Trust And Its Effect On Loyalty And Company Growth
Webster’s defines trust as: The assured reliance on the character, ability, strength, or truth of someone or something.
We often – in this blog – discuss trust, and how important it is in the selling process. Stephen M.R. Covey opined in his magnificent book, The Speed of Trust, and congruent with the Websternian* definition, that trust involves two main areas; character and competence. And, to buy from someone trying to sell you something of any type of substantial nature or price, you most likely will need to trust them both aspects.
Would you agree?
I mean, if you believe they have good character but are lacking in competence in terms of product design, quality, service or anything else you hold to be of value, you probably won’t purchase from them. At least, that would be my guess. On the other hand, if they are competent in the aforementioned areas but you believe them to lack in the character department, you’re more than likely also not going to choose to buy.
How does all of this “trust” we’re talking about actually play out in the success of one’s business? One very big part concerns customer loyalty, which greatly affects growth.
In his article entitled, “What The Heck Is A ‘Chief Honesty Officer?”, Darryl Rosen, former President of Sam’s Wines & Spirits, a family-owned business he took from small store to a multi-unit retailer with nearly $70 million in sales, and author of Surviving the Middle Miles 26.2 Ways to Cross the Finish Line with Your Customers quotes Fred Reichheld, author of The Ultimate Question:
“Without trust, there can be no loyalty, and without loyalty, there can be no growth. The simple truth is that trust means confidence. When your customers trust you, it means that they have confidence in you. It means that when you make claims during the selling process, they are inclined to believe you and that, my friends, is what it is all about.”
How true that is! As Darryl concludes his article, “And we don’t need a Chief Honesty Officer to tell us that.”
I also love what my friend, Gill Wagner, Founder of the organization, Honest Selling says, “Sell with manipulation and the world is your battlefield. Sell with honesty and the world is your playground.”
It certainly builds trust, which results in loyalty, which results in company growth.
*That’s right; I said Websternian. And, no, I don’t believe it’s an actual word.