Perhaps it is not surprising that the companies that are good at building digital trust are also more likely to experience the best financial performance. We wondered if the reason for this is because these companies simply execute better, and that sound execution results in trust. But the difference in the nature and number of their goals, as well as their commitment to most best practices, suggest a deliberate focus on a trust-building strategy and on performing with superior resilience during periods of great disruption. Our final conclusion is that in a digitally connected and data-driven world, achieving digital trust is a major strategic imperative and a huge business differentiator.
Managing trust can no longer focus solely on protecting against what if? Rather, executives need to think about trust in terms of what more can it enable us to do? Companies that build trust relationships with their customers can, for example, use data in broader, more creative ways to craft even more personalized services with higher conversion rates. In a separate analysis we are running, early results show that trusted brands have outperformed untrusted brands by a meaningful margin over the past five years. The picture is becoming clear that digital trust conveys an economic benefit.
One thing that did surprise and concern me is the lack of awareness among companies around what “good” looks like when it comes to building digital trust, particularly around cybersecurity. This is generally considered to be a more mature risk vector, but clearly we have more to do there and should widen the aperture to include adjacent areas in AI and data.
The takeaway from this research is clear: consumers are putting the safety of their digital identity in the hands of businesses they trust. Companies with digital products and services should prioritize measures that help maintain consumer trust. The practices we asked about for this survey, which we culled from best-of-breed institutions, suggest places to start. At the end of the day, building digital trust not only is the right thing to do but also offers the potential to unlock a future horizon of growth, making it a win–win for customers and organizations alike.
Jim Boehm
McKinsey commentary
Partner, Washington, DC
