Customers are willing to pay a 30% premium when they buy from companies they trust. With the continuously increasing new customer acquisition cost, keeping loyal customers has significant financial value to the company. Customers are loyal when they trust the company, and not only loyal—they recommend the company to other customers. There are five variables that have a significant impact on the trust that customers have in the company, and on its profitability. It starts with the company costs, and continues through the perceived price the customers believe they will pay and the value they believe they will get, and ends with the actual price the customers realize they had to pay, and the value they actually got. In this episode, I will analyze the relationships between those variables that make customers trust the company, and make the company profitable.
In this episode, I’m revisiting the topic of episode 11 in the 5th season. I brought this topic in the entrepreneurship class I teach at SMU, and gave my students the opportunity to reflect on it. Their comments helped me improve my own thoughts about the topic.
S13E5: Start Procrastinating Today! (Oh, right, and how does it relate to TRUST...)
S13E4: Why do we Trust Brand Names? The Trust Premium of Brands
S13E3: Why People Lie: The Science, Psychology and Consequences
S13E2: Building TRUST in Teams
S13E1: Borrowed TRUST and the Power of Referrals
S12E12: How to Choose a TRUSTED Coach
S12E11: If you TRUST me, does that mean I have to TRUST you?
S12E10: Do You Want to be TRUSTED by EVERYONE?
S12E9: Breach of Trust: "Bestselling Authors" and the Death of Professional Integrity
S12E8: Fairness, Symmetry, and TRUST
S12E7: Trusting the Skies: 3 Stories of Trust in Aviation
S12E6: Artificial Intelligence, Deep Fake, and TRUST
S12E5: How to Leave a Toxic Work Environment and Not Lose TRUST
S12E4: Broken Promises, Shattered TRUST: Why Don't We Trust Politicians?
S12E3: TRUST Attitudes, a few research findings
S12E2: Timing is Everything, Including in TRUST
S12E1: Can You TRUST an Artificial Intelligence Avatar
S11E12: Why I Don’t Do End-of-Year Planning
S11E11: Trust and Authenticity: The Vicious Cycle of Fake Apologies
S11E10: TRUST, Negotiations, and Contracts
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