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5 Gestures of Trust A New Framework to Evaluate Customer-Business Relationships SM

Transcript of 5Gestures of Trust › ... › 5GesturesofTrust_Final_web.pdf4 5 Gestures of TrustSM INTRODUCTION SM...

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5 Gesturesof Trust

A New Framework to Evaluate Customer-Business Relationships

SM

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2 5 Gestures of TrustSM 2 5 Gestures of TrustSM

CONTENTS

Executive Summary 3

Introduction 4

Trust Matters 7

What Distinguishes Trusted Companies? 8

5 Gestures of TrustSM 10

Customers’ Survey Responses Reveal the Potential Importance of the 5 Gestures 12

Survey of Businesses Confirms Potential Importance of 5 Gestures 14

The 5 Gestures in Detail 16• BeHonest 17• BeTransparent 18• BeProactive 19• BeHumble 20• BeEquitable 21 What the 5 Gestures Look and Feel Like to the Customer 23

Conclusion 26

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3A New Framework to Evaluate Customer-Business Relationships 3A New Framework to Evaluate Customer–Business Relationships

EXECUTIVE SUMMARYIntoday’smarketplace,consumerexperiencecanmakeorbreakabusiness1.Consumerstendtovotewiththeirfeet—iftheyhaveabadexperiencewithacompany,theymaytaketheirbusinesselsewhere.Worse,theymayalsotelltheirfriendsandfamilyabouttheirnegativeexperience2.Inthebestcase,theymightcontactthebusinesstocomplain–therebygivingitachancetorecover.

Since2015,wehavebeenexploringwhatitmeanstobeacontemporarybetterbusiness.Valuessuchashonesty,integrityandethicsareperenniallyimportant3.Infact,theyarecriticalforbuildingtrustingrelationshipsbetweenconsumersandbusinesses2.Consumersoftenusetheword“honesty”asacatch-alltermdescribingtheirexperienceswithabusiness;astheDictionary.comentryfortheword“honest”demonstrates,ithasseveraldiscretedefinitions:• Beinghonorableinprinciples,

intentions,andactions• Showingfairnessanduprightness• Beingsincere,frank,andgenuine• Havingagoodreputation• Beingrespectable• Beingcreditableortruthful

Consumerexpectationshavebeenevolvingthough,particularlyamongyoungergenerations.Theyaredemandingmorefrombusinessesthanameretransaction.Today’sbetterbusiness,therefore,mustalsobecustomercentric,employeefocused,forwardthinking/innovative,andenvironmentallyandsociallyconscious1.

Thelinesbetweentraditionalbusiness,government,andnonprofitsectorshaveblurred.Beingacontemporarybetterbusiness–asweheardfromseveralconsumersandbusinesses–inmanywaysresemblesoperatingasasocialbusiness.BetterBusinessBureau(BBB)hopestoshareinthisreportwhatwearelearningabouthowsuccessfulcompaniesappeartowinprospectsandkeepcustomers.

Inkeepingwithitsmissiontoadvancemarketplacetrustforall,BBBcontinuesitsresearch“InSearchofBetterBusinesses.”Thelaunchofthis“5GesturesofTrustSM”reportrepresentsanewsteptohelpbusinessesevaluatetheircustomers’relationshipsandinturnbuildbetterbusinessexperiences.

1 www.bbbtrusted.org/trends-insights/2016/06/good-better-best/2 BBB.org/TrustIndex3 www.bbbtrusted.org/trends-insights/2017/06/time-substance-honesty-still-comes-first/

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4 5 Gestures of TrustSM

INTRODUCTION

4 5 Gestures of TrustSM

Losingcustomersorprospectshasaveryrealcosttoabusiness.Sometimesit’saresultofmarketforcesandsometimescompetitorsmaylowertheirpricesina“racetothebottom.”Competitorsmayofferproximity,products,services,skills,quality,orevenperksthatanotherbusinesscannotmatch.Sometimesit’safactorthat’shardtopindown,suchaswhenacompetitorhasaproductnamethathassentimentalvaluetothecustomer,orwhenarelativeofacustomerbecomesacompetitor.Thesearemostoftenthingsoutsideofyourcontrol.

Butifyou’relikemostbusinessowners,whenprospectsorcustomersarelosttocompetitors,theyarelostbecauseofsomethingthatcanbecontrolled–therelationshipwiththem.Businesspeoplewilllikelyagreethatwhenarelationshipwithaprospectorcustomerisweakornon-existent,theyaremorethanhalfwaytolosingthemtoacompetitor.Whentherelationshipwithcustomersisstrong,they’remostlikelytokeepthosecustomers,eveniftheirproductorservicedeliveryexperiencesanoccasionalhiccup.Theywillkeepthosecustomers—perhapsforlife—solongastherelationshipremainsintact.

We’vebeenconductingresearchwithconsumersandbusinessesinNorthAmericaaspartofour“In Search of Better Businesses”agendaandourongoinginquiryintowhatbuildsrespect,trust,andloyaltybetweencompaniesandtheircustomers.Ourfindingstodatesuggestthatthe5GesturesofTrustSMprovidethefoundationforapositivecustomer-businessrelationship.Consumerswhoreportthattheyhavepositiveexperienceswithcompanies,andthattheyareloyaltothem,tendtoascribethe5Gesturestothosecompanies.Theconverseisalsotrue:whenconsumersreporttheirexperienceswithcompaniesarenegative,andreportlittleornoloyalty,theytendnottoascribethe5Gesturestothem.

BBBderivedthe5Gesturesfromin-depthconversationswithavarietyofconsumerswhorelatedtheirexperiences–bothpositiveandnegative–withcompanieswithwhichtheyregularlyinteract.Welistenedforhowconsumersstructure,intheirownminds,theexperiencestheyhavewithbusinesses–thementalframeworktheyusetodeterminewhether,uponreflection,theexperienceispositiveornegative,andifthecompanytheyaredealingwithisonewithwhichtheywouldliketocontinuearelationship.

Wethentestedtheframeworkonanaudienceofsurveyrespondentsintwoseparatemoments;themostrecentbeingwith2,037consumersacrosstheU.S.andCanadainSeptember2017(seeprofileofrespondentsinFigure1).Inaddition,wevisitedwithseveralcompaniesknowntohavepositivereputationsandamodelrecordofcustomergrowthandretention,toseehowtheyattemptedtobuildandmaintainpositivecustomerrelationships,andwhethertheserelationshipswerebuiltinwholeorinpartonthe5Gestures.

AlsoinSeptember2017,BBBsurveyedapproximately1,500businesses(abalancedmixofBBBAccreditedBusinessesandnon-accreditedbusinesses)acrosstheU.S.andCanada(seeprofileofrespondentsinFigure2)tolearnwhattheybelievedaboutbuildingtrustingrelationshipswiththeircustomersandifthey,too,reportedanactiveuseofthe5Gestures.

