The Importance of Trust

Trust is typically an idea we associate with relationships. You are willing to share more information about yourself with a person if you trust them and less information if you do not. Trust is the expedient to forming closer relationships. Without it, no interaction can take place.

The same thing is true about trust in market interactions. Without trust, there can be no transaction--no purchase. Think about the last time you bought something from a salesperson. Did you find him trustworthy? If so, you probably made the purchase and the process was most likely very simple. On the other hand, were you supsicious of the salesman? In this case, you probably did not make the purchase and, if you did, you did so reluctantly. Think of the last time you bought any branded product. Did you trust the brand or did you question its integrity? The answer to this question probably determined whether or not you bought it or how much you were willing to pay for it.

Stephen MR Covey, son of Stephen Covey, talks in his book Speed of Trust about trust taxes and trust dividends. When companies, brands, or salesmen are not trusted, they pay a 'trust tax' in order to sell their products or services. They have to lower their prices significantly more to get customers to buy or perhaps, if the tax is too high, the customer won't buy anyway. On the other hand, trustworthy companies, brands, and salesmen create a 'trust dividend' in selling their products or services. They are able to resist lowering prices and bending over backwards to acquire customers because customers trust them.

How important is trust to you in making a purchase? If you don't think it is that important, think again. It's really no different than trust in a relationship. In one, you are trusting someone with your information and, in another, you are trusting someone with your money. Try making a purchasing decision without trusting the person or company you are buying from--it's a lot more difficult to justify giving up your hard-earned dollars.