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5 Gesturesof Trust
A New Framework to Evaluate Customer-Business Relationships
SM
2 5 Gestures of TrustSM 2 5 Gestures of TrustSM
CONTENTS
Executive Summary 3
Introduction 4
Trust Matters 7
What Distinguishes Trusted Companies? 8
5 Gestures of TrustSM 10
Customers’ Survey Responses Reveal the Potential Importance of the 5 Gestures 12
Survey of Businesses Confirms Potential Importance of 5 Gestures 14
The 5 Gestures in Detail 16• BeHonest 17• BeTransparent 18• BeProactive 19• BeHumble 20• BeEquitable 21 What the 5 Gestures Look and Feel Like to the Customer 23
Conclusion 26
3A New Framework to Evaluate Customer-Business Relationships 3A New Framework to Evaluate Customer–Business Relationships
EXECUTIVE SUMMARYIntoday’smarketplace,consumerexperiencecanmakeorbreakabusiness1.Consumerstendtovotewiththeirfeet—iftheyhaveabadexperiencewithacompany,theymaytaketheirbusinesselsewhere.Worse,theymayalsotelltheirfriendsandfamilyabouttheirnegativeexperience2.Inthebestcase,theymightcontactthebusinesstocomplain–therebygivingitachancetorecover.
Since2015,wehavebeenexploringwhatitmeanstobeacontemporarybetterbusiness.Valuessuchashonesty,integrityandethicsareperenniallyimportant3.Infact,theyarecriticalforbuildingtrustingrelationshipsbetweenconsumersandbusinesses2.Consumersoftenusetheword“honesty”asacatch-alltermdescribingtheirexperienceswithabusiness;astheDictionary.comentryfortheword“honest”demonstrates,ithasseveraldiscretedefinitions:• Beinghonorableinprinciples,
intentions,andactions• Showingfairnessanduprightness• Beingsincere,frank,andgenuine• Havingagoodreputation• Beingrespectable• Beingcreditableortruthful
Consumerexpectationshavebeenevolvingthough,particularlyamongyoungergenerations.Theyaredemandingmorefrombusinessesthanameretransaction.Today’sbetterbusiness,therefore,mustalsobecustomercentric,employeefocused,forwardthinking/innovative,andenvironmentallyandsociallyconscious1.
Thelinesbetweentraditionalbusiness,government,andnonprofitsectorshaveblurred.Beingacontemporarybetterbusiness–asweheardfromseveralconsumersandbusinesses–inmanywaysresemblesoperatingasasocialbusiness.BetterBusinessBureau(BBB)hopestoshareinthisreportwhatwearelearningabouthowsuccessfulcompaniesappeartowinprospectsandkeepcustomers.
Inkeepingwithitsmissiontoadvancemarketplacetrustforall,BBBcontinuesitsresearch“InSearchofBetterBusinesses.”Thelaunchofthis“5GesturesofTrustSM”reportrepresentsanewsteptohelpbusinessesevaluatetheircustomers’relationshipsandinturnbuildbetterbusinessexperiences.
1 www.bbbtrusted.org/trends-insights/2016/06/good-better-best/2 BBB.org/TrustIndex3 www.bbbtrusted.org/trends-insights/2017/06/time-substance-honesty-still-comes-first/
4 5 Gestures of TrustSM
INTRODUCTION
4 5 Gestures of TrustSM
Losingcustomersorprospectshasaveryrealcosttoabusiness.Sometimesit’saresultofmarketforcesandsometimescompetitorsmaylowertheirpricesina“racetothebottom.”Competitorsmayofferproximity,products,services,skills,quality,orevenperksthatanotherbusinesscannotmatch.Sometimesit’safactorthat’shardtopindown,suchaswhenacompetitorhasaproductnamethathassentimentalvaluetothecustomer,orwhenarelativeofacustomerbecomesacompetitor.Thesearemostoftenthingsoutsideofyourcontrol.
Butifyou’relikemostbusinessowners,whenprospectsorcustomersarelosttocompetitors,theyarelostbecauseofsomethingthatcanbecontrolled–therelationshipwiththem.Businesspeoplewilllikelyagreethatwhenarelationshipwithaprospectorcustomerisweakornon-existent,theyaremorethanhalfwaytolosingthemtoacompetitor.Whentherelationshipwithcustomersisstrong,they’remostlikelytokeepthosecustomers,eveniftheirproductorservicedeliveryexperiencesanoccasionalhiccup.Theywillkeepthosecustomers—perhapsforlife—solongastherelationshipremainsintact.
We’vebeenconductingresearchwithconsumersandbusinessesinNorthAmericaaspartofour“In Search of Better Businesses”agendaandourongoinginquiryintowhatbuildsrespect,trust,andloyaltybetweencompaniesandtheircustomers.Ourfindingstodatesuggestthatthe5GesturesofTrustSMprovidethefoundationforapositivecustomer-businessrelationship.Consumerswhoreportthattheyhavepositiveexperienceswithcompanies,andthattheyareloyaltothem,tendtoascribethe5Gesturestothosecompanies.Theconverseisalsotrue:whenconsumersreporttheirexperienceswithcompaniesarenegative,andreportlittleornoloyalty,theytendnottoascribethe5Gesturestothem.
BBBderivedthe5Gesturesfromin-depthconversationswithavarietyofconsumerswhorelatedtheirexperiences–bothpositiveandnegative–withcompanieswithwhichtheyregularlyinteract.Welistenedforhowconsumersstructure,intheirownminds,theexperiencestheyhavewithbusinesses–thementalframeworktheyusetodeterminewhether,uponreflection,theexperienceispositiveornegative,andifthecompanytheyaredealingwithisonewithwhichtheywouldliketocontinuearelationship.
Wethentestedtheframeworkonanaudienceofsurveyrespondentsintwoseparatemoments;themostrecentbeingwith2,037consumersacrosstheU.S.andCanadainSeptember2017(seeprofileofrespondentsinFigure1).Inaddition,wevisitedwithseveralcompaniesknowntohavepositivereputationsandamodelrecordofcustomergrowthandretention,toseehowtheyattemptedtobuildandmaintainpositivecustomerrelationships,andwhethertheserelationshipswerebuiltinwholeorinpartonthe5Gestures.
AlsoinSeptember2017,BBBsurveyedapproximately1,500businesses(abalancedmixofBBBAccreditedBusinessesandnon-accreditedbusinesses)acrosstheU.S.andCanada(seeprofileofrespondentsinFigure2)tolearnwhattheybelievedaboutbuildingtrustingrelationshipswiththeircustomersandifthey,too,reportedanactiveuseofthe5Gestures.
