What is a trust recession and what can marketers do to help?
When you lose faith in government, media, and other institutions, what implications exist for marketers and businesses?
In an article from The Atlantic last November, Jerry Useem wrote about The End of Trust. I don’t know if he coined the phrase – trust recession, but it’s an apt description of the headwind business, and marketers are facing. A trust recession erodes confidence, connectivity, and the grease that keeps the flywheel turning.
“Suspicion is undermining the American Economy” Jerry Useem
Remote work has led to suspicious managers wondering if workers are – working. A study of more than 5,400 Finnish workers found a steep decline in trust as workers went through the pandemic – working from home.
Surveillance software became widely purchased and used as the pandemic ticked on, and workers refused to come to the office. A midwest company that installed this software lost 80% of their remote workers over the first four months.
Straw meets the camel’s back as it breaks.
And nothing sends a message of we don’t trust you like recording keystrokes from a home computer by an employer.
It all feels very North Korean to me.
The great resignation has many ingredients, but don’t kid yourself – this is mostly about losing trust.
Trust Removes the Friction
In any organization, trust greases the wheel to help colleagues work together toward common goals. Without trust as the glue holding a workforce in alignment, productivity and commitment slowly erode. Suddenly, culture is being squeezed, and this trust recession takes hold.
Two economists, Zak, and Knack (their real names) did a study in 1998 that a 15% increase in trust could add an entire percentage point to an economy’s growth rate. Without confidence in an economy, growth suffers. Think of what happens to your willingness to spend your money when trust in banks, businesses, and regulatory institutions degrades.
Trust erosion has been happening for a long time. Religious membership, trust in politicians, the media, and the rise of social media have all impacted the U.S. economy.
I have worked for employers rich in trust and those devoid of it. It doesn’t take a marketing sage to see how a lack of confidence on the inside of an organization affects the perception of a brand on the outside.
Implications for Marketers
Our work as marketing and branding pros is getting harder. Consumers who receive our emails, see our ads or attend our events carry a heavy bag full of deep, dirty distrust.
Like a haze that clouds the atmosphere, a lack of trust means that everything from open rates for emails to calls to action is a steeper climb for brands. Without trust, your willingness to respond, follow up, become aware, or act diminishes.
What to do?
Trust is earned.
Even though the political and social haze, brands can earn back lost trust by – and I know this sounds strange – truth, honesty, and openness. Companies must check their own B.S. to earn back that trust and respect.
Little things have a significant impact on eroding trustworthiness.
When I was on hold for 90 minutes, an airline told me my call was important to them. No, it isn’t – they shouldn’t say that – ever. It is pure B.S. A little silly thing like your on-hold message sends the opposite signal from what you are saying.
Another example – I have been loyal to one insurance company for thirty years. Trust erodes when they more than double my homeowner’s insurance last month without a letter explaining why. This insurance company’s commercials reinforce the opposite of what their behavior demonstrates. We care. We want to be your friend. We are here for you.
Excuse my French, but that’s a load of crap.
With all the technology in the world, a 100% increase in the rate should trigger a unique letter apologizing for the massive change with an explanation. Instead, I got nothing but a form as if it was a specific rate change.
Business Trusts
As Useem cleverly reminds us:
“Not so incidentally, those first corporations went by a particular moniker. They were called “trusts.” And without that component underpinning all the industrial might and entrepreneurial ingenuity, you have to wonder if they could ever have been built at all.” – Jerry Useem
A critically important part of a marketer’s job is to build trust with the community you serve. You need to see, hear and feel your messages to see if it sets off some B.S. detectors in consumers or customers making them lose faith and trust that you mean what you say.
Time to slip on your customer’s shoes, walk a mile in them – and see if you would trust your brand’s messages and behaviors.
You can set up a time to chat with me about your marketing challenges using my calendar. Email me jeffslater@themarketingsage.com Call me. 919 720 0995. The conversation is free, and we can explore if working together makes sense. Watch a short video about working with me.
Photo by Bernard Hermant on Unsplash
