to help enterprise security across Europe
The resource centre for busy senior executives seeking the latest insights into IT Compliance & Privacy issues for major organizations
sarbaines oxley ofcom communications regulator
Latest Resources      data protection register
compliance resources privacy resource center

Breaking Global News
Global Compliance and Privacy News
- Breaking News, updated every 30 minutes
•   Compliance, Privacy and Security
•  Money Laundering
•  Phishing
•  Regulatory Issues
•  SOX, Basel 2, MiFID

You Tell Us:

We use SSL Technology for web data entry points:

What is SSL?

Are Smartphones Endangering Security? - Wick Hill
Dealing with Internet Security Threats - Ian Kilpatrick
How the New EU Rules on Data Export Affect Companies in and Outside the EU - Thomas Helbing
Farmers' Data Leak Highlights Old Technology Use - Wick Hill
Saving Money with SFTP - Wick Hill
UK Information Commissioner targets firm selling vetting data - Eversheds e80
12 Key Steps to Internet Security - Wick Hill
Telephone Monitoring Legality in the UK - Dechert
Firewall or UTM - Wick Hill
UK Information Commissioner demands mobile device encryption - Eversheds e80
Data loss - liability, reputation and mitigation of risk - Eversheds e80
Phorm, Webwise and OIX - BCS Security Forum
The challenges of PCI DSS compliance - Thales, Russell Fewing
"Quality" Data Vendor Spams us! Editor astounded!
National Gateway Security Survey 2008 - Wick Hill
Unified Threat Management - Watchguard Technologies

news archives
0 | 1 | 2 | 3 | 4 | 5 |
6 | 7 | 8 | 9 | 10 | 11 |
12 | 13
[What is this?]

Industry Blogs
Tim Berners Lee's Blog
Tim Callan's SSL Blog
Davis Wright Tremaine's Privacy & Security Law Blog
Emergent Chaos Blog
Michael Farnum's Blog
Phillip Hallam-Baker's Blog - The dotFuture Manifesto: Internet Crime, Web Services, Philosophy
Stuart King's Security and Risk Management Blog
David Lacey's IT Security Blog
Metasploit Official Blog
Jeff Pettorino's Security Convergence Blog
Jeff Richards's Demand Insights Blog
David Rowe's Risk ManagementBlog
Bruce Schneier's Security Blog
Larry Seltzer's Security Weblog
Mike Spinney's Private Communications Blog
Richard Steinnon's Threat Chaos Blog
The TechWeb Blog
Tim Trent's Marketing by Permission Blog
Rebecca Wong 's DP Thinker Blog

23 February Newsletter
Newsletter Archives are located in "News"

Industry Update
Internet Security Intelligence Briefing - November 2005
Find out the latest trends in e-commerce, web usage & the latest threats from adware/Spyware

Phorm, Webwise and OIX
- BCS Security Forum

'The Any Era has Arrived, and Everyione has Noticed' - Stratton Sclavos - VeriSign
Identity Security - Time to Share
Malicious code threats - iDefense
Public Alerts - updated as they happen from
Public Alerts - updated as they happen from Websense
Public Advisories - updated as they happen, from iDefense
Phoraging - Privacy invasion through the Semantic web: a special report by Mike Davies of VeriSign

Privacy Laws & Business International E-news, Issue 57
Privacy Laws & Business UNited Kingdom E-news, Issue 60

Security Reviews
February 2007 - VeriSign Security Review
The security review archive is here

Case Studies
Finance Industry
Case Study Example

A case study on a Finance industry company.

