Trust isn’t only critical to developing personal relationships—it’s also the heart of successful organizational strategies. To thrive in the new age of trust, companies should work to build trust equity every day. Doing so, however, will require making trust measurable. In the 52nd episode of the TrustTalk podcast the host, Severin de Wit, talks with Deloitte‘s Natasha Buckley and Michael Bondar on how trust performance is researched and measured.
Trust drives enterprise performance and mitigates risk. Trust elevates customer and brand loyalty, which can increase revenue. It enhances levels of workforce engagement, which can result in increased productivity and workforce retention. They talk about the old adage that you can only manage what you can measure and how Deloitte measures trust to help clients make strategic decisions. Natasha and Michael also talk about how specific operating areas like superior customer service, delivering innovative solutions or protecting customer data significantly elevates trust in a brand, leading to higher performance.
We talk about digital engagement and digital transformation and why they are key drivers of trust, about AI and how it can help to validate information accuracy, how trust across different stakeholder groups can be maintained and the trust challenges that lay ahead.
Trust and organizational success
Michael Bondar about what trust means to organizational success:
Over the last three years, we have seen a tremendous amount of not just interest from media, organisations, leaders across industries and sectors and all over the globe, but real traction in terms of what trust means to organisational success, from financial performance to building brand loyalty and customer loyalty to workforce engagement and brand protection. Those are just some of the key elements of impact that we see trust having. And so for me, this has become my life and the team and I spend our days every waking hour thinking about how we can help organisations become more trusted.
we observed the importance of different organisational traits and their impact on resilience and the ability of the company or organisation to weather the crisis. These traits included organisational preparedness, adaptability, collaboration, accountability and trustworthiness. Organisations that demonstrated the traits were weathering the pandemic more effectively than those who didn’t. So for example, with respect to trust, CXOs recognized the challenge of building trust, but not all recognized that trust is actionable. So for example, more than a third of the responding CXOs were not confident their companies had succeeded in developing trust between leaders and employees. Those who were more confident, focused on implementing measures to improve communication and transparency with their employees and other key stakeholders
About Brand Protection and Trust
We see brand protection organizations that are impacted by negative trust events fall anywhere from 26 to 74% behind their industry peers in value. And their market cap can fall by 20% to 56%. Workforce engagement: we see nearly 80% 79% of employees who highly trust their employer feel motivated to work. And then customer loyalty. A critical measure of success, out of customers who highly trusted brand, 88% bought again from that brand and 62% buy almost exclusively from that brand. So trust is quantifiable and its impact is significant, as you can see by these numbers.
Interview on the TrustTalk YouTube channel (with subtitles)
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