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Information can easily be shared online and accessed by anyone with an Internet connection in our digital age. As such, it has become more and more common to catch wind of shocking scandals and disheartening exposés. Unfortunately, these controversies have resulted in many Americans feeling suspicious of all institutions and organizations around them.
The 2021 Edelman Trust Barometer reported a surprising finding — when comparing the institutions of business, government, media, and nonprofits, respondents felt that corporations were the most trusted. This data shows that even though Americans are full of distrust, they believe that companies can be ethical and competent.
Perhaps businesses are seen as trusted institutions because more and more companies have put earning customer trust at the forefront. It may seem obvious, but building trust with your customers is one of the key facets of running a successful small business.
Trust and transparency matter more now than ever before. In a market saturated with companies competing for customers, BBB Accreditation gives consumers confidence that they're dealing with an ethical and vetted business. The BBB Standards for Trust remain at the core for BBB and its partners, and today presents an even greater opportunity for businesses to elevate their brand, build trust, and commit to excellence.
"At the Better Business Bureau, we know how important it is for consumers, our Accredited Businesses and even our non-Accredited Businesses to trust us," says Juliana O'Rork, VP of Marketing and Communications at the BBB Serving Western NC and Southern Piedmont. "Whether we're working with them on customer reviews, customer complaints, or advertising and marketing, they trust that we always have their best intentions top of mind."
How important is trust exactly? With almost over 31 million small businesses in the United States and over 1.2 million employer businesses in Canada, how can you make sure you stand out? The following six facts illustrate that building trust is the right thing to do, and a savvy business move.
1. Your customers are your livelihood
You might have the best product or service in the world. However, without a customer base, you can't have a business for very long. Your customers are the reason you can run your business. If you can't earn and keep their trust, they won't come back. Building your customers' trust should be a core part of your business operations.
2. Customer churn is costly
It can cost up to five times more to acquire a new customer than to keep an existing customer. Additionally, increasing customer retention rates by just 5% can increase your profit by 25-95%.
We aren't saying that you shouldn't focus some energy on acquiring new customers — you absolutely should! But these efforts shouldn't be at the expense of your current client base. As the numbers show, it's cheaper to sell to your existing customers versus continually looking for new customers.
So how do you reduce customer churn? Build trust with your clients. If your customers don't trust your integrity, the quality of your product, or your ability to do the right thing, it's doubtful they'll come back. After all, virtually every business has an easy to find competitor, and 99.9% of all U.S. businesses are small businesses. If you aren't keeping your customers happy, they'll find someone else who will.
3. A scorned customer can damage your reputation
A recent study found that 30% of customers who have a negative experience with a business will share the story online. Additionally, 84% of people trust an online review as much as a review from a friend. Negative online reviews can hurt your business.
When you break a customer's trust, you're running the risk of them telling others about their experience or posting about it online. For a small business that usually depends on local traffic, this could be extremely detrimental to your reputation.
Through social media and review sites, angry customers have an easy outlet to let others know about their negative experiences. If you start accumulating dozens of negative reviews (or if a few bad reviews get a lot of attention), it can stop potential customers from considering your store as an option.
4. You can't fool customers
If you consistently break the trust of your clientele, people will take notice. Even if you manage to avoid online scrutiny, your customers don't have to give you a free pass for repeated mistakes. A recent report found that 67% of customers will try a product from a company with a good reputation — but if they don't come to trust the company themselves, they'll stop being a customer.
Even if you have an excellent reputation, each customer will decide on their own about your small business's trustworthiness. Ensure all of your employees understand that excellent customer service and consistent quality are necessary for every client and transaction.
5. Loyal customers will stand by you
Trust establishes a real relationship between your customers and your business. When you build trust, your customers can become your support system. They won't go to your competitor, even if the competition starts to price cut you. They won't leave if you slightly increase your prices to match inflation. They will give you feedback on your products or services to help improve your business.
Perhaps most importantly, if you have trust, you can also earn forgiveness. If you've established a real relationship, the customer won't drop you when you make a minor mistake. Approximately 85% of Americans report that they would stand by a business during a brand crisis if the company had a transparent history. Customers want businesses to be honest, own up to their shortcomings, and be precise in how they plan to fix mistakes.
6. Your customers are your champions
A champion customer is so happy with your business; they promote it for you. They tell their friends and family about your business, buy gift cards to your store as presents for others, engage with your brand online, and more. For a small business, this is the best marketing strategy you could ever ask for — and it's free! When you have happy customers that trust you, they will be more than happy to spread the word about what you have to offer.
Moving forward
Ultimately, how your customers feel about you is a reflection of how well you're running your business. If you can be transparent, collect and listen to feedback, implement improvements, and consistently provide a quality product or service, you'll gain the trust of your customers.
The BBB business seal shows that BBB Accredited Businesses are transparent and trustworthy. Visit BBB.org/get-accredited to learn more about Accreditation and how it can help your business.