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5A New Framework to Evaluate Customer-Business Relationships

Figure 1 - Profile of Consumers that

Responded to Our 2017 Survey

17%

26%

22%

16%

19%<

High SchoolSome CollegeBachelor’s DegreeGraduate DegreeOthers

20%

23%29%

13%15%

5A New Framework to Evaluate Customer–Business Relationships

Time in Business

< 1 Year1 to 5 Years6 to 10 Years 11 to 20 Years21+ Years

22%

3%

16%23%

36%By Country

76%

24%

By Number of Full-Time Employees

0 to 1011 to 5051 to 500 501+

70%

18%9%

3%

By Title

Owner/President/ CEOVP/Director/ ManagerOther 7%

15%

78%

Figure 2 - Profile of Business that Responded

to Our 2017 Survey

ServicesProfessional ServicesRetail & WholesaleFinance & Insurance

AutomotiveHealth Care

HospitalityTechnology

Other

By Industry42%

12%10%6% 5% 5% 4% 4%

12%

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6 5 Gestures of TrustSM 6 5 Gestures of TrustSM

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7A New Framework to Evaluate Customer-Business Relationships 7A New Framework to Evaluate Customer–Business Relationships

TRUST MATTERS

Trusthasshiftedfrombeinganicethingtohavetobecomingacriticalstrategicassetfororganizationsinthecontemporarymarketplace4.BBBaskedbusinessesandconsumershowimportant–from1:“NotatAll”to10:“Essential”–customertrustisforthem(seeFigure3).Almostnineoutof10businesseschosethetoptwolevels(i.e.,9or10),andindicatedthatcustomertrustisveryimportanttotheircompany’ssuccess.Asignificantnumberofconsumers–sixoutof10–reportedthattrustingacompanywhendoingbusinesswithitisveryimportant.Theoverallscoreona10-pointscalewas9.5frombusinessesand8.6fromconsumers,reflectingtheimportancethatcustomertrustholdsforboth.

Unfortunately,consumertrustappearstobeeroding.Onlyaboutoneinfourconsumersreportedbeingcompletelylikelytotrustcompanieswithwhichtheydobusiness.And,bothbusinessesandconsumersfeelthatthestateoftrustinthemarketplacehaserodedovertime.Infact,fewerthanoneinfiverespondentsbelievedthatcustomerstrustcompaniesmoretodaythantheydidfiveyearsago(seeFigure4).Thisisunderstandableconsideringtheongoingevolutionofcustomers’expectations(likelyrisingatafasterpacethanbusinessescanfollow),theincreasingdigitalizationofservices,andgrowingcompetition.

Consumersandbusinessesalikeidentifiedthetopthreereasonsfortrustingoneanotheras:1)honesty/integrity/ethics/transparency;2)[good]reputationbuiltovertime;and3)[goodcustomer]services/quality.

Itisimportanttonotethatthesereasonsarenotdiscrete;theyseemtoblendand/orcrossoveroneanother.Forexample,one’sreputationisbuiltprimarilythroughahistoryof“doingtherightthing”(i.e.,honesty/integrity/ethics)and“doingitright”(i.e.,service/quality).Beingperceivedashonestisalsoanimportantdriverforcustomerserviceandinbuildingcustomerrelationships.

4 Harvard Business Review

Figure 3 – Importance of Trust

Only one in four consumers reported being completely likely to trust companies with which they do business.

Figure 5 – Top Reasons for Trust

9.5

Businesses: In general, on a 10-point scale, how important do you believe customer trust is to yourcompany’s success?

8.6

Consumers: In general, on a 10-point scale, how important is it that you trust a company when doing business with it?

MOR

E TRU

ST

ABOU

T THE

SAM

E

LESS

TRUS

T17%

39%

44%

BUSINESSES

MORETRUST AB

OUT T

HE S

AME

LESS

TRUS

T

CONSUMERS

13%

57%

30%

Figure 4 – Evolution of Trust

QUESTION: Do you believe customers trust companies today more, the same, or less than they did 5 years ago?

1

2

3

Honesty/Integrity/Ethics/Transparency (“Compassion, sincerity and honesty; if you can treat your customers like this then you can be trusted.”)

[Good] Reputation Built Over Time (“Transparent fees, ethical practices, good reputation with consumers.”; “History of honesty, doing the right thing, backing up their products and services.”; “History of good customer service.”)

[Good Customer] Service/Quality (“Honest customer service.”; “Quality and excellent customer service.”)

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8 5 Gestures of TrustSM

WHAT DISTINGUISHES TRUSTED COMPANIES? Todeterminehowhighly-trustedcompanies*appeartodifferfromothers,BBBexploreddifferencesinbusinesspractices(seeFigure6).Overall,businessesthatperceivethemselvesashighlytrustedweremorelikelythanotherstoagreethatthey:a)arequicktomakethingsrightwhentheymakeamistake;b)focusontreatingtheiremployeesverywell;c)believethathowtheytreattheiremployeesisdirectlyconnectedtohowsuccessfultheywillbewithcustomers;d)pointoutthattheymadeamistakeevenifthecustomerdoesnotnotice;e)makeanextraefforttolookforwaystosavecustomersmoney;andf)focusonprovidingvaluetocustomersmorethanonmakingaprofit.

8 5 Gestures of TrustSM

STATEMENTS HIGHLY TRUSTED OTHERS

We are quick to make things right when we make a mistake. 9.7 8.7

We focus on treating our employees very well. 9.5 8.5

We believe that how we treat our employees is directly connected to how successful we will be with customers. 9.4 8.3

We will point out that we made a mistake even if the customer does not notice. 9.2 8.0

We make an extra effort to look for ways to save customers money. 8.9 7.8

We believe it will be more beneficial to our business in the long-term if in the short-term we work harder to give our customers value than we do to make money. 8.9 7.9

We tend to focus on providing value to customers more than we focus on making a profit. 8.9 7.8

We believe that it is important that our customers feel like they have as much or more control than we do during a transaction. 8.7 7.6

We make it easy for customers to get their money back if they are not happy. 8.6 7.5

We believe it is essential to make sure our customers get the best deal from us, even if it means less profit. 8.6 7.4

We will refer a customer to a competitor if we think it will be better for the customer. 8.4 7.4

We believe very strongly in doing what we can to preserve the environment, even if it might mean less profit. 8.4 7.2

We actively encourage all customers to post public reviews of their experience with our company. 7.9 7.3

We believe that our business owes it to the community to support community programs and charities. 7.9 7.1

We contribute money or donate goods or employee time to local programs and/or charities. 7.8 7.0

Figure 6 – Question: To what extent – 1: Strongly Disagree to 10: Strongly Agree – do you agree or disagree that each of the following statements accurately describes your company?

* We compared the responses of businesses that self-identified as being “highly trusted” (i.e., chose the top two boxes on a question that asked them to identify how much they believed their customers trusted their company) with other businesses that were not as confident about their level of trust (i.e., selected 1: “Not at all” to 8 on the same question).

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9A New Framework to Evaluate Customer-Business Relationships 9A New Framework to Evaluate Customer–Business Relationships

STATEMENTS POSITIVE EXPERIENCE

NEGATIVE EXPERIENCE

I always know what to expect from them. 8.4 4.0

They always get the job done right. 8.3 2.6

I can trust that they will tell me the truth. 8.2 2.3

They make it easy for customers to get their money back if they are not happy. 8.2 3.2

They seem to focus on treating their employees very well. 8.0 3.2

The company’s employees seem to enjoy working for the company. 8.0 3.4

The company makes me feel like it is more focused on giving me value than on making money in the short-term. 7.8 2.1

The business supports community programs and charities. 7.8 3.8

They tend to focus on providing value to customers more than they focus on making a profit. 7.7 2.3

The business makes me feel like I have as much or more control than the company does during a transaction (e.g., Sale, contract). 7.7 2.3

They actively encourage all customers to post public reviews of their experience with them. 7.6 2.8

The business tries to give me the best deal, even if it means less profit. 7.6 2.3

They contribute money or donate goods or employee time to local programs and/or charities. 7.4 3.5

The company makes an effort to preserve the environment, even if it might mean less profit. 7.4 2.8

They will refer a customer to a competitor if they think it will be better for the customer. 6.5 2.1

Figure 7 – Question: To what extent – 1: Strongly Disagree to 10: Strongly Agree – do you agree or disagree that each of the following statements accurately describes the company you chose?

