What's Next... for public trust?

28.01.2010

The combination of the financial crisis and the expenses scandal has fundamentally shifted the trust that the public has in institutions.

At our recent event, a panel of experts gathered to consider the issues:

- Claire Spottiswoode, member of the Which? Future of Banking Commission
- Anna Bradley, consumer advocate and non-executive regulator
- Mark Gonnella, director of corporate affairs for Barclaycard
- Charlie Stott, strategist and expert on consumer trust, Wolff Olins

What's next for public trust - vox pops from Fishburn Hedges on Vimeo.

Conclusions included:

- The fall in public trust is recovering over the short term, but the long-term downward trend is more worrying
- The fall in trust stems from the gap between what companies say and what they do
- Brands wanting to build trust with their customers need to be prepared to take risks by really bringing them into the organisation and becoming accountable to them
- This means decisive top-down change which cannot be created by communications alone

Has there been an irreversible shift in public trust?

Anna Bradley and Charlie Stott don’t think so. Bradley pointed to a recent Consumer Focus Survey which showed that levels of trust are at pre-crisis levels.

Stott added that globally, consumer trust is back to pre-crisis levels, but the UK is lagging behind many other markets.

Both Bradley and Scott agreed that what was far more significant and worrying was the long-term, downward trend in trust. Although we’re seeing a short-term recovery, year-on-year figures show the downward trend has accelerated.

Does it matter?

It depends – there’s a difference between what people say and do. Bradley explains it as attitudes versus behaviours. Attitude is how you feel about something, behaviour is how you react to it.

In some areas, consumers have a negative attitude but, perhaps owing to apathy, they put up with it. But when it shifts to behaviours, corporates should be worried.

Also, with certain brands, trust is core. If they lose that trust, or if it dips, they have a significant problem.

Has corporate behaviour changed in response to the crisis?

Not according to Stott, who believes only a very few have reacted.

This doesn’t surprise Bradley, who said that action isn’t always the right answer. She suggests there are three types of response:

- First, for some, the best form of action is ‘no action’. It’s neither important nor necessary to effect a change.
- Second, you can let the regulator decide.
- Third, for those for whom action is really significant, regulate yourselves. But this is certainly not a soft option. Whatever action is taken, it cannot be done half-heartedly – whitewash is not an option.

Taking it into your own hands means engaging fully with consumers, bringing them into the heart of the organisation. They need to be in a position to tell corporates what it is that really matters to them and what needs to change.

Corporates then need to act on this feedback and report back to consumers – and all this needs to happen consistently and regularly.

This can be a huge risk but also brings an immense amount of opportunity and allows corporates to really make their mark and build a brand on the basis of trust and confidence.

So, how can trust be restored?

For Mark Gonnella, the challenge is very clear. Trust can only be restored by what you do, not what you say – actions, not words.

It needs a top-down approach – at Barclaycard, there was a rallying cry from the chief executive to simplify things for the customer and this permeates every level of the organisation.

How do you stand out in the crowd?

Again, it’s action not words, and having a core proposition at the heart of it.

Stott believes it’s very difficult to stand out in the market-place and that it can only be achieved if you stand for something and really deliver on what you say.

Corporates need to have a firm belief at the centre of their organisation or brand, and they need to make sure that belief translates into what they offer the market.

They also need to have the capabilities to support that offer and, finally, a corporate culture that binds it all together.

This isn’t an instant fix and can involve a lot of effort and time. Corporates need to persevere and be patient – it will be worth it in the end.

What’s the role of communications?

It’s all about how well corporates tell the story. As well as the corporate-to-corporate story, there should also be a core story, which is told more widely.
There’s a lot of good work being done in organisations and a vast amount of behaviour change, but this needs to be shared externally.

Traditional media certainly has an important part to play but with an evolving media landscape and our focus on customer engagement, social media is just as important.

However, Stott is surprised by the shift in attitude towards blogs. They currently seem to have a lack of credibility in the marketplace and have been tainted in the same way that corporates have been tainted.

The core belief in blogs is still there and they should certainly be considered as a channel for engagement.

Do we need heavier regulation?

Clare Spottiswoode believes it’s more important to have the right regulation and a box-ticking exercise benefits no-one.

Financial services is a complicated industry, but it is still possible to have a basic set of moral guidelines.

The industry needs to retain its innovativeness and competitiveness, but Spottiswoode believes the right set of rules can result in less intrusive regulation and an environment that is mutually beneficial for financial institutions and consumers.

Transparency is a key element of this and essential for public accountability.