THE BATTLE FOR HEARTS AND MINDS
12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY
1 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY IT IS TRUST, MORE THAN MONEY, THAT MAKES THE WORLD GO
AROUND. – Joseph Stiglitz
2 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY INTRODUCTION.
Economics professor from Columbia University Joseph Stiglitz once said, “It is trust, more than THE YEARS AHEAD money, that makes the world go around.”1 While this has, perhaps, always been true, it is truer today than ever. WILL SEE CONSUMERS Whether in our personal relationships or our VALUE TRUST ABOVE interactions with big brands and institutions, trust is the foundation of loyalty, engagement and PRICE, PROMISE OR affinity - and this foundation has taken a pounding in recent years.2 EXPERIENCE. Consider the litany of ethical missteps and moral failures that have dominated the news cycle in – Mark McCrindle recent years: to the recent Trends in Customer Trust report released • FIFA’s various bribery scandals by Salesforce Research, 95 percent of customers are • Volkswagen’s ‘dieselgate’ debacle more likely to be loyal to a company they trust while • The Cambridge Analytica/Facebook fiasco 92 percent are more likely to purchase additional products and services from trusted businesses.5 • Boeing’s fatally flawed jets • Revelations of widespread abuse and My friend and renowned trend analyst Mark institutional cover-ups by Catholic priests, McCrindle points to similar data and suggests “The bishops and other authority figures in ‘care’ years ahead will see consumers value trust above institutions price, promise or experience.”6
Reflecting on even this limited list of transgressions, This white paper explores the latest research is it any wonder that levels of skepticism are at an examining 12 practical and proven strategies for all-time high by every objective measure? building the trust of consumers in an age of cynicism, skepticism and transparency. For almost two decades the Edelman team have quizzed more than 30,000 people each year across This new operating environment, often dubbed twenty eight countries to assess their levels of trust the Trust Economy, is one that offers enormous in various institutions.3 According to Edelman’s opportunities to those businesses and individuals most recent research, just 42% of the general public who know how to win the battle we must all engage trust the media, 37% trust CEOs and less than a in over the coming years – the battle for hearts third trust the government to do what is right. These and minds. figures represent a drop of up to 14% in the space of just 3 years – a decline that is unprecedented in the absence of a natural or economic catastrophe. 4
In this environment, building trust is more difficult Michael McQueen than ever – but it’s also more important. According
3 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY 01 PICK A SIDE AND OWN A POSITION
A compelling article in the Financial Times In a 2018 letter to the heads of the world’s in January 2019 described a modern largest and wealthiest companies, the challenge facing every organization and chief executive of investment behemoth leader: “Whether they like it or not, brands BlackRock, Larry Fink, argued that and those that lead them are already “the time had come for a new model of being dragged into society’s thorniest shareholder engagement.” Fink suggested debates by consumers and employees that “To prosper over time, every company who find it easier to influence brands than must not only deliver financial performance elected officials. Institutional investors but also show how it makes a positive are becoming effective environmental contribution to society. Companies must campaigners and the concept of the benefit all their stakeholders, including activist chief executive no longer sounds shareholders, employees, customers and like an oxymoron. With many governments the communities in which they operate.”8 in disrepute, leaders of finance and He said, “A company’s ability to manage business have — improbably — been environmental, social, and governance handed an opportunity to lead on some matters is essential to sustainable growth, of society’s most pressing issues. Will they which is why we are increasingly integrating take it?”7 these issues into our investment process.” It’s a good question. The market is looking This warning to the world’s business for social, moral and ethical leadership leaders couldn’t have been clearer: rise to from the brands they engage with. They the task or you risk losing the support of aren’t looking for brands and leaders that BlackRock in the years ahead. merely comply with the rules but brands When the head of an asset manager like and leaders that will step up, speak out BlackRock starts speaking in these terms, and stand firm on the issues that count. you know something has changed. Strikingly and significantly, some of the Beyond altruism, business leaders will be most profit-focussed and capitalistic comforted to know that regaining the trust leaders in the world are gradually waking of the market by pursuing purpose above up to this view.
…over half of consumers today will investigate a corporation’s behaviour before buying a product or service from them. More significantly, one-third of those reported having decided not to do business with a company because of something they discovered about how the company conducts itself.
4 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY Brands that have a clear sense of meaning and social responsibility have outperformed stock market
benchmarks by 120% over the last 15 YEARS.
profits actually pays well – and the reverse • According to the Harvard Business is also true. Review, over forty academic studies have found a positive correlation According to research conducted by between operating with strong social Harris Insights and Analytics, over half values and financial performance.11 of consumers today will investigate a corporation’s behaviour before buying • Brands that have a clear sense of a product or service from them. More meaning and social responsibility have significantly, one-third of those reported outperformed stock market benchmarks having decided not to do business with by 120% over the last 15 years.12 a company because of something they • Assets in US funds that aim to discovered about how the company produce social or environmental conducts itself. 9 In this age of transparency, benefits alongside financial returns customers are making increasingly grew fourfold to $12T over the past informed decisions and failing to adjust to decade.13 this reality could cost companies big time in the years ahead. Clearly there’s work to be done in winning back the trust of consumers but the In purely financial terms, the business commercial imperatives for doing so are case for purpose-driven, values-based and hard to ignore. trust-focused practices is hard to ignore. Consider that:10
TO PROSPER OVER TIME, EVERY COMPANY MUST NOT ONLY DELIVER FINANCIAL PERFORMANCE BUT ALSO SHOW HOW IT MAKES A POSITIVE CONTRIBUTION TO SOCIETY.
