trust

Building Trust Through Transparency

There is a crisis of public trust in business, institutions, government and non-governmental organizations (NGOs)–global study finds.

CEOs’ trust has plummeted, too.

Do they really care?

Most executives understand that trust is key for business growth. But to gain trust, they do very little and in baby steps.

So, it makes us wonder: Do they really care? Because if they did care, solutions are abundant. They either don’t know how to go about building trust and loyalty or they really don’t care. Which is it?

Here is one solution to companies who care: Let’s take transparency.

Demands for “transparency” carry with it the understanding and the ability to comprehend and appreciate risk. It means that you need to be transparent not just with your finances but with everything you do in the company, too.  Blockbusters couldn’t continue to play the game, because their business model was based on making money by ripping off the customer. Netflix’s culture and mindset was more honest.

The insurance sector, for example, is based purely on ripping off the customer. That’s why trust in insurance companies is low all around the world. Do they really care about the customer? One wonders!

If you trust others, that means you are a trustworthy person. Psychologically speaking.

If you base your systems and business models on customers who you don’t trust, you can never expect trustworthy customers to trust you.

Transparency requires accountability. And customers won’t really trust you unless you are transparent.

Here is another solution for companies who care: Let’s take hiring processes:

Search for the Talented Mr. Rippley

Companies want the most talented. Candidates go through a gazillion amount of tests and interviews to get the job…only to find out that what they were told about the company and the position is no where close to being correct. Headhunters and company HR departments have deceitful processes. Just ask employees and they will tell you how. Employer branding isn’t about recording youtube videos featuring how great you are. It is about your promise.

Here is another solution for companies who care: Let’s take advertising:

Quest for Happiness

Opening Happiness doesn’t open happiness! A can of Coke can not be a source of true happiness. At this age, the customer understands this. Customer is aware of your intentions more so that your own!

So, if your goal is to sell a can of coke by injecting the idea that they will be happy when they sip a can of coke, at this age, it back fires. That is one reason why red Coke can no longer sell and its market share is in big decline.  That’s why most brands continue to lose customer loyalty. There are ways to go about it, but advertising alone will never cut it. And it doesn’t.

What is the answer then? Here is the answer.