Wealsoaskedconsumerswhohadpositiveexperienceswithbusinessesabouttheirpractices.Theyweremorelikelytoagreethat:a)theyalwaysknowwhattoexpectfromthebusiness;b)thebusinessalwaysgetsthejobdoneright;c)theycantrustthatthebusinesswilltellthemthetruth;d)thebusinessmakesiteasyforcustomerstogettheirmoneybackiftheyarenothappy;e)thebusinessseemstofocusontreatingemployeesverywell;andf)thecompany’semployeesseemtoenjoyworkingforthecompany(seeFigure7).

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10 5 Gestures of TrustSM

5 GESTURES OF TRUSTSM

Whencustomersorpotentialcustomersbeginthejourneytoapurchase,theyinvokeamentalframeworkwhichhelpsthemdeterminewhethertheyhaveapositiveexperiencewithabusiness,aswellaswhethertheywanttoenterabusinesstransaction(purchase)orfuturebusinesstransactions.Thismentalframeworkcanincludeachecklistofitemsconsciouslysought–suchasalevelofperceivedquality,existingcustomerreviews,guarantees,returnpolicies,andthelike.Moreimportantlyfromacustomer-relationshipperspective,thismentalframeworkappearsalsotoinvolvesubconsciouscriteriathatsignalthatthebusinesslikelycanbetrustedtodeliverapositiveexperiencethroughoutthecustomerjourney.Thisaspectofthementalframeworkinvolvesanemotionalbarometer,onethatscanstheexperienceforthedegreetowhichacustomerfeelsrespected.

Aswelistenedtohowconsumersconveyandframetheirexperiencesindifferentbusiness-relatedinteractions,wediscernedthattheyusefivekeyfactorstodecidewhethertheylikeortrustabrand,company,orbusiness.Thesefactors,whichwehavetermed

“gestures,”makethecustomerfeelrespected.Thissenseofrespecttranslatesintoatendencytotrustthecompany.Thegesturesareasfollows:“Doesthebusinessappeartobe...?”

HONEST –Doesitfeellikethecompanytellsmewhatitshouldbetellingme–theinformationthatisimportanttomeinthemoment–inawaythatmakesplainsensetome?

TRANSPARENT–Doesthecompanyappeartobewillingtodiscloseinformationthatisimportanttome,evenifitappearstomakethecompanymorevulnerable,becauseitistherightthingtodoandisimportantformetoknow?Isthistransparencygrantedaspartofaserviceethos,ratherthanbecauseofmediaorcommunitypressureorcustomerthreat?

PROACTIVE–DoesthecompanytakestepstoensurethatIgainasmuchvaluefromourrelationshipaspossiblewithoutmyaskingthemto?Also,doesthecompanygooutofitswaytorespondtolegitimaterequestsorinquiresImightmake?

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11A New Framework to Evaluate Customer-Business Relationships

HUMBLE–Doesthecompanyappeartobelievethatitssuccessisdueinlargeparttoitscustomersandthecommunityandthatcustomersandthecommunitythereforeshouldbetreatedastruepartnersintheenterprise,consideredwithempathywhenmakingcompanydecisions?Ultimately,doesthecompanyfeeltheneedtoacknowledgeme,andshowgenuineappreciationformypatronage?

EQUITABLE–Doesthecompanybelieveitisfairandproductivetograntcustomerspowerintherelationshipand/ortransactions,powerthecompanyostensiblycouldretainforitselfshoulditchoose?Aswhenacompanyistransparent,isthissharingofpowergrantedunderthebeliefthatitisthe“rightthingtodo”aspartofaserviceethos,ratherthanbecauseofcompetitivepressuresorcustomerthreat?

Twootherfactors,whichwecharacterizeasattributesratherthangestures,areimportantaswell:“Isthebusiness...?”

CONSISTENT –CanIcountonthecompany’sbehaviortobewhatIexpectofit,orisitdifficulttopredicthowitwillbehave?

COMPETENT –CanIcountonthecompanytodeliverwhatitpromisestodeliverinaqualityway?

Thedifferencebetweenwhatwehaveclassifiedas“gestures”and“attributes”iswhetherthetraitispartofthebusiness’sbeliefsandvalues,orisinsteadan

importantperformanceobjective.(Ofcourse,strivingforcompetencyandconsistencycanbeintheserviceofbuildingandmaintainingcustomerrelationships).

Thedistinctionisnotmerelyacademic:Performanceisakeyreasontodobusinesswithacompany,andtheconsumermustbeableto“trust”thatitwillperform.Gesturesthatbuildapositivecustomerrelationshipmakethecustomerfavordoingbusinesswithacompany,independentofwhetherthecompanyiscompetentorconsistent.Thegestures,orlackthereof,candeterminewhetherconsumerstrustandconnectwithabusiness

–importantelementsoflastingrelationships.Infact,gesturescancreateincentivetodobusinesswithacompanydespitealackofcompetencyandconsistency,providedthegesturesthemselvesareconsistent.

Thegesturesdonotoperateonacustomer’spsychediscretely.Rather,theyinteract:acompanyappearsconsistentlyhonestbecauseitisconsistentlytransparent;or,again,acompanyisequitableasanaturalresultofbeinghumble.“Honesty,”asomewhatpervasivegestureoftrust,ismostoftenaproxyfor,orthemanifestationof,oneormoreoftheothergesturesinhowcustomersexperiencethebusiness.

Figure8isamodelthatsuggestshowthe5Gesturesmightsupportapositivebusinessexperienceforthecustomerand,consequently,anongoingpositiverelationshipwithabusiness.Thegesturessignaltocustomersthatthebusinessisrespectfuland,moretothepoint,thatitrespectsthem.Thisfoundationofrespectresultsintrustovertime,which,inturn,engendersa“betterbusiness”experience.Whencustomershaveanongoingbetterbusinessexperiencewithacompany,theyseektoreplicateanddeepenthatexperienceandworkalongsidethebusinessonmaintainingtherelationship.Inotherwords,thebusinessbecomesasvaluabletocustomersascustomersaretothebusiness.

Figure 8 – The foundation for Better Customer Relationships based on the 5 Gestures

ProactiveHonest Transparent Humble Equitable

Respect

Trust

Better Business Experience

Better Customer

Relationship

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12 5 Gestures of TrustSM

IntheSeptember2017surveywefieldedto2,037consumersacrosstheU.S.andCanada,weaskedourrespondentstothinkofacompanytheyhaveexperiencewith,andtoanswersomequestionsabouttheirexperience.Thefirstquestionweaskedwaswhethertheexperiencehadbeen“positive”or“negative.”Laterinthesurvey,wedescribedthe5Gesturesandaskedrespondentswhetherthegesturesdescribethecompanyinquestion,usingascaleof1-10,with“1”indicating“StronglyDisagree,”and“10”indicating“StronglyAgree.”

InFigure9,weseehowallrespondentsratedtheimportanceofthegesturesindecidingwhethertodobusinesswithacompany.InFigure10,weseehowrespondentswhocharacterizedtheirexperiencesas“positive”ratedthecompaniesoneachofthe5Gestures,comparedwithhowrespondentswhocharacterizetheirexperienceas“negative”dothesame.Theybothuseascaleof1-10,with“1”indicatingthey“StronglyDisagree”thatthegesturedescribesthecompany,andwith“10”indicatingthey“StronglyAgree”thatthegesturedescribesthecompany.Responsesareexpressedasa“mean”alongthe1-10pointscales.

