INSIGHT: Customer trust… Why you need a digital approach

Humans are social creatures; we are heavily influenced by the opinions, experiences and recommendations of others.

You know that self doubt you feel when you're just about to make an important purchase?

We all feel it; it's why we look for affirmation from those we trust - and why we are 4 times more likely to buy something when referred by a friend.

The referrals and recommendations we rely on used to came from friends and family in face to face discussions. But the internet and social media have completely changed that.

In this new, hyper-connected world, the "herd" we trust has grown significantly - it's not just friends and family any more.

We are instantly connected to a growing number of people who can influence what we buy.

How herd mentality influences our purchasing

Before we make a significant purchase, we research the options to select the product that is best suited to our needs.

But that relies on us gaining enough understanding of the advantages and disadvantages of the options.

Traditionally, this is where sales people came in; they had the product or subject matter expertise that we relied on to make the right decision.

Their knowledge gave us comfort; even though they weren't offering impartial advice.

The internet has almost every subject matter expert you need

With information so readily available now, a lot of us are more comfortable making some large and potentially scary purchases on our own.

A good example is international travel. The first few times I travelled to other countries I relied heavily on a travel agent to help with different cultures, rules and travel methods.

The travel agent had information I couldn't easily get - recommendations of good hotels, advice on what would be the most enjoyable and even the safest. The idea of travelling without that advice seemed crazy.

Fast forward to my most recent trip - I didn't use a travel agent at all. Online research gave me everything I needed to get to my destination, safely and without fuss.

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Social recommendations allow you to craft your experiences

Factual information is essential to know what you're getting yourself into, but not necessarily how you are going to feel about it. Wikipedia can tell you the population of a city - but it doesn't tell you where the cool kids go to party.

To really get a feel for something before you experience it yourself, you need to get opinions from like-minded people.

Today we can turn to online communities for reviews we trust – often written by people we don’t know in the real world.

Using my travel example again, that's where Trip Advisor came in. I used it to get up to date information and opinions about restaurants, things to do and even warnings about any dangers or scams in the area.

That way I didn't have to rely on interpreting online marketing material and instead could learn from the experiences of my massive new online herd.

How I learned how much I rely on social recommendations

While I was travelling with my wife, I decided that I wanted a Bluetooth speaker to replace some plug-in speakers I had. She suggested that maybe we had spent enough on the holiday, so I shouldn't go wasting my money on toys.

That didn't stop me researching online. I didn't know too much about what I wanted, so I researched reviews on various websites and made my selection.

When my wife (foolishly) left me unattended in Singapore airport on our way home, I headed straight to the electronics store.

Unfortunately they didn't have that exact model I wanted and while I browsed their selection, a few sales people approached me and tried to help.

But the thing is - I trusted the reviews I had read online. I didn't have the same level of trust for the sales people in the store, as they would recommend the best option they had, not necessarily the best option available.

The online reviews were unbiased, written by people who had nothing to gain from my decision. There was also a broad range of opinions that I could use to choose my personal preference.

So I waved the sales people away and waited until I got WiFi working on my phone. I could then confirm that the model they had was right for me, the price was good and I was happy to purchase.

I got the product I wanted, so I was happy. The shop didn't have to invest sales time and still got the sale - so they were happy. My wife even learned to be happy over time (as she now uses the speaker more than I do).

Get social to gain your customers trust

You need to provide information (and often advertising) online so that customers can learn about your business and your products. But, while necessary, that approach is becoming less relevant and less trusted.

The next step is to create a trusted online community using referrals, forums, case studies and social media. Make sure your staff are engaged and know how to represent your brand online, then encourage your customers to participate.

You will gain great insights into what they really think and get the chance to turn happy customers into passionate advocates.

By David Reiss - Business technology specialist, Spark Digital