Tomorrow Takes
trust
—MOHAMED KANDE
VICE CHAIR, CONSULTING SOLUTIONS
CO-LEADER AND GLOBAL ADVISORY LEADER, PwC US
“Each leader in an organization is likely to work with stakeholders with varying definitions and expectations of trust. It is important that leaders consider those different perspectives as they seek to establish and foster trust.”
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Build trust by listening
to stakeholders
PwC’s survey found there’s a trust
gap between business leaders, their customers, and their employees.
Here’s how to close it.
Who should lead trust initiatives?
Management and employees also disagree about whether trust initiatives should be started by top management or employees. In PwC’s survey, 47% of executives feel trust is a bottom-up initiative, but only 27% of customers and 35% of employees agree, indicating that they expect the C-suite to take the lead on trust.
Most industries maintained the trust they earned during the pandemic. Health care—most likely based on the traction it earned by producing tests, treatments, and vaccines to deal with COVID-19—is a prime example of an industry that’s more likely to have gained trust. In contrast, government, tech, media, and telecom sectors are more likely to have lost consumer trust in the past year—possibly due to increased political polarization in the U.S.
Understand issue disconnects
A growing number of business leaders are attempting to increase trust with stakeholders by working to improve social issues like diversity, equity, and inclusion (DEI), as well as environmental, social, and governance (ESG). Half (50%) of the executives surveyed strongly agree that their companies should invest in and stand up for social and racial equity, and 43% believe companies should not operate in markets where there is geopolitical or social unrest.
Yet these issues don’t resonate as strongly with consumers and employees as they do with business leaders. Why? It’s likely due to day-to-day realities—such as pandemic fatigue and the rising prices for essential goods—that demand people’s attention and help them decide whether they trust a particular company and its leadership. While consumers and employees may appreciate the fact that companies are making ESG investments, they’re less likely to say that these actions increase their trust—especially when many companies have raised prices.
Clearly, business leaders don’t always know what’s on customers’ and employees’ minds, which can lead to inadequate communications. Almost half (45%) of executives use transparent communications to build trust with consumers and employees, but only 13% of consumers and 19% of employees rank these communications as priorities.
What are customers’ top priorities? About a third (34%) list affordable products and services as a top-three way to earn trust. Another top priority for consumers is treating employees well. Unsurprisingly, this is also the No. 1 factor for employees, with 47% of them picking it as a top-three important step to earn their trust.
“There’s no secret sauce to building trust, but proactively communicating with stakeholders about what you’re doing to build trust—and backing those words with action—is a critical step. Every company has a story, and business leaders need to make sure that the story they are telling is authentic to the company’s actions, operations, and its culture; what we do as organizations isn’t just about numbers—it’s about people, the communities we serve, and making a lasting impact.”
—WES BRICKER
VICE CHAIR - TRUST SOLUTIONS CO-LEADER, PwC US
Note: This article was created by PwC.
Measuring the value of trust
Though trust can be elusive, PwC’s survey found that ROI can be measured.
In fact, trust can help increase customer revenue and employee loyalty. Conversely, a lack of trust can result in the loss of valued customers, essential supply chain partners, and talented workers—all metrics that can be monitored, measured, and managed.
Given trust’s make-or-break value to business, it should be a top priority for companies in all sectors. That requires leaders to develop proactive strategies to foster trust by establishing continuous dialogues with stakeholders. Companies can also use their supply chains to help build trust by offering affordable and available products and services, prioritizing domestic talent and resources, and responding to customer concerns such as stock shortages. In turn, suppliers want confirmation that they will be treated fairly and their contracts will be honored.
Strengthening trust can directly impact the bottom line. In this latest survey, 91% of customers said they would buy more from a company that gained their trust, and 14% of that group said they would buy significantly more. On the other hand, 73% of customers said they would buy significantly less if a company lost their trust.
Q: In your opinion, which of the following are the most important steps a company can take to earn your trust as a customer?
(Select up to 3). Note: Only top 7 selected shown.
Source: PwC Consumer Intelligence Series on Trust, June 2022
Base: Consumers 2,508
20%
Leadership admits to mistakes quickly and honestly
20%
Good corporate citizen
21%
Responds to feedback and provides a reliable experience
23%
Quick response and resolution to customer concerns
31%
Variety of high-quality products/services
33%
Treats employees well
34%
Affordable product/services
Build trust with customers by focusing on affordability, employee treatment and variety
According to employees, if their employer does something to gain their trust, 93% would likely remain loyal to that company, and 90% said they would probably defend the business to others. Trust also can go a long way toward enhancing talent acquisition and retention, but when there’s a breach of trust, many employees will hold their company accountable. A staggering 71% of employees say that they’re likely to leave if their company does something to lose their trust. This proves that trust is a determining factor in company success. By building that strong foundation of trust, business leaders can strengthen employee retention, as well as customer loyalty, to ensure a better future for the company overall.
Q. If a company does something to gain your trust how likely are you to...?
(Percent of consumers/employees saying "very likely" or "likely")
Source: PwC Consumer Intelligence Series on Trust, June 2022
Base: Consumers 2,508; Employees 2,002
91%
Buy from
the company
Employees
Consumers
Unlikely
Likely
Recommend the
company to others
90%
88%
92%
91%
Think highly/have a positive perception
of the company
90%
83%
Defend the
company to others
64%
60%
Share information
about the company
on social media
93%
90%
Be or feel
more loyal to
the company
Q. If a company does something to lose your trust how likely are you to...?
(Percent of consumers/employees saying "very unlikely" or "unlikely")
Source: PwC Consumer Intelligence Series on Trust, June 2022
Base: Consumers 2,508; Employees 2,002
Be or feel
more loyal to
the company
Share information
about the company
on social media
Defend the
company to others
Think highly/have a positive perception
of the company
57%
73%
Recommend the
company to others
Buy from
the company
Unlikely
Likely
Employees
Consumers
71%
Leave the
company
58%
71%
58%
73%
56%
74%
55%
64%
58%
73%
Important steps to earn trust as a customer
—TIM RYAN
CHAIR AND SENIOR PARTNER, PwC US
“To make an impact on trust, businesses should take the time to communicate transparently about the basics that employees and consumers prioritize—and then move on to environmental goals and larger societal issues to credibly maintain trust with their stakeholders.”
Out of the 503 business executives surveyed in PwC’s 2022 Trust in US Business Survey, 87% believe that consumers have a high level of trust in the companies with which they do business. However, it may be surprising to learn that only 30% of the approximately 2,500 consumers surveyed said they actually have a lot of trust in companies.
When it comes to employees, the survey revealed less of a disconnect. Though 84% of the business leaders surveyed think employee trust is high, 69% of employees agree.
The survey reveals a stark divide between business leaders’ views of their company's level of trust with stakeholders and the opinions of their customers and employees. What has become clear is that company leaders need to deal directly and quickly with this trust gap, as it can threaten customer loyalty, employee retention, and, ultimately, business success.