– Larry Fink, BlackRock
5 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY 02 REDEFINE THE YARDSTICKS OF SUCCESS
In 1974, Phillips-Van Heusen’s pension fund be “pure and unadulterated socialism.” did something that sparked outrage and The famed Chicago economist Milton scorn in business circles. At a heavy loss Friedman had been the key proponent and against the advice of market analysts, of this argument. According to Friedman the pension fund sold off all its shares in the central purpose of companies was to International Telephone and Telegraph as make profits subject to law and (minimal) a protest of the US conglomerate’s political regulation. Just 4 years before the decision donations. This was the first time the world by Phillips-Van Heusen, Friedman had had seen such a public decision to lose warned in a famous essay that business significant money on a ‘good’ investment leaders who spouted nonsense about in order to make a point. Press coverage at social responsibility were “the unwitting the time was scathing. puppets of those who would undermine a free and capitalist society.” The Financial Times for one slammed the decision as reckless and misguided: “Of So persuasive was his argument that course, the idea of a conscience committee Friedman’s view soon became established playing David to ITT’s Goliath and forcing orthodoxy for business leaders and its will on the mammoth conglomerate is corporate boards. As leading business laughable.” The article’s writer went on journalist Andrew Edgecliffe-Johnson to argue that the job of a money manager reflected in early 2019, this doctrine of was simply “to make money rather than legally maximising shareholder value as subjective personal judgements.” the top priority has “defined Anglo-Saxon capitalism for almost 50 years and shaped This view typified the widely accepted a world that is increasingly driven by assumption that a company’s pursuit of corporations.”14 anything other than (legal) profit would
As at January 2019, there were just over
2,600 B CORPORATIONS including brand giants such as Danone, Patagonia, Athleta, Ben & Jerry’s and the Unilever-owned Seventh Generation.
6 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY This is beginning to change, however, and in a big way. Edgecliffe-Johnson points to the rapid growth of a new type of company: a B Corporation. This new term was coined in 2007 by entrepreneur Jay Coen Gilbert to describe a company that has a stated commitment to benefit all stakeholders and closely monitors its social and environmental impact. As at January 2019, there were just over 2,600 B Corporations including brand giants such as Danone, Patagonia, Athleta, Ben & Jerry’s and the Unilever-owned Seventh Generation.
According to Clare Chapman of the UK’s Purposeful Company Task Force, the
… SHORT-TERM AND PURELY PROFIT-FOCUSED THINKING IS THE FASTEST WAY TO RUN A BUSINESS – Clare Chapman of the UK’s INTO THE GROUND. Purposeful Company Task Force
historical data is indeed compelling. Companies that operate without a focus on social and environmental responsibility never last the distance. According to Chapman, short-term and purely profit- focused thinking is “the fastest way to run a business into the ground.”15
EY’s chief executive Mark Weinberger predicts that we will, in fact, need to devise new metrics for measuring success if the post-Friedman paradigm is to stick. According to Weinberger, we will need to find ways to measure whether a company has modelled its values and achieved its purpose in any given period as part of the bottom line of a profit and loss statement.16
7 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY 03 FOCUS ON YOUR FUTURE CUSTOMERS
Any smart organization or leader realises The raw numbers give a powerful clue that keeping one eye on the mindset and as to why this group, sometimes called motivators of future customers is essential Generation Y, can simply not be ignored. to long-term success. As such, gaining a After all, Millennials are the largest keen insight into the purchasing paradigm generation in history, making up one in of the next generation is essential – three persons on the globe — 86% of whom especially those in the Millennial cohort. live in emerging markets.17
Millennials Around the World
In North America, they are 79 MILLION STRONG — which makes Millennials marginally larger than even the Baby Boomers.18
In the Asia-Pacific region, Millennials make up over 30% OF THE POPULATION — in China alone there are 200 million people between the ages of 22 and 34. In India, over half of the country’s population is under the age of 35.19
In parts of the Middle East and North Africa, the influence of the youth demographic is even more pronounced, with
65% OF THE REGION’S POPULATION under the age of 30.20
8 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY In economic terms, Millennials are also a force to be reckoned with. According to recent consumer research, they will According to recent account for 35% of consumer spending power by the mid 2020s21 and are expected consumer research, to control as much as $20T of assets globally by 2030. Millennials will Examining what motivates this group, account for 35% of it’s worth noting that 60% of them will consider a brand’s reputation and social consumer spending credibility when choosing who they buy from or work for. Further still, a staggering power by the mid 2020s 92% of Millennials believe that business success should not be measured primarily and are expected by profit.22 to control as much Research indicates that Millennials are twice as likely as older generations to want as $20T of assets their pension funds invested responsibly.23 globally by 2030. In a recent Morgan Stanley survey, 61% of Millennials reported making at least one sustainable investment decision within the past year and 75% expressed a belief that their investments should make an impact to reverse climate change.24
Interestingly, while the demand for purpose-driven commerce is highest among Millennials, so are the levels of distrust in brands and organizations. According to the Harvard University Institute of Politics, 86% of Millennials distrust financial institutions, three in four ‘sometimes or never’ trust the federal government to do the right thing. Worryingly, 88% of this younger generation distrust the media.25
It is this growing generational disconnect that ought to give every business leader pause for thought.
