, there are substantial advantages for converting your organization’s trustworthiness into brand power, such as six times higher customer loyalty, a seven times increased likelihood of commanding premium prices and eight times more competitive resilience.

To enhance trust levels and harness the gains of converting trust into brand strength and sales, consider these actions:

1. Measure. One client company identified its customer greetings as a weakness. When they revamped their training and ongoing measurement, they boosted scores and sales.
2. Engage stakeholders. Address customer concerns promptly. Listen intensely and use customer feedback to solve concerns and prevent future problems.
3. Admit mistakes. Sincerely apologize for errors and thank customers for their feedback. Dodging the problem or blaming someone is fruitless.
4. Be believable. Never mislead or exaggerate. Honesty is crucial, and if you don’t know the answer, find out, rather than trying to sound knowledgeable when you’re not.
5. Demonstrate capability. Customers must see us as believable and capable of delivering what we promise.
6. Provide timely updates to reassure customers that you are on top of things. An energy company formalized customer communications and improved timeliness and uses it as a key differentiator in their niche.

Trust is the cornerstone of customer relationships. Its power and influence surpass a company’s reputation, rapport and pricing. So, let’s delve into each of these aspects for a moment.

Brand reputation is critical, but trust is even more significant. Why? Because personal experiences can overshadow it. A brand might be lauded in the industry, but if it doesn’t earn consumers’ trust, its reputation can only take it so far.

Building strong rapport with a decision influencer may not always withstand the confidence placed in the competition. Trust in another vendor can easily undermine your rapport. I’ve seen clients lose large sales because the salesperson over-depended on the company’s reputation – and lost to the customer’s trust in another vendor.

Even though price plays a significant role in purchasing decisions, trustworthy relationships are more powerful. In addition to shaping perceived value, trust becomes a decisive factor when combined with competitive pricing and a compelling value proposition.

Trust is more than a virtue – it’s a competitive advantage. But as trust levels continue to plummet, business leaders must be intentional about rebuilding customer faith.

Mark Holmes is a consultant, professional speaker and author of “Selling to ELON! Understand, Communicate and Sell to Unique Personality Types,” and he’s president of Springfield-based Consultant Board Inc. and SalesRevenueCoach.com. He can be reached at mark@salesrevenuecoach.com.