Trust builds businesses. Don’t you agree?
Think about it, all the brands you buy on repeat and swear by, what makes you go back to them? Probably your trust in them.
It is very rare that we buy something from a company that we can’t rely on. Not only do we not buy from them but also avoid working for or partnering with them.
In today’s digital and hyperconnected world, trust is non-negotiable. With the rise of technological tools, trust is no longer an abstract concept, but a metric in itself. It has the power to drive growth, attract loyalty, and build a community.
For entrepreneurs, trust is a currency that influences everything from who buys from you to who works with you. You exchange this currency with your community in return for their loyalty.
But building trust isn’t easy, especially for organizations associated with thousands of people.
How do you ensure delivering quality services at all times? What builds trust and what loses it?
Let’s try to understand this.
Building Trust In Businesses
Trust can’t be taken, it has to be earned through deliberate efforts.
By its definition, you trust someone when you believe that they are good and honest, and won’t harm you. Or when you believe that something is safe and reliable.
Forbes notes that trust, transparency, and accountability go hand in hand. Even if one of them is missing, the whole business may be shaken.
For businesses, this means communicating openly with their community and owning up to their mistakes.
Take transparency, for instance. Consumers are willing to give those brands a chance who are vocal and clear about their business practices.
Organizations like Patagonia are making brilliant use of this by openly sharing their supply chain and sustainability effort details. As a result, they have been able to build a cult that promotes them.
Let’s talk about one of the Big 4s as another example. In 2018, KPMG suffered major reputational damage due to a series of audit failures on their part. Not just regulators and clients, but the public had also lost trust in the organization.
The firm decided to own up to its mistake and took decisive steps. The leadership was changed and their audit quality was paid special attention to.
This move brought back stability, followed by the gradual restoration of their reputation.
When Businesses Lose Trust of Their Community
Building trust is a slow and steady process, but losing it? That can happen in an instant. One misjudgment on the business’s part, and their reputation can go for a toss.
Especially with the current level of globalization, it doesn’t take seconds for news to travel from one country to another.
The reason behind customers losing trust in businesses is simple. The business is unable to match their expectations.
This may happen because the company set high standards for itself, but could not meet them. Another reason is that they made promises that weren’t kept, or they failed to meet ethical standards.
- Remember Facebook’s Cambridge Analytica scandal? The scrutiny over how the company handles user data had begun in 2018. The company’s ethical standards came off gray, and customers are still finding it difficult to give it another chance.
- Let’s take another example, the legal case against Pfizer, manufacturer of a contraceptive injectable. The Depo-Provera lawsuit suggests that the product increases the risk of brain tumors in its users.The primary claim is that Pfizer failed to warn users about the potential risks linked to their product, states TruLaw. People who have used the injectable and later developed any type of brain tumor, are eligible to join the ongoing case.
- Lastly, when investigations were launched against the leading aerospace company Boeing, their wallet started becoming lighter rapidly. More importantly, their community started shrinking due to dissipating trust in the organization.
It is clear that the ripple effects of losing trust are far-reaching, impacting reputation, customer retention, and even financial stability.
Even when justice and suitable compensation are pursued in legal courses, an important question remains to be answered.
Will customers be able to trust the company again?
Trust Attracts Talent and Collaboration
According to research, when employees trust their leadership, workplace productivity can be seen improving. Additionally, it also positively affects their attitude toward team collaboration and innovation.
That’s the thing! When we talk about building trust for businesses, we tend to revolve around their relationship with customers.
But equally important is the business’s equation with its employees. Businesses built on trust attract customers, as well as partners and employees who align with their vision.
It is safe to say that trust, in fact, is a measurable asset. From production and logistics to manufacturing and delivery, trust makes businesses stronger and more durable.
When organizations embrace transparency and accountability, they also open their arms to a potential loyal community.