9 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY According to the Harvard University Institute of Politics, 86% of Millennials distrust financial institutions and three in four ‘sometimes or never’ trust the federal government to do the right thing. Worryingly, 88% of this younger generation distrust the media.
Considering this, it’s clear that the future More established traditional brands are success and survival of any business will working hard to do much the same thing. be largely driven by how well they engage Iconic jeweller Chopard, for example, the next generation. And earning their recently made the commitment to ensure hard-won trust will be a vital source of all gold in its watches and jewellery competitive and commercial advantage. would now be 100% ethically sourced. Chapard’s co-president and creative Millennial-favoured brands such as Warby director acknowledges that steps such as Parker (glasses), Casper (mattresses) these are vital if the 160-year old brand is and Joybird (furniture) have built to connect with and win the trust of young enormously successful retail businesses consumers.27 by understanding what makes this group tick. They have actively worked to earn the next generation’s affinity with strong return policies, authentic reviews and social media validation. Better yet, they have demonstrated a commitment to the social values Millennials hold so dear – Warby Parker’s ‘buy a pair, give a pair’ campaign which donates glasses to people in the developing world is a great case-in-point.26
10 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY 04 DIAL UP YOUR AUTHENTICITY
Neuroscientist and author of The Trust Politicians are renowned for this approach Factor, Paul Zak, has spent years studying – and is it any wonder our trust in them is at what builds rapport and intuitive trust an all-time low? In fact, so accustomed are between individuals and has come up with we to inauthenticity in our political leaders some remarkable yet simple findings. that when one stands up and acts like a human, we can scarcely believe it. Jacinda According to Zak, the most important Ardern’s response to the Christchurch element of gaining or regaining trust is to mosque attack in March 2019 is a case-in- dial up our ‘human-ness’. Appearing to be point. Ardern’s genuine, empathetic and real, vulnerable and even fallible results authentic actions in the weeks following in the release of the chemical Oxytocin the attack earned her admiration and in the brains of others. This is the neuro- affinity all over the world. mechanism humans have unconsciously used for centuries to determine who was In the business arena, similarly ‘human’ safe enough to trust and work with.28 steps by leaders to take a stand and have a voice on social issues have attracted This is an important revelation for every significant attention in recent years. Be it leader, professional or brand. For years we environmental protection, gender equality have worked hard to project sanitized and or social inclusion, when a business corporatized versions of ourselves. Spin leader speaks authentically and acts like doctors and corporate communications a human, our trust for them automatically departments have tended to carefully increases.29 craft every message delivered externally (and internally) in an effort to ensure our This principle extends to every form and communication is predictable, reliable and function of communication. For instance, on-brand. it was once standard practice to write your LinkedIn profile in the third person. We’ve all seen the robotic corporate or We would refer to our achievements, civic leader in public forums speaking in experience and role description as if they sanitised soundbites. While the words they were the bio paragraph in an article for The are delivering might sound great in press Economist. releases, they come across as wooden, insincere and trust-eroding from the podium.
