Transparency: Creating Trust in a Low-Trust Society!

Every year, surveys assess the pulse of trust among consumers for Businesses, Governments, and media. In 2017, the trust reports summed up the theme as “The Cycle of Distrust.” Not the direction we want our world to be going.

Looking at the positive side, of all the institutions covered in the trust reports: Businesses, NGOs, Government, and Media – business is the most trusted. 61% of consumers trust business, and only 52% and 50% trust Government and Media, respectively. “Fake news” concerns contribute to the lack of trust among consumers. The cycle of distrust for government and media based on disinformation about social and political issues threatens social stability more than ever because many consumers expect business to solve what government cannot or will not. Large percentages of consumers expect company CEOs to inform and shape conversations around the economy, technology, wage inequality, climate change, prejudice and discrimination, immigration, and education, likely changing the role of business forever.

According to 2022 Trust Barometer, 63% of consumers worry that business leaders purposely mislead society with false statements, while 66% and 67% believe the same about government and media, respectively. That isn’t a great benchmark. And to add more complexity to marketers’ task of building trust, the lower the consumer’s income, the lower their trust, globally. Most troubling in this report is the statement that distrust is the default, or so say 59% of respondents representing 24 countries.

The least trusted sectors are Social-Media first, followed by Financial Services, Fashion, Consumer Packaged Goods, and Industry.

Building trust in a less-trusting world, what a Fallacy!

Marketers can restore trust and build sustainable customer relationships. Following are some examples of how:

??Stake out your position. Create and distribute clear, factual information about your brand, your products/services, and the values you support.

??Be transparent. Your product ingredients, materials, sourcing, manufacturing processes, and charitable donations are just a few issues that matter to consumers. Greenwashing, or presenting misleading information about how environmentally sound a product is, does irreparable damage to customer relationships – and ultimately to sales.

??Own your mistakes. You don’t have to adhere to the “customer is always right” mantra at a time when customers cannot always be trusted to be fair to brands. But you do need to admit fault when it’s due and make things right.

o??Domino’s is a great example of this concept. At one point, the brand admitted to producing a low-quality product. They communicated their actions and commitment to do better. It paid off. Revenue went up nearly 14% from 2010 to 2020.

??Stand for something bigger than your bottom line. Communicate your social positions and your charitable contributions, and involve customers in your cause. We tend to trust “those just like us,” and creating bonds around issues that matter to consumers is a great way to build common ground.

??Communicate your impact. Consumers choose to support companies that explain how they are making positive change in communities and the environment.

The best competitive advantage is your ability to get consumers to trust you. This is far more important than price, even in a challenging economy. Trust goes beyond honesty and integrity. It encompasses your ESG values (Environmental, Social and Governance) and your corresponding actions.

It’s critical to know what customers think of your brand and the level of trust they have in you. Deloitte and Twilio did a joint study in 2021 that found significant discrepancies between the level of trust consumers have for brands and the perceived level of consumer trust those brands’ executives believe they have.

Just consider this:

??79% of B2C leaders believe consumers have a high level of trust in their brands

??52% of consumers agree

Important to note is that 68% of respondents to this study said they will spend around 25% more on products or services from a brand they trust, and they will give that brand permission to collect personal data for future marketing.

As you read this and develop your own strategies, messaging, marketing, and engagement programs, keep in mind the power of maintaining transparency, ensuring integrity in your deeds and alliances, and living your values.

That’s why I always say, a marketing plan isn’t just a road map for how you’ll develop products, build distribution channels, and earn profits; your marketing plan also defines the following:

??What you stand for

??Your ESG actions (Environmental, Social and Governance)

??The causes you support and how you’ll contribute to their success

??How you’ll build relationships with customers based on common values and causes

??How you’ll transparently communicate good and bad news to all your constituents

Don’t sacrifice long-term goodwill for short-term benefits.