No business exists to solely create new customers. While that is important, more so is retaining those customers by building trust. Now, this process is tricky because it’s just like Rome, not built in a day.
Moreover, having that trust eroded due to unforeseen mistakes is extremely easy. When customers trust a brand, they are more likely to make repeat purchases and try the company’s new offerings.
That in turn translates into higher sales and profitability. Brands who wish to gain and keep their customers’ trust must avoid certain things that easily erode this precious ingredient to success. In this article, we will discuss four ways brands end up eroding customer trust and how to avoid them.
Misleading or Deceptive Marketing Practices
According to TorHoerman Law, deceptive marketing involves sharing information or visual content about a product that is unrealistic or misleading. Companies that participate in this practice promote their products under inaccurate claims.
This means the actual function or appearance of the product is nowhere close to the claims. Let’s make a rundown of the different aspects of deceptive marketing –
- False or exaggerated claims
- Omission of important information
- Use of vague and ambiguous language
- Hidden conditions or a lack of transparency
By participating in deceptive marketing, a company is essentially declaring that they are double-faced. Customers may struggle to trust that such an enterprise can be relied upon to deliver on their promises and claims.
Such skepticism or mistrust is protective because deceptive marketing can become a matter of life and death. A good example of this would be pharmaceutical giants like Pfizer.
Its drug, Oxbryta, was supposed to be a breakthrough treatment for hemolytic anemia in people with sickle cell disease. However, post-market trials revealed that the drug may end up worsening the condition or cause serious complications.
The US drugmaker marketed the drug as safe and effective, failing to look into its defective design. However, many patients developed vaso-occlusive crises, which is a life-threatening condition associated with sickle cell disease.
Even fatal events have been reported under the Oxbryta lawsuit that the injured have started. This is just one case; Pfizer was also sued for misrepresenting the efficacy of its COVID-19 vaccine. Perhaps deceptive marketing is what has led to a major dip in the company’s stocks.
How to Build Trust Through Ethical Marketing
No matter how large and agile a company is, it will only go as far as its ethical marketing practices. Here are ways to build customer trust the right way –
- Being 100% transparent and disclosing all relevant information about products and services. This includes the potential downsides.
- Ensuring all marketing messages are truthful and can be backed by evidence
- Initiating an authentic dialogue with customers regarding brand messaging
- Prioritizing customer needs, in terms of product quality and overall buying experience
Unreliable Customer Service
Customers are looking for a fast, seamless, and personalized purchase experience. According to McKinsey & Company, 2024 was a challenging year for customer care leaders.
They need to prepare themselves for an AI-enabled future while meeting tough commercial targets. Consumer needs may be changing but they still expect prompt and reliable service.
Brands that deliver consistently good customer service can retain them, increase sales, improve market reputation, and make better decisions. If a company continuously fails to meet customer expectations by being inconsistent and unresponsive, it erodes trust.
Customers are uncertain about future purchases because they fear not having their issues resolved. Their frustrations may arise due to long wait times, lack of follow-ups, poor communication, and lack of empathy.
Forbes recently shared a study that confirmed that despite tech advancements, companies were failing at customer experience. The top frustration was related to the lack of an easily accessible empathetic human agent. Notwithstanding the technological evolution, customers need the human touch.
How to Deliver Good Customer Service
Brands that wish to make their customers king always prioritize their clients’ interests. They ensure no aspect of reliable customer service is found wanting. Here are the top elements of good customer support –
- Prompt responses
- Active listening
- Quick resolution of queries and grievances
- Personalized support experiences
- Easy access to customer care representatives
- Extra rewards or resources as discounts for repeat customers
Lack of Social Responsibility
The purpose of running a company is never just about profitability. At least that should not be the case anymore. Corporate social responsibility (CSR) refers to companies actively seeking to operate in a way that benefits society and the environment at large.
A socially responsible company always considers the impact of its actions on customers, employees, and the community. Such businesses aim to reach beyond the goal of profit generation.
Gone are the days when CSR was an added plus in business. Today, it is necessary as a recent survey discovered. 31% of surveyed customers considered inflation to be a top risk to their country.
Even so, some were ready to pay 9.7% more on average for sustainably sourced products. An increasing number of customers are looking for sustainable products and packaging. This means brands that display unethical behaviors risk eroding customer trust.
Some add deception to the mix and end up greenwashing. It is the practice of making false claims regarding the environmental benefits of one’s products and services.
A classic example of this is the German auto conglomerate, Volkswagen. The company had to pay a hefty fine of $34.6 billion for showing falsified data that helped evade emission tests.
How to Become More Socially Responsible
We live in a day and age when social responsibility is not something limited to brands that openly claim to be sustainable. Since CSR has become crucial, companies need to adjust their daily operations accordingly. Here are ways to become more socially responsible –
- Sourcing raw materials from suppliers known to be ethical
- Promoting equal opportunity and inclusion within the workforce
- Organizing initiatives focused on employee wellbeing and work-life balance
- Making financial contributions to non-profit organizations
- Investing in local projects that improve community infrastructure
- Improving labor policies and enhancing workplace health/safety
Insensitivity
The dictionary definition of insensitivity means a lack of feeling sympathy for another. From a business viewpoint, insensitivity would translate into a lack of consideration or awareness for another’s feelings and perspectives.
It can be called tone deafness in terms of the cultural, emotional, or social context. Insensitivity may take many forms, some of which include –
- Inappropriate language or imagery
- Rude or sarcastic remarks and jokes
- Trivializing serious issues and concerns
- Microaggressive behaviors toward marginalized groups
Insensitivity is one of the fastest ways to erode customer trust. Not only that but companies with a reputation for insensitivity also suffer high turnover, negative brand image, and legal issues.
Such a case recently happened with Uber, and the company tried taking care of the matter internally. Its Head of Diversity, Bo Young Lee, was asked to take a leave due to an alleged insensitive event title.
The event, named ‘Don’t Call Me Karen’ was supposed to be an open and honest conversation about the white American woman’s experience. However, employees felt that the term was derogatory and dismissive of their concerns.
How to Avoid Insensitivity
Sensitivity in business enables a firm to effectively navigate diverse markets and cultures. It is a major way to build stronger relationships with clients and partners. Now, let’s look at how a company can avoid insensitivity issues –
- Diversity training for employees is important to promote inclusion and sensitivity.
- Encourage inclusive communication by seeking diverse viewpoints while making important decisions.
- Regular sensitivity audits are a must. Internal communication and marketing materials should be reviewed for offensive content or potential biases.
- A culture of open dialogue, where employees feel comfortable to raise concerns, is equally important.
On a final note, a careful eye is crucial to ensure your brand does not violate any ethical boundaries. This is because even subtle remarks, marketing messages, and client interactions matter. So, what steps will you take this year to uphold your customers’ trust?