5A New Framework to Evaluate Customer-Business Relationships
Figure 1 - Profile of Consumers that
Responded to Our 2017 Survey
17%
26%
22%
16%
19%<
High SchoolSome CollegeBachelor’s DegreeGraduate DegreeOthers
20%
23%29%
13%15%
5A New Framework to Evaluate Customer–Business Relationships
Time in Business
< 1 Year1 to 5 Years6 to 10 Years 11 to 20 Years21+ Years
22%
3%
16%23%
36%By Country
76%
24%
By Number of Full-Time Employees
0 to 1011 to 5051 to 500 501+
70%
18%9%
3%
By Title
Owner/President/ CEOVP/Director/ ManagerOther 7%
15%
78%
Figure 2 - Profile of Business that Responded
to Our 2017 Survey
ServicesProfessional ServicesRetail & WholesaleFinance & Insurance
AutomotiveHealth Care
HospitalityTechnology
Other
By Industry42%
12%10%6% 5% 5% 4% 4%
12%
6 5 Gestures of TrustSM 6 5 Gestures of TrustSM
7A New Framework to Evaluate Customer-Business Relationships 7A New Framework to Evaluate Customer–Business Relationships
TRUST MATTERS
Trusthasshiftedfrombeinganicethingtohavetobecomingacriticalstrategicassetfororganizationsinthecontemporarymarketplace4.BBBaskedbusinessesandconsumershowimportant–from1:“NotatAll”to10:“Essential”–customertrustisforthem(seeFigure3).Almostnineoutof10businesseschosethetoptwolevels(i.e.,9or10),andindicatedthatcustomertrustisveryimportanttotheircompany’ssuccess.Asignificantnumberofconsumers–sixoutof10–reportedthattrustingacompanywhendoingbusinesswithitisveryimportant.Theoverallscoreona10-pointscalewas9.5frombusinessesand8.6fromconsumers,reflectingtheimportancethatcustomertrustholdsforboth.
Unfortunately,consumertrustappearstobeeroding.Onlyaboutoneinfourconsumersreportedbeingcompletelylikelytotrustcompanieswithwhichtheydobusiness.And,bothbusinessesandconsumersfeelthatthestateoftrustinthemarketplacehaserodedovertime.Infact,fewerthanoneinfiverespondentsbelievedthatcustomerstrustcompaniesmoretodaythantheydidfiveyearsago(seeFigure4).Thisisunderstandableconsideringtheongoingevolutionofcustomers’expectations(likelyrisingatafasterpacethanbusinessescanfollow),theincreasingdigitalizationofservices,andgrowingcompetition.
Consumersandbusinessesalikeidentifiedthetopthreereasonsfortrustingoneanotheras:1)honesty/integrity/ethics/transparency;2)[good]reputationbuiltovertime;and3)[goodcustomer]services/quality.
Itisimportanttonotethatthesereasonsarenotdiscrete;theyseemtoblendand/orcrossoveroneanother.Forexample,one’sreputationisbuiltprimarilythroughahistoryof“doingtherightthing”(i.e.,honesty/integrity/ethics)and“doingitright”(i.e.,service/quality).Beingperceivedashonestisalsoanimportantdriverforcustomerserviceandinbuildingcustomerrelationships.
4 Harvard Business Review
Figure 3 – Importance of Trust
Only one in four consumers reported being completely likely to trust companies with which they do business.
Figure 5 – Top Reasons for Trust
9.5
Businesses: In general, on a 10-point scale, how important do you believe customer trust is to yourcompany’s success?
8.6
Consumers: In general, on a 10-point scale, how important is it that you trust a company when doing business with it?
MOR
E TRU
ST
ABOU
T THE
SAM
E
LESS
TRUS
T17%
39%
44%
BUSINESSES
MORETRUST AB
OUT T
HE S
AME
LESS
TRUS
T
CONSUMERS
13%
57%
30%
Figure 4 – Evolution of Trust
QUESTION: Do you believe customers trust companies today more, the same, or less than they did 5 years ago?
1
2
3
Honesty/Integrity/Ethics/Transparency (“Compassion, sincerity and honesty; if you can treat your customers like this then you can be trusted.”)
[Good] Reputation Built Over Time (“Transparent fees, ethical practices, good reputation with consumers.”; “History of honesty, doing the right thing, backing up their products and services.”; “History of good customer service.”)
[Good Customer] Service/Quality (“Honest customer service.”; “Quality and excellent customer service.”)
8 5 Gestures of TrustSM
WHAT DISTINGUISHES TRUSTED COMPANIES? Todeterminehowhighly-trustedcompanies*appeartodifferfromothers,BBBexploreddifferencesinbusinesspractices(seeFigure6).Overall,businessesthatperceivethemselvesashighlytrustedweremorelikelythanotherstoagreethatthey:a)arequicktomakethingsrightwhentheymakeamistake;b)focusontreatingtheiremployeesverywell;c)believethathowtheytreattheiremployeesisdirectlyconnectedtohowsuccessfultheywillbewithcustomers;d)pointoutthattheymadeamistakeevenifthecustomerdoesnotnotice;e)makeanextraefforttolookforwaystosavecustomersmoney;andf)focusonprovidingvaluetocustomersmorethanonmakingaprofit.
8 5 Gestures of TrustSM
STATEMENTS HIGHLY TRUSTED OTHERS
We are quick to make things right when we make a mistake. 9.7 8.7
We focus on treating our employees very well. 9.5 8.5
We believe that how we treat our employees is directly connected to how successful we will be with customers. 9.4 8.3
We will point out that we made a mistake even if the customer does not notice. 9.2 8.0
We make an extra effort to look for ways to save customers money. 8.9 7.8
We believe it will be more beneficial to our business in the long-term if in the short-term we work harder to give our customers value than we do to make money. 8.9 7.9
We tend to focus on providing value to customers more than we focus on making a profit. 8.9 7.8
We believe that it is important that our customers feel like they have as much or more control than we do during a transaction. 8.7 7.6
We make it easy for customers to get their money back if they are not happy. 8.6 7.5
We believe it is essential to make sure our customers get the best deal from us, even if it means less profit. 8.6 7.4
We will refer a customer to a competitor if we think it will be better for the customer. 8.4 7.4
We believe very strongly in doing what we can to preserve the environment, even if it might mean less profit. 8.4 7.2
We actively encourage all customers to post public reviews of their experience with our company. 7.9 7.3
We believe that our business owes it to the community to support community programs and charities. 7.9 7.1
We contribute money or donate goods or employee time to local programs and/or charities. 7.8 7.0
Figure 6 – Question: To what extent – 1: Strongly Disagree to 10: Strongly Agree – do you agree or disagree that each of the following statements accurately describes your company?
* We compared the responses of businesses that self-identified as being “highly trusted” (i.e., chose the top two boxes on a question that asked them to identify how much they believed their customers trusted their company) with other businesses that were not as confident about their level of trust (i.e., selected 1: “Not at all” to 8 on the same question).
9A New Framework to Evaluate Customer-Business Relationships 9A New Framework to Evaluate Customer–Business Relationships
STATEMENTS POSITIVE EXPERIENCE
NEGATIVE EXPERIENCE
I always know what to expect from them. 8.4 4.0
They always get the job done right. 8.3 2.6
I can trust that they will tell me the truth. 8.2 2.3
They make it easy for customers to get their money back if they are not happy. 8.2 3.2
They seem to focus on treating their employees very well. 8.0 3.2
The company’s employees seem to enjoy working for the company. 8.0 3.4
The company makes me feel like it is more focused on giving me value than on making money in the short-term. 7.8 2.1
The business supports community programs and charities. 7.8 3.8
They tend to focus on providing value to customers more than they focus on making a profit. 7.7 2.3
The business makes me feel like I have as much or more control than the company does during a transaction (e.g., Sale, contract). 7.7 2.3
They actively encourage all customers to post public reviews of their experience with them. 7.6 2.8
The business tries to give me the best deal, even if it means less profit. 7.6 2.3
They contribute money or donate goods or employee time to local programs and/or charities. 7.4 3.5
The company makes an effort to preserve the environment, even if it might mean less profit. 7.4 2.8
They will refer a customer to a competitor if they think it will be better for the customer. 6.5 2.1
Figure 7 – Question: To what extent – 1: Strongly Disagree to 10: Strongly Agree – do you agree or disagree that each of the following statements accurately describes the company you chose?
