Return on Trust
Enhancing customers’ level of trust in a company is good business—but how good? By quantifying that financial benefit, a company can estimate its return on trust.
Intuition is no longer being funded. Simply believing that a business initiative is a good idea is not sufficient to secure the attention, resources, and commitment to implement it and to sustain its viability. A business case, based on sound logic and defensible assumptions, is required.
Trust is a case in point. Intuitively, business leaders understand that customers' trust is the foundation upon which authentic, productive, and long-term relationships are built—an outcome sought by all companies competing on the basis of customer centricity. But are investments in securing that trust worthwhile? This article describes a methodology to allow senior executives to make that assessment. Consisting of four steps, it requires understanding the:
1. Distribution of trust in the population of customers