Customers do not willingly bestow trust on vendors without a good deal of consideration. It is really up to the vendor to establish trust. There are a number of ways in which this can be done but the most powerful is through a referral from someone the customer trusts. This once again demonstrates the marketing power of the satisfied customer who is willing to recommend a vendor.
The closer the relationship between the person providing the reference and the customer; the more weight given to the recommendation. In a situation where the customer is having difficulty making a decision between possible suppliers, the recommendation will usually carry the day.
Testimonials of similar customers are not as powerful but a good substitute in the absence of an existing customer they know. Case studies which show the product used in similar circumstances also carry some weight.
The task of the vendor is to reduce the perceived risk to a point where a frank dialogue can be had and then use the interaction to build trust. If a trusted advisor situation can be established and the ultimate customer experience validates it, the new customer is highly likely to recommend the vendor to others.
Tom McKaskill is a successful global serial entrepreneur, educator and author who is a world acknowledged authority on exit strategies and the former Richard Pratt Professor of Entrepreneurship, Australian Graduate School of Entrepreneurship, Swinburne University of Technology, Melbourne, Australia. A series of free eBooks for entrepreneurs and angel and VC investors can be found at his site here.