Wefindasignificantdisparitybetweenrespondentsreportingonpositivecompanyexperiencesandthosereportingonnegativeones,withrespecttothecompanies’useofthe5Gestures.

Furtheranalysissupportstheideathatthe5Gesturesasaframeworkplayanimportantroleinthecustomer-businessrelationship.Figure11suggestsapowerfulcorrelationbetweentheimportancerespondentsplaceoneachofthe5Gesturesandtheloyaltytheyaffordcompanieswithwhichtheyinteract.Welookedtoseeifrespondents’assessmentofcompanies’practiceofthe5Gesturescorrelatedwithrespondents’assessmentoftheirloyaltytothecompaniesonwhichtheyreported.Resultsofcorrelationanalysissuggeststhatthemoreconsumersascribethe5Gesturestocompanies,themoreloyaltheyreporttheyaretothecompanies.ThePearsonRcorrelationforthecorrelationbetweenthe5Gestureascriptionandreportofloyaltytothecompaniesexceeds.7inallinstances,averypowerfulreadoncorrelation.

CUSTOMERS’ SURVEY RESPONSES REVEAL THE POTENTIAL IMPORTANCE OF THE 5 GESTURES

Figure 9 – Question: How important are each of the

following factors to you in deciding whether to do business with a particular company? Use a 1-10 scale, with “1” indicating “Not at all important” and “10”

indicating “Essential.”

12 5 Gestures of TrustSM

ESSE

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13A New Framework to Evaluate Customer-Business Relationships 13A New Framework to Evaluate Customer–Business Relationships

STRO

NGLY

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EEST

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LY D

ISAG

REE

It is consistently

honest

It is consistently transparent

It is consistently

proactive

It is consistently

humble

It is consistently

equitable

Respondents who reported a positive experience with the companyRespondents who reported a negative experience with the company

8.3 8.18.08.0 7.8

3.13.12.9 2.9 2.8

Pear

son

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5 Gestures (Trust as a control variable)

Trus

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nest

Proa

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Equi

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aren

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0.76 0.74 0.740.74 0.72

0.88

Figure 10 – Question: Using the descriptions above as reference, to what extent do you agree or disagree that each of the following statements accurately describes the company you chose? Use “1” to indicate “Strongly Disagree” and “10” to indicate “Strongly Agree.”

Figure 11 – Pearson R Correlation coefficients between the survey respondent’s ratings of 5 Gesture importance and rating of loyalty to the company about which they are reporting experiences. “1” represents a perfect, 1 to 1 correlation. (n=2,037)

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14 5 Gestures of TrustSM

Next,wewantedtobetterunderstandhowconsumertrustimpactedbusinesses’perceptionofhavingloyalcustomers,havingaverypositivereputation,feelinggoodaboutthecompany’sfuture,havingpositiveword-of-mouth,andbeingabletochargeapremiumprice.Wecomparedtheresponsesofbusinessesthatself-identifiedasbeing“highlytrusted”(i.e.,chosethetoptwoboxesonaquestionthataskedthemtoidentifyhowmuchtheybelievedtheircustomerstrustedtheircompany)withotherbusinessesthatwerenotasconfidentabouttheirleveloftrust(i.e.,selected1:“Notatall”to8onthesamequestion).

AsshowninFigure12,businessesthatperceivethemselvestobehighlytrustedalsoconsidertheircustomerstobeveryloyaltothem.Theyalsofeelbetterabouttheircompany’sfinancialfuture,believetheircompanyhasaverypositivereputation,andthinktheirconsumersarelikelytosayverypositivethingsaboutthem.Theyfurtherbelievethattheircustomerswouldbewillingtodobusinesswiththemeveniftheirproducts/servicescostalittlemore(i.e.,premiumprice).

Wethendescribedthe5GesturesofTrustSMtothebusinessesandaskedthemtoratetheextenttowhichtheybelievedeachgestureappliedtothem.Businessesthatperceivedthemselvesas“highlytrusted”weremorelikelythanotherstoagreethatthe5GesturesofTrustSMaccuratelydescribedtheircompanies.Notsurprisingly,beingconsistentlyhonestwasratedasthetopgesture(seeFigure13).

14 5 Gestures of TrustSM

SURVEY OF BUSINESSES ALSO CONFIRMS POTENTIAL IMPORTANCE OF 5 GESTURES

STATEMENTS HIGHLY TRUSTED OTHERS

We believe, in general, that our customers are very loyal to our company.

8.8 7.3

We feel good about our company’s financial future. 8.8 7.6

We believe our company has a very positive reputation. 9.5 8.1

Just about all of our customers say very positive things about our company.

9.3 7.9

If at all possible, our customers would prefer to do business with us than a competitor, even if we might cost a little more.

9.0 7.5

Figure 12 – Question: To what extent – 1: “Strongly Disagree” to 10: “Strongly Agree” – do you agree or disagree that each of the following statements accurately describes your company?

STATEMENTS HIGHLY TRUSTED OTHERS

We are consistently Honest. 9.7 8.8

We are consistently Proactive. 9.4 8.3

We are consistently Transparent. 9.3 8.4

We are consistently Humble. 9.3 8.2

We are consistently Equitable. 9.3 8.3

Figure 13 – Question: To what extent – 1: “Strongly Disagree” to 10: “Strongly Agree” – do you agree or disagree that each of the following statements accurately describes your company.

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15A New Framework to Evaluate Customer-Business Relationships 15A New Framework to Evaluate Customer–Business Relationships

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16 5 Gestures of TrustSM

THE 5 GESTURES IN DETAIL H

ones

t

Tofullyunderstandandutilizetheinsightsgainedthroughourworkonthe5Gestures,wemustexploretheirnuances,becausethatiswherethedifferenceincustomer-businessrelationshipslies.Thenatureofrespectandtrustisthattheymustbeexperienced;thisgoesbeyondwordsandislargelyemotional.Infact,claimingtobe“honest,”“transparent,”“proactive,”“humble,”and/or“equitable”withoutpracticingthebehaviorassociatedwiththesegesturesislikelytofurtherundermineanytrustthatmayexist.Thatisbecauseactionsspeaklouderthanwords,andmakingsuchclaimsrunsdirectlycountertotheirgenuinepractice.Moresuccinctly,askingcustomerstotrustyouwithoutbeingtrustworthyisarecipeforbecomingevenlesstrustworthy.

Tran

spar

ent

Proa

ctiv

e

Hum

ble

Equi

tabl

e

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17A New Framework to Evaluate Customer-Business Relationships 17A New Framework to Evaluate Customer–Business Relationships

BE HONEST

“Honesty is what builds

trust the most, without it trust does not exist

at all.”

Beinghonestisperhapsthemostfundamentalofthegestures,theonemostconsumersandbusinesseswouldidentifyfirstasimportant.Onemightconsiderhonestytobea“threshold”gesture;ifyoudonotappearordonotproveovertimetobehonest,itwillbehardunderanycircumstancestomaintainacustomerrelationship.Importantlythough,beinghonestcanalsobeaproxyofsortsfortheotherfourgestures–manycustomersorbusinesseswillidentify“honesty”asafactorresponsiblefordestroyingorbuildingarelationship,wheninfactitmaybethatbeing“transparent,”“proactive,”“humble,”or“equitable”isthegesturethatabusinesseitherfailsorsucceedstoconveyinaninstance.Wewillexplaintheinteractionofthe5Gesturesbelow–howtheyworktogethertoformtrustbetweencustomersandbusinesses.