Wealsoaskedconsumerswhohadpositiveexperienceswithbusinessesabouttheirpractices.Theyweremorelikelytoagreethat:a)theyalwaysknowwhattoexpectfromthebusiness;b)thebusinessalwaysgetsthejobdoneright;c)theycantrustthatthebusinesswilltellthemthetruth;d)thebusinessmakesiteasyforcustomerstogettheirmoneybackiftheyarenothappy;e)thebusinessseemstofocusontreatingemployeesverywell;andf)thecompany’semployeesseemtoenjoyworkingforthecompany(seeFigure7).
10 5 Gestures of TrustSM
5 GESTURES OF TRUSTSM
Whencustomersorpotentialcustomersbeginthejourneytoapurchase,theyinvokeamentalframeworkwhichhelpsthemdeterminewhethertheyhaveapositiveexperiencewithabusiness,aswellaswhethertheywanttoenterabusinesstransaction(purchase)orfuturebusinesstransactions.Thismentalframeworkcanincludeachecklistofitemsconsciouslysought–suchasalevelofperceivedquality,existingcustomerreviews,guarantees,returnpolicies,andthelike.Moreimportantlyfromacustomer-relationshipperspective,thismentalframeworkappearsalsotoinvolvesubconsciouscriteriathatsignalthatthebusinesslikelycanbetrustedtodeliverapositiveexperiencethroughoutthecustomerjourney.Thisaspectofthementalframeworkinvolvesanemotionalbarometer,onethatscanstheexperienceforthedegreetowhichacustomerfeelsrespected.
Aswelistenedtohowconsumersconveyandframetheirexperiencesindifferentbusiness-relatedinteractions,wediscernedthattheyusefivekeyfactorstodecidewhethertheylikeortrustabrand,company,orbusiness.Thesefactors,whichwehavetermed
“gestures,”makethecustomerfeelrespected.Thissenseofrespecttranslatesintoatendencytotrustthecompany.Thegesturesareasfollows:“Doesthebusinessappeartobe...?”
HONEST –Doesitfeellikethecompanytellsmewhatitshouldbetellingme–theinformationthatisimportanttomeinthemoment–inawaythatmakesplainsensetome?
TRANSPARENT–Doesthecompanyappeartobewillingtodiscloseinformationthatisimportanttome,evenifitappearstomakethecompanymorevulnerable,becauseitistherightthingtodoandisimportantformetoknow?Isthistransparencygrantedaspartofaserviceethos,ratherthanbecauseofmediaorcommunitypressureorcustomerthreat?
PROACTIVE–DoesthecompanytakestepstoensurethatIgainasmuchvaluefromourrelationshipaspossiblewithoutmyaskingthemto?Also,doesthecompanygooutofitswaytorespondtolegitimaterequestsorinquiresImightmake?
11A New Framework to Evaluate Customer-Business Relationships
HUMBLE–Doesthecompanyappeartobelievethatitssuccessisdueinlargeparttoitscustomersandthecommunityandthatcustomersandthecommunitythereforeshouldbetreatedastruepartnersintheenterprise,consideredwithempathywhenmakingcompanydecisions?Ultimately,doesthecompanyfeeltheneedtoacknowledgeme,andshowgenuineappreciationformypatronage?
EQUITABLE–Doesthecompanybelieveitisfairandproductivetograntcustomerspowerintherelationshipand/ortransactions,powerthecompanyostensiblycouldretainforitselfshoulditchoose?Aswhenacompanyistransparent,isthissharingofpowergrantedunderthebeliefthatitisthe“rightthingtodo”aspartofaserviceethos,ratherthanbecauseofcompetitivepressuresorcustomerthreat?
Twootherfactors,whichwecharacterizeasattributesratherthangestures,areimportantaswell:“Isthebusiness...?”
CONSISTENT –CanIcountonthecompany’sbehaviortobewhatIexpectofit,orisitdifficulttopredicthowitwillbehave?
COMPETENT –CanIcountonthecompanytodeliverwhatitpromisestodeliverinaqualityway?
Thedifferencebetweenwhatwehaveclassifiedas“gestures”and“attributes”iswhetherthetraitispartofthebusiness’sbeliefsandvalues,orisinsteadan
importantperformanceobjective.(Ofcourse,strivingforcompetencyandconsistencycanbeintheserviceofbuildingandmaintainingcustomerrelationships).
Thedistinctionisnotmerelyacademic:Performanceisakeyreasontodobusinesswithacompany,andtheconsumermustbeableto“trust”thatitwillperform.Gesturesthatbuildapositivecustomerrelationshipmakethecustomerfavordoingbusinesswithacompany,independentofwhetherthecompanyiscompetentorconsistent.Thegestures,orlackthereof,candeterminewhetherconsumerstrustandconnectwithabusiness
–importantelementsoflastingrelationships.Infact,gesturescancreateincentivetodobusinesswithacompanydespitealackofcompetencyandconsistency,providedthegesturesthemselvesareconsistent.
Thegesturesdonotoperateonacustomer’spsychediscretely.Rather,theyinteract:acompanyappearsconsistentlyhonestbecauseitisconsistentlytransparent;or,again,acompanyisequitableasanaturalresultofbeinghumble.“Honesty,”asomewhatpervasivegestureoftrust,ismostoftenaproxyfor,orthemanifestationof,oneormoreoftheothergesturesinhowcustomersexperiencethebusiness.
Figure8isamodelthatsuggestshowthe5Gesturesmightsupportapositivebusinessexperienceforthecustomerand,consequently,anongoingpositiverelationshipwithabusiness.Thegesturessignaltocustomersthatthebusinessisrespectfuland,moretothepoint,thatitrespectsthem.Thisfoundationofrespectresultsintrustovertime,which,inturn,engendersa“betterbusiness”experience.Whencustomershaveanongoingbetterbusinessexperiencewithacompany,theyseektoreplicateanddeepenthatexperienceandworkalongsidethebusinessonmaintainingtherelationship.Inotherwords,thebusinessbecomesasvaluabletocustomersascustomersaretothebusiness.
Figure 8 – The foundation for Better Customer Relationships based on the 5 Gestures
ProactiveHonest Transparent Humble Equitable
Respect
Trust
Better Business Experience
Better Customer
Relationship
12 5 Gestures of TrustSM
IntheSeptember2017surveywefieldedto2,037consumersacrosstheU.S.andCanada,weaskedourrespondentstothinkofacompanytheyhaveexperiencewith,andtoanswersomequestionsabouttheirexperience.Thefirstquestionweaskedwaswhethertheexperiencehadbeen“positive”or“negative.”Laterinthesurvey,wedescribedthe5Gesturesandaskedrespondentswhetherthegesturesdescribethecompanyinquestion,usingascaleof1-10,with“1”indicating“StronglyDisagree,”and“10”indicating“StronglyAgree.”
InFigure9,weseehowallrespondentsratedtheimportanceofthegesturesindecidingwhethertodobusinesswithacompany.InFigure10,weseehowrespondentswhocharacterizedtheirexperiencesas“positive”ratedthecompaniesoneachofthe5Gestures,comparedwithhowrespondentswhocharacterizetheirexperienceas“negative”dothesame.Theybothuseascaleof1-10,with“1”indicatingthey“StronglyDisagree”thatthegesturedescribesthecompany,andwith“10”indicatingthey“StronglyAgree”thatthegesturedescribesthecompany.Responsesareexpressedasa“mean”alongthe1-10pointscales.
Wefindasignificantdisparitybetweenrespondentsreportingonpositivecompanyexperiencesandthosereportingonnegativeones,withrespecttothecompanies’useofthe5Gestures.
