Tips For Building Trust Today For Tomorrow’s Digital EconomyMaxwell Donovan
The biggest irony in this highly technological world is that the very source of value—we refer to as DATA—can also be the source of dreadful risks.
Organizations today embrace technology to stand competitive against other businesses. Every one of them wants to deliver experiences to their clients that are unique to them. To do that, they tend to customize their products or services according to the profile of their customers.
You may see this process too often on the internet. One instance is when a shopping website asks you to leave your details so it can recommend the right products or services that will suit your profile. However, while it can improve your shopping experience, it can also be risky for you.
There were already multiple instances of data breaches in the past, where customer details were exposed. Since then, there were endless concerns on ethics, security, and privacy.
Therefore, trust has become the new standard for customers in choosing the company they will transact with. For businesses, this means they need to strengthen their security measures to maintain not just customer loyalty but also their credibility.
Digital Trust and its Effects in Organizations?
Let’s take it this way:
If data is the very lifeblood of the digital economy, digital trust, on the other hand, is the heart that pumps it. However, the confidence of a customer in digital products and the companies that produce them is rapidly fading away. It might completely break soon, as revealed in a recent global survey, that over 60% of the respondents believe that tech companies would prioritize their profit rather than their customer’s welfare.
A PWC report revealed that the most significant companies of the future generation are the ones that prioritize privacy, security, and data ethics. On the other hand, those that ignore these factors will face a costly problem.
Also, a recent Accenture study claims that in the next five years, CEOs can reclaim over $5 trillion in lost value with new governance strategies for safeguarding the internet. For a global organization, this could mean up to a 2.8% growth in revenue.
However, a recent report from Tufts University, Digital Trust and Competitiveness, revealed that only a few business leaders are confident to have “digital trust” strategies in place.
Digital Trust— Why Is It A Big Concern?
As technology becomes a natural part of our daily lives, more profound questions also start to arise about digital trust. Some of these include:
“How do I trust someone I will never see?”
“How can I trust an algorithm that makes thousands to millions of decisions in just a second that I am not even aware of?”
“How do I trust an organization that tracks my every movement on the internet every day?”
But why is everyone talking about it now? And why is it a big concern?
The combination of 3 growing forces is writing the new laws in building the digital economy. These are:
- Gilder’s Law – affordable large storage and processing in the cloud
- Metcalfe’s Law – network expansion
- Moore’s Law – computing power
In this new economy, the value for businesses doesn’t lie exclusively in the services and products that they offer today. Instead, it is in the ability to improve customer experience and retain loyalty for tomorrow continuously.
Devices, code, and data are symbiotic, meaning an advancement in any one of these can drive up demand for all.
Tips in Building Digital Trust
For organizations, establishing and cultivating trust with their customers is essential.
So, in the growing digital economy, how do you build trust?
- Digital Trust as Feature of Services or Products
In the era of algorithms, automation, and AI, technology is working beside us and on our behalf, often without input. This process triggers deep-seated biases and igniting distrust and fear among consumers.
So, understanding the human psyche and designing services or products for it helps introduce trust between companies and customers, which also encourages adoption.
Grow digital trust by designing a guiding principle you should apply throughout the processes of conceptualizing, creating and testing any service or product before their release.
In every milestone of product or service development, you need to ask yourself:
“How can this create or build my customer’s trust in me?”
- End-To-End Traceability
The misuse and mishandling of data, as well as cases of product failures, can result in irreversible, deep mistrust. However, end-to-end traceability using distributed ledger technology or blockchain, for instance, can instill more confidence among end-users by giving them an insight into the lifecycle of your service or product.
- Radical Transparency
Clearly expressing the value proposition of a service or product, and delivering on that plan will be crucial to building trust.
With radical transparency, organizations can show intended benefits to the clients and alert them of any potential risks. Also, being open to the advantages and disadvantages of products or services allows a customer to choose between purchasing or not.
- Unwavering Integrity
A crucial aspect of digital trust is knowing and understanding the other party’s intentions.
Consumers want to see that organizations are working for their interests. Thus, organizations need to express their purpose clearly. They should also instill an ethical framework that supports their use, mainly in terms of the usage of new technologies.
When organizations show solid integrity, consumers will feel more confident in engaging with them and using their services and products.
This old saying still stands true:
“Trust is not given. It is earned.”
Using metrics like the net trust score proposed in the report from the Embankment Project for Inclusive Capitalism can help provide a way for measuring trust as well as conveying assurance of integrity and trustworthiness.
The use of metrics also provides a way to track your progress and ensure that the entire organization focuses on maintaining a healthy level of digital trust.
Ultimately, digital trust needs to become a part of the very fabric of an organization’s purpose, strategy, and values. To create a long-lasting legacy of trust in this digital age, organizations will need strong leadership and empathy, supported by a significant set of building blocks that enable the company to deliver this confidence solidly.
Author Bio: Maxwell Donovan works for a Conference-organizing company. His prime errand is to discover the correct group of delegates for the gatherings and different business events. These gatherings and conferences are fundamentally held at top meeting settings in India.