Precious metal expert featured in multiple publications. Brandon Aversano is the Founder & CEO of The Alloy Market.
Trust is a crucial commodity in establishing a loyal customer base. Yet, mistrust has become the default across industries, and chasing trust is more difficult than ever.
From the prevalence of online scams to predatory fine print, consumers have much to be wary of. In this environment, companies can leverage consumer caution to generate trust in their brand, choosing to lead with transparency instead. Focusing on transparency allows businesses to directly combat mistrust and establish loyalty.
Remember, trust in your brand isn’t just a value-add—it’s the currency that determines whether clients choose you, stay with you and advocate for you.
Denise Lee Yohn said it best: “Great brands don’t chase customers; they attract people to them. Great brands know that if you stand for something clearly, some people will love you and some will hate you, but the ones that love you will buy your brand and be willing to pay a premium for it.”
The Erosion Of Trust In Business
Trust in businesses is on a steady decline across industries, and it’s no secret why. It seems misleading ads and predatory practices are recurrent. You can look to the Facebook-Cambridge Analytica scandal for evidence that data is being used in a manipulative way. Or consider the “cash-for-gold” industry and its frequently poor payouts on the true value of gold.
Worse, data breaches, scams and scandals dominate the news cycle. Take, for example, the $3 billion settlement on behalf of the Wells Fargo false account claims or the up to $425 million settlement for the Equifax data breach.
The result? Consumers now assume brands are working against them, not for them. When customers cannot trust that businesses are acting honestly and have their best interests in mind, skepticism becomes the default.
This lack of trust translates across industries. But the stakes are even higher when consumer data, financial investments or other sensitive assets come into play. When customers cannot trust that their confidential information or money are safe, they are even more selective with the businesses they engage with.
Why Transparency Wins
In a world of mistrust, transparency is the antidote. When clients understand how value is created, they feel safe. When customers feel safe, they reward businesses with loyalty, referrals and perhaps most importantly, differentiation from the competition in crowded markets.
In practice, transparency can take many forms. Best practices will vary by industry, but can include:
• Pricing clarity: Consumers want fair value, and transparent pricing structures offer reassurance.
• Clear, upfront communication of risks: No industry is risk-free, and for some, the stakes are higher. If you want consumers to trust you with their data or money, provide an upfront expectation of any associated risks and the measures in place to mitigate them.
• Open processes: A clear process can help to establish trust, too. When your customers know exactly what to expect, they are less likely to worry that information is being hidden from them or that they will be taken advantage of.
Building trust should come from all sides of your business, from a clear mission to explicit process expectations. You can clearly communicate your ideology and business intentions to attract customers who are invested in your mission. When sensitive data is involved, proactively share the measures you take to protect information.
No matter how it looks for your business, transparency is key to establishing trust and building a loyal customer base.
The CEO’s Role In Building Trust
Building trust takes time, but it starts with a clear value in transparency backed by business leaders. Company leaders have a responsibility to set the tone, communicating values and expectations to both customers and their employees. Set up your transparency explicitly, reminding your workforce and consumers that you don’t cut corners, you don’t hide fine print and that you win by being radically fair.
As CEO of The Alloy Market, I’ve coined the term Chief Trust Officer. I try to fill this role every day. I work to protect the reputation and values that make long-term growth possible. Within your company, work on trust-building behaviors like publishing your standards and empowering employees to make fair decisions. Always reward honesty, even if it has costs in the short term.
Building trust through transparency in this way pays off, fostering the reputation you want for your business. Look at Patagonia, a brand with an excellent reputation among consumers. It’s transparent about its purpose and stuck to it. The CEO refused to cut corners and enabled employees to speak up about how to improve performance. The company became a multibillion-dollar brand and put all its earnings into its core values by donating profits to fight climate change.
It’s also important to remember that consumers trust a brand based on more than its CEO’s assertions. You need to accurately represent your brand via third-party media in addition to direct communication. For example, experts will speak on reputable TV stations about how to save money so you can be confident you are making a good decision.
Trust As Strategy, Not Slogan
Companies that commit to transparency improve their reputation, allowing them to scale with retention, brand advocacy and cultural strength. In this way, trust is not just a moral stance; it’s a growth strategy.
In the economy, dollars follow trust. And trust and transparency are not one-time actions but guiding principles for your company. They take sustained, repeated actions to maintain. Those who embrace that reality will outlast everyone else.
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