This is part one of an ongoing series looking at trust, ethics, openness and more as emerging media becomes more widespread in use for individuals and businesses.
Trust is a hot topic at the minute. David Spinks asks whether social media has enforced corporate trust and honesty; Chris Brogan and Julien Smith release their Trust Agents book this fall; and big corporations are trying to rebuild trust in their brand after failing spectacularly in public.
Add in the fact that the FTC is currently looking at how it can monitor sponsored reviews and advertising online, and it’s clear that trust and trusting have never been more important.
But what is trust, exactly? Is it the same for everyone, or can it be different?
Can trust in a celebrity, for example, be as strong as trust in a friend or family member? It might seem a strange concept, but if that celebrity has a lot of influence over you then isn’t that just as strong as advice from a close friend? And how about a business? Does the sales or marketing message from a business hold more sway than word-of-mouth from a friend or connection if the business hasn’t been wrong so far?
I asked the question, “What does ‘The Economy of Trust’ mean to you?” on Twitter, to crowd-source views and ideas for this post (and the subsequent posts in the series). Some of the replies included:
Kat’s response was interesting, as I’ve seen companies fail to live up to the hype before yet still enjoy huge success with their product or service.
Sony, for example, used CGI-rendered demos for their soon-to-be-released Playstation 2 console back in 1999 yet claimed they were in-game graphics. When the actual games came out, they couldn’t possibly live up to the hype, yet the console would go on to become one of the most successful ever.
So can trust be overcome with huge marketing and advertising budgets and sheer brute force of numbers?
It’s often said that the capital of trust is crucial for any business success. It’s also part of what makes us who we are, and how we view others (and are viewed ourselves). But can trust be manipulated to the point that it’s difficult to differentiate between a sales pitch and a genuine recommendation?
As paid blogging and sponsored tweets make more headway and come under both praise and criticism, it’s clear that trust will define who is successful and who isn’t. Or will it? Does trust disappear when monetary value comes into play?
This is just an introduction to an ongoing conversation that will be taking place here over the coming weeks and months. There’s a lot more to trust than simple belief and I’ll be looking at what that is, with your help.
How does your trust come about? If it’s broken, is that forever or do you offer second chances? Can companies be trusted implicitly, or is it it the means to an end for selling a product?
I trust your views – feel free to share them and let’s open up the conversation.
photo credit: stargazer95050
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Trust is a major commodity for individuals and businesses. Without trust, there is nothing. Or is there? Can money buy trust? A new blog series probes further.
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RT @DannyBrown The Economy of Trust | http://bit.ly/u3fnq I was just thinking how deeply rooted our desire is 2 work w/ someone we know
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Good read by @DannyBrown on "The Economy of Trust" http://bit.ly/14f7Wv
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These are some great points and examples you raise here, Marja, and ones that are definitely in the pipeline for future posts.
I think one of the overriding factors in trust is the consistency – of message, of recommendations, of value, of relevance and more. You begin to “feel” a person (or business) and that reflects in the continued relationship.
Thanks again, and look forward to hearing your views on the upcoming discussions.
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The Economy of Trusty from @dannybrown http://tr.im/vkGT
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It's interesting that I was having such a hard time articulating my thoughts on this. I think for me trust comes about when I can see the person or organization has a history of providing something of value.
I'm not in any sort of marketing or PR field (so why I'm so fascinated with reading blogs on the subject is anyone's guess) but sometimes I admit I roll my eyes at all this relationships and trust and authenticity talk. Not because they aren't good concepts but because it sometimes comes across as manufactured sincerity.
NOT that I really think most folks in the field are faux-sincere, it's just from the consumer's point of view, we want a product that does what it says it will do, for a fair price and an easy way to find it and contact you.
Although you know, when I put it that way, I think sometimes consumer expectations can be out of whack but that's a whole nother ball of wax.
For bloggers, I trust those that consistently provide something of value. It might be entertainment, information, but just like a magazine, I'm willing to look at advertisements and product placements, but only if there is enough compelling content to keep me coming back. If your site is nothing but product placements, well, those Made For TV commercial spots are usually a lot more entertaining!
As for broken trust, I firmly believe that almost all mistakes are understandable and it's how they are handled that tells me a lot about if I am willing to give them a second chance or not. Usually I am.
Danny… I think this is timely and necessary conversation. Transparency is a great word that gets tossed around a lot, but I'm not sure many businesses or personal users new to social media really understand what it means. It is more than just honesty and authenticity, though of course those should be a given. It's also about trusting that I, as a consumer, will get the value I expect from the transaction or interaction. And if I don't, having the faith that *someone* really will do something about it. Thanks for starting the convo!
I am really looking forward to your series on trust Danny! My thoughts on the issue are somewhat disorganized and incoherent at the moment, but….
I think trust means something slightly different for everyone… I know that my levels of trust in someone vary depending how I know them, how long I’ve known them, which other people appear to trust them, whether they appear to have a large following, whether they put out consistent content, etc. Also, my level of trust in someone varies depending on WHAT is being talked about.
