with “success” defined as;
- more revenue,
- sticky customer relationships, and
- more new business driven in large part by referrals from happy customers.
So, how do you measure “trust”?
Well, you can use lengthy surveys, have long conversations, or track measures such as additional revenue, referrals, and added services.
All of which don’t tell you much about loyalty and are vulnerable to interpretation and confirmation bias.
Or you can take an objective, reproducible approach that can help you determine what really matters to customers, where you’re falling short and what you need to do going forward.
Why do this?
According to an analysis by the Economist, lost trust has financial consequences. Volkswagen, Wells Fargo, and six other corporations lost 30% of their value when they lost trust, at least in the short term.
From Harvard Business Review:
customers who trust a brand are 88% more likely to buy again, and 79% of employees who trust their employer are more motivated to work and less likely to leave…
Customers who give a brand high trust scores are three times more likely to stick with it through a mistake. Eighty-eight percent say they’re more likely to buy from that brand again, and 62% will buy almost exclusively from the brand.
The HBR piece outlines a pretty simple yet powerful way to assess trust and loyalty – which is built on a foundation of trust – and to identify specific factors that will affect customer and employee trust and loyalty.
Briefly, there are four components, each scored on a 7 point scale.
- 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.
Different customers may give your organization the same net promoter score, but for different reasons. A brief survey can unpack key drivers and enable you to focus on specific areas that will improve employee and customer trust.
What does this mean for you?
Nothing is more important to business success than employee and customer trust.
The survey tool is here. Use it.