Top >> Reputation__Research REPUTATION & RESEARCH  Lack of Trust in Business - new report shows how it is impacting with customers published December 2004 Increasing public suspicion about, or declining trust in, business internationally (including Australia) is well chronicled.  As a result there’s been much talk and theorising about how to retain, or win back, trust at a corporate level. However, a new report from the well-respected US research house Yankelovich focuses on how this suspicion and lack of trust is manifesting itself in the ‘real world’ - where customers interact with retailers and others to buy consumer goods or services. Called ‘The State of Consumer Trust’ this report unveils what it calls the ‘bottom-line consequences of trust and distrust’. Three of the key findings of the report are: Consumer distrust manifests itself in a number of ways, from consumers choosing not to shop at a particular establishment or buy certain products, through to them being reluctant to share their personal information.  In some cases it includes people feeling they need to review all their bills and statements in more detail. Only 3% of consumers report taking no action to a perceived betrayal of trust. Instead, most respond by taking action and initiating a negative cycle of ‘viral anti-marketing’ which results in consumers telling approximately 50% more people about bad customer experiences than they do about good ones. On the other hand trust increases retention, boosts spending, enables premium pricing, and provides a lasting competitive advantage with the research showing that many Americans will shop at businesses that have earned their trust - even if they tend to charge more than their competitors. After detailing the potential consequences to a business of losing customer trust, the Yankelovich report focuses on applying its research findings to ‘win-back’ strategies that businesses need to employ. Key among these is communication viz: Precision in communicating with constituents - or talking to the right people.  They say that communication targeting, whether for marketing reasons or broader business reasons, remains so imprecise that it contributes to the decline in trust. Relevance in message and tone - delivering a message that resonates.  Yankelovich says that relevance is often lacking in critical touch points with today’s corporations. They say that to regain trust, marketers must say something pertinent and relevant. Reinforcing the role of PR, the report notes that negative testimonials and third-party ratings are more potent than positive ones and it urges organisations to keep abreast of negative ratings or word-of-mouth and try and address them. Click here to read - ‘A crisis of confidence: rebuilding the bonds of trust’ - which analyses the key research findings and presents a new model for building trust. Network PR, the publisher of PR Influences, is experienced in advising on, and implementing strategies and initiatives that help build corporate trust and, through its global affiliate, Ketchum, has access to best practice in this area.

PR Influences Australian Public Relations Newsletter. Article: Survey Reputation & Research: Lack of Trust in Business. Information Content: Reputation & Research