Technology has shifted the balance of power from businesses to customers as they have new abilities to research competitors, check reviews and communicate customer experiences. These same customers can also rally together online to demand accountability or change from a business due to positions on polarizing social or political issues, treatment of employees, etc. Transparency and trust hold more value nowadays as companies are examined with greater scrutiny and from different angles.
In this guest blog post, Adam Baruh, CEO of SuiteCentric and Annex Cloud partner, will share five statistics that highlight the importance of transparency and trust when it comes to customer loyalty and retention.
1) 85% of Americans are likely to stick with a business during a brand crisis if it has a history of being transparent. (source)
Transparency is one of the foundational elements for building customer loyalty, and it feeds into a company’s overall reputation. Customer loyalty and trust are not earned overnight so committing to transparency, and maintaining this commitment through good times and bad will help create long-term relationships with customers. Leveraging this history can help businesses weather the storm of a crisis, and a commitment to transparency can also be a differentiator (like it is for our company, SuiteCentric).
2) 70% of consumers are interested in hearing about the social, health, environmental and safety impacts of the products they buy or the company that makes them. (source)
It’s easier than ever for customers to research products because the entire internet is at their fingertips through their mobile devices. Unfortunately, it’s just as easy for customers to access and spread misinformation about these products. Businesses that provide detailed information about products are better positioned to ‘own’ or direct conversations happening online and offline. It is also critical to monitor ongoing and new conversations about products to assess the need for a response and to determine the type of response that is suitable. This approach demonstrates to customers that the business is actively listening and values their feedback, which can help build loyalty.
3) 64% of consumers globally are belief-driven buyers. This means they are willing to buy or boycott a brand because of its position on social or a political issue. (source)
Wading into these waters can provide opportunities to forge stronger bonds with certain groups, but it can also drive other groups away. With the rise of social media, we have seen countless examples of a business’s good intentions being misunderstood or miscommunicated in ways that are damaging. Not all issues or topics need to be addressed, and companies need to be prepared for negative responses regardless of the position or side taken. Understanding the nuances of the issues, remaining consistent with messaging, and staying receptive to outside feedback will help businesses navigate through these situations.
4) 78% believe how a company treats its employees is one of the best indicators of its level of trustworthiness. (source)
The internet and social media have enabled anyone to broadcast their thoughts or grievances about any subject, and ‘work’ is among the most popular. Employees can be great ambassadors, but the opposite is also true in certain situations and, on occasion, it can be warranted.
Other than treating employees fairly and maintaining open dialogues about their experiences, companies should actively monitor online conversations that discuss this topic. Much like statistic #2, knowing is better than being in the dark. One tactic taken by many companies involves engaging in these online conversations from a corporate account or from a company representative’s account to answer questions, admit fault (when appropriate) and let people know they are listening. This process can build trust among customers, prospective customers, and employees alike.
5) 67% agree “a good reputation may get me to try a product, but unless I come to trust the company behind the product, I will soon stop buying it.” (source)
This statistic highlights the overall challenges associated with customer retention and proves that the sales process is never really finished. Consumers are inundated with personalized advertising each day across a variety of mediums, so businesses need to appeal to them individually and repeatedly. In this case, the new customer has been ‘told’ about a company’s reputation, and now the company needs to ‘show’ them how it was earned by delivering on promises and remaining transparent along the way. These are key factors for obtaining trust and developing a loyal customer base, and they must be repeated in perpetuity.
Are you looking for an ecommerce or ERP solutions partner that you can trust?
Look no further than SuiteCentric because we provide TransCAREncy to all customers. This is a trademarked word created to symbolize how our team manages relationships with customers, partners and contacts. SuiteCentric provides complete transparency in all interactions and communications while maintaining a genuine desire to help businesses and people achieve their goals. If you are looking for a committed partner that can execute NetSuite integrations, customizations and more, then please contact us for a free consultation!
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SuiteCentric is a NetSuite implementation and development services provider focusing on SuiteCommerce Advanced (SCA), ERP, and custom solutions. They are members of NetSuite’s Commerce and Alliance Partner Programs, and their team is also SuiteSuccess certified. Leveraging decades of experience as NetSuite end users, and as consultants, SuiteCentric delivers scalable long-term solutions for customers.