Furtheranalysissupportstheideathatthe5Gesturesasaframeworkplayanimportantroleinthecustomer-businessrelationship.Figure11suggestsapowerfulcorrelationbetweentheimportancerespondentsplaceoneachofthe5Gesturesandtheloyaltytheyaffordcompanieswithwhichtheyinteract.Welookedtoseeifrespondents’assessmentofcompanies’practiceofthe5Gesturescorrelatedwithrespondents’assessmentoftheirloyaltytothecompaniesonwhichtheyreported.Resultsofcorrelationanalysissuggeststhatthemoreconsumersascribethe5Gesturestocompanies,themoreloyaltheyreporttheyaretothecompanies.ThePearsonRcorrelationforthecorrelationbetweenthe5Gestureascriptionandreportofloyaltytothecompaniesexceeds.7inallinstances,averypowerfulreadoncorrelation.
CUSTOMERS’ SURVEY RESPONSES REVEAL THE POTENTIAL IMPORTANCE OF THE 5 GESTURES
Figure 9 – Question: How important are each of the
following factors to you in deciding whether to do business with a particular company? Use a 1-10 scale, with “1” indicating “Not at all important” and “10”
indicating “Essential.”
12 5 Gestures of TrustSM
ESSE
NTIA
LNO
T AT A
LL IM
PORT
ANT
Hone
st
Tran
spar
ent
qEqui
tabl
e
Proa
ctive
Hum
ble
8.68.1 8.0 7.9
7.5
13A New Framework to Evaluate Customer-Business Relationships 13A New Framework to Evaluate Customer–Business Relationships
STRO
NGLY
AGR
EEST
RONG
LY D
ISAG
REE
It is consistently
honest
It is consistently transparent
It is consistently
proactive
It is consistently
humble
It is consistently
equitable
Respondents who reported a positive experience with the companyRespondents who reported a negative experience with the company
8.3 8.18.08.0 7.8
3.13.12.9 2.9 2.8
Pear
son
R Co
rrela
tion
Coef
ficie
nt
5 Gestures (Trust as a control variable)
Trus
tHo
nest
Proa
ctive
Equi
tabl
eTr
ansp
aren
tHu
mbl
e
0.76 0.74 0.740.74 0.72
0.88
Figure 10 – Question: Using the descriptions above as reference, to what extent do you agree or disagree that each of the following statements accurately describes the company you chose? Use “1” to indicate “Strongly Disagree” and “10” to indicate “Strongly Agree.”
Figure 11 – Pearson R Correlation coefficients between the survey respondent’s ratings of 5 Gesture importance and rating of loyalty to the company about which they are reporting experiences. “1” represents a perfect, 1 to 1 correlation. (n=2,037)
14 5 Gestures of TrustSM
Next,wewantedtobetterunderstandhowconsumertrustimpactedbusinesses’perceptionofhavingloyalcustomers,havingaverypositivereputation,feelinggoodaboutthecompany’sfuture,havingpositiveword-of-mouth,andbeingabletochargeapremiumprice.Wecomparedtheresponsesofbusinessesthatself-identifiedasbeing“highlytrusted”(i.e.,chosethetoptwoboxesonaquestionthataskedthemtoidentifyhowmuchtheybelievedtheircustomerstrustedtheircompany)withotherbusinessesthatwerenotasconfidentabouttheirleveloftrust(i.e.,selected1:“Notatall”to8onthesamequestion).
AsshowninFigure12,businessesthatperceivethemselvestobehighlytrustedalsoconsidertheircustomerstobeveryloyaltothem.Theyalsofeelbetterabouttheircompany’sfinancialfuture,believetheircompanyhasaverypositivereputation,andthinktheirconsumersarelikelytosayverypositivethingsaboutthem.Theyfurtherbelievethattheircustomerswouldbewillingtodobusinesswiththemeveniftheirproducts/servicescostalittlemore(i.e.,premiumprice).
Wethendescribedthe5GesturesofTrustSMtothebusinessesandaskedthemtoratetheextenttowhichtheybelievedeachgestureappliedtothem.Businessesthatperceivedthemselvesas“highlytrusted”weremorelikelythanotherstoagreethatthe5GesturesofTrustSMaccuratelydescribedtheircompanies.Notsurprisingly,beingconsistentlyhonestwasratedasthetopgesture(seeFigure13).
14 5 Gestures of TrustSM
SURVEY OF BUSINESSES ALSO CONFIRMS POTENTIAL IMPORTANCE OF 5 GESTURES
STATEMENTS HIGHLY TRUSTED OTHERS
We believe, in general, that our customers are very loyal to our company.
8.8 7.3
We feel good about our company’s financial future. 8.8 7.6
We believe our company has a very positive reputation. 9.5 8.1
Just about all of our customers say very positive things about our company.
9.3 7.9
If at all possible, our customers would prefer to do business with us than a competitor, even if we might cost a little more.
9.0 7.5
Figure 12 – Question: To what extent – 1: “Strongly Disagree” to 10: “Strongly Agree” – do you agree or disagree that each of the following statements accurately describes your company?
STATEMENTS HIGHLY TRUSTED OTHERS
We are consistently Honest. 9.7 8.8
We are consistently Proactive. 9.4 8.3
We are consistently Transparent. 9.3 8.4
We are consistently Humble. 9.3 8.2
We are consistently Equitable. 9.3 8.3
Figure 13 – Question: To what extent – 1: “Strongly Disagree” to 10: “Strongly Agree” – do you agree or disagree that each of the following statements accurately describes your company.
15A New Framework to Evaluate Customer-Business Relationships 15A New Framework to Evaluate Customer–Business Relationships
16 5 Gestures of TrustSM
THE 5 GESTURES IN DETAIL H
ones
t
Tofullyunderstandandutilizetheinsightsgainedthroughourworkonthe5Gestures,wemustexploretheirnuances,becausethatiswherethedifferenceincustomer-businessrelationshipslies.Thenatureofrespectandtrustisthattheymustbeexperienced;thisgoesbeyondwordsandislargelyemotional.Infact,claimingtobe“honest,”“transparent,”“proactive,”“humble,”and/or“equitable”withoutpracticingthebehaviorassociatedwiththesegesturesislikelytofurtherundermineanytrustthatmayexist.Thatisbecauseactionsspeaklouderthanwords,andmakingsuchclaimsrunsdirectlycountertotheirgenuinepractice.Moresuccinctly,askingcustomerstotrustyouwithoutbeingtrustworthyisarecipeforbecomingevenlesstrustworthy.
Tran
spar
ent
Proa
ctiv
e
Hum
ble
Equi
tabl
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17A New Framework to Evaluate Customer-Business Relationships 17A New Framework to Evaluate Customer–Business Relationships
BE HONEST
“Honesty is what builds
trust the most, without it trust does not exist
at all.”
Beinghonestisperhapsthemostfundamentalofthegestures,theonemostconsumersandbusinesseswouldidentifyfirstasimportant.Onemightconsiderhonestytobea“threshold”gesture;ifyoudonotappearordonotproveovertimetobehonest,itwillbehardunderanycircumstancestomaintainacustomerrelationship.Importantlythough,beinghonestcanalsobeaproxyofsortsfortheotherfourgestures–manycustomersorbusinesseswillidentify“honesty”asafactorresponsiblefordestroyingorbuildingarelationship,wheninfactitmaybethatbeing“transparent,”“proactive,”“humble,”or“equitable”isthegesturethatabusinesseitherfailsorsucceedstoconveyinaninstance.Wewillexplaintheinteractionofthe5Gesturesbelow–howtheyworktogethertoformtrustbetweencustomersandbusinesses.
