Building the Trust Factor Into Retail Marketing
Small Businesses are More Likely to be Trusted Than Big Businesses
Sep 16, 2009
An important issue for any business is a lack of trust by consumers. The New York Times has reported that in the US surveys have shown consumers do not trust businesses and a 2009 Australian survey showed 74% of the Australian population trust big business less than they did last year. This is an opportunity smaller and independent retailers can take advantage of through relationship marketing.
Large retail businesses can obtain better deals and be more competitive on price than their smaller competition. However knowing that consumers are more likely to trust small, local, independent businesses it is possible to use the ‘trust’ factor as an important marketing tool and businesses can develop a trust strategy.
Developing a Trust Strategy
Businesses that are perceived as trusted have an opportunity to expand their market share. Developing a trust strategy needs to be done at the whole business level and various strategies are targeted at staff, promotion, information and guarantees so that they all work together to enhance the appearance of the business.
Staff Input to the Trust Strategy, Training, and Name Badges
Staff should be part of brainstorming activities for any trust strategy as it will give them more commitment and they will work more cohesively as a team. Staff should all have training in customer service and know the full range of products on offer. Making sure that staff have good product knowledge will make them more confident in dealing with customers, which will make customers more inclined to trust them.
Australian research by Shoppers Anonymous found that customers perceived staff with name badges to provide better customer service than people without name badges; therefore, all staff should have easy to read name badges. A business promotion with a personal touch is to have staff photographs and achievements such as Employee of the Month certificates placed near the checkout area.
Promotion to Build Trust in a Business
Advertising and promotional material should include the fact that the business is locally owned. Signage near the exit can be used to thank customers for supporting a local business. Local celebrities such as sporting heroes should be promoted and invited into the store whenever special promotions are on. If they can be encouraged to recommend a product then this can be mentioned in marketing advertising.
Product promotion should be for good quality products and team members must be consistent in their recommendations such as “We use and recommend x floor polisher.” Provide sponsorship to a local event, club or charity that is relevant to the business and make sure the business name gets promoted at the event.
Information and Guarantees to Enhance Customer Trust in a Business
Providing as much information as possible about the products on offer will make customers more likely to feel trust towards a business. For example, knowing that a specific building material is being extensively used for a new development, or has been in use for over 30 years, can make customers feel more comfortable about purchasing it themselves.
Offering a guarantee on products is a great way to build trust. Customers are more likely to purchase a product when they know they can return it if it is defective or fails to meet their expectations. Some businesses refuse to offer guarantees for fear the policy will be abused, but it is an important part of marketing a trust strategy and needs to be included.
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