One of the biggest problems companies are facing these days is a lack of trust, especially since the financial crisis. 80 six per cent of consumers don’t trust companies the way they did five years ago, less than than two out five of employees trust their leaders, and only 34 per cent of Americans trust businesses to do the right thing.In his recent book “The Trust Edge” David Horsager points out with such a giant trust deficit, building trust can be a huge competitive advantage. Trusted companies have shareholder returns three times higher than those with low trust levels.
Here are 7 barriers from the book that businesses have to overcome to build it that trust in the modern age:
Conflicts of interest
There are conflicts between shareholders and managers, venture capitalists and the organisations they invest in, and banks and retail investors. When it’s difficult to know who has the power, who makes decisions, and why, it’s harder to trust.
When lawsuits are more and more common, people are unwilling to let their guard down and trust people because even something unintentional can have huge consequences.
The end of customer loyalty
The relationship between customer and company is at an all time low. People used to go to a salesman, interact, and form loyal connections. Now it’s all about comparing prices on line for the best deal. There’s less opportunity for companies to build trust.
Negative media coverage
People are constantly bombarded with shocking, negative stories about companies. Understandably, they often imagine the companies they interact with behaving in a similar way.
Speedy social networks
Information that destroys trust travels across the world in the blink of an eye and a series of clicks. Things travel so quickly and in such volume that many impressions are too short ot make an impact.
Technology and big data
The rise of big data and companies tracking customers makes people increasingly suspicious. When people don’t understand something, they fear and mistrust it, especially when it feels invasive.
People are increasingly primed to expect everything to be instantaneous by things like online shopping, digital media, and self-checkout lines. Trust takes a great deal of time to build, and few people have the patience.
Find the book here
Business Insider Emails & Alerts
Site highlights each day to your inbox.