Profiting from trust? It almost sounds sacrilegious. However, let’s take a look at the ROI of building trust with your customers. There is definitely a cost-benefit relationship.
Your Better Business Bureau is here to point customers in the direction of trustworthy companies because we believe an ethical marketplace creates a win-win opportunity. Business owners enjoy the benefits of building customer loyalty and a reputation for being unique in their respective industry. Customers shopping for products and services see the BBB Seal of Trust and buy with confidence, knowing they are getting quality and value from a responsive company.
Stephen M.R. Covey lays out the ROI proposition very well in his book The Speed of Trust. Covey writes: “Trust always affects two outcomes – speed and cost. When trust goes down, speed will also go down and costs will go up. When trust goes up, speed will also go up and costs will go down.”
Using the trust=speed=lower cost equation, look at your business. In those areas where trust has been breached, whether with employees or customers, consider the additional costs and loss of efficiency. Added paperwork, equipment and investment of time managing the lack of trust have real costs and pull you away from the big picture of innovation and identifying new ways to grow your business.
On the flip side, when you trust your employees, vendors and customers, you dramatically increase the speed and effectiveness of interactions, find new efficiencies and as a result, drive down costs. Patricia Aburdene writes in Megatrends 2010, “Transcendent values like trust and integrity literally translate into revenue, profits and prosperity.”
Take a moment to assess the level of trust in your business. Is the level of trust growing profits or is it costing your company? Put your BBB accreditation to work at building trust and increasing profitability.