Tobehonestismostcommonlyunderstoodas“totellthetruth”or,simply,tobetruthful.Butmostpeoplewouldlikelyagreethatthereareshadesoftruthandstatementsthataretechnicallytruthfulbutneverthelessnotactuallyhonest.Forexample,ateenagermighttellafriend’sparentsthatherparentswillbehomeduringaparty,butfailtomentionthattheywillbeatanotherhousethefamilyowns,andnotattheoneinwhichthepartyisbeingheld.Sobeinghonestmeanssomethingmorethansimplytellingthetruth.Itmeansconveyingmeaninginawaythatisempathetic,useful,andinstructivetotheotherpartyinthemoment.

Customerswaryofabusinessrelationshiporwhoareinapositionwheretheymusttrustthebusinessarefocusedheavilyonhonesty.Mostpeoplefeeluneasywhenabusinessisnothonestwiththem,eveniftheycan’tpinpointtheexactsourceofthediscomfort.Beinghonestisthetipofthetrusticeberg–whetherabusinessappearshonestwillsetthestageforthebusinessrelationship.

Butaswejustmentioned,howconsumersinterpretabusiness’shonestymayormaynotinvolveothergestures.Forexample,consideraninstancewhereasalespersonconvincesacustomertoworkwithhiscompanybecauseofagreatservicethecompanyprovides.Intheinterveningtimebeforethecontractissigned,thefeaturesoftheservicechange.Ifthesalespersonwaitsuntilthelastminutetoinformthecustomer–atime-framethatwouldlikelymakeitdifficulttoworkwithanothercompany–thesalespersonisbeinginequitablebecausemorethannotbeingtruthful,thesalespersonisretainingthepowerhehas(knowledge)overthecustomer.Here,whilethesalespersonistechnicallynotbeinghonest,themoreimmediateandrelevantgesturethesalespersonislackingisthatofbeingequitableandsharingpowerinthenegotiatingwiththecustomer.

Howdoes“beinghonest”manifestitselfinabusiness?• Thebusinessintendstodoexactlywhatitsaysitwilldo.• Thebusinessasksthecustomeriftheyfullyunderstandthetransactionbefore

consummatingit,highlightingtheinformationthatismostadvantageousforthecustomertoknow.Thiscantaketheformofsalesorcustomerservicerepresentativespointingoutalltherisksofapurchaseandmakingsurethecustomerunderstandsthem.

• Thebusinessputstheinformationmostadvantageousforthecustomertoknowupfrontandhighlyvisiblethroughoutthetransactionand/orrelationship.Thiscouldmeanpointingouttothecustomerthatacompetitormighthaveabetterdeal,oronethatmightsuitthembetter.

• Thebusinessdoesnothesitatetotellthetruthwhenitmakesamistake.Thiscouldtaketheformonanannouncementtakingtheblameforanincidentthemomentthecompanylearnsofit.

• Thebusinessadvertisehonestlyandadheretoestablishedstandardsofadvertisingandselling.

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18 5 Gestures of TrustSM

BE TRANSPARENT

“We have nothing to

hide.”

Transparencyhastakenonmanymeaningsinourcurrentvernacular,owinglikelytopopularangstoverreportsoflarge-scaledatabreachesofwhichthepublichaslearnedlongafterthecompanyknew,andperhapswithgrowingdistrustofhowgovernmentmaycontrolinformation.Consumersexperiencetransparencythroughhowwillingcompaniesaretoshareinformation,particularlywhendoingsomightmakethemcompetitivelyvulnerable.Forexample,ifafoodproductcompanydisclosesthatithasexperiencedanoutbreakofabacteriathatcanmakecustomersillbeforeanyoneelsediscoversit,itisbeingtransparent.Food-borneillnessisaseriousmatter,anditsassociationwiththecompanycouldpotentiallyharmitsreputation.Butmostconsumersunderstandthattherearerisksinhandlingfood,andifthecompanydisclosesitsdiscoveryimmediatelyandinformscustomersdirectly–istransparent–ithasactedinatrustworthymanner.Therelationshipbetweencustomerandcompanyismuchmorelikelytobestrongandcontinue.Ifthecompanysuppresses,conflates,orotherwisedelaystherawadmissionofthediscovery,itunderminestrust.Therelationshipislesslikelytocontinuebecausethecustomerbeginstowonderwhatelsethecompanymaynotbedisclosing.

Whenindoubt,over-communicate.Abusinessthatover-communicatesearnsthereputationofbeingopenandwillingtobevulnerable.Thisengenderstrust.

Howdoes“beingtransparent”manifestitselfinabusiness?• Thebusinessadmitsmistakeswhentheyhappenandmakesamendstothe

customerandpublic.• Itsharesprocessesanddecision-making.• Itfreelyoffersinformationaboutitself.• Thecompanyhighlightsitshistoryandmanagement.• Itmakescontactingiteasy.• Itsharescustomerreviews.• Itvolunteerstoabidebyacodeofethicsandtobemonitoredbyan

independentthirdpartyorganization(e.g.BBBaccreditation).

18 5 Gestures of TrustSM

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19A New Framework to Evaluate Customer-Business Relationships

BE PROACTIVE

“Anticipate what it is our

customer might want or need and work

together to achieve their

goals.”

19A New Framework to Evaluate Customer–Business Relationships

Tobeproactiveistotakeinitiative,primarilyintwoways:1)Toanticipatecustomerneedsandprovidesolutions,withoutbeingasked,andattimesevenwithoutcustomerknowledge;2)Torespondquicklyandaffirmatively,withgoodcommunication,tocustomerrequestsorissuesthatcustomersraise.Thekeytobeingproactiveissignalingthatthecompanyisalwaysfocusedonimprovingcustomers’experiencesandthatthisisanormal,notextraordinary,partofconductingitsbusiness.

Whenacompanyisproactive,thecustomerexperiencesitas“delight”or“surprise,”or,attheveryleast,asaverysatisfyingencounter.Fromatrustperspective,itsignalstocustomersthatthecompanywilllookoutfortheirinterest“whennobodyiswatching.”Acompanythatisproactiveisacompanythatisonthesamesideofthecustomersandwillsafeguardcustomerinterest.Thiscan’thelpbutbuildasenseoftrustamongcustomers.

Howdoes“beingproactive”manifestitselfinabusiness?• Asalespersonlistensforthecustomer’sneedaboveandbeyondwhatthe

customersayshe/shewantstobuyandmakessuggestionsthesalespersonthinkswillmostsatisfythecustomer,regardlessofthenatureofthepotentialsaleinquestionatthemoment.

• Ifthecustomerisarepeatcustomerorhasanaccountoranorder,thecompanyreviewsthecustomer’sneedsandbuyingbehaviorsandattemptstomaximizevalueforthecustomer.

• Thecompanyrespondsswiftlyandearnestlytocustomerquestions,requests,andcomplaints.

• Thecompanytakessteps(suchasinculcatingacultureofserviceandhonestyandtrainingemployeeswell)toanticipateandpreventcustomerissuesandpavethewayforpositivecustomerexperiences.

• Thecompanyfindswaystosavethecustomermoneyeitherthroughefficientpricingordifferentiatedpricingbasedonservicesandfeaturesmostimportanttogivencustomers.

• Thecompanyidentifiesandcorrectsmistakesthatmayfavorthecompany,evenifthecustomerdoesnotnotice.

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20 5 Gestures of TrustSM

BE HUMBLE

“I realize that without my

customers, I couldn’t stay in business. I strived to do right by my

clients and to do my best to

make sure they are treated with good customer

service.”