Tobehonestismostcommonlyunderstoodas“totellthetruth”or,simply,tobetruthful.Butmostpeoplewouldlikelyagreethatthereareshadesoftruthandstatementsthataretechnicallytruthfulbutneverthelessnotactuallyhonest.Forexample,ateenagermighttellafriend’sparentsthatherparentswillbehomeduringaparty,butfailtomentionthattheywillbeatanotherhousethefamilyowns,andnotattheoneinwhichthepartyisbeingheld.Sobeinghonestmeanssomethingmorethansimplytellingthetruth.Itmeansconveyingmeaninginawaythatisempathetic,useful,andinstructivetotheotherpartyinthemoment.
Customerswaryofabusinessrelationshiporwhoareinapositionwheretheymusttrustthebusinessarefocusedheavilyonhonesty.Mostpeoplefeeluneasywhenabusinessisnothonestwiththem,eveniftheycan’tpinpointtheexactsourceofthediscomfort.Beinghonestisthetipofthetrusticeberg–whetherabusinessappearshonestwillsetthestageforthebusinessrelationship.
Butaswejustmentioned,howconsumersinterpretabusiness’shonestymayormaynotinvolveothergestures.Forexample,consideraninstancewhereasalespersonconvincesacustomertoworkwithhiscompanybecauseofagreatservicethecompanyprovides.Intheinterveningtimebeforethecontractissigned,thefeaturesoftheservicechange.Ifthesalespersonwaitsuntilthelastminutetoinformthecustomer–atime-framethatwouldlikelymakeitdifficulttoworkwithanothercompany–thesalespersonisbeinginequitablebecausemorethannotbeingtruthful,thesalespersonisretainingthepowerhehas(knowledge)overthecustomer.Here,whilethesalespersonistechnicallynotbeinghonest,themoreimmediateandrelevantgesturethesalespersonislackingisthatofbeingequitableandsharingpowerinthenegotiatingwiththecustomer.
Howdoes“beinghonest”manifestitselfinabusiness?• Thebusinessintendstodoexactlywhatitsaysitwilldo.• Thebusinessasksthecustomeriftheyfullyunderstandthetransactionbefore
consummatingit,highlightingtheinformationthatismostadvantageousforthecustomertoknow.Thiscantaketheformofsalesorcustomerservicerepresentativespointingoutalltherisksofapurchaseandmakingsurethecustomerunderstandsthem.
• Thebusinessputstheinformationmostadvantageousforthecustomertoknowupfrontandhighlyvisiblethroughoutthetransactionand/orrelationship.Thiscouldmeanpointingouttothecustomerthatacompetitormighthaveabetterdeal,oronethatmightsuitthembetter.
• Thebusinessdoesnothesitatetotellthetruthwhenitmakesamistake.Thiscouldtaketheformonanannouncementtakingtheblameforanincidentthemomentthecompanylearnsofit.
• Thebusinessadvertisehonestlyandadheretoestablishedstandardsofadvertisingandselling.
18 5 Gestures of TrustSM
BE TRANSPARENT
“We have nothing to
hide.”
Transparencyhastakenonmanymeaningsinourcurrentvernacular,owinglikelytopopularangstoverreportsoflarge-scaledatabreachesofwhichthepublichaslearnedlongafterthecompanyknew,andperhapswithgrowingdistrustofhowgovernmentmaycontrolinformation.Consumersexperiencetransparencythroughhowwillingcompaniesaretoshareinformation,particularlywhendoingsomightmakethemcompetitivelyvulnerable.Forexample,ifafoodproductcompanydisclosesthatithasexperiencedanoutbreakofabacteriathatcanmakecustomersillbeforeanyoneelsediscoversit,itisbeingtransparent.Food-borneillnessisaseriousmatter,anditsassociationwiththecompanycouldpotentiallyharmitsreputation.Butmostconsumersunderstandthattherearerisksinhandlingfood,andifthecompanydisclosesitsdiscoveryimmediatelyandinformscustomersdirectly–istransparent–ithasactedinatrustworthymanner.Therelationshipbetweencustomerandcompanyismuchmorelikelytobestrongandcontinue.Ifthecompanysuppresses,conflates,orotherwisedelaystherawadmissionofthediscovery,itunderminestrust.Therelationshipislesslikelytocontinuebecausethecustomerbeginstowonderwhatelsethecompanymaynotbedisclosing.
Whenindoubt,over-communicate.Abusinessthatover-communicatesearnsthereputationofbeingopenandwillingtobevulnerable.Thisengenderstrust.
Howdoes“beingtransparent”manifestitselfinabusiness?• Thebusinessadmitsmistakeswhentheyhappenandmakesamendstothe
customerandpublic.• Itsharesprocessesanddecision-making.• Itfreelyoffersinformationaboutitself.• Thecompanyhighlightsitshistoryandmanagement.• Itmakescontactingiteasy.• Itsharescustomerreviews.• Itvolunteerstoabidebyacodeofethicsandtobemonitoredbyan
independentthirdpartyorganization(e.g.BBBaccreditation).
18 5 Gestures of TrustSM
19A New Framework to Evaluate Customer-Business Relationships
BE PROACTIVE
“Anticipate what it is our
customer might want or need and work
together to achieve their
goals.”
19A New Framework to Evaluate Customer–Business Relationships
Tobeproactiveistotakeinitiative,primarilyintwoways:1)Toanticipatecustomerneedsandprovidesolutions,withoutbeingasked,andattimesevenwithoutcustomerknowledge;2)Torespondquicklyandaffirmatively,withgoodcommunication,tocustomerrequestsorissuesthatcustomersraise.Thekeytobeingproactiveissignalingthatthecompanyisalwaysfocusedonimprovingcustomers’experiencesandthatthisisanormal,notextraordinary,partofconductingitsbusiness.
Whenacompanyisproactive,thecustomerexperiencesitas“delight”or“surprise,”or,attheveryleast,asaverysatisfyingencounter.Fromatrustperspective,itsignalstocustomersthatthecompanywilllookoutfortheirinterest“whennobodyiswatching.”Acompanythatisproactiveisacompanythatisonthesamesideofthecustomersandwillsafeguardcustomerinterest.Thiscan’thelpbutbuildasenseoftrustamongcustomers.
Howdoes“beingproactive”manifestitselfinabusiness?• Asalespersonlistensforthecustomer’sneedaboveandbeyondwhatthe
customersayshe/shewantstobuyandmakessuggestionsthesalespersonthinkswillmostsatisfythecustomer,regardlessofthenatureofthepotentialsaleinquestionatthemoment.
• Ifthecustomerisarepeatcustomerorhasanaccountoranorder,thecompanyreviewsthecustomer’sneedsandbuyingbehaviorsandattemptstomaximizevalueforthecustomer.
• Thecompanyrespondsswiftlyandearnestlytocustomerquestions,requests,andcomplaints.
• Thecompanytakessteps(suchasinculcatingacultureofserviceandhonestyandtrainingemployeeswell)toanticipateandpreventcustomerissuesandpavethewayforpositivecustomerexperiences.
• Thecompanyfindswaystosavethecustomermoneyeitherthroughefficientpricingordifferentiatedpricingbasedonservicesandfeaturesmostimportanttogivencustomers.
• Thecompanyidentifiesandcorrectsmistakesthatmayfavorthecompany,evenifthecustomerdoesnotnotice.
