By Martha Rogers, Ph.D.
Previously we discussed the importance of transparency as an element of customer advocacy. We showed how companies and even whole industries such as pharmaceuticals are making more information available to customers. This week, we explore the importance of trustworthiness in the context of customer advocacy.
Trustworthiness, according to Forrester Research, occurs when companies are "trusted by their customers to do what's right for them, whether or not regulations, such as privacy laws, require it." That means going above and beyond the call of duty to earn a customer's trust and the best way to do that is to see the situation from the customer's own perspective. (Let's keep in mind, of course, that there are many different customers, with many different perspectives). We believe trust can be operationalized as well as communicated. Effectiveness lies in executing in both areas.
-- Open up to trust --
Operationally, trustworthiness actually has a lot to do with our last topic: transparency. We believe trust can be built into every customer interaction and every corporate action.
For example, TRUSTe and Ponemon Institute recently ranked American Express number one in their annual survey of the most trusted companies. Of course, by its very nature, American Express must work to earn and keep its customers' trust, for the same reason that your bank would have to, or your stock broker. But we believe trust is baked into every aspect of this company's
operation.
From the contact center to the Web site to the services offered by the company, many important activities seem to be explicitly aimed at doing what is right for the customer. Although most major card issuers may charge up to 5 percent on transactions in foreign currencies, American Express charges 2 percent.
When Delta Air Lines, whose credit card and frequent flyer partnership is maintained by the company, went into Chapter 11 earlier this month, American Express extended $350 million in financing to protect its credit card customers.
And according to CardWeb.com, an online news and advice site for consumers, American Express holds the number one and seven spots in its top 10 rankings for student credit cards. In the short term, student-based revenue isn't going to make or break any quarterly revenue projections. But by
extending its brand, privileges and status to the parents of students, American Express increases its status as a trusted advisor for parents as well as their future MVCs -- students.
Other companies in the survey also show operational trust practices that are based on customer advocacy. E-Loan (number 16 ) doesn't pay its brokers commission based on the rate of a loan. It says so right on its Web site, so
consumers are encouraged to get "the rate you deserve." Apple (number 13) had to learn the hard way about customer advocacy and trust. After settling a class action lawsuit on faulty battery life on its early model iPods, it recently met complaints of screen problems with the new iPod Nano with immediate product replacement.
"Helping corporate partners increases consumer trust, and taking the view of all stakeholders increases customer trust," says Clare Hart, CEO of Factiva, a New York-based consultancy that specializes in corporate reputation. "And as you can see with Apple, sometimes you have to learn a tough lesson before you get it. But that's OK as long as you don't repeat your mistakes."
-- Open and honest --
Communication is the second key element of trustworthiness.And transparency is important to communication. Companies are expected to look out for their own interests. There's nothing wrong with that. But the customer needs to be included in those interests. We think it's great that pharmaceutical
companies now post clinical trial information, but why isn't there more information available on current drug testing?
Communication from a company is as important as communication about a company. As Alan Moore said Oct. 10 in the
So the information your company puts out needs to advocate the customer perspective. We've seen two small companies recently that do an excellent job in this area. The first is Baby Einstein. This manufacturer of videos, toys, and books for toddlers uses its Web site to take on every academic study and published article that undermines the very existence of its company. Should toddlers watch TV
You can get both sides of the issue and make your own decision on its Web site, with authority behind it.
The second is a very small company called Healthy Harvest. It makes a rinse for fresh fruit and vegetables, and claims that its product is a "safe way to reduce pesticides." But could it be better than tap water? The Healthy Harvest label folds out into a scientific discussion complete with charts and graphs that addresses that issue. It's an example of how communication, and a consumer perspective that's woven into the corporate DNA, will build trust