How to go about building and sustaining it?
For over a decade Edelman, one of the largest and independent public relations firms, has been researching and publishing an annual study of the state of global consumer trust. The results have customarily been revealed during an event, called “Edelman’s Trust Breakfast.” Four years ago, while witnessing one of the most disastrous global financial crises, I had the opportunity to attend the event and hear the discoveries of the study first hand. Now, at the dawn of a very public act of distrust - the confession of one of the most celebrated athletes of our time, Lance Armstrong - I am glad to review the recently published study, titled “Crisis of Leadership,” compare it to the study from four years back, and report a few positive trends.
GENERAL FINDINGS
2009: US consumers have generally lost trust in the business sector and especially when it comes to certain industries like banking and automotive. Biotech and technology are the least affected areas due to the idea of innovation and hope that consumers attribute to both of these fields. What that meant to professional services firms (“PSFs”): biotech and technology will most probably experience the highest growth in the upcoming years and we should position our practices / industry groups for that.
2013: Trust free-fall has finally come to a halt; more than that, it is stabilizing and even improving for some countries (Germany, France, UK, France, etc.) While trust is on a rise for institutions – after dips in 2009 and 2012 – the gap in trust between businesses and governments is still significant, with NGO’s and businesses leading the way. Technology remains the most trusted industry sector. While the Automotive industry has been able to regain consumers’ trust since 2009, understandably the Banking and Finance sectors are yet again at the low end of consumer trust barometer. What that means to PSFs: True to my 2009 forecast, organizations should continue to invest in their Technology-focused strategies. Even with the low trust ratings, firms with strong Banking and Finance capabilities should stay close to their Finance clients, many of whom will need help rebuilding their images.
SIZE & LOCATION MATTER
2009: While consumers have lost trust in corporate America, they will be most willing to trust small size and entrepreneurial organizations, because they can get to know the leaders, especially those who are hands-on with the organizations and have direct control over them, and they are overall more transparent. What that meant to PSFs: look for opportunities with emerging small and entrepreneurial organizations.
2013: Small businesses are still trusted more in the West while the big businesses have the upper hand in the emerging markets. Businesses headquartered in the Southern European States and the BRICS are lagging in acquiring consumer trust in comparison to the ones based out the developed countries such as Germany, Sweden, Switzerland, UK, US, and others. What that means to PSFs: Consider how this affects your and clients global development strategy and make the necessary adjustments. Continue to look for opportunities with small and mid-cap clients in the developed economies and align yourself with the leading brands in the emerging ones. Keep in mind that the geographic location where you and your clients conduct business has become even more important.
WHAT INFORMATION SOURCES WOULD CONSUMERS TRUST?
2009: Surprisingly, internet-based information doesn’t appear to be considered as a reliable source as one might believe, even with the younger generation. Market analysts and business articles seem to be some of the most credible sources, though friends and employees follow very closely. What that meant to PSFs: Company websites providing their own information and statements are no longer enough. Include client testimonials and quotes from current and alumni employees in your materials. Give your advocates venues like websites, public events and annual reports to underwrite you.
2013: Trust in media has gone up since 2009, “as a result of diversification of options and strong coverage of scandals.” The older generation (aka decision makers) prefers traditional media in the developed markets; in the emerging ones, trust is evenly spread out across the communication spectrum – from traditional to social media. While trust in CEO’s has increased, consumers continue to consider academics, technical experts and people like themselves as the most credible sources. What that means to PSFs: These are important findings for marketing and communication experts. They should keep them in mind when selecting media delivery channels and spokespeople.
HOW LONG DOES IT TAKE TO MAKE A MESSAGE VISIBLE AND BELIEVABLE?
2009: The marketing communication norm that it takes 3x to communicate a message for it to register is no longer valid. Given the current consumer cynicism it appears it takes closer to 5x for a message to make an impact and to become believable. What that meant to PSFs: increase the frequency and consistency of your messaging. Keep in mind your statements will be questioned, so be clear, precise and consistent.
2013: Consumer skepticism carries on; majority of consumers still need to hear a message between 3-5 times to find it believable. What that means to PSFs: My 2009 prescription is still valid. Pump up the volume. Keep your messaging simple, short and to the point, articulating the value to your clients opposed to solely boasting accomplishments.
HOW DO WE BUILD AND SUSTAIN TRUST AND RELATIONSHIPS?
2009: Trust is fragile and hard to come by today. Reframe your thinking and hone in on the following trust building elements:
Diplomacy - demonstrate your corporate responsibility; take a stand on global issues like regulatory ones; get your leaders out in the community and make sure they are actively involved and offering solutions.
Social responsibility - clients and their customers will be looking for what your organization stands for and how you go about demonstrating that. If being “green” is important to your organization make sure your clients know about it, not only by telling them but also by showing them.
Shared sacrifices – “walk the talk;” communicate to your clients and prospects what your organization is doing to share their burden (i.e. instead of spending on a large client Holiday party make a donation on their behalf, etc.)
Continuous conversation – open two way communication lines with your clients via blogs, intranets, client interviews, etc. More than ever clients would like to share with you their experience, both good and bad, and in order to keep their trust you should be willing to listen and take notes.
The bottom line: service and leadership as well as authenticity and transparency will matter the most in sustaining and building relationships.
2013: The need for organizations to go above and beyond operations to build trust is clear. While this year Edelman has expanded and segmented the trust building attributes into five main components: engagement, integrity, product & services, purpose and operations, my 2009 recommendations listed above remain important and valid. Engage your clients and employees and increase the two way communication. Be transparent and take responsibility for actions. Consistently deliver quality services and exceed clients’ expectations. Shift behavior from “license to operate to license to lead” and embrace a model of inclusive management.
For copies of Edelman’s Trust reports, visit the following website:
http://www.edelman.com/trust-downloads/global-results-2/
http://www.edelman.com/trust/2009/
Portions adapted from the Series "Oldies but Goodies": The Lost Trust (first version published Wednesday March 4, 2009 by Mira Ilieva Leonard, Partner, Creative Growth Group)
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