20 5 Gestures of TrustSM
BE HUMBLE
“I realize that without my
customers, I couldn’t stay in business. I strived to do right by my
clients and to do my best to
make sure they are treated with good customer
service.”
Beinghumblemaynotbethefirstthingacompanythinksaboutwhenbuildingtrustand,ultimately,arelationshipwithcustomers.However,itcanbeamongthemostpowerfulofthetrustdrivers,asitisassociatedwiththecompany’swillingnesstobevulnerablewhenappropriate,whichinturnsignalsthatitisnotlikelytodeceivecustomers.Beinghumbleembodiestheideathatthecompanyexistsaspartofsomethinglargerthanitselfandthereforeanysuccessithasiscreditedinparttootherentities–itscustomers,thecommunity,theinfrastructureitdrawsandreliesupon.Companiesthatarehumbleviewcustomersaspartnersandtryateveryopportunitytohelpthemthriveinthecontextoftheirdailylives.
Atitsbase,beinghumblesignalsthatthecompanyisnotarrogant,butratherisgrateful;isnotentitled,butratherrespectful,ofitsposition.Whencompaniesareawareofandsensitivetotheneedsofothersintheirorbit,andacttosupportthoseneedsattimesovertheirown,theyregisterwithcustomersashumble.Humilityinthiswaysignalstrustworthiness.
Howdoes“beinghumble”manifestitselfinabusiness?• Customerserviceismadeapriorityoverotherthingsthebusinessmaydo.• Itadmitsmistakeswhentheyhappenandtakesresponsibility.• Itensuresthatitbringsthehighestvaluetocustomers.• Itprotectscustomersagainstchoicesthatmaybedetrimentaltothem.• Ittreatsemployeeswithrespectandattemptstodevelopthemaspeople
andprofessionals.
20 5 Gestures of TrustSM
21A New Framework to Evaluate Customer-Business Relationships
BE EQUITABLE
“It is not only about one
party but about the entire
situation. We partner with
our customers on every single
job, and we treat them
as part of the team in order to successfully facilitate our
jobs.”
Beingequitableisperhapsthelastgestureacompanymayplaceimportanceon,butourresearchsuggeststhatitmaybethemostimportantstepoftrust-buildingcompaniescantake.Commercialtransactionsareinherentlyinteractionsthatinvolveabalanceofpower;companiesseekmoneyfromcustomersandcustomersseekvaluefortheirmoney.Ifatransactiontipspowerinfavorofthecompany,thecustomermayfeeltheymustbewaryofthecompany;ifacompanyfeelsthatitmustretainpowertomakesureitgetspaidordoesnotloseacustomertoacompetitor,itmayattempttoretainpoweritcouldordinarilygranttoacustomer.
Whattypesofpowerexchangeoccurbetweencompaniesandcustomers?Considerthesituationwhereacustomerpaysforaproductorserviceinadvance,andthenmusthopethatthatproductissatisfactoryorexceedstheirexpectations.Inthistypeofexchange,thecompanyholdsthepower;ithasthecustomer’smoneyandtheburdenofensuringsatisfactionisplacedonthecustomer.Inthisinstance,acompanycansharepower–beequitable–bymakingitveryeasyforthecustomertoreturnaproduct,forrefundorreplacement,ifthecustomerisnotsatisfied.Theeasiertheprocess,themoreequitablethecompanyisbeing,andthisengenderstrust.Considerasituationwherethecustomerpaysaftertheproductorserviceisdelivered;inthisinstance,thecompanyinitiallyactsinanequitablemanner.Itcanreinforcethisequitablebehaviorbyaskingthecustomertomakesurethattheyaresatisfiedbeforethecompanybillsthem.
Examplesofwhencompaniesaredecidedlynotequitableare“fineprint”contracts,“baitandswitch”sales,timepressuretactics,andconvolutedreturnpolicies.Whenacompanycancontrolaprocesstoitsownadvantageandtothedisadvantageofthecustomer,andpursuesthepractice,itisnotbeingequitable.Companiesthatmakearegularpracticeofnotbeingequitableruntheriskof“winningthebattlebutlosingthewar”whenitcomestobuildinglastingrelationshipswithcustomers.Companiesthatgooutoftheirwaytobeequitablewithcustomersareineffectassertingthattheyareinterestedinlong-termrelationships.
Howdoes“beingequitable”manifestitselfinabusiness?• Thecompanyhasinplacegenerousreturnpolicies.• Itusessimplecontracts,highlighting(nothiding)informationfavorableand
importanttocustomers.• Itmakespolicesanddecisionsforcustomersthatitwouldmakeforitself,ifit
wereacustomer.• Itrelaxestimeperiodsfordecision-making,dealsthatdon’texpirequickly,or
changewithtime.
21A New Framework to Evaluate Customer–Business Relationships
22 5 Gestures of TrustSM 22 5 Gestures of TrustSM
23A New Framework to Evaluate Customer-Business Relationships
WHAT THE 5 GESTURES LOOK AND FEEL LIKE TO THE CUSTOMER
23A New Framework to Evaluate Customer–Business Relationships
Forcustomers,acompanyexperiencefallsalongapositive-to-negativecontinuum.Consumerswespokewithdescribedtheirexperienceintermsofkeyfeelings,policies,orinteractionstheyrecallassymbolicoftheiroverallexperience.Whatweheardandobservedastheyrelatedtheseexperiencesledustocategorizethesedescriptionsasthe5Gestures.
Interestingly,thestoriesourresearchsubjectstelldonotfocusononeofthegesturesinisolation,butratherrelateaninteractionoftwoormore,leadingustodiscernthat,dependingonthenatureoftheconsumerpurchase,onegesturemaydependonanother,oronegesturemayinspireanother.
AnexampleofthistypeofinteractionamonggesturesmanifestsintwostoriestoldbySonya*,aUniversityofMichigangraduatewhoisatrainingdirectorforanAtlanta-basedsoftwarestartup.Shepurposelyjuxtaposedthestoriestocontrastherexperienceasaconsumer.Thefirstinvolvesacompanythatprovidesgourmetfoodandfood-relateditems,packagedinappealingcombinations—oftenasgifts.Shepurchasedsuchagiftpackageforherparents.Shenoticed,however,thatthecompanyplacedanotherchargeonhercreditcardafewweekslater.Sheaskedittoremovethecharge.Whenitwasnotremoved,sheinquiredandwastoldthatshehadsignedupforasubscription—agiftpackagewouldarriveatherparents’homeonceamonth.Sonyaexplainedthatshehadnotrealizedthatwhatshehadpurchasedwasasubscription.Thecompanyrepresentativereplied,“We’resorrythatyouoverlookedtheinformationaboutthesubscription.”Exasperated,Sonyapointedoutthatalltheresponsibilitywasplacedonher,withnoempathyforthecustomer.“Itleftsuchabadtasteinmymouth,”shesaid.“Itwasreallyunfortunate,becausemyparentsreallylikedtheproducts!”
Ifweanalyzethisstoryusingthe5Gesturesasacustomerrelationshipframework,weobservethatthecompanylosesacustomerithadagreatchanceofretainingbecauseshelikedtheproduct.Thecompanyclearlyfailstobe:
*Namesofparticipantsweremodified.
Equitable–Itpreservespoweritcouldhavesharedbyplacingtheblamesolelyonthecustomerfornotmorecloselyreadingorunderstandingthesubscriptioninformation.
Humble–Itpositionsthecustomerasanadversaryratherthanapartner,denyinganyresponsibilityforthecustomer’sunhappiness,challengingthecustomertobecomeadversarialherself.Itreverberateswiththecustomerasarrogance.
