Confidence is an early casualty in recessionary times. In its place doubt can spread through the economy like a virus. We are all more willing to take risks when confidence is high. But when businesses are going to the wall, jobs are being cut, and people are increasingly concerned about what may lie ahead, a `squirrel mentality’ of hoarding and fear can drive many to question what they are buying, who they are buying from and the value of their purchases.
Far from being an old-fashioned value of dubious worth, trust has made a come-back - big time. It has become as important an asset as dollars and cents – if not more so. Without it success, and continued existence, are threatened.
Recession increases doubt and doubt increases perceived risk - something that must be minimised to remain competitive. As consumers, we are more critical and cynical, than we’ve ever been. There’s also significantly more competition than there’s ever been. Engendering confidence, and building trust, have always been an important part of creating and maintaining a competitive advantage. Post global recession – it’s become essential.
Recent research from Sustainable Advantage at Hayes Knight found 75 per cent of respondents no longer buy from businesses they don't trust. More than half - 55 percent - said they had stopped buying from a business they didn't trust in the previous six months, and 61 percent of them then urged family and friends to do the same.
On the up-side, 75 percent of those interviewed said that hearing good things about a company from family and friends influenced their purchasing behaviour. People do business with people, or more specifically, people do business with people, and companies, they trust.
We are at a `tipping point’ of the deadly doubt virus right now. So what can businesses do to demonstrate their continued relevance to customers, and reduce doubt about their ability to deliver?
• Avoid being to different, instead be distinctive. Being different can be risky; being distinctive is valuable;
• Avoid making wild claims and promises you may not be able to deliver on.
Ensure all claims are viable and realistic;
• Encourage people to try your service for minimal or no cost;
• Whether using written or verbal communication, use words and phrases that will reassure your customer and reduce perceived risk;
• Indentify, and tap into, any `grapevines’ that may impact you and keep up-todate with trends and concerns amongst your customer base. Clarify with your customers what fears and doubts they have;
• Demonstrate you are aware of the pressures customers face and pre-empt
common questions to build confidence;
• Avoid fear based selling, focus instead on why purchasing from you will enhance their sense of value and security.
Head off doubt about our businesses before it becomes terminal, being pre-emptive where necessary. Always act with integrity and nip in the bud areas that might encourage the `doubt virus’ to spread.
Download Hannah’s free report: ‘Reputation Branding Essentials’ at
www.hannahsamuel.com. PLUS! opt-in to receive ‘Reputationz – Hannah’s monthly electronic newsletter – and receive a page ebook - ‘Reputation Rules’ - absolutely free, (retail price: $9.99)
Hannah is a specialist reputation advisor, professional speaker, author and founder of online performance-based service directory, TRUSTcite. Contact her by email on: info@hannahsamuel.com.
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