Increasing Customer Loyalty With Trust
Do you know what it takes to build trusting relationships with your customers? After all, you can't just look a potential client in the eye and declare, "Trust me, I'm a salesman!"
You can earn people's trust and, hopefully, their continued loyalty, through specific actions and behaviors – and by knowing which behaviors and traits to avoid!
For example, you could be making progress with a confident, engaging sales pitch, only to lose the deal at the last minute by suddenly pushing you potential customer too hard.
In this article, you can explore the Customer Trust Model – a popular framework for understanding how to set the stage for a rewarding, long-term association. And you can learn why it's not just a powerful sales tool, but also something that can be applied to many workplace situations.
What Is the Customer Trust Model?
Access the essential membership for Modern Managers
Professors Laurent Georges and Paolo Guenzi created the Customer Trust Model and published it in their 2010 paper, "Interpersonal Trust in Commercial Relationships: Antecedents and Consequences of Customer Trust in the Salesperson."
The model highlights four factors that are key for building trust with customers. They are:
- Customer orientation.
- Expertise.
- Likability.
- Selling orientation.
From Paolo Guenzi, Laurent Georges, (2010) "Interpersonal trust in commercial relationships: Antecedents and consequences of customer trust in the salesperson", European Journal of Marketing, Vol. 44 Issue: 1/2, pp.114-138, https://doi.org/10.1108/03090561011008637. Reproduced with permission.
Customer orientation, expertise and likability are positive factors – they significantly contribute to strong, long-term relationships with customers. However, selling orientation is a negative factor and it has a harmful effect on trust, hence the need to avoid it.
Georges and Guenzi developed the model after studying how salespeople and public-facing employees increased customer loyalty in the financial services industry. Their research, based on 150 banking customers, confirmed that the more trust we build with clients, the more likely they are to buy from us again and recommend our products and services.
Although the model is aimed at sales professionals and public-facing staff, you can also use it with your "internal customers" – such as your boss and people from other departments – to sell your ideas, and to increase your influence and visibility within your organization.
Access the essential membership for Modern Managers
Remember, though, that when it comes to selling, "one size does not fit all." Different industries, cultures and other factors can affect potential buyer/seller relationships. See our articles What Is Business Ethnography? and Market Segmentation for more on this.
Applying the Customer Trust Model
Let's look at the four factors in greater detail, and examine how you can use them to build trust with your customers and clients.
1. Customer Orientation
Customer orientation is how focused you are on what your customers want. In their research, Georges and Guenzi found that salespeople with this orientation are 86 percent more likely to build trust with their customers.
When you have a strong customer orientation, you have a genuine desire to help your clients to make the right decisions. You assess your customers' needs realistically, describe products and services honestly, and avoid manipulative or high-pressure selling tactics.
To strengthen your customer orientation, use the consultative (or relationship) selling approach to identify and meet your customers' requirements, and avoid the "hard sell."
Access the essential membership for Modern Managers
Ask effective questions and listen well, so that you discover what your customers truly want. For example, ask how your product or service can solve their problems and meet their needs.
Use empathy to see things from their perspectives, and aim for a "win-win" result during negotiations, so that you protect your relationships.
2. Expertise
Expertise relates to your level of knowledge, technical competence and ability. Georges and Guenzi found that customers were 82 percent more likely to trust salespeople when they perceived them as experts.
When you demonstrate a high level of expertise, you make it easier for customers to trust that you're recommending a product or service that meets their needs. You're also more credible, and able to answer their questions and queries with confidence and clarity.
To build expertise, devote time to learning everything you can about your products and those of your competitors. Then look at how you can develop "expert power." These can help you to increase your reputation and influence, which in turn are valuable building blocks of trust.
Also, stay up to date with your industry. This might mean connecting with thought leaders through Twitter® and LinkedIn™, and attending events that allow you to gain a deeper understanding of your field, and your role in it.
Access the essential membership for Modern Managers
3. Likability
Likability is the impression you make with others on a personal level. Georges and Guenzi found that being liked is useful in the early stages of a customer relationship. However, it won't significantly influence a long-term relationship unless the other positive factors are in place.
First, learn how to make a great first impression. Dress professionally, and be assertive and authentic. Listen intently to what they have to say, show an interest in their wants and needs, and always be courteous, even when they aren't.
Focus on making people feel good, too – give sincere praise, show gratitude, and share your knowledge and expertise when others need help. You can explore more strategies for boosting your "likability factor" with our article, Developing Charisma.
4. Selling Orientation
Selling orientation is the opposite of customer orientation, and so is a negative factor. Georges and Guenzi found that salespeople who have a selling orientation are 88 percent less likely to develop a trusting relationship with their customers.
Access the essential membership for Modern Managers
People with this orientation are more interested in "making a sale" than meeting the wants and needs of their customers.
They might describe products and services inaccurately, and use manipulative or pressure tactics to get what they want. Avoid these behaviors and, instead, focus on finding out what the customer needs.
Note:
It's important not to confuse "avoid a selling orientation" with "avoid selling"! A salesperson's job is to sell, and buyers often seek out, and rely on, the information and knowledge that good salespeople possess. But an aggressive or manipulative "sell at all costs" attitude will backfire.
Tip:
Our article on Yukl and Tracey's Influencers highlights five negative behaviors that you should avoid when you want to influence and persuade others. These are "legitimation," "coalition," "pressure," "ingratiation," and "personal appeals."
Key Points
Professors Laurent Georges and Paolo Guenzi published the Customer Trust Model in 2010. The model outlines four factors that are important for building trust with customers. They are:
- Customer orientation.
- Expertise.
- Likability.
- Avoiding Selling orientation.
You can strengthen loyalty and trust by developing customer orientation and expertise, and by being likable.
Avoid adopting a selling orientation, though, as this can damage customer relationships and destroy trust.