White Papers
VeriSign® Intelligent Infrastructure for Security
VeriSign® Intelligent Infrastructure: An Overview
Identity Protection Fraud Detection Service - description of the service
Life of a Threat - Video on Threat Management Lifecycle
Optimizing Enterprise Information Security Compliance - Dealing with all the audits
For a full list of all whitepapers, visit our Whitepaper library

Legal Notices
Privacy Policy
Terms of use

basel 2 sarbanes oxley
data controller notification binding corporate rules BCR data transfer third countries third part data transfer basel 2 regualtor regulation regulate FSA banking network security RSA encryptin algorithm Bits sacked bank staff
Blogs compliance Reports compliancy Legislation Data Protection Case Studies data privacy White Papers data protection act News information commissioner Events security standards Links information security iDefense
Retail Solutions

Where Has All the Trust Gone?

compliance and privacy

Current News Updates

Where Has All the Trust Gone?
By Elizabeth Glagowski, Managing Editor

Reprinted with permission from 1to1 Media, a division of Carlson Marketing Worldwide. © Carlson Marketing Worldwide. All Rights Reserved.

It's one thing to say trust is important to customer relationships, it's another to have the numbers to back it up. A new report from Datamonitor pinpoints where companies have lost ground, and offers suggestions on how to win trust back.

According to the report, "Building and Profiting from Consumer Trust," 86 percent of the 3,200 U.S. and European consumers surveyed said that they have become more distrustful of corporations within the past five years. The report also shows that companies are aware of this drop, with 64 percent of industry leaders agreeing that consumer trust in brands has decreased in the past two years.

Why is the customer relationship breaking down? Datamonitor's Daniel Bone, consumer analyst and author of the report, points to three main reasons. First, companies aren't as transparent to consumers as they should be, and consumers are taking notice. "Consumers are seeking information like never before and it's only now that manufacturers are beginning to wake up to it," he says.

Second, firms are complacent when they should be proactive about winning customer trust and loyalty. "Many companies assume that consumers will be loyal to their brand over the long term," he says.

Third, it all ties back to the customer experience. "The more positive experiences a consumer has with the brand, the more trustworthy he or she is likely to become," he says. When consumers see efficiency gains or other corporate moves that may jeopardize the value of the customer experience, the trust factor is affected.

Building blocks
The numbers show that companies in general aren't very concerned about building long-term, trust-based customer relationships. However, some companies are thinking strategically about trust, and it's proving to be a competitive advantage, Bone says. In the survey, 85 percent of respondents said that "word of mouth recommendations from friends, family, or colleagues are typically more trustworthy than any corporate generated content." As a result, more marketers are adding word-of-mouth initiatives to their marketing budgets every quarter.

Also, socially responsible companies are considered more trustworthy, the report finds. "Aligning with a cause is a significant strategy for companies to attract consumers and gain a long-term, sustainable competitive advantage based on heightened trust," the report states.

As an example, Bone mentions natural supermarket chain Whole Foods in the U.S. and Canada. In January Whole Foods announced it will purchase renewable energy credits from wind farms to offset 100 percent of the electricity it uses in all of its stores, distribution centers, and offices. Revenue at the 180-store chain rose to $1.67 billion in 2005, up from $1.37 billion, driven in part by a 13 percent increase in sales from stores open at least a year.

Long-term benefits
The warm fuzzy feeling you can give customers is nice, but there are more tangible benefits to consumer trust, Bone says. Trust can be tracked to financial impact, much in the way good brand-building can. "Brands are rooted in the trust that consumers place in them," he says. "After all, the ultimate goal of marketing is to generate an intense bond between the consumer and the brand, with trust being a fundamental factor in achieving this."

Also, trusting consumers are willing to forgive mistakes, Bone adds. "Accrued trust allows consumers to develop personal brand relationships, making them more forgiving to a brand's shortcomings." In the U.K. there was outrage in 2004 when consumers found out that Coca-Cola's Dasani bottled water was essentially tap water. However, there has been minimal damage to Coke's brand equity because it has a long-term, trustworthy heritage, Bone says.

Companies with a heritage have an advantage over newer firms, Bone admits, but any firm that takes steps to build trust with consumers has the potential to make a long-term impact. It's a strategy worth paying attention to.

Discuss This Article


This site is independent of all its sources
The contents of the site are sourced from across the industry. All copyrights are acknowledged.