Trust is a pertinent factor in every successful business, and the digital sector cannot be excluded. If there is any platform where trust is vital, it is digital platforms. After the recent pandemic, a lot of things changed around the world. Digital services became prioritised generally.
There has been a surge in digital payments post-pandemic. More users are being drawn to the internet, with reports showing annual growth of 4% in 2021. Brands must build healthy trust between themselves and their customers to flourish.
What Is Digital Trust?
Digital trust is a concept that enables users to confidently carry out transactions with brands digitally, trusting the process to be smooth and secure. For a customer to trust a business, they must have provided security, safety, reliability, privacy, and data ethics with their online services, steadily building a culture of trust.
Business relationships are not just focused on the professional delivery of goods and services, but there is a greater concern about the safety and security of this delivery. It is more about the process now than the result.
How Does Digital Trust Work?
With the help of digital trust, a user can easily differentiate a reliable business from an unreliable business. Users commonly gauge reliability through measures put in place by the brand and past reviews.
Digital trust creates a bond between the brand and the customer. This bond assures the customer of the safety of the goods or services being exchanged. The more digitally trustworthy a company is, the higher the increase in consumers.
Following the effect of digital trust in the world, today, companies are investing more of their time, money, and resources into building digital trust. They are removing risks that can discourage a customer from trusting them and paying keen attention to the inclusion of cybersecurity and privacy personnel in their development process. Companies also enforce stringent rules like the Zero Trust Model, which decreases the chances of unauthorised personnel accessing secured content.
Why Digital Trust Matters
Customers now pay attention to prior experience, research, reviews, and brand reputation before purchasing from brands. Each time a customer chooses to buy a company’s digital product, that customer expresses trust in the brand. According to research, a 5% increase in customer loyalty can boost Lifetime Customer Value by up to 76%.
Benefits of Digital Trust
- Reliable transactions: Customers are becoming concerned about the number of personal details they must regularly put out on digital platforms. With digital trust, customers will be confident about their data security, encouraging more transactions.
- Better customer experience: When customers trust brands, they can communicate better, leading to a smooth exchange.
- Increased transparency: As customers share personal details with brands, brands also increase their transparency with the customers, building a bond between both parties.
Building a Digital Trust Strategy
Companies can implement an adaptive multi-factor authentication solution to protect their customer’s identity and personal data. For higher-risk transactions, customers can be required to supply an extra layer of authentication.
Also, using a single sign-on across all users’ digital platforms to enable them to access all applications with one set of applications or using passwordless authentications creates ease and convenience for the customers, increasing their trust level for the brand.
Digital Trust in the IoT Era
With the advancement in technology, cybercrime is increasing. The Internet of Things era is very sensitive; without proper measures, customers can lose their data in seconds. IoT device manufacturers should focus on providing top-notch security in their authentication processes.