Beinghumblemaynotbethefirstthingacompanythinksaboutwhenbuildingtrustand,ultimately,arelationshipwithcustomers.However,itcanbeamongthemostpowerfulofthetrustdrivers,asitisassociatedwiththecompany’swillingnesstobevulnerablewhenappropriate,whichinturnsignalsthatitisnotlikelytodeceivecustomers.Beinghumbleembodiestheideathatthecompanyexistsaspartofsomethinglargerthanitselfandthereforeanysuccessithasiscreditedinparttootherentities–itscustomers,thecommunity,theinfrastructureitdrawsandreliesupon.Companiesthatarehumbleviewcustomersaspartnersandtryateveryopportunitytohelpthemthriveinthecontextoftheirdailylives.

Atitsbase,beinghumblesignalsthatthecompanyisnotarrogant,butratherisgrateful;isnotentitled,butratherrespectful,ofitsposition.Whencompaniesareawareofandsensitivetotheneedsofothersintheirorbit,andacttosupportthoseneedsattimesovertheirown,theyregisterwithcustomersashumble.Humilityinthiswaysignalstrustworthiness.

Howdoes“beinghumble”manifestitselfinabusiness?• Customerserviceismadeapriorityoverotherthingsthebusinessmaydo.• Itadmitsmistakeswhentheyhappenandtakesresponsibility.• Itensuresthatitbringsthehighestvaluetocustomers.• Itprotectscustomersagainstchoicesthatmaybedetrimentaltothem.• Ittreatsemployeeswithrespectandattemptstodevelopthemaspeople

andprofessionals.

20 5 Gestures of TrustSM

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21A New Framework to Evaluate Customer-Business Relationships

BE EQUITABLE

“It is not only about one

party but about the entire

situation. We partner with

our customers on every single

job, and we treat them

as part of the team in order to successfully facilitate our

jobs.”

Beingequitableisperhapsthelastgestureacompanymayplaceimportanceon,butourresearchsuggeststhatitmaybethemostimportantstepoftrust-buildingcompaniescantake.Commercialtransactionsareinherentlyinteractionsthatinvolveabalanceofpower;companiesseekmoneyfromcustomersandcustomersseekvaluefortheirmoney.Ifatransactiontipspowerinfavorofthecompany,thecustomermayfeeltheymustbewaryofthecompany;ifacompanyfeelsthatitmustretainpowertomakesureitgetspaidordoesnotloseacustomertoacompetitor,itmayattempttoretainpoweritcouldordinarilygranttoacustomer.

Whattypesofpowerexchangeoccurbetweencompaniesandcustomers?Considerthesituationwhereacustomerpaysforaproductorserviceinadvance,andthenmusthopethatthatproductissatisfactoryorexceedstheirexpectations.Inthistypeofexchange,thecompanyholdsthepower;ithasthecustomer’smoneyandtheburdenofensuringsatisfactionisplacedonthecustomer.Inthisinstance,acompanycansharepower–beequitable–bymakingitveryeasyforthecustomertoreturnaproduct,forrefundorreplacement,ifthecustomerisnotsatisfied.Theeasiertheprocess,themoreequitablethecompanyisbeing,andthisengenderstrust.Considerasituationwherethecustomerpaysaftertheproductorserviceisdelivered;inthisinstance,thecompanyinitiallyactsinanequitablemanner.Itcanreinforcethisequitablebehaviorbyaskingthecustomertomakesurethattheyaresatisfiedbeforethecompanybillsthem.

Examplesofwhencompaniesaredecidedlynotequitableare“fineprint”contracts,“baitandswitch”sales,timepressuretactics,andconvolutedreturnpolicies.Whenacompanycancontrolaprocesstoitsownadvantageandtothedisadvantageofthecustomer,andpursuesthepractice,itisnotbeingequitable.Companiesthatmakearegularpracticeofnotbeingequitableruntheriskof“winningthebattlebutlosingthewar”whenitcomestobuildinglastingrelationshipswithcustomers.Companiesthatgooutoftheirwaytobeequitablewithcustomersareineffectassertingthattheyareinterestedinlong-termrelationships.

Howdoes“beingequitable”manifestitselfinabusiness?• Thecompanyhasinplacegenerousreturnpolicies.• Itusessimplecontracts,highlighting(nothiding)informationfavorableand

importanttocustomers.• Itmakespolicesanddecisionsforcustomersthatitwouldmakeforitself,ifit

wereacustomer.• Itrelaxestimeperiodsfordecision-making,dealsthatdon’texpirequickly,or

changewithtime.

21A New Framework to Evaluate Customer–Business Relationships

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22 5 Gestures of TrustSM 22 5 Gestures of TrustSM

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23A New Framework to Evaluate Customer-Business Relationships

WHAT THE 5 GESTURES LOOK AND FEEL LIKE TO THE CUSTOMER

23A New Framework to Evaluate Customer–Business Relationships

Forcustomers,acompanyexperiencefallsalongapositive-to-negativecontinuum.Consumerswespokewithdescribedtheirexperienceintermsofkeyfeelings,policies,orinteractionstheyrecallassymbolicoftheiroverallexperience.Whatweheardandobservedastheyrelatedtheseexperiencesledustocategorizethesedescriptionsasthe5Gestures.

Interestingly,thestoriesourresearchsubjectstelldonotfocusononeofthegesturesinisolation,butratherrelateaninteractionoftwoormore,leadingustodiscernthat,dependingonthenatureoftheconsumerpurchase,onegesturemaydependonanother,oronegesturemayinspireanother.

AnexampleofthistypeofinteractionamonggesturesmanifestsintwostoriestoldbySonya*,aUniversityofMichigangraduatewhoisatrainingdirectorforanAtlanta-basedsoftwarestartup.Shepurposelyjuxtaposedthestoriestocontrastherexperienceasaconsumer.Thefirstinvolvesacompanythatprovidesgourmetfoodandfood-relateditems,packagedinappealingcombinations—oftenasgifts.Shepurchasedsuchagiftpackageforherparents.Shenoticed,however,thatthecompanyplacedanotherchargeonhercreditcardafewweekslater.Sheaskedittoremovethecharge.Whenitwasnotremoved,sheinquiredandwastoldthatshehadsignedupforasubscription—agiftpackagewouldarriveatherparents’homeonceamonth.Sonyaexplainedthatshehadnotrealizedthatwhatshehadpurchasedwasasubscription.Thecompanyrepresentativereplied,“We’resorrythatyouoverlookedtheinformationaboutthesubscription.”Exasperated,Sonyapointedoutthatalltheresponsibilitywasplacedonher,withnoempathyforthecustomer.“Itleftsuchabadtasteinmymouth,”shesaid.“Itwasreallyunfortunate,becausemyparentsreallylikedtheproducts!”

Ifweanalyzethisstoryusingthe5Gesturesasacustomerrelationshipframework,weobservethatthecompanylosesacustomerithadagreatchanceofretainingbecauseshelikedtheproduct.Thecompanyclearlyfailstobe:

*Namesofparticipantsweremodified.

Equitable–Itpreservespoweritcouldhavesharedbyplacingtheblamesolelyonthecustomerfornotmorecloselyreadingorunderstandingthesubscriptioninformation.

Humble–Itpositionsthecustomerasanadversaryratherthanapartner,denyinganyresponsibilityforthecustomer’sunhappiness,challengingthecustomertobecomeadversarialherself.Itreverberateswiththecustomerasarrogance.

Honest –Thesubscriptiondescriptionmaybetechnicallycorrect,butisapparentlynotdeliveredinawaythatpresentsinformationimportanttothecustomerinthecontextthatbenefitsthem(thetruthisrenderedoblique).