11 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY 05 BE TRUE TO YOUR WORD
According to legendary business leader Jack In this regard, review sites and social media Welch, one of the most important elements commentary is more important than for effective leaders today is ‘candor’ – a ever. Research indicates that a full 82% of trait characterised by raw honesty. As consumers will check reviews before placing Welch puts it, leaders with candor give their their trust in or purchase with a business. promises carefully and always keep them. They want to know if you are true to your word They always tell the truth and expect others as evidenced by the experience of others.31 around them to do the same.30 For this reason, it is critical that brands and While Jack Welch is referring to the traits organizations pay close attention to what is necessary to win the trust of those you are being said about them online. Many of my leading within an organization, the same clients have founds tools like buzzhandle principle stands true for building external and mention.com valuable to this effect. The trust too. beauty of a services like these is that they will alert you any time you are mentioned online As children we learned that honesty is the giving you the chance to respond to what is best policy but as adults, we all too easily being said. And how you respond is vital. If forget this. We may live in the age of alternate a customer has had a bad experience with facts and fake news, but consumers still you, your brand or someone that represents recognise half-truths when they see them. it, you need to be on the front foot if you are Truthfulness is the foundation of trust. going to be seen as credible and reliable. Without honesty and sincerity, there is no hope of being seen as reliable, dependable Even if you have done everything right and and credible. a complaint is unfounded, you need to show that a customer’s grievance has been heard. Simply being honest today is not enough to The best response is to simply validate their build the credibility necessary for trust. In the experience, value the feedback, and indicate age of online influence, the marketplace is that it’s something you will learn from. also looking for social proof of your reliability. Trust takes time to build and pursuing a Research indicates that a full path of honesty, reliability and integrity is often costly but always necessary. While your honesty will be tested and integrity
82% OF CONSUMERS challenged from time to time, remember the will check reviews before placing words of celebrated American author and their trust in or purchase with columnist Ann Landers: “People of integrity a business. expect to be believed, and when they’re not, they let time prove them right.”
12 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY 06 MAKE YOUR VALUES VISIBLE
May Miller-Dawkins of the Open Every 3 months for a year and a half, these Government Partnership suggests that students received details on practices, building trust with today’s consumers must innovations and news about the regulator go beyond providing quality and consistent – riveting reading no doubt! Interestingly goods and services. According to Miller- though, at the end of 18 months, the Dawkins, what’s required today is radical sample group’s trust in water agencies transparency around how a company does jumped significantly compared to a control what they do and what contribution they group who had not received the updates. are making to society. Reflecting on the lessons from this research, award-winning business writer Shane Snow While operating with values and a sense of suggests: “The more we learn about what’s social responsibly is innately important, really going on inside an organization, the credibility in the eyes of today’s customer more favorably we judge it.”33 is only achieved when these things are clearly evident and verifiable. Brands like In each of these examples, transparency, Konica Minolta, Patagonia, Nike and Levi openness and disclosure played a critical Strauss have worked hard to earn the trust role in achieving credibility. Naturally, this of customers by being transparent around degree of openness carries risks. It can their supply chain practices. Others such as make you vulnerable to attack and criticism BHP Billiton, Repsol, LUSH and Vodafone and set a high bar for behaviour that you have openly disclosed their corporate cannot easily retreat from. However, there tax policies, practices and payments. is no longer anywhere to hide in the age Then there are businesses like Salesforce, of an empowered consumer. Concealment Buffer and PepsiCo that have made public simply no longer works and those who try commitments to achieving pay equity.32 to play by the old rules will not only lose the trust and loyalty of their customers, they Back in 2017, eight professors from various may well lose the social license to operate. American Universities joined forces to examine just how powerful disclosure and transparency were in building trust in institutions. The professors selected a sample group of college students and sent regular updates to them about a government agency the students knew very little about – the Nebraska State Water Regulator.
13 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY WHILE SINCERITY IS ESSENTIAL FOR BUILDING TRUST, SELF-DEPRECATION IS EQUALLY POWERFUL.
14 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY 07 DON’T TAKE YOURSELF TOO SERIOUSLY
While sincerity is essential for building trust Customers and the public today are more as explored previously, it’s worth noting empowered and sceptical than ever. They that self-deprecation is equally powerful. have a finely tuned ‘BS meter’ and pick up the faintest whiff of corporate spin and When a brand or individual is willing to not falsehood a mile off. In order to earn trust take themselves too seriously, we naturally in this climate, authenticity is vital. warm to and identify with them.
A great example of this in action was the unconventional response by KFC in February 2018 after they ran out of chicken in 80% of stores across the UK. Rather than issuing a stuffy corporate apology or shuffling their leadership team in an act of contrition, KFC ran a full-page ad in the Sun and Metro newspapers featuring the picture of an empty bucket of chicken but the brands iconic 3 letters re-arranged on the bucket to spell FCK. Irreverent and unconventional by all means but also incredibly effective.34
15 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY 08 BE PREDICTABLY RELIABLE AND RELIABLY PREDICTABLE
In her excellent book Who Can You Trust, In April 2019, Boeing’s CEO Dennis Rachel Botsman points to functional Muilenburg acknowledged the uphill battle consistency as a core ingredient for trust. his company faces in regaining the trust and “Our trust in technology has rested in a confidence of the flying public as well as confidence that the technology will do what pilots themselves. “We know every person it’s supposed to do, nothing more, nothing who steps aboard one of our airplanes less,” she said. “We trust a compass to tell places their trust in us. We’ll do everything us where north is, trust a washing machine possible to earn and re-earn that trust and to clean our clothes, trust in the cloud to confidence from our airline customers and store documents, trust in our phone to the flying public in the weeks and months remember meetings and contacts, trust in ahead,” he said.36 ATMs to dispense money. Our trust is based While functional consistency is vital for purely on the technology’s functional building trust, the predictability and reliability, how predictable it is.”35 dependability in a brand’s messaging is It is this role of consistent performance equally important. - or a lack thereof – that has so impacted Interestingly, the very concept of modern Boeing’s brand following two catastrophic branding was born out of the need to do just crashes and the subsequent grounding this. In 1777, William Bass founded a beer of their 737 MAX 8 jet. Unlike any airline company, Bass Brewery, which quickly grew to incidents in the preceding decades, the become one of the largest and most popular Lion Air and Ethiopian Airlines crashes were beers in England. The problem for the business due to flaws in the plane’s design rather as it grew was that beer was a product that than pilot error or faulty maintenance.
