A 40 per cent increase in the number of business referrals being passed between members of BNI here in New Zealand is a strong indicator that trust is becoming a vital factor as the downturn deepens.
BNI NZ director Graham Southwell quoted Indian policy maker, Montek Ahluwalia, to me recently when something Montek said was used to sum up the global financial crisis: ‘Confidence grows at the rate a coconut tree grows and falls at the rate a coconut falls’.
What a fantastic analogy!
A press release we put out last week made the point that in a climate of uncertainty, people turn to the things they know and trust – and that includes asking people who they know and trust for advice when they do have to loosen those purse strings.
As we said in the release, while people feel like they don’t know who to trust, that doesn’t mean they aren’t looking for people they can trust; they’re simply relying more than ever on recommendations.
Now, more than ever before, is the time to focus more on customer relationships and to find cheaper ways of marketing, including networking and making better use of the internet.
Here are five tips for companies who want to make the most of the growing trend:
- Market locally. Neighbourhood marketing saves on expenses and people are more likely to trust their neighbours.
- Develop a referral network. People who come recommended automatically enjoy higher trust and better conversion rates.
- Establish credibility. Use third person endorsements from clients more frequently.
- Increase visibility. When decisions to buy are few and far between, the business needs to make sure it is known far and wide.
- Build strong relationships. The relationship between a customer and a business is like a marriage. It requires trust, work and regular communication.
Day must follow night, but any company wanting to thrive or even survive in this environment must go back to building relationships based on trust. If people don’t trust you completely (and it’s now harder than ever), they won’t give you their hard earned money.