Honest –Thesubscriptiondescriptionmaybetechnicallycorrect,butisapparentlynotdeliveredinawaythatpresentsinformationimportanttothecustomerinthecontextthatbenefitsthem(thetruthisrenderedoblique).
Proactive–Thecompanyrepresentative,whenpresentedwiththecustomer’scomplaint,doesnotcommunicatethatitisimportanttoresolvetheissueforthecustomer,butratherbrushesoffthecomplaintbycitingpolicyandthecustomer’sownerror.
24 5 Gestures of TrustSM 24 5 Gestures of TrustSM
Thecompanyfailsonallfourofthesegestures.Quitepossibly,itfailsonthreeofthefourbecauseitfailsmiserablyononeofthefour–beinghumble.Thecompanyassumestheposturethatitcanoperatebymakingconsumersresponsibleforcarefullyexaminingallinformationrelatedtotheirpurchase,withoutassistingthemwiththatprocess,girdingforcustomercomplaintsbypointingtothe“legalistic”informationthat,inthecompany’sview,absolvesitofresponsibility.Ifthecompanywerehumble–ifitvieweditselfaspartofalargerwholeinwhichallpartiesworktobenefitoneanother–itlikelywouldnotsetuptheinteractionwithcustomersthewayithas.Instead,itwouldgooutofitswaytomakethetermsofthepurchaseclearateverypointpossible;itwouldsharepowerwiththecustomerbymakingthepurchasetermsjustasadvantageoustothecustomerastheyaretothecompany;and,whenpresentedwiththecustomer’sdissatisfaction,wouldlikelytakeittoheart,andimmediatelycommunicateapathtoaddressingit.Clearly,thecustomerinthiscase,Sonya,didnotexperienceanyofthesegestures,andthereforemadethedecisionnottocontinuearelationshipwiththecompany,despiteacleardesireforthecompany’sproduct.
Inhernextstory,SonyaexplainshowsheorderedclothingfromanonlinestorelocatedinEurope.Theclothesarrived,yettheywereadifferentcolorthanwhatshehadordered.Sonyacontactedthecompanytoreturntheitemsandtoseeifthecolorshehadwantedwasstillinstock.Thecompanyrespondedbyimmediatelyshippingherthecorrectorder,two-daydelivery.Sonyawastakenaback—shecouldnotbelievethecompanywouldsendthecorrectedorderwithouthavingreceivedtheitemsshewasreturningfirst.“Nowthatwasawesome,”shesaid.
Inthisinstance,wefindacompanythatwonacustomer,andperhapsacustomer’sloyalty,simplybyofferingthreekeygestures.Thecompanywasclearly:
Proactive–Itrespondedimmediatelytothecustomer’sinquiry,andprovidedapathwaytoresolvingherissue.
Equitable–Thecompanytrustedthecustomertoreturnitemssheordered,sendingareplacementbeforereceivingherreturneditems.Thecompanysharedpoweritwasnotobligatedtoshare,placingtrustinthecustomer.
Humble–Thecompanypresentsthatthecustomer’sneedsareparamount,recognizingthatitisimportanttothecustomertoreceivetheclothinginatimelymanner(andthatshehasalreadylosttimebyreceivinganincorrectorder).Thecompanypositionsthecustomerasapartnerinthebusiness’ssuccess.
Anotherconversationwehad,withJohn,aretirededucator,underscoreshowalocalhardwarestorehaskepthimasalongtimecustomerwhenhehasmanyotherchoicesthatmightsavehimmoney,likelargerboxstores.Johnexplainedthatthestoreisverydifficulttonavigateunlessyou’vebeentheremanytimes,becauseitissmallandcrammedwithmerchandise.Hetoldofgoingthereforatoolheneededbutwhichthestoredidnothave.Theservicepersonhelpinghimimmediatelyreferredhimtoacompetitorheknewdidhavethetool,eventhoughhetoldJohnhecouldorderitforhim.TheservicepersonfeltthatJohnneededthetoolthatdaytocompleteaweekendprojecthewasworkingon.TheservicepersonspentfurthertimewithJohn,explainingtohimhowtoensurethetoolwastherightone,andhowtosavesometimeandmoneyonhisproject.
Johnwasappreciative,andknewhewouldreturntothestorealways,regardlessofthefactthathevisitedacompetitorwhomethisneedatthatmoment.
ThehardwarestorehaswonJohnasalong-time,loyalcustomerbecauseitwas:
Proactive–Itlistenedtothecustomer’srealneedandsolvedhisproblemwithoutthecustomerhavingtoask.
Humble –Itsawthecustomerasapartnerwhoseinterestsitwasbentonprotecting,andputthecustomer’simmediateneedoverthecompany’sshort-termprofit.
Equitable–Itsharedinformationitcouldhavekepttoitselfandcouldhavecontrolled.
25A New Framework to Evaluate Customer-Business Relationships 25A New Framework to Evaluate Customer–Business Relationships
Aswecontinuetoanalyzethefeedbackwe’vereceivedfromconsumersthroughourin-depth,observationalinterviews,andsurveys,thewayinwhichthegesturesinteractbecomesclearer.Figure14presentsthe5GesturesoftheTrustSMFrameworkforbettercustomer-businessrelationships.
Figure 14 – 5 Gestures of TrustSM Framework for Better Customer-Business Relationships
AconversationwithMike,adirectorofsalesforatechnologycompany,revealshowbeingequitablecangoalongwaytowinningcustomerloyalty,andittakestheformofaclear,consistent,simple,andgenerousreturnpolicy.Whenaskedaboutpositiveexperienceshehashadwithbusinessesasaconsumer,Mikeimmediatelyidentifiedorderingfromaknownonlineretailerasone.Hesaidthatwhenhe“clicksthatbuybutton,”hefeelscompletelyprotectedbecausehewillhave60daystoreturntheitemshehaspurchased,noquestionsasked.Healwaysfeelscomfortableorderingfromthisonlineretailerforthisreason,ashehasexperiencedthatthecompanybacksuptheoffer.Inthisinstance,thecompanyhaswonaloyalcustomerbecauseitis:
Equitable–Itsharespowerinthetransactionbyofferingthecustomerasimplewaytogettheirmoneybackiftheyareunhappy.Thisremovesriskfromtheequation,whereasitmightotherwiseexistbecausethecustomeristurningovermoneytothecompanyaheadofreceivingdeliveryof,andexperiencing,theproduct.
Honest–Informationthatisrelevanttothecustomerispresentedwhenitisneededandthroughouttheexperience,helpingtoensurethatthecompanydeliversonitspromiseinapreciseandmeaningfulway.
Thediagramshowsthatbeinghonest,aswehavepointedout,servesasaproxygesture,onethatappearstobeacatch-allforall5Gesturesandoftenthemostvisibleofthem;thatis,regardlessofwhichcombinationofthe5Gesturesinteracttobuildtrustwithacustomer,thecustomerislikelytoperceive(call)theexperienceaseitherhonest,dishonest,orsomewhereinbetween.
However,asthedatawediscernedandstoriesrecountedbyconsumersaboveillustrate,all5Gesturesareimportant,andservetocreateasenseofhonestyintherelationshipbetweencompanyandcustomer.Thishonestysupportstrust,whichinturnformsthesupportfortherelationshipitself.
