Comments on: What Does Loss of Customer Trust Actually Cost Companies?

By: Ted Mininni

Ted Mininni — Fri, 21 Nov 2008 12:28:28 +0000

Right, Neil: there’s no place to hide since the Internet came on the scene. Information spreads very quickly now–another reason companies really want to think about the “trust factor”. Thanks for reminding us of that, Neil.

By: Neil Anuskiewicz

Neil Anuskiewicz — Fri, 21 Nov 2008 01:00:02 +0000

The Internet adds another component to this in that information good and bad travels much faster.
It is difficult if not impossible for governments or companies to keep things like the melinine scandal secret. It is good that the light of day shines on these things.

By: Ted Mininni

Ted Mininni — Fri, 21 Nov 2008 00:08:11 +0000

Thanks for taking the time to answer my questions, Neil. I quite agree with your answers. Companies are increasingly faced with public and governmental pressure to safeguard consumers from harmful products. It is my hope that companies will be as proactive as possible to these issues–before they have to be told to be. Instilling and maintaining trust is too important. Thanks for adding your insights, Neil. Much appreciated.

By: Neil Anuskiewicz

Neil Anuskiewicz — Thu, 20 Nov 2008 22:58:51 +0000

I mean to say Adam Smith’s invisible fist punishes companies that hurt people. Rightly.

By: Neil Anuskiewicz

Neil Anuskiewicz — Thu, 20 Nov 2008 22:55:24 +0000

* Do you feel, as a consumer, that enough has been done to ensure product safety?
No.
* Do you feel that there is enough transparency and traceability in consumer goods to earn your trust yet?
No.
* When there has been a recall on products you generally purchase, have you refrained from buying that product or brand again?
Yes, I am much more leery about their brand from that point on. They can, however, earn that trust back. Take Tylenol, for example, though I do not use their brand I do trust it. The scare caused changes in protecting products that were needed across the board.
* Do you think there will be more incidents involving tainted food, toy or other consumer goods?
Yes, but I think that companies are recognizing that the consumer considers such incidents that harm and even kill people to be completely unacceptable. More safeguards are inevitable, including with regard to imported products.
For example, after babies were killed and badly damaged by melinine from Chinese milk products both in China and in some countries that imported milk products from China, I think the result will be a more vigorous regulatory structure in China.
Everywhere I think there is a recognition that regulation is part of the solution, the other part is that Adam’s Smith’s invisible hand occasionally becomes an invisible fist that punishes those companies who that people.

By: Ted Mininni

Ted Mininni — Thu, 20 Nov 2008 15:22:36 +0000

To answer your question: I personally think it’s everybody’s responsibility in corporate management, Paul. Marketers may want to pass the buck on to other executives, but that is a mistake, isn’t it? Good marketers ought to push for these things since everything they do goes to building trust in their brands. Isn’t that their ultimate goal?Thanks for weighing in, Paul.

By: Paul Barsch

Paul Barsch — Thu, 20 Nov 2008 15:01:56 +0000

Ted, I enjoyed this post. Do you think marketers, across the board, believe safety, traceability, and transparency is their responsibility? Or is that someone else’s job in the company?