Why Customer Trust Is Crucial to Business Survival

importance building customer trust in business

A recent Edelman survey found that 81% of respondents ranked brand trust as one of the top factors to consider when choosing a company. But only 34% said they trust the brands they use.  So building trust in business can help companies generate leads and improve the bottom line.

Read on to learn why customer trust is so essential to a company’s survival.

Trust Helps You Retain Customers

Many businesses focus more on attracting new customers than retaining their current customers. But building trust and retaining your current customers actually saves money, since it costs five times as much to attract a new customer as it does to keep an existing one.

Repeat customers are also a bigger source of income. The probability of selling to a return customer is 60-70%, while the probability of selling to a new customer is only 20%. 

Customers Don’t Trust Advertising

When customers are constantly bombarded with advertising and messaging, they become skeptical. The Edelman survey showed that 41% of consumers don’t trust advertising to be accurate or truthful. But if the customers have personal experience with a company, or receive a referral, they’re more likely to trust the service.

Customers Give Referrals

While most people don’t trust advertising, they do trust friends and family. This means that customers who refer others to you can bring in more new customers than advertising can. Even better, one referral can turn into many as your new customers continue to spread the news. 

Customers Leave Good Online Reviews

Since most consumers don’t trust a company’s advertising, they turn to online reviews to make decisions. In fact, 82% of American adults read online reviews when shopping for products. When your customers trust you enough to leave good reviews online, their feedback may attract customers you can’t reach by yourself.

Customers who have had a good experience may also be willing to leave you reviews that you can post on your own website or social media. Like online reviews, these glowing words influence potential customers, who want to hear from people in similar situations. 

Customers Take Your Advice

When customers trust your advice, they’ll turn to you. You can build this trust by providing your customers with the best options, even when it doesn’t benefit you.

For instance, tell your customers how they can save time or money, even if you don’t get any compensation for your advice. If you’re not the right fit for a job, give them a referral for what they need. Then, when they need your service, they’ll be more likely to turn to you.

Customers Trust Your Brand Whenever It Appears

One important part of building trust is to standardize your advertising, slogans, and services throughout your whole company. Make sure that the customer service department has the same information as the sales department. Even brand appearance and logo matter for customers, so when you print materials or shop name tags, make sure they match the rest of your brand’s image.

Inspire Trust in Business

Building trust in business will give you a reputation for good work and integrity. When you make your customers your most important asset, they’ll value you in return and help your business grow.