Trust in Business

David A. Shore, PhD, associate dean and executive director, Center for Continuing Professional Education and director, Trust Initiative, Harvard School of Public Health, has been teaching CSS E-105d Strategic Marketing: Competitive Advantage Through Positioning and Branding since 1998. He is currently pre-paring two books on trust.

David A. Shore

Excerpts reprinted from PricewaterhouseCoopers' Growing Your Business, September/October 2001. Printed with the permission of Dr. David A. Shore.

Creating a Trusted Product or Service

How should a company position itself to inspire trust?

Shore suggests that companies with trusted brands are perceived to have "kind, caring people with strong morals who provide unbiased guidance, always putting the consumer first, while delivering on their promises."

Trust is what allows a small jewelry store gemologist, known to have experience and impeccable ethics, to compete with a larger chain store. Shore notes: "The average customer can't easily assess jewelry, but given exposure to the gemologist's expert advice, and, with consistently satisfying purchase experience, the customer grows comfortable as the gemologist proves to be trustworthy. Over time, experience and reputation lead to customer retention and referrals. Why? Well-placed trust reduces the number-one risk: purchasing an inferior product or service. One bad customer experience, however, is more than likely to find its way to the ears of ten prospects, who will be more comfortable placing their trust elsewhere."

The word trust, Shore advises, is derived from the German trost, comfort. It means delegating to someone else when you are in a vulnerable position, and asking: "What do you think?" The ability to be a trusted advisor adds value to selling a product or service.

The Trust Continuum

Dr. Shore identifies four building blocks for gaining trust equity over time. These building blocks are in order of power, with "trusted advisor" at the highest level of inspiring trust:

Warmth, Empathy, and Genuineness. This is the so-called "high-touch" strategy for cultivating trust. It is not something you can fake for long. Genuineness is not the same as genuine-like-ness. Respecting people's emotions gets you in the door.
Integrity. Your brand must be consistent in its promise, and true to it. It must offer truth in advertising, and then deliver it. Are the items you advertised in a certain price range readily available when your customers arrive? Do your consultants or technicians always arrive on time, and are they prepared to tackle the problem? Having integrity means that if you make an honest mistake, your customer may be inclined to give you a second chance.
Performance. Your store, brand, or business must follow through on its business commitments. Warmth, empathy, and genuineness can get you only so far, but the fact is your customer needs his or her shoes shined and delivered by 4 pm. "The road to distrust is paved with good intentions. Consistent delivery, as promised, is worth paying a premium for--or walking the extra block," says Shore.
Trusted Advisor. Shore points out that being a trusted advisor is more than consultative selling; it is making your mark by helping people make informed and knowledgeable decisions. It is the antithesis of "pushing" products and services. It means that you can be relied upon to make the consumer's interest paramount, and act on the consumer's behalf in all aspects of the business, even if it means advising him or her to buy elsewhere-this time. "A recent Gallup survey found nurses and pharmacists as having the most trusted jobs in America, because they are perceived as operating under the principle of impartiality," Shore observes. "Consider sending customers a newsletter called Advice from the Experts. Everyone will know what the product is. Add value to your customers' experience, and they may never risk buying elsewhere again."

A Marketing Imperative

Business is shifting from "push" marketing to trust-based marketing. Increasingly, businesses are earning and managing trust relationships with their customers. "A recent study revealed that more than 100 companies, including American Express, Verizon, and many online enterprises have named new executive positions of Chief Privacy Officer (CPOs reporting to the CEO), and this is expected to multiply five-to tenfold in the future," notes Shore.

A clean, well-lit environment that offers easy access to products is also a tangible statement to customers that a business has nothing to hide and can be trusted. In addition, customer care representatives, tools, and other staff providing continued customer assistance show that a business values the customer relationship.

It is essential to have an environment of trust pervade every aspect of an organization. Businesses fare far better at fixing mistakes, or at least in damage control, if employees feel they can admit that they have made them. Moreover, there's benefit in having employees risk telling their managers their latest "crazy" ideas! Make trust a powerful attribute of your business.

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