Proactive–Thecompanyrepresentative,whenpresentedwiththecustomer’scomplaint,doesnotcommunicatethatitisimportanttoresolvetheissueforthecustomer,butratherbrushesoffthecomplaintbycitingpolicyandthecustomer’sownerror.

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24 5 Gestures of TrustSM 24 5 Gestures of TrustSM

Thecompanyfailsonallfourofthesegestures.Quitepossibly,itfailsonthreeofthefourbecauseitfailsmiserablyononeofthefour–beinghumble.Thecompanyassumestheposturethatitcanoperatebymakingconsumersresponsibleforcarefullyexaminingallinformationrelatedtotheirpurchase,withoutassistingthemwiththatprocess,girdingforcustomercomplaintsbypointingtothe“legalistic”informationthat,inthecompany’sview,absolvesitofresponsibility.Ifthecompanywerehumble–ifitvieweditselfaspartofalargerwholeinwhichallpartiesworktobenefitoneanother–itlikelywouldnotsetuptheinteractionwithcustomersthewayithas.Instead,itwouldgooutofitswaytomakethetermsofthepurchaseclearateverypointpossible;itwouldsharepowerwiththecustomerbymakingthepurchasetermsjustasadvantageoustothecustomerastheyaretothecompany;and,whenpresentedwiththecustomer’sdissatisfaction,wouldlikelytakeittoheart,andimmediatelycommunicateapathtoaddressingit.Clearly,thecustomerinthiscase,Sonya,didnotexperienceanyofthesegestures,andthereforemadethedecisionnottocontinuearelationshipwiththecompany,despiteacleardesireforthecompany’sproduct.

Inhernextstory,SonyaexplainshowsheorderedclothingfromanonlinestorelocatedinEurope.Theclothesarrived,yettheywereadifferentcolorthanwhatshehadordered.Sonyacontactedthecompanytoreturntheitemsandtoseeifthecolorshehadwantedwasstillinstock.Thecompanyrespondedbyimmediatelyshippingherthecorrectorder,two-daydelivery.Sonyawastakenaback—shecouldnotbelievethecompanywouldsendthecorrectedorderwithouthavingreceivedtheitemsshewasreturningfirst.“Nowthatwasawesome,”shesaid.

Inthisinstance,wefindacompanythatwonacustomer,andperhapsacustomer’sloyalty,simplybyofferingthreekeygestures.Thecompanywasclearly:

Proactive–Itrespondedimmediatelytothecustomer’sinquiry,andprovidedapathwaytoresolvingherissue.

Equitable–Thecompanytrustedthecustomertoreturnitemssheordered,sendingareplacementbeforereceivingherreturneditems.Thecompanysharedpoweritwasnotobligatedtoshare,placingtrustinthecustomer.

Humble–Thecompanypresentsthatthecustomer’sneedsareparamount,recognizingthatitisimportanttothecustomertoreceivetheclothinginatimelymanner(andthatshehasalreadylosttimebyreceivinganincorrectorder).Thecompanypositionsthecustomerasapartnerinthebusiness’ssuccess.

Anotherconversationwehad,withJohn,aretirededucator,underscoreshowalocalhardwarestorehaskepthimasalongtimecustomerwhenhehasmanyotherchoicesthatmightsavehimmoney,likelargerboxstores.Johnexplainedthatthestoreisverydifficulttonavigateunlessyou’vebeentheremanytimes,becauseitissmallandcrammedwithmerchandise.Hetoldofgoingthereforatoolheneededbutwhichthestoredidnothave.Theservicepersonhelpinghimimmediatelyreferredhimtoacompetitorheknewdidhavethetool,eventhoughhetoldJohnhecouldorderitforhim.TheservicepersonfeltthatJohnneededthetoolthatdaytocompleteaweekendprojecthewasworkingon.TheservicepersonspentfurthertimewithJohn,explainingtohimhowtoensurethetoolwastherightone,andhowtosavesometimeandmoneyonhisproject.

Johnwasappreciative,andknewhewouldreturntothestorealways,regardlessofthefactthathevisitedacompetitorwhomethisneedatthatmoment.

ThehardwarestorehaswonJohnasalong-time,loyalcustomerbecauseitwas:

Proactive–Itlistenedtothecustomer’srealneedandsolvedhisproblemwithoutthecustomerhavingtoask.

Humble –Itsawthecustomerasapartnerwhoseinterestsitwasbentonprotecting,andputthecustomer’simmediateneedoverthecompany’sshort-termprofit.

Equitable–Itsharedinformationitcouldhavekepttoitselfandcouldhavecontrolled.

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25A New Framework to Evaluate Customer-Business Relationships 25A New Framework to Evaluate Customer–Business Relationships

Aswecontinuetoanalyzethefeedbackwe’vereceivedfromconsumersthroughourin-depth,observationalinterviews,andsurveys,thewayinwhichthegesturesinteractbecomesclearer.Figure14presentsthe5GesturesoftheTrustSMFrameworkforbettercustomer-businessrelationships.

Figure 14 – 5 Gestures of TrustSM Framework for Better Customer-Business Relationships

AconversationwithMike,adirectorofsalesforatechnologycompany,revealshowbeingequitablecangoalongwaytowinningcustomerloyalty,andittakestheformofaclear,consistent,simple,andgenerousreturnpolicy.Whenaskedaboutpositiveexperienceshehashadwithbusinessesasaconsumer,Mikeimmediatelyidentifiedorderingfromaknownonlineretailerasone.Hesaidthatwhenhe“clicksthatbuybutton,”hefeelscompletelyprotectedbecausehewillhave60daystoreturntheitemshehaspurchased,noquestionsasked.Healwaysfeelscomfortableorderingfromthisonlineretailerforthisreason,ashehasexperiencedthatthecompanybacksuptheoffer.Inthisinstance,thecompanyhaswonaloyalcustomerbecauseitis:

Equitable–Itsharespowerinthetransactionbyofferingthecustomerasimplewaytogettheirmoneybackiftheyareunhappy.Thisremovesriskfromtheequation,whereasitmightotherwiseexistbecausethecustomeristurningovermoneytothecompanyaheadofreceivingdeliveryof,andexperiencing,theproduct.

Honest–Informationthatisrelevanttothecustomerispresentedwhenitisneededandthroughouttheexperience,helpingtoensurethatthecompanydeliversonitspromiseinapreciseandmeaningfulway.

Thediagramshowsthatbeinghonest,aswehavepointedout,servesasaproxygesture,onethatappearstobeacatch-allforall5Gesturesandoftenthemostvisibleofthem;thatis,regardlessofwhichcombinationofthe5Gesturesinteracttobuildtrustwithacustomer,thecustomerislikelytoperceive(call)theexperienceaseitherhonest,dishonest,orsomewhereinbetween.

However,asthedatawediscernedandstoriesrecountedbyconsumersaboveillustrate,all5Gesturesareimportant,andservetocreateasenseofhonestyintherelationshipbetweencompanyandcustomer.Thishonestysupportstrust,whichinturnformsthesupportfortherelationshipitself.

