Build Trust with the Trust Score
At the October RizeX meetup we heard from BBB Chief Innovation Officer, Dale Dixon and he delivered a great presentation targeted at growing your business through the trust score.
As you know, IP4G believes that business practices and principles work just as well (for the most part) in the nonprofit sector. In today’s competitive market, trust is everything. Businesses and nonprofits that build and maintain trust with their clients not only create positive relationships but also see significant growth and success. According to a Harvard Business Review report, trust-based companies grow 2.5 times faster than their competitors and enjoy a 53% higher customer retention rate. We believe this holds true for the nonprofit sector, as well.
So, how do you build trust regardless of whether you are a for-profit or nonprofit? See the Trust Score graphic which highlights key components. As we go into the fourth quarter, many nonprofits are gearing up for year-end donations and this will help. Use this in your next team meeting.
By following these principles shared by Dale, there are significant benefits in customer loyalty, revenue (donor) growth, and brand perception. Keep in mind, the research is targeted at the corporate sector but the nonprofit sector can learn a lot from these tips. Here’s how:
Advertise Honestly – Truthful advertising and communications builds credibility and can boost revenue by 23%. Nonprofits have a natural tendency to exaggerate results to get the next grant but misleading or exaggerated results can result in getting cut off and/or a loss of donors.
Tell the Truth – Transparency and honesty lead to greater loyalty. Nearly half of consumers say they would pay more to support brands they trust to be truthful. Isnʻt this what all nonprofits are seeking? Donors that support them through thick and thin.
Be Transparent – Clients value transparency, with 82% saying they continue buying from brands that practice it. Clear policies and open communication drive higher loyalty and productivity. Both nonprofit clients and donors seek transparency! Donor especially want to know your finances are in order so be ready to respond quickly when they ask.
Honor Promises – Keeping promises increases client/donor retention. Brands that deliver on promises are 3 times more likely to gain repeat customers. If a donor
Be Responsive – Quick and professional responses to disputes enhance customer satisfaction, with 89% of consumers likely to make another purchase after a positive service experience. Something simple - are you returning phone calls/emails/texts in a reasonable amount of time?
Safeguard Privacy – Protecting customer data is crucial for loyalty. A staggering 79% of U.S. consumers are more loyal to brands that safeguard their information.
Embody Integrity – Integrity is at the core of trust. Companies with strong integrity attract more loyal customers, with 76% saying they are more likely to buy from a company that operates with integrity.
Building trust is not just good ethics; it’s good business. By embodying these principles, you can create a solid foundation for long-term success with your clients and donors, proving that trust is indeed a powerful currency in today’s marketplace. Happy trust-building!