Transcripts

"Commentary"-Consumer Trust

SUSIE GHARIB: Tonight's commentator says in order to earn money, businesses must first earn trust. She's Barbara Kahn, dean of the University of Miami school of business administration.

BARBARA KAHN, DEAN, SCHOOL OF BUSINESS ADMIN., UNIV. OF MIAMI : To coin a fashion term, consumer trust is the new black. Firms face a growing loss in consumers' trust. One recent survey found that 62 percent of adults in 20 countries trusted corporations less this year than they did a year earlier. In "BusinessWeek's" annual top 100 global brands issue, trust is rated as the single most important factor differentiating companies such as Google, Amazon.com and Apple. So how do firms earn trust back? First, firms must re-establish their own competencies. Some are already doing it by hyping expertise. Think about Dell's depend on Dell for simple solutions in tough times campaign and GMs new may the best car win campaign featuring a money-back guarantee. Second, firms must show that they genuinely have their customers well being in mind. The financial services industry is starting to figure this out. Bank of America is offering simple solutions for credit card customers, such as one flat rate for late charges. And fast food companies are voluntarily exhibiting nutritional information. Finally, firms have to convey integrity. This is complicated because it depends not only on firms' actions, but on customers' interpretations of those actions. Rather than focusing on closing the deal, firms are lengthening the negotiations process to build relationships and trust. Bottom line, in today's troubled times, the key to improved customer relationships is trust. I'm Barbara Kahn.