Trust-a lesson often learnt to late

What does it mean to your business to have someone’s trust?

What does it cost to gain someone’s trust?

What does it cost to keep someone’s trust?

Whether it is a customer, a supplier, a business partner,or an employee, trust is something that whilst it is hard to put a definitive price on it, it can ruin even the strongest brand very quickly.

Trust in business was explained to me once at a training session in this analogy, by someone who I cannot remember, but their basic message has stayed with me for many years.

Your business is like a bucket under a dripping tap. The water dripping out of the tap seems worthless, without the bucket it would quickly disappear, evaporate, soak into the soil and not be seen, or be missed by anyone. However with the bucket (your business) under the tap, the drips of water (the trust) slowly collect and increase in volume (value). Over time the bucket fills up and you now have a reserve supply of water (trust in your business). Small events may happen that reduce the volume in the bucket, but there is still plenty left, what value do you now place on the full bucket of water? However when something significant happens and the bucket is tipped over, all the water (trust) is lost very quickly, it is almost impossible to stop the spill. You now may feel great loss for all the water (trust) lost, which cost you nothing in the first place to collect. If only you had done more to protect the bucket from falling over.

In any retail business you will always have events that push on your bucket, an upset customer, late deliveries, an unreliable staff member etc. It is how you respond, and it what way and how quickly that can keep your bucket upright, keeping the value in your brand, your business.

Many businesses invest a large amount of money in advertising and marketing to build trust and recognition in their brand, only to put significant strain on the trust through events that are not at all times managed correctly. Most situations can be fixed more cheaply if handled quickly. Time costs money, emotions build, and the spilling of trust commence.

Next time something pushes your bucket, stop and think. What damage potentially could this have on my brand? What value do I place on this relationship? Do I need this customer to come back and shop again? What future sales may I put in jeopardy?

Whilst we are all smarter in hindsight, if you were the CEO, would you have grounded your airline without warning? If you were the CEO of a book chain facing financial trouble would you have declined accepting your own gift cards from your loyal customers? What damage does not having that catalogue item in stock for the start of the catalogue? What do you think whenthe price scans up wrong at the checkouts for the second week in a row, did you pay the correct amount for the rest of your purchase?

Gaining and keeping trust is a life long lesson, which unfortunately too often is learnt the hard and most expensive way. Good trading, Geoff.