Be Humble
Be Transparent
Be Proactive Be
Equitable
Get Trusted
Be Better
Customer-Business
Relat
ionsh
ips
Show
RespectCo
nsistent
Competent
Consistent
Compe
tent
Be Honest
26 5 Gestures of TrustSM
CONCLUSION
26 5 Gestures of TrustSM
Onedoesn’thavetoreadveryfarinthedailynewstofindinstancesofcompaniesbreakingtrustwithcustomersand,inmanycases,losinglong-termrelationshipstheyhavewiththem.Usingthe5GesturesofTrustSMasaframeworkcanbeacautionaryandinstructiveexercise.Itcanhelpcompaniesidentifyspecificculturalpracticesandritualsoftheirownthateitherbuildorunderminecustomertrustand,ultimately,relationships.Wehopethatbuildingacompanyculturebasedonbehaviorstiedtothe5Gesturescanprovideafoundationforlastingcustomerrelationshipsandsimultaneouslyserveasabulwarkagainstpracticesthatmaydestroyacompany’spublicreputation.Belowarespecificactionsyoumighttaketoputthisinsightintoserviceforyourimmediatebenefit:
1.Askyouremployeesandcustomersaboutexperiencesthey’vehadthatmadethemlikedoingbusinesswithyou,or,alternately,thatmadethemlesscomfortable.Askthemtogiveyouexamplesandtalkaboutthem.Applythe5Gesturesandseeifyoucandetecteitheranexampleofsuccessorabreakdowninanyofthefiveareas.Keepinmindthatthosegivingyoufeedbackwillnotlikelyusethetermsthatwehave(e.g.humble,equitable),butmaydescribeinstancesthatarecharacteristicoftheexampleswedescribed.Bepreparedtoseecross-overorinteractionamongthegestures.
2.Whenyoureceiveacustomercomplimentorcomplaint–whetherintheformofacomment,letter,emailorsomethingmoreformalized–applythe5Gesturesframework.Seeifyoucanidentifywherethecustomerperceivesthatagestureismissingorhasbeengrosslyviolated.Doingsocanhelpyoupinpointtherootoftheproblemthatthecustomerisexperiencingandproperlyaddressit.Sometimesacustomersimplymaybeangry,andcannotclearlyidentifyforthemselveswhatisangeringthemaboutanexperience.Applyingthe5Gesturesframeworktothesituationcanhelpyouuncovertheprobleminterferingwithyourrelationshipandeffectivelybridgethechasmthatgeneratedthecomplaint.
3.Planadiscussionwithyouremployeesaroundthe5Gestures.Askthemtoidentifythegesturesintheirowndailypractice.Userealexamplesfromtheirdailyexperiencewithcustomers–positiveandnegative–andbreakthemdownusingthe5Gesturesframework.Thiswillnotonlyhelpallyouremployeestobecomemoreawareofandempathizemoredeeplywithyourcustomers’needs,butwillhelpdevelopacultureofrespectandtrustwithinyourcompany.Youremployeesmaybecomemoresensitivetohowtheyarebuildingtrustwithoneanotherandwithcustomers.
4.Ifyouusecustomersurveysorsolicitfeedbackfromcustomersregularly,incorporatequestionsaddressingthe5Gesturesthatgobeyondaskingaboutmeresatisfaction.Ifyousolicitopen-endedresponsesonsurveys,askhowanexperiencewiththecompanymadethecustomerfeelandthenlisten(read)forcluesthatmaypointtooneormoreofthe5Gestures.Keepinmindthat“honesty”isoftenacatch-allfortheothergestures,soyoumayhavetolistendeeplyforwhatthecustomermayreallyberespondingto.
5.Usethe5GesturesofTrustSMframeworktostrategicallyplanhowyouapproachyourcustomerrelationships.Startbyassessingwhereyouareintermsofeachofthegesturesandthentargetwhereyouwanttobe.Identifythegapsandplanhowtoclosethem.
Inclosing,consumersseemostbusinesstransactions—particularlyserviceonesthatinvolverelationships—ashumantransactions,ratherthanstrictlyfinancialones5.Despitetechnologicaladvancements,in-personisstillthepreferredmethodofcustomerserviceforthemajorityofconsumers,evenyoungerones6.Thus,humanizingbusinessrelationshipsisimportant.Wehopethatthe5GesturesofTrustSMcanassistbusinessesintheirquesttobecomemore“human.”
5 https://www.bbbtrusted.org/better-series/2016/06/custom-ers-trust-business/6 https://www.bbb.org/trustindex/
27A New Framework to Evaluate Customer-Business Relationships 27A New Framework to Evaluate Customer–Business Relationships
AUTHORS/ CONTRIBUTORS Craig HonickismanagingpartnerofMetroTribal,amarketinsightandbrand-storydevelopmentfirmbasedinCharlottesville,VirginiaandSeattle,Washington.Heisanappliedethnographerandveteranmarketingconsultant.Formorethan20yearshehassurfacedandreconstructedthenarrativesthatindividualsandgroupsusetoguidetheirdailychoices.Withthisinsight,hehashelpedcorporations,nonprofitsandgovernmentagenciessuccessfullypositiontheirbrands,productsandservicestocustomersaswellastheirownemployees.
Dr. Rubens Pessanha,PMP,SPHR,GPHR,SHRM-SCP,seniordirectorofmarketresearch,insightsandstrategy,withCBBB,hasmorethan25yearsofglobalexperienceinmarketing,strategicorganizationaldevelopment,projectmanagementandmarketresearch.HehaspresentedatconferencesintheU.S.,Japan,SouthAfrica,BelgiumandhisnativeBrazil.AproductionengineerwithanMBA,hecompletedhisdoctorateatGeorgeWashingtonUniversityinMay,2017.Inhissparetime,Dr.PessanhacurrentlyservesasanadjunctprofessoratStrayerUniversity.
Alexis Chng-Castor,directorofBrandCreativeattheCouncilofBetterBusinessBureaus,isanexperiencedmarketerandcreativedirectorwithanaward-winningbrandportfolio.NativetoSingaporeandfluentinthreelanguages,sheleveragesherknowledgeandexperiencewithdiversemarketsinallaspectsofmarketinganddesign.Duringherfreetime,shechannelsherlovefordesignintoherpersonalprojects.
Thanks to the BBBs that helped with data collection for this research report:• BBBofMetroAtlanta,Athens&NEGeorgia• BBBofUpstateNewYork• BBBofMetropolitanNewYork• BBBofChicago&NorthernIllinois• BBBofCentralOhio• BBBofLosAngeles&SiliconValley• BBBofSaskatchewan• BBBofHawaii• BBBofEasternNorthCarolina• BBBServingNorthernColoradoandWyoming• BBBServingConnecticut• BBBServingWisconsin• BBBServingArkansas• BBBofGreaterMaryland• BBBServingCentralandWesternMAandNortheasternCT• BBBServingNorthCentralTexas• BBBServingGreaterCleveland• BBBMetroWashingtonDC&EasternPennsylvania• BBBServingUtah• BBBServingWesternMichigan
Resources for Better Businesses:• BBBAccreditationStandards-http://www.bbb.org/accreditation-standards• BBBCodeofAdvertising-http://www.bbb.org/code-of-advertising• BBBCenterforCharacterEthicsfromtheBBBInstituteforMarketplaceTrust-
bbbmarketplacetrust.org/category/295591/center-for-character-ethics
Formorethan100years,fromsmallcommunitystorestomultinationalenterprises,BBBhasbeenontheforefrontofpositivemarketplacechangebypartneringwithleadingcompaniescommittedtothebestpracticesofbusinessethics,marketplaceexcellence,andeffectiveindustryself-regulation.Trustalwaysmatters.BBBisdeeplycommittedtobuildingandadvancingabettermarketplace,atrustedmarketplaceforall.
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