In today’s landscape, where most business transactions, from purchasing shampoo to ordering dinner, occur without a face-to-face exchange, trust stands as the cornerstone of our digital economy. Dubbed the “trust economy,” this paradigm shift underscores that the caliber of your products or services alone isn’t sufficient. Instead, it’s about crafting a solid foundation of reliability and transparency that encourages customers to choose your company over the competition.
The Economist highlighted that trust is pivotal in keeping society functional, where even the most minute interactions hinge on trust. Echoing this, PwC’s 25th Annual Global CEO Survey revealed that next to industry conditions, consumer trust significantly influences a company’s financial past and future performance.
Yet, achieving trust is becoming exceptionally challenging. The advent of AI, rampant mismanagement of personal data, and continuous cyber threats have left customers more dubious than ever. As providers of products and services, we must demonstrate continually that we are societal benefactors. Any deviation from this can fracture trust, perhaps irreparably.
How you manage data and deploy technology plays a decisive role in your standing within the trust economy. Focus on cultivating the key elements of trust — empathy, reliability, and integrity — to enhance customer loyalty now and in the future.
Technology’s Role In Bolstering Customer Trust
Our reliance on technology is undeniable, yet it also exposes us to vulnerabilities. Computer pioneer Willis Ware poignantly observed, “The only computer that’s completely secure is a computer no one can use.” This represents a significant dilemma for businesses navigating digital security’s complex landscape. The goal is to leverage technology so that it enhances, not detracts from, customer trust.
Be Transparent About Data Usage
Have you ever noticed how ads for items you’ve recently viewed tend to follow you online? This isn’t coincidental but a product of data usage. While customers typically understand that their data will be collected, they desire control over this process. According to a Qonsent report, 94% of consumers value having control over their shared data.
It is essential to maintain a transparent privacy policy that informs customers:
- What data you collect
- The purposes for its use
- With whom it is shared
- How they can manage their shared data
Limit data collection to only what is necessary, and ensure your team is proficient in data security, backed by well-defined internal data management protocols. Slack’s “Privacy Policy” is a prime example of clarity, painted in consumer-friendly language, detailing data usage and modification options.
Prioritize Cyber Security
Customers gauge whether to trust your company based on your cyber security reputation. A 2022 McKinsey survey indicates that 53% of consumers check for robust security measures before engaging with a company. A single security breach could result in losing a significant portion of your customer base.
To foster trust, ensure your cyber security strategy encompasses:
- Multi-factor authentication
- Advanced proactive security software
- Regular security training for employees
- Comprehensive backup solutions (both local and remote)
- An effective disaster recovery plan for prompt and authoritative response
Leverage Technology to Enhance Customer Experiences
According to a 2018 Deloitte report, customers spend 140% more with companies that provide positive experiences. Moreover, companies that excel in customer interactions can reduce service costs by up to 33%.
Harness technology to offer personalized, seamless experiences that resonate with your customers. Whether through encrypted payment transactions on e-commerce platforms or CRM systems that remember every client interaction, technology facilitates more tailored and secure customer interactions.
Ultimately, every customer interaction, whether in-person, over the phone, or via email, contributes to building trust. It’s about consistently delivering on that promise of trust.
Embrace Trust and Foster Loyalty
Per McKinsey’s findings, nearly half (46%) of consumers are willing to switch brands if data practices are opaque. Conversely, organizations that prioritize digital trust may see up to a 10% annual increase in their financial performance. Listen to your customers, adopt a trust-centric approach in your business and digital security strategies, and not only will you build trust now, but you’ll also cultivate lasting customer loyalty.