OUR TRUST IN TECHNOLOGY HAS RESTED IN A CONFIDENCE THAT THE TECHNOLOGY WILL DO WHAT IT’S SUPPOSED TO DO, NOTHING MORE, NOTHING LESS…
– Rachel Botsman
16 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY DON’T LEAVE YOUR BRAND OPEN TO A VARIETY OF INTERPRETATIONS AND CUSTOMIZATIONS. YOUR BRAND SHOULD BUILD AWARENESS AND DEVELOP TRUST AND LOYALTY WITH CUSTOMERS. – Stacy Jackson
could easily be watered down and this posed According to digital marketing specialist a significant risk to Bass’ popularity. Stacy Jackson, while consistency of brand messaging may be more important than In an effort to ensure the integrity, reliability ever, it’s also increasingly difficult to achieve. and quality of their beer’s reputation, in As Jackson observes, “Almost any employee 1876 Bass Brewery registered its distinctive has the opportunity to create content that ale’s red triangle symbol and brand name. contains their version of the brand look This was the very first trademark to be or message. Many employees will do just registered under the United Kingdom’s that, even with the best of intentions.” Trade Marks Registration Act. As Rachel Jackson continues, “Don’t leave your brand Botsman observes, this is generally seen open to a variety of interpretations and as the birth of the modern notion of customizations. Your brand should build branding.37 awareness and develop trust and loyalty According to marketing icon Douglas with customers. A constantly changing brand Rushkoff, the whole concept of brand personality just doesn’t do the job. That’s protection and trademarking arose as a why it’s so important to develop standards 39 way to “compensate for the dehumanizing for brand consistency on and offline.” effects of the Industrial Age. The more Regardless of your business or people had previously needed to trust organization’s size, it’s hard to overstate the person behind a product, the more the importance of having clear style guides important the brand became as a symbol for your brand. These will go a long way to of origin and authenticity.”38 ensuring consistency of the look, feel, tone In other words, as our economy and society and language of messages you share with becomes less organic and relational, we the marketplace. Having a confused and are increasingly seeking out objective chaotic brand will slowly but surely erode indicators of trust and reliability. the trust and confidence of those you are looking to engage. It is for this reason that consistency of brand messaging matters so much. The important principle here is that consistency, predictability and reliability are all vital elements of the trust equation.
17 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY 09 BECOME OBSESSIVE ABOUT CUSTOMER EXPERIENCE
Brand strategist Kevin Keohane points to This is not to say we should aim for a low data which indicates that 80% of brand bar in the name of consistency. Ongoing building is about the behaviour of an trust and affinity with a brand will always organization and its people - not marketing.40 be a function of things being refined and improved with the customer’s needs being While that number may vary from industry front-of-mind. This notion of customer- to industry, the bottom line is that actions centricity must be more than an aspiration speak louder than words to an infinitely today. As we have already discussed, an greater degree. Being reliable and empowered consumer will not just vote with trustworthy in today’s economy is about their feet if they have a bad experience with ensuring that every interaction a customer a business or brand. They’ll use their ever- has with your brand is one that lives up to louder voice on review sites and social media your marketing verbiage. to ensure others steer clear of you too. This is why team alignment and The key message is this: in an age of standardization of systems is so important empowered consumers, no business – there is no point in having one interaction can take their market for granted. While with a brand be fantastic, only for the next analyzing consumer data can sometimes interaction to be a disappointment. In one be helpful, there is nothing as powerful as sense, it would be better to offer a lower but genuinely empathizing with consumers in consistent level of service than a sporadic order to recognize and address the points or hit-and-miss customer experience that of friction that could otherwise rob you of can vary depending on the day or the their trust and their business. person you interact with. Inconsistent customer experiences erode the sense of One of the reasons businesses cannot ignore reliability, predictability and dependability frustration-driven friction today is that that underpin trust. experience is king. Read any consumer review site and you’ll see that the most common posts and ratings relate to a customer’s experience — not simply price or quality.
… today it is the EXPERIENCE Retailers are only now waking up to this fact. a business creates that can make or While price comparability certainly matters break their trustworthiness. and consumers are looking for value, today it is the experience a business creates that can make or break their trustworthiness.
