Consumer trust in companies continues to decline

Executives’ efforts to manage and recover from disasters, scandals, and other emergencies can be determined by the extent to which consumers trust what companies say and do in the crisis. There is sex.

But business leaders who assume consumers trust their organizations may be in for a nasty wake-up call when a crisis occurs. In fact, a new study by PwC found that the gap in consumer trust in companies continues to widen.

trust gap

According to the poll results:

• 90% of business owners think their customers have a lot of trust in their company, but only 30% of consumers actually do.
• This 60 percentage point difference is larger than the 57 point difference in the 2023 and 2022 PwC surveys.

According to PwC research analysis, “One reason companies are overly optimistic about trust levels is because they don’t have internal structures in place to consistently identify where trust expectation gaps exist. .”

“Many companies say they measure trust, but our conversations with executives show that those metrics are often subjective and reflect the current state of trust across stakeholder groups, including employees, customers, and investors. does not fully capture the sentiment of

“These often include metrics related to trust, such as customer satisfaction and employee engagement, but they are only part of the picture when it comes to trust. By doing so, we will be able to better identify where to focus our efforts,” the report said.

distrust

Metrics are important, but so are organizational actions and policies that matter to consumers.

One example of what companies should focus on is the use of AI.

A Gallup poll released in September asked whether people trust companies to use AI responsibly. The majority, 79%, said they did not feel it very much or did not feel it at all. business insider report.

A journey to find empathy

There are several steps companies can take to increase consumer trust.

Courtney Haywood, CEO of Courtney Haywood Partners, said in an email that “Rebuilding consumer trust in companies requires true empathy and active engagement from executives. It’s a journey.”

“It starts with a humble acknowledgment of past mistakes and shows consumers that their concerns are being heard and taken seriously. Transparent communication is critical as plans need to be shared openly. [to] make things right.

transparency

“The best way to restore consumer trust is to be completely transparent and honest about any crisis or incident. People see through it, so you can avoid it. Don’t give a typical corporate speech. Be willing to share your insights and vulnerabilities,” Jeannie Asimov, head of content and communications at Way, a car ownership platform, said in an email. Ta.