Utility Week Live

UtILItY WEEK | 20th - 26th FEbRUARY 2015 | 11 I t is generally accepted that trust takes time to build, even if it much easier to lose it. Among the UK's most trusted brands there are relatively few new names, while older brands, with longer legacies of referrals, built up over generations in some cases, tend to dominate. But times have changed. While trust is rarely automatic, social media has trans- formed the speed and reach of recommenda- tion, and in the future we predict there will be more new brands appearing in the list as customers more quickly become aware of a brands' reputation. Gone are the days when customers instinctively trusted large organisations to do the right thing. Increasingly, customers question, challenge and test organisations' Viewpoint S P E C I A L R E P O RT: PA RT 2 / F e b ru a ry 2 0 1 5 "Trust is rarely automatic. It is earned and it is learned" In association with: trustworthiness while the media seeks to expose information to bring a company's integrity into question – whether it's how much tax they pay or their position and pol- icy on the environment and climate change. Both could be seen as equally relevant to the public interest as how good a company is at delivering its products or services. Trust is rarely automatic. It is earned and it is learned over a series of interactions where customers' expectations are met. Trust has a value. Customers will buy at a higher price from an organisation they trust and will demonstrate loyalty to it. Occa- sionally, customers will show attachment (beyond both loyalty and advocacy) to an organisation they trust. So what builds trust? Proven capabil- ity, accreditations, testimonials, audits and professional endorsements of your capabil- ity are all useful in building trust indirectly. Solidly delivering on customer expectations in the provision of a products or services builds trust directly. The single most powerful trust builder, however, is found in the quality and sen- sitivity of your response when something goes wrong. Responses should be sure to be personal and emphasise how your actions are linked to customer problems – simple techniques such as the You Said, We Did communications campaigns, which Natwest recently employed, can be highly effective. Though be sure to keep your communica- tions believable. Without trust you have nothing. Rela- tionships depend on it. We know trust in utilities is at an all-time low. Rebuilding it will require more than strategy or contrived techniques, it will require character. Utilities must show authentic and attractive charac- ters. They must be genuine, believable and transparent. They must live their values in everything they do. That means charging fairly, invoic- ing clearly and returning overpayments promptly. It means implementing new IT systems, including smart metering, with considerable thought for the impact on customers. It means acting like the owner of the corner shop, whose livelihood depends on the service given. I might be inclined to encourage the industry to ask another question. Ask customers if they like you and why, or why not. It's a beautifully simple question. It gets personal and will help you understand, warts and all, the character your organisa- tion projects. Customers are unlikely to trust you, rec- ommend you or stay with you if they don't like you. Nicola Eaton Sawford, managing director, Customer Whisperers CUSTOmER SATISfACTIOn dRIvES RETEnTIOn CUSTOmER SATISfACTIOn And SALES gROwTh: RETAIL fOOd Customer satisfaction rating (1-10 scale) as measured in uKCSI % of customers who are highly loyal (ie scoring 9-10 for intention to remain a customer) % of customers who have recommended the organisation % of customers who give the organisation a high trust rating (scoring 9-10 for trust) 100% 80% 60% 40% 20% 0% 1-1.9 2-2.9 3-3.9 4-4.9 5-5.9 6-6.9 7-7.9 8-8.9 9-9.10.00 30% 25% 20% 15% 10% 5% 0% -5% -10% annual sales growth for the 12 weeks to 12.10.14 Source: Kaptar Wrordpanel 72 74 76 78 80 82 84 uKCSI scores SECTOR SATISfACTIOn SCORES vS EmPLOyEE EngAgEmEnT SCORES Tesco Morrisons asda Sainsbury's Iceland Waitrose Lidl aldi The Co-Op 8.0 7.9 7.8 7.7 7.6 7.5 7.4 7.3 7.2 Average employee engagement score on five key attributes 70 72 74 76 78 80 82 utilities Public services (national) Public services (local) Telecoms & media banks & building societies automotive Services Insurance Leisure retail (food) Tourism retail (non-food) Transport Source: all data courtesy of ICS

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