Trust Is Worth $40 Billion
We here at 1to1 Media often discuss the importance of trust in the business-customer relationship. Companies that can create a trust-based relationship will see value over the long term. In financial services these days, however, it's a tricky situation. Consumers in general are wary of banks, insurance companies, and other financial services firms after living through bailouts, sub-prime chaos, and shuttered branches. Even the so-called "good guys" have been lumped into the bunch, and it's hard to overcome the untrustworthy reputation. But two recent articles from 1to1 Media offer financial services companies tips to overcome their negative situations.
Don Peppers and Martha Rogers, Ph.D. tackle the task of recovering lost trust in a recent 1to1 Magazine article. They write that the single most important step is to recognize the seriousness of the problem. Ignoring it or downplaying it will only make the situation worse. Once you recognize the problem, they advise that a company apologize to customers, then take proactive steps to slowly regain trust. It's not something that happens overnight.
Also, today's issue of 1to1 Weekly highlights the story of the Navy Federal Credit Union, which has seen impressive ROI growth based on its trustworthy reputation. Many customers are increasing their share of wallet with Navy Federal because of the trust-based relationship they have with the bank. As other financial institutions began to repair their relationships with customers, Navy Federal added more than 166,000 members, created $60 billion in mortgages, and saw its deposits increase by more than $3.4 billion, an increase of almost 14 percent for the first half of the year. "People are turning to us because they consider us a 'safe and sound' company," says Alan Payne, manager of member research and development. The organization's assets reached $40 billion this year.
So for companies looking at new ways to improve business, some old-fashioned advice could work wonders. Treat customers the way you want to be treated, and make all decisions in their best interests. It could be a $40 billion strategy.
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