Eighty-three percent of consumers globally rate transparency and ethical behavior as vital to building trust, according to SAI Global Pty Limited's inaugural Consumer Trust Index. Topping the list at 88 percent is a reputation for good quality products and services.
The global risk management firm surveyed 3,035 consumers globally between November 2016-January 2017, to help businesses understand what trust means to them – how it is built, protected, lost and restored.
Peter Granat, CEO of SAI Global, said taking an intelligent approach to dealing with organizational risk is critically important for businesses to ensure continued success.
"With technology rapidly altering and expanding public access to information, understanding consumer trust and knowing how to protect it is imperative," said Granat. "Trust is a powerful, valuable and fragile business asset -- once lost, it can be difficult to win back."
The Consumer Trust Index indicates that 43 percent of customers would never return to a company following a data breach. Poor customer experience (31 percent) and poor treatment of employees (29 percent) would also keep customers away.
The report highlights three key areas that can help businesses minimize the loss of trust and protect it going forward.
1) Handle failure well
Forty-seven percent of consumers strongly believe that trust can be won back if responsibility for a failure is acknowledged, systems to prevent repeat errors are established and quality service is ongoing. Companies that are vigilant in their response to crises and use a risk management framework to prepare and guide them through, are more likely to win back the trust of their customers.
2) Embed a risk-aware culture
Eighty-two percent of consumers believe excellent customer service and providing quality goods and services are signs of trustworthiness. The use of quality management systems that embed a risk-aware culture are essential for companies to deliver a positive customer experience and build trust.
3) Take an Intelligent Risk approach
Taking an Intelligent Risk approach – identifying, managing and optimizing risks – will help organizations minimize consumer trust issues. This enables organizations to focus on strategic goals, understand their risk appetite and allow them to take advantage of opportunities – all while building trust with their customers.
“Today's consumers wield enormous power in the trust relationship, which is why it's so important to understand and protect their trust – particularly during times of crisis,” said Granat.