You ask: Can trust in a celebrity be as strong as trust in a family member? In my case, it would largely depend on the issue at stake. If that celebrity was, say, a movie star, would I put more trust in their weightlifting advice than I would in my Dad's, a former competitor in the World Strongest Man competitions? NO!! However, if the matter at stake was one that dealt with their specialty (making movies, dealing with the public, acting, etc) I would 'trust' their advice more than I would my Dad's.
On to a slightly less solid example: I trust Tim Hortons to make better tea than Dairy Queen. Why? Because the first brand has built their reputation around tea, coffee, doughnuts, and timbits, and the second around frozen desserts. They both have established their areas of perceived expertise. Is there any reason Dairy Queen can’t make tea every bit as good or better than Tim Horton’s? None that I know of… but I still know where I’ll go the next time I want a caffeine boost!
As for marketing… unfortunately, as humans we tend to be very impressionable (either that, or extremely cynical). From what I’ve observed, large-scale marketing campaigns do have the power to overthrow bad impressions and increase people's level of trust in them. For some reason, many of us have the attitude “if it is that large, and advertised in that many different places, it MUST be a good product!”
As for paid blogging & sponsored tweets… they rather scare me because I know that I am easily influenced by those I trust. Therefore, if someone who's gained my trust plugs a product, I almost always place more trust in that product as a result (heh. You’ve got me thinking I might try out the Headway WP theme!). I automatically transfer some of the trust I have in a person into trust in the product they’re plugging, and am especially influenced if the product being plugged is within the person's area of expertise. I don’t have a problem with someone being paid to plug a product IF they’re upfront about it (ie. “I’m getting paid for this folks!”) because I can factor this into my trust equation. But, I really, really, resent it when people get paid to plug a product, and they don’t tell tell us or it isn't made obvious. This destroys my trust in them.
When someone breaks my trust, I may or may not give them a second chance. For me, giving second chances depends on soooo many different factors that I don’t think I can even begin to elaborate on them. Besides, I’ve taken up enough space already!
Maybe it's because good marketing and PR should be about storytelling, so in that respect it's interest in stories that started from our childhood?
I think “authenticity” and “transparency” can tend to be two words that are overused at the moment. It's not as if the concept is new; perhaps just having a medium that allows instant feedback makes it feel new?
I do feel that we, as consumers, need to rein in some expectations and how we act with companies and their products. Then again, if the company didn't hype so much, would we feel as let down afterward?
These are some great points and examples you raise here, Marja, and ones that are definitely in the pipeline for future posts.
I think one of the overriding factors in trust is the consistency – of message, of recommendations, of value, of relevance and more. You begin to “feel” a person (or business) and that reflects in the continued relationship.
Thanks again, and look forward to hearing your views on the upcoming discussions.
Twitter: davidspinks
Thanks for the link Danny. I could go on and on about trust in business and the realities of relationships in this space. Keith Burtis said it very well on my Real Relationships post. “Never approach a network of individuals or individual in a network with a greedy one sided agenda.”
Trust is reliability, it is sincerity, responsibility, honesty, providing value, consistency, personality, and I could go on naming things that go into trust…
When it comes down to it, you shouldn't have to think about every aspect of trust…you know if you're building trust and if you're abusing it. The one's who choose to abuse it will lose it very quickly.
@DavidSpinks
I think you've got a really good point there, what is more human than trying to persuade other people and how and why we decide who we let persuade us? So no wonder it's so fascinating!
And I think what you said about storytelling also rings true for who we trust – as much as I hate to admit it, I do tend to feel more trust towards people and brands who represent stories and values I can relate to. Not values in the sense of good or bad behavior, but things like creativity or passion. For another person it might be freedom or stability.
It's strange, the first thing that popped in my mind when I read your comment was how I call the farmer's market in my town the Maclaren market because so many people shopping there are pushing around their babies Maclaren strollers, even me. Perhaps it's coincidence, but perhaps there is something about that brand that appeals to the same sort of people who like shopping at semi-yuppie farmer's market even though AFAIK, there is nothing in the Maclaren marketing materials that says that this particular stroller is well suited for that activity.
That seems very unrelated, but trying to tie this together, I think trust does come from a feeling that yes, this brand or blogger does represent the things in life I value. I suppose I'm looking at “trust” as including, but being slightly different than “trustworthy” or “truthful”.
I feel kind of queasy admitting this in public, but I think we do want our brands to reflect who we are. Or rather, not to betray us by portraying something we can't relate to.
Authenticity and transparency probably feel buzzwordish to me because this whole world is new to me. It's working though, isn't it, if a stay at home mom from Tennessee can feel free to jump into a conversation like this and expect to be listened to even though she has no expertise? That's awesome.
The whole consumer thing is something I'm mulling over from a few angles, everything from social justice to sustainability to just plain acting decent. Probably most of it is beyond the scope of your blog, but I think you'll find some consumers feel like a few bad apples are ruining it for the rest of us, too. Sometimes it feels like it's very us vs. them on the front lines of customer service, and it shouldn't be. We're all people!