Be Humble

Be Transparent

Be Proactive Be

Equitable

Get Trusted

Be Better

Customer-Business

Relat

ionsh

ips

Show

RespectCo

nsistent

Competent

Consistent

Compe

tent

Be Honest

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26 5 Gestures of TrustSM

CONCLUSION

26 5 Gestures of TrustSM

Onedoesn’thavetoreadveryfarinthedailynewstofindinstancesofcompaniesbreakingtrustwithcustomersand,inmanycases,losinglong-termrelationshipstheyhavewiththem.Usingthe5GesturesofTrustSMasaframeworkcanbeacautionaryandinstructiveexercise.Itcanhelpcompaniesidentifyspecificculturalpracticesandritualsoftheirownthateitherbuildorunderminecustomertrustand,ultimately,relationships.Wehopethatbuildingacompanyculturebasedonbehaviorstiedtothe5Gesturescanprovideafoundationforlastingcustomerrelationshipsandsimultaneouslyserveasabulwarkagainstpracticesthatmaydestroyacompany’spublicreputation.Belowarespecificactionsyoumighttaketoputthisinsightintoserviceforyourimmediatebenefit:

1.Askyouremployeesandcustomersaboutexperiencesthey’vehadthatmadethemlikedoingbusinesswithyou,or,alternately,thatmadethemlesscomfortable.Askthemtogiveyouexamplesandtalkaboutthem.Applythe5Gesturesandseeifyoucandetecteitheranexampleofsuccessorabreakdowninanyofthefiveareas.Keepinmindthatthosegivingyoufeedbackwillnotlikelyusethetermsthatwehave(e.g.humble,equitable),butmaydescribeinstancesthatarecharacteristicoftheexampleswedescribed.Bepreparedtoseecross-overorinteractionamongthegestures.

2.Whenyoureceiveacustomercomplimentorcomplaint–whetherintheformofacomment,letter,emailorsomethingmoreformalized–applythe5Gesturesframework.Seeifyoucanidentifywherethecustomerperceivesthatagestureismissingorhasbeengrosslyviolated.Doingsocanhelpyoupinpointtherootoftheproblemthatthecustomerisexperiencingandproperlyaddressit.Sometimesacustomersimplymaybeangry,andcannotclearlyidentifyforthemselveswhatisangeringthemaboutanexperience.Applyingthe5Gesturesframeworktothesituationcanhelpyouuncovertheprobleminterferingwithyourrelationshipandeffectivelybridgethechasmthatgeneratedthecomplaint.

3.Planadiscussionwithyouremployeesaroundthe5Gestures.Askthemtoidentifythegesturesintheirowndailypractice.Userealexamplesfromtheirdailyexperiencewithcustomers–positiveandnegative–andbreakthemdownusingthe5Gesturesframework.Thiswillnotonlyhelpallyouremployeestobecomemoreawareofandempathizemoredeeplywithyourcustomers’needs,butwillhelpdevelopacultureofrespectandtrustwithinyourcompany.Youremployeesmaybecomemoresensitivetohowtheyarebuildingtrustwithoneanotherandwithcustomers.

4.Ifyouusecustomersurveysorsolicitfeedbackfromcustomersregularly,incorporatequestionsaddressingthe5Gesturesthatgobeyondaskingaboutmeresatisfaction.Ifyousolicitopen-endedresponsesonsurveys,askhowanexperiencewiththecompanymadethecustomerfeelandthenlisten(read)forcluesthatmaypointtooneormoreofthe5Gestures.Keepinmindthat“honesty”isoftenacatch-allfortheothergestures,soyoumayhavetolistendeeplyforwhatthecustomermayreallyberespondingto.

5.Usethe5GesturesofTrustSMframeworktostrategicallyplanhowyouapproachyourcustomerrelationships.Startbyassessingwhereyouareintermsofeachofthegesturesandthentargetwhereyouwanttobe.Identifythegapsandplanhowtoclosethem.

Inclosing,consumersseemostbusinesstransactions—particularlyserviceonesthatinvolverelationships—ashumantransactions,ratherthanstrictlyfinancialones5.Despitetechnologicaladvancements,in-personisstillthepreferredmethodofcustomerserviceforthemajorityofconsumers,evenyoungerones6.Thus,humanizingbusinessrelationshipsisimportant.Wehopethatthe5GesturesofTrustSMcanassistbusinessesintheirquesttobecomemore“human.”

5 https://www.bbbtrusted.org/better-series/2016/06/custom-ers-trust-business/6 https://www.bbb.org/trustindex/

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27A New Framework to Evaluate Customer-Business Relationships 27A New Framework to Evaluate Customer–Business Relationships

AUTHORS/ CONTRIBUTORS Craig HonickismanagingpartnerofMetroTribal,amarketinsightandbrand-storydevelopmentfirmbasedinCharlottesville,VirginiaandSeattle,Washington.Heisanappliedethnographerandveteranmarketingconsultant.Formorethan20yearshehassurfacedandreconstructedthenarrativesthatindividualsandgroupsusetoguidetheirdailychoices.Withthisinsight,hehashelpedcorporations,nonprofitsandgovernmentagenciessuccessfullypositiontheirbrands,productsandservicestocustomersaswellastheirownemployees.

Dr. Rubens Pessanha,PMP,SPHR,GPHR,SHRM-SCP,seniordirectorofmarketresearch,insightsandstrategy,withCBBB,hasmorethan25yearsofglobalexperienceinmarketing,strategicorganizationaldevelopment,projectmanagementandmarketresearch.HehaspresentedatconferencesintheU.S.,Japan,SouthAfrica,BelgiumandhisnativeBrazil.AproductionengineerwithanMBA,hecompletedhisdoctorateatGeorgeWashingtonUniversityinMay,2017.Inhissparetime,Dr.PessanhacurrentlyservesasanadjunctprofessoratStrayerUniversity.

Alexis Chng-Castor,directorofBrandCreativeattheCouncilofBetterBusinessBureaus,isanexperiencedmarketerandcreativedirectorwithanaward-winningbrandportfolio.NativetoSingaporeandfluentinthreelanguages,sheleveragesherknowledgeandexperiencewithdiversemarketsinallaspectsofmarketinganddesign.Duringherfreetime,shechannelsherlovefordesignintoherpersonalprojects.

Thanks to the BBBs that helped with data collection for this research report:• BBBofMetroAtlanta,Athens&NEGeorgia• BBBofUpstateNewYork• BBBofMetropolitanNewYork• BBBofChicago&NorthernIllinois• BBBofCentralOhio• BBBofLosAngeles&SiliconValley• BBBofSaskatchewan• BBBofHawaii• BBBofEasternNorthCarolina• BBBServingNorthernColoradoandWyoming• BBBServingConnecticut• BBBServingWisconsin• BBBServingArkansas• BBBofGreaterMaryland• BBBServingCentralandWesternMAandNortheasternCT• BBBServingNorthCentralTexas• BBBServingGreaterCleveland• BBBMetroWashingtonDC&EasternPennsylvania• BBBServingUtah• BBBServingWesternMichigan

Resources for Better Businesses:• BBBAccreditationStandards-http://www.bbb.org/accreditation-standards• BBBCodeofAdvertising-http://www.bbb.org/code-of-advertising• BBBCenterforCharacterEthicsfromtheBBBInstituteforMarketplaceTrust-

bbbmarketplacetrust.org/category/295591/center-for-character-ethics

Page 28: 5Gestures of Trust › ... › 5GesturesofTrust_Final_web.pdf4 5 Gestures of TrustSM INTRODUCTION SM 5 Gestures of Trust Losing customers or prospects has a very real cost to a business.

Formorethan100years,fromsmallcommunitystorestomultinationalenterprises,BBBhasbeenontheforefrontofpositivemarketplacechangebypartneringwithleadingcompaniescommittedtothebestpracticesofbusinessethics,marketplaceexcellence,andeffectiveindustryself-regulation.Trustalwaysmatters.BBBisdeeplycommittedtobuildingandadvancingabettermarketplace,atrustedmarketplaceforall.

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