The Real Reason Employees And Customers Are Walking Away

Trust expert David Horsager says, “Everything of value is built on trust. You’ll pay more for the trusted brand, follow the trusted leader and buy from the trusted salesperson. Trust is the single uniqueness of the greatest leaders, organizations and brands of all time.”

That’s a bold statement. And as leaders, this statement may cause us to wonder, “What if our customers and/or employees don't trust us?”

I’ve covered Horsager’s work in the past, and he states, “A lack of trust is your biggest expense.” Any lack of trust will result in the opposite of the opening quote in this article. Customers won’t buy, employees won’t stay, and more. That brings us to PwC’s 2024 Trust Survey findings, which emphasize the power of creating trust with all stakeholders. Here are a few of the most relevant ones, along with my commentary, to consider immediately:

• Ninety-three percent of business executives agree (including 46% who “strongly agree”) that building and maintaining trust improves the bottom line. Going back to the Horsager quote, more than nine of 10 executives are in alignment that you put the bottom line at risk without trust. Consider what you do that creates confidence for your brand—for both customers and employees. Then ask, “Do they agree?”
• Eighty-six percent of executives say they highly trust their employees, but only 60% of employees feel highly trusted. The two questions to ask are: 1. Do your employees feel micromanaged?, and 2. Do they feel empowered? Micromanaging people is the opposite of empowering them. If you hire good people and train them well, step back and let them do their jobs. Then, praise them when they are successful. Happy and fulfilled employees transfer that feeling to customers.
• Ninety percent of executives think their customers highly trust their companies. However, only 30% of consumers actually do. This 60% gap is slightly bigger than the past two years (by 3%), indicating there could be a trend moving in the wrong direction. This is the big one to pay attention to. If you agree that trust impacts the bottom line, you can’t be reaching your full potential if customers don’t trust you. And no matter what you do, your customers’ perception is their reality. In other words, it’s not what you think. It’s what they think.

Here’s what concerns me with these findings. With almost every executive (93%) agreeing that building trust is good for the company, why is there such a big difference between perception and reality?

The gap in employees’ trust in their employers is a matter of workplace culture. Fulfilled employees are crucial to a company’s success. They stay, work harder, are more engaged and will do what it takes to contribute to the success of the organization they love. They are your brand ambassadors. Unfortunately, for those leaders who have created distrust within the organization, the opposite is also true.

And then there is the worrying finding of the trust gap between customers and the companies they do business with. If there is any silver lining in this dark cloud, it’s that it’s not all companies. There are plenty of highly trusted companies. A short list includes Amazon, Netflix, Nintendo, PayPal and Intel. Of course, you don’t have to be a recognized name brand to be a trusted brand.

So, how can you get a customer to trust you? Start with the customer experience. Our annual CX research (sponsored by RingCentral ) found that in 2024, 87% of U.S. consumers said that great customer service increases their trust in a company.

At the same time, build up your workplace culture. Leaders need to be role models and treat employees the way they want the customers to be treated. Transparency is non-negotiable. Empowerment shows that you trust your employees.

Horsager’s statement that “everything of value is built on trust” is not an exaggeration. If your organization has discrepancies between the leadership’s perception and employee and customer trust levels, there is work to do. Otherwise, you are hurting your bottom line. Fixing any trust gap is a priority!

Shep Hyken is a customer service and customer experience expert, keynote speaker, and New York Times bestselling business author.?Learn more about Shep's virtual?training programs and follow #ShepHyken for more customer service and experience insights.

This article was originally published on Forbes.com .

Check out Shep's latest research in his Achieving Customer Amazement Study , Sponsored by RingCentral .