RT @smmguide: The Economy of Trust http://bit.ly/INKv2
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The Economy of Trust – http://bit.ly/13If2c
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The Economy of Trust – http://bit.ly/13If2c (via @KursaalTom)
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The Economy of Trust and Its Value in Emerging Media http://tinyurl.com/kk7lkl
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Reading:The Economy of Trust ~ http://bit.ly/u3fnq (a post by @DannyBrown)
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RT @wchingya: Reading:The Economy of Trust ~ http://bit.ly/u3fnq (a post by @DannyBrown)
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"The Economy of Trust" http://bit.ly/14f7Wv via @dannybrown
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RT @gacconsultants: "The Economy of Trust" http://bit.ly/14f7Wv via @dannybrown
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RT @gacconsultants: "The Economy of Trust" http://bit.ly/14f7Wv via @dannybrown
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The Economy of Trust by @dannybrown http://ow.ly/j1ou
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RT @JeffHurt: The Economy of Trust by @dannybrown http://ow.ly/j1ou
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I wonder if Sony took the chance, with the Playstation 2, on what would seem to be common attitudes towards technology: 1) Consumers would be disappointed but would continue to put up with unmet expectations because “that's technology.” (Look how many people complain about Windows but rarely switch to Mac. By the way, I'm one of them!
)
And 2) perhaps more importantly, the idea that “They advertised the higher end games. I can't afford those so I'm stuck with these graphics. I'll hang on to the Playstation until I can afford something better.”
When consumers themselves act as expected by traditional marketers, it's easier for companies (especially in the tech world, I'd argue) to dismiss the value of developing trust. So I wonder if there's some ratio in play, some mix of helping both businesses and customers change their attitudes towards each other?
Twitter: timjahn
Trusting companies and brands (unless they're not for profits) is really tough when you think about it. No matter how honest, authentic, transparent, whatever they are to you, at the end of the day their #1 goal is making money. It has to be for that company to stay in business.
But there are still some companies that understand that caring about their customers and building some sort of trust with them will help reach the #1 goal.
It's tough. I'm all about trust and I can't stand companies that treat people like shit. But as a customer, how much trust CAN you put in a business?
That's an interesting view regarding Sony and tech consumers. When the PS2 was being readied, Sega and Nintendo were both still major players in the console market (although Sega would later drop out after the PS2 destroyed Sega's last console, the Dreamcast, as far as sales went).
I think where Sony maybe succeeded is that they went after a dedicated age group (the cool and hip 18-25 year old male crowd) and for gamers, that crowd is perfect. It obviously worked.
I do think customers are becoming less trusting of brands and want more proof of why Company X deserve the trust. But I also feel that we (as consumers) need to show we can be trusted not to go running our mouths off at the slightest “complaint” and have more realistic aims in a product as well. United Airlines and Best Buy might agree…
Oh, I agree about the less *overall* trust. We're “advertised out.” My point was just that while there are some customer groups who continue to act “as expected,” it's harder to get the idea of the trust economy across to companies who are tempted to say “They did the same old, and it worked for them” — without stopping to consider ALL the variables that went into that success. Maybe ultimately that's the kind of thorough analysis our case studies need to make a point of providing?
Agreed. I think that's why I'm interested to see the results of the Ford Fiesta and Nissan Cube initiatives, or the Best Buy emerging media job application project. It seems that some companies are opening up more – just not enough. But if these projects succeed (and because of joint consumer help) then it may pave the way for more like it.
Cheers Christa, always a pleasure sharing thoughts with you!
I guess if the company is consistent and looks after its customers, it's easier to feel “normal” trust in them. I know I always trusted Sega to put out kick-ass hardware, or Wendy's to be a better burger over McDonald's. But trust isn't always forever and like you say, companies are still all about the money at the end of the day.
Reading The Economy of Trust, by Danny Brown – http://sn.im/os7vb
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RT @DannyBrown The Economy of Trust | danny brown http://bit.ly/u3fnq
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I liked your insight on the Tim Hortons vs Dairy Queen example. Brands strive to create trust regarding their brand as a whole but this can slightly detrimental, especially when they are trying to expand their product or service selection. For example, one may trust McDonalds for a fast food choice, but do they trust them to excel in coffee or will they fall back upon their trust in coffee-specific retailers. Thus, brands not only have to protect their current consumer trust but somehow extend it.
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I liked your insight on the Tim Hortons vs Dairy Queen example. Brands strive to create trust regarding their brand as a whole but this can slightly detrimental, especially when they are trying to expand their product or service selection. For example, one may trust McDonalds for a fast food choice, but do they trust them to excel in coffee or will they fall back upon their trust in coffee-specific retailers. Thus, brands not only have to protect their current consumer trust but somehow extend it.
Hey Danny,
Let me know if you want some info on the Nissan Cube contest. I'd be glad to share some info.
The Economy of Trust – http://bit.ly/13If2c 8-]
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The Economy of Trust – http://bit.ly/13If2c
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The Economy of Trust – http://bit.ly/13If2c ;-P
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The Economy of Trust – http://bit.ly/13If2c !
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The Economy of Trust – http://bit.ly/13If2c ..
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The Economy of Trust – http://bit.ly/13If2c o_O
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