18 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY 10 FOCUS ON MAKING A GOOD LAST IMPRESSION
Over the years, conventional wisdom has Customer Experience expert Adam Toporek taught us that the most important window suggests that businesses and individuals for building trust is in the first 30 seconds would be mad not to incorporate these of meeting someone. First impressions, so insights into the way they craft customer we’ve been told, are what counts most. interactions. “One of the best techniques is to try to manufacture the emotional peak However, according to research from Nobel purposefully, to create it by design.” Prize winning professor Daniel Kahneman, our last impression of a product or brand is In other words, design customer journeys most significant in shaping our memory and that finish with a bang in order to create perceptions of the experience. Kahneman’s an experience that makes your customers well documented Peak-End Rule is a theory feel emotionally positive and remember which shows that customers will judge you fondly.41 us and our products or service, based on whether their experience ended on a high note. In other words, how they feel at the end shapes their views on the entire experience.
According to Nobel Prize winning professor Daniel Kahneman, OUR LAST IMPRESSION OF A PRODUCT OR BRAND IS MOST SIGNIFICANT in shaping our memory and perceptions of the experience.
19 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY 11 PUT PURPOSE BEFORE PROFITS
While any for-profit entity by its very definition exists to make a profit, Martin Wolf of The Financial Times suggests, “If IF A BUSINESS a business substitutes making money for purpose, it will fail at both.”42 SUBSTITUTES
Validating this argument, 87% of consumers MAKING MONEY FOR today believe a business must place an equal weight on society’s interests as their PURPOSE, IT WILL own business goals.43 That’s a high bar to reach. FAIL AT BOTH.
And yet strive to reach it we all must. – Martin Wolf As Andrew Chakhoyan, writing for the World Economic Forum, suggests “The shortcut) will get you there. Purpose is like era of ‘doing well by doing good’ is upon a north star by which you can take your us. Balancing the profit motive with the bearings and remain on track. creation of societal value is about to Although many organizations have become a precondition for the long-term attempted to answer the ‘Why do we exist?’ 44 success of any corporation.” question by crafting vision or mission None of this is to minimise the importance statements, these are all-too-often a of financial sustainability and prudence. concoction of policies, practices, strategic aims and goals. True driving purpose, After all, a business or brand that cannot however, is more fundamental, long-term remain viable will have a very short-term and even philosophical than these things. impact regardless of its best intentions. Writing in the Harvard Business Review, As the old proverb tells us, if you don’t my friend and colleague Graham Kenny of know where you are heading, any road (and the consultancy Strategic Factors suggests
87% of consumers today believe a business must place an equal weight on society’s interests as their own business goals.
20 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY AMONGST OTHER THINGS, CLARITY OF PURPOSE INFORMS:45
The products and services you will offer and those you choose not to
The locations and markets you will compete in and those you steer clear of
The yardsticks of success that determine what is a ‘hit’ and what is a ‘miss’
The partners you will and won’t engage with
The people you hire and those you won’t
The internal culture you allow or endorse and that which you don’t
that the unique power of purpose is that In order to win the admiration, esteem and it forces an outward focus. It compels trust of our marketplace, having a clear everyone in an organization to put sense of purpose that transcends mere themselves in the shoes of those they are profitability will be vital. looking to serve. This is a key element of ensuring a consistent and reliable customer experience. According to Kenny, a clear sense or statement of purpose is uniquely important as it becomes the ‘philosophical heartbeat’ of an organization.
if you don’t know where you are heading, any road (and shortcut) will get you there.
21 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY 12 BE CAREFUL OF THE CULTURE YOU ALLOW
During a 2013 investigation into bullying and harassment in the Australian military, Lieutenant General David Morrison offered THE STANDARD a profound insight: “The standard you walk past is the standard you accept.” YOU WALK PAST IS
While Morrison’s words were directed to THE STANDARD YOU his fellow military leaders, they hold true for any organization or individual. The ACCEPT. moment we catch ourselves accepting behaviour, attitudes or choices that fail to – Lieutenant General David Morrison align with an organization’s stated values, we actually endorse them.46
In order to earn and keep the trust of the market, it is critical that an organization’s practices, policies and processes are aligned to non-negotiable principles. After all, the moment we compromise on our values, the seeds of distrust are irrevocably sown. Innovation without integrity will always end badly and it takes courage to hold fast to commitments that may prove costly in the short term.
In a powerful example of culture-setting values in action, consider the offensive scene that unfolded on a Delta Airways flight in November 2016.
As one particular passenger boarded flight DL5371 from Atlanta to Allentown, he strode down the aisle clapping his hands above his head shouting, “Donald Trump, baby. Have we got some Hillary b - - - - - s on here?” and on the tirade went.
