Guide to building customer trust: 10 top strategies
Table of contents
- What is customer trust?
- Why customer trust is so important for companies
- How do I gain customer trust? - 10 strategies
- In practice: Gaining trust through insurance at BAUR
In an age where consumers have a multitude of options when it comes to shopping, customer trust is an important key to long-term customer and brand loyalty - both online and offline. High levels of trust in a brand can turn a one-off shopper into a loyal customer.
We look at why customer trust is so important in today's business world and the factors that drive it. Using online retailer BAUR as a practical example, we also look at the role insurance can play in building trust.
What is customer trust?
What exactly is meant by customer trust? Basically, that customers can rely on a company to keep its promises, be reliable and act in the best interests of its customers. It is based on the experiences that customers have had with a company. They also need to feel that the company can fulfill their needs and expectations in the best possible way.
Why customer trust is so important for companies
Trust is a key driver of customer loyalty. When customers feel confident and satisfied with their purchase decisions, they are more likely to make repeat purchases from the same company. In this way, long-term customer relationships can be built.
This also builds brand loyalty. Consistency, reliability, trust and positive experiences create an emotional bond between the customer and the brand. As a result, customers remain loyal to the brand and do not buy competing products. A study by Edelman shows that around 81% of consumers make purchase decisions based on trust in a brand.
Companies benefit from strong customer and brand loyalty in many ways: increased repeat purchases, reduced marketing costs, word of mouth, resilience in times of crisis, higher customer lifetime value.
How do I gain the trust of customers? - 10 strategies
Given the importance of customer trust, companies should therefore consider what measures they can take to gain it. As in any relationship, you first have to earn the trust of the other party. Here are 10 tips for strengthening customer trust.
1. Honest communication
Open and honest communication lays the foundation for customer trust. Clear, precise and honest information about the products or services offered are fundamental aspects of honest communication, as is admitting mistakes and communicating transparently about problems.
2. Stay authentic
Communicate your company values to the outside world. Show your customers what drives you and what the company's goal is. If customers can identify with this, it is easier for them to build trust.
3. Good customer service
Friendly and efficient customer service is an important trust factor. Fast response times and helpful answers show customers that their satisfaction is a priority and that they can rely on the company. A detailed FAQ on the product pages can answer frequently asked questions quickly and thus relieve customer support capacities.
4. Personalised content
Customers like to be perceived as individuals. Personalised offers and tailored recommendations can strengthen trust. An email newsletter, for example, is particularly suitable here. This offers great opportunities for cross-selling and upselling. Customer data can help to create personalised content - but of course only within the scope of consent and in compliance with the GDPR.
5. Quality and reliability
Consistently high quality and reliability of the products or services offered are crucial factors for customers to trust your company. After all, a brand that regularly attracts attention with poor products loses the trust of its customers.
6. Share reviews
Share positive customer reviews in your online shop or on social media to show new customers why it is worth trusting you. Seals from test magazines or e.g. TrustedShops on your website or in the checkout can also strengthen trust in the long term.
7. Recommendation marketing
Let your customers become brand ambassadors. Offer incentives to recommend your products or services to others. This could be through discounts, exclusive offers or bonus points. This motivates customers to tell others about their positive experiences.
8. Trustworthy payment methods
Trust can also be gained by offering various payment methods. This allows you to show that you are a legitimate retailer. The more payment methods available, the less likely it is that customers will drop out of the payment process because their favourite method is not included.
9. Data protection
In our digital world, the protection of personal data must not be neglected. Transparent data protection guidelines and compliance with the law are absolutely essential. Or would you trust a company that mishandles customer data?
10. Creating a feeling of security
Integrating insurance into the business process offers customers a simple form of security and is easy to implement with an insurance partner. With just a few clicks, the right cover can be purchased alongside a new product. When customers know they are protected against the unexpected, they feel more secure and are more likely to commit to a long-term relationship. This is especially true for expensive electronics, holidays or bicycles.
Customers know that in the event of a claim, it can be dealt with quickly and easily. Uncomplicated assistance leads to further positive experiences with the company and builds customer trust.
Integrating insurance into e-commerce and retail also shows that the company is responsible and cares about its customers' wellbeing.
Insurance at BAUR
BAUR has also recognised the positive influence of insurance on customer confidence. Since 2024, the online retailer has been highlighting hepster's insurance policies at various customer touch points. This is mainly done via banners on product or overview pages. The banners direct BAUR customers to pages where they can take out an insurance policy with hepster that matches their new product. Insurance solutions are currently offered for bicycles, e-bikes, sports equipment, electronics and smartphones. In the future, the range will be extended to other categories.
BAUR is expanding its range of services by working with hepster. The simplicity and added security of recommending insurance policies improves the customer's shopping experience.
Over the past 20 years, BAUR has undergone an exemplary transformation from a mail order company to an e-commerce giant. A key success factor has been the focus on a unique customer experience. This is now enhanced by the security and reliability aspects of the insurance policies.
Conclusion
In today's business world, customer trust is a fundamental component of business success. Companies that are able to gain and retain the trust of their customers enjoy a number of important benefits.
Through transparent communication, personalised and value-added offers, reliable products or services and excellent customer service, companies can gain and strengthen the trust of their customers.
An interesting and modern way to increase customer trust is to integrate insurance into the business process. BAUR has already recognised this potential. If you too would like to add insurance to your range of products and services in the future to make it easier to gain the trust of your customers, please contact us and we will find the right solution.