22 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY The video of this scene captured on a fellow what was shown in the video, there is no passenger’s phone quickly went viral on question they would have removed him Facebook and prompted an immediate from the aircraft. It is important that the response from Delta’s CEO, Ed Bastian. airline admit its mistakes when one is Citing Delta’s value of dignity and respect made.”47 for passengers and employees, Bastion Now that’s the sort of values-led integrity refunded the tickets of every passenger on and honesty that wins the trust of the flight and placed a ban on the offending customers. passenger ever travelling on a Delta service in future. In the words of legendary advertising executive Bill Bernbach, a principle isn’t Going even further, Bastion apologised a principle until it costs you something. that the staff hadn’t immediately removed That said, while the financial costs of the passenger from the flight: “After maintaining a values-led culture are high, questioning the customer, our team the return on investment, in terms of members made the best decision they could earning the trust, affinity and esteem of the given the information they had and allowed market, is difficult to put a price on. him to remain on the flight. However, if our colleagues had witnessed firsthand
In the words of legendary advertising executive Bill Bernbach,
A PRINCIPLE ISN’T A PRINCIPLE UNTIL IT COSTS YOU SOMETHING.
23 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY CONCLUSION.
In his book Winners Never Cheat, Jon Huntsman Sr. shares insights into what it took for him to build his chemical empire from nothing into a $12 billion business. It is rather telling that the central themes that come up time and time again in his book are the very same ones that Paul Polman shared from the stage in India. At the core of Huntsman’s message is the importance of honesty and a clear sense of purpose.
In Huntsman’s own words, “There are no moral shortcuts in the game of business or life. There are, basically, three kinds of people: the unsuccessful, the temporarily successful, and those who become and remain successful. The difference is character.”48
My sincere hope is that you are left in no doubt that there is indeed a compelling and undeniable case for operating with the sort of character that wins the affinity, admiration and trust of those you are looking to serve.
In the words of social entrepreneur and author Bryant McGill, “When trust is lost, everything is lost.” I firmly believe that the opposite is also true: When trust is gained, everything is gained.
In the battle for hearts and minds, there is much to be lost but also much to be gained. I hope this report has given you something of a game-plan for winning this battle in the in the years ahead.
I wish you the very best.
24 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY WHEN TRUST IS LOST, EVERYTHING IS LOST. – Bryant McGill
25 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY ABOUT THE AUTHOR.
Michael McQueen understands what it takes to thrive in a rapidly evolving world.
Widely recognized for having his finger on the pulse of business and culture, he has helped some of the world’s most iconic organisations and brands navigate change and maintain relevance.
Michael is a familiar face on the international conference circuit, having shared the stage with the likes of Bill Gates, Dr John C. Maxwell and Apple co- founder Steve Wozniak. He has spoken to hundreds of thousands of people across five continents since 2004 and is known for his high-impact, research-rich and entertaining conference presentations.
As a leading specialist in organizational transformation, demographic change and consumer trends, Michael features regularly as a commentator on television and radio and is a best-selling author of eight books.
Michael’s latest book The Case for Character is a revealing and research-rich look at how to win trust in an age of transparency.
To find out more, visit www.michaelmcqueen.neT
26 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY WHAT OTHERS ARE SAYING ABOUT THE CASE FOR CHARACTER:
“Huge congratulations Michael. This timely and compelling book will make a substantial contribution towards inspiring leaders to build truly visionary organisations.”
—Dr. David Cooke , Managing Director – Konica Minolta Australia
“A must-read for any leader in any business. Leading a law firm with almost 200 years of history, our reputation begins and ends with trust. I can say that Michael McQueen hits the nail on the head with his advice. This is an excellent book: easy to read and full of practical examples.”
—John Murphy, National Managing Partner and CEO Borden Ladner Gervais LLP, Canada
“Trust is the most important currency today. Michael brilliantly examines four simple strategies to build a trusted and lasting brand. An enlightening read for everyone in corporate brand building.”
—Jürgen Kohnen, Director of Retail Innovation - Procter and Gamble, Germany
“Michael McQueen has eloquently captured the core components for building customer trust and sustainable brand success. This book is full of deep research and practical case studies that will be helpful for any company or leader.”
—Michael Spiegel, Regional Community Manager – Bendigo and Adelaide Bank
27 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY 1. Botsman, R. 2018, Who Can You Trust?, Penguin Business, London, p. 253. 2. Botsman, R. 2018, Who Can You Trust?, Penguin Business, London, p. 4 3. Botsman, R. 2018, Who Can You Trust?, Penguin Business, London, p. 5. 4. Friedman, U. 2018, ‘Trust Is Collapsing In America’, The Atlantic, 21 January. 5. Glavin, W. 2018, ‘Has The “Public” Lost Trust In Big Tech Companies?’, Equities, 28 November. 6. McCrindle, M. 2019, ‘Top 6 Trends For 2019’, McCrindle Research Blog, 2 January. 7. Edgecliffe-Johnson, A. 2019, ‘Beyond The Bottom Line: Should Business Put Purpose Before Profit?’, Financial Times, 4 January. 8. Mooney, A. 2018, ‘Blackrock Chief Larry Fink Issues Companies With Code Of Conduct’, The Financial Times, 17 January. 9. 2015, ‘2015 Harris Poll RQ Summary Report’, Harris Poll, February. 10. Miller-Dawkins, M. 2017, ‘The Business Of Trust: How Companies Can Build Credibility’, Open Government Partnership, 12 September. 11. Keohane, K. 2016, ‘The Case For Purpose Driven Brands’, Branding Strategy Insider, 9 September. 12. Ibid. 13. Edgecliffe-Johnson, A. 2019, ‘Beyond The Bottom Line: Should Business Put Purpose Before Profit?’, Financial Times, 4 January. 14. Ibid. 15. Edgecliffe-Johnson, A. 2019, ‘Beyond The Bottom Line: Should Business Put Purpose Before Profit?’, Financial Times, 4 January. 16. Edgecliffe-Johnson, A. 2019, ‘Beyond The Bottom Line: Should Business Put Purpose Before Profit?’, Financial Times, 4 January. 17. 2016, ‘Millennials, Mobiles & Money’, Telstra Corporation. 18. Barton, C. et al. 2012, ‘The Millennial Consumer — Debunking Stereotypes’, The Boston Consulting Group, April. 19. Virmani, P. 2014, ‘Note To India’s Leaders: Your 150m Young People Are Calling For Change’, The Guardian, 8 April. 20. Ford, K. 2016, ‘The Population Of People Under The Age Of 30 Is Set To Explode — And The World Isn’t Ready’, Business Insider, 13 August. 21. Kestenbaum, R. 2017, ‘This Is How Millennials Shop’, Forbes, 14 June. 22. Tredgold, G. 2016, ‘29 Surprising Facts That Explain Why Millennials See the World Differently’, Inc, 2 May. 23. Ibid. 24. 2019, ‘How Millennial Ethics Are Reshaping Fintech’, CB Insights, 27 March. 25. Botsman, R. 2018, Who Can You Trust?, Penguin Business, London, p. 41.
28 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY 26. Radfar, C. 2017, ‘Autonomous Cars Will Bring A Moveable Feast Of Products And Services’, TechCrunch, 2 July. 27. Smith, R. 2018, ‘To Reach Millennials, High-End Jewelers Try New Products—and Approach’, The Wall Street Journal, 19 June. 28. Snow, S. 2017, ‘Why Major Institutions Lost Public Trust, And How They Can Get It Back Again’, The Content Strategist, 15 December. 29. Featherstone, T. 2018, ‘Why Business Has A Trust Problem’, The Sydney Morning Herald, 22 February. 30. Tracy, B. ‘How to Have Integrity in the Business & Why It’s Important’, Brian Tracy Blog. 31. Smith, A. 2016, ‘Online Reviews And Ratings’, Pew Research Center, 19 December. 32. Miller-Dawkins, M. 2017, ‘The Business Of Trust: How Companies Can Build Credibility’, Open Government Partnership, 12 September. 33. Snow, S. 2017, ‘Why Major Institutions Lost Public Trust, And How They Can Get It Back Again’, The Content Strategist, 15 December. 34. 2018, ‘KFC’s Apology For Running Out Of Chicken Is Pretty Cheeky’, BBC News, 23 February. 35. Botsman, R. 2018, Who Can You Trust?, Penguin Business, London, pp. 182, 183. 36. Michaels, D. 2019, ‘Boeing Looks To Fix Its Reputation, Along With The MAX’, The Wall Street Journal, 16 April. 37. Botsman, R. 2018, Who Can You Trust?, Penguin Business, London, pp. 88-91. 38. Ibid, pp. 88-91. 39. Schueller, S. 2018, ‘The Importance of Brand Consistency’, Widen, 14 December. 40. Keohane, K. 2016, ‘The Case For Purpose Driven Brands’, Branding Strategy Insider, 9 September. 41. Drumond, M. 2018, ‘Understanding How The Peak-end Rule Defines Customers’ Experiences’, Medium, 11 May 42. Wolf, M. 2018, ‘We Must Rethink The Purpose Of A Corporation’, Financial Times, 12 December. 43. Keohane, K. 2016, ‘The Case For Purpose Driven Brands’, Branding Strategy Insider, 9 September. 44. Chakhoyan, Andrew. 2017, ‘We’re Losing Trust In Business. How Can We Get It Back?’, World Economic Forum, 21 July. 45. Keohane, K. 2016, ‘The Case For Purpose Driven Brands’, Branding Strategy Insider, 9 September. 46. Stamp, N. 2015, ‘The Standard You Walk Past Is The Standard You Accept’, The Huffington Post Australia, 30 September. 47. Isidore, C. 2016, ‘Delta: Abusive Trump supporter is banned for life’, CNN, 28 November. 48. Tracy, B. ‘How to Have Integrity in the Business & Why It’s Important’, Brian Tracy Blog.
29 / THE BATTLE FOR HEARTS AND MINDS 12 ESSENTIALS FOR WINNING IN THE TRUST ECONOMY www.michaelmcqueen.neT