Transparency, data security, and corporate responsibility are constantly scrutinized, businesses are challenged to navigate the complex system of customer trust dynamics. Trust has become the currency of successful companies to build emotional loyalty with its best customers. Without a structured approach to building and maintaining trust, even the most established brands can falter. Trust to drive emotional loyalty.
This article is the first in a series that explores the relationship between brand and consumer trust. This essay introduces the ‘Hierarchy of Trust,’ a foundational framework that outlines how businesses can systematically build and maintain trust across four levels: Brand Experience and Value Exchange, Data Protection and Personalization, Brand Values and Ethical Practices, and finally, Societal Impact. This framework ensures brands build lasting relationships with current and prospective customers.
In the hierarchy, trust is built sequentially. Higher levels are dependent on the foundation laid by the preceding levels. A business cannot effectively gain trust in its ethical practices and societal values (levels 3 and 4) if it fails to meet the basic expectations of its customers through the value exchange (levels 1 and 2).
Brand Experience & Value Exchange
At the foundational level, a business must consistently deliver a great brand experience as part of a fair value exchange—the essence of first-level trust. This experience goes beyond merely meeting customer expectations; it establishes a strong relationship by anticipating customer needs. This experience includes intuitive design, excellent customer support, and delivering consistent quality.
Amazon has perfected its brand experience and customer value exchange by relentlessly focusing on customer-centric innovation. The company consistently delivers on its promise of fast and reliable delivery—sometimes within just a few hours—and has implemented a customer-first mentality with policies like its single click ordering and “A-to-Z Guarantee.” Additionally, it delivers a seamless, intuitive experience across all platforms, reinforcing its mission to become Earth’s most customer-centric company.
An outstanding customer experience creates two broad outcomes for a business. The customer’s trust increases and is therefore more inclined to become a loyal customer. And secondly, the customer may also become an advocate for the business, enabling the business’s organic growth.
Once a business has established a strong first-level trust by consistently delivering an excellent customer experience and maintaining a fair value exchange, it must then shift its focus to the next phase: the second level of trust. This phase is characterized by the crucial tasks of safeguarding customer data and enhancing personalization, which helps form the foundation of the evolving trust relationship.
The second level of trust is made up of two essential parts. The first part is the protection of customer data acquired through user interactions, ensuring its security and transparency about its collection, storage, and use. Customers need to trust that their personal information is safeguarded from breaches and misuse, as even a single breach can instantly erode years of trust and loyalty. The second part involves how this data is leveraged to offer personalized experiences. When done ethically and transparently, personalization allows businesses to tailor their products and services to individual preferences, leading to exceptional customer relationships.
Data Protection and Compliance
In a 2024 Civic Science survey, 56% of consumers reported that they are not at all likely to trust a company that has experienced a data breach with their personal information in the future. Data breaches, such as the infamous Facebook-Cambridge Analytica scandal, vividly illustrate how a failure in second-level trust can lead to far-reaching consequences. Despite Facebook’s efforts to position itself as a platform for social connection, its inability to protect user data severely eroded trust at the foundational level. The scandal resulted in a massive drop in consumer confidence, regulatory fines—including a $5 billion penalty from the FTC—and the viral #DeleteFacebook movement. It underscored the long-lasting damage a data breach can have on a company’s reputation and highlighted the critical importance of damage mitigation and safeguarding customer information.
In contrast, companies like Apple have set the standard for customer data protection. Apple consistently emphasizes privacy as a core value, incorporating features like data encryption and offering transparency on how data is collected and used. With initiatives such as “App Tracking Transparency,” Apple gives users control over which apps can track their activity across other apps and websites. This dedication to protecting user privacy has not only helped Apple avoid major data breaches but has also positioned the brand as a leader in digital privacy.
To safeguard customer information, businesses must first comply with data privacy regulations like GDPR, which requires obtaining informed consent from customers for data collection and usage. However, compliance alone is not enough. Companies must also implement transparent data usage policies and provide customers with control over how their personal information is used. This not only strengthens trust but also enhances the customer experience by ensuring they feel valued rather than exploited.
Personalization
The ongoing and transparent use of data to better personalize the customer experience is critical to building mutually beneficial relationships. Trust is built through consistent, positive experiences over time. Just as in long-term personal relationships—where personalization and mutual understanding deepen the bond—businesses must earn trust by exceeding customer expectations and protecting their interests. Consumers are more likely to trust a brand when they feel that their personal information is being handled responsibly and when they see tangible benefits, such as personalized recommendations, from sharing that data.
By continually learning from customer data, companies like Netflix and Spotify create bespoke experiences for each user, enhancing trust through every interaction. Netflix, for instance, uses sophisticated algorithms to analyze viewing habits, making personalized recommendations that align with individual preferences. This seamless and relevant experience makes users feel understood and valued, deepening their trust in the platform. Similarly, Spotify curates personalized playlists like “Discover Weekly” or “Your Daily Mix” based on listening patterns, ensuring that users are consistently delighted by new music that matches their tastes. By showing users that their data is being used to enhance their experience, these companies build a relationship rooted in both trust and satisfaction.
This kind of personalization fosters a psychological connection where customers not only trust the service but also rely on it to cater to their specific and changing tastes and needs. The key to this success lies in transparency—both Netflix and Spotify ensure that users are aware of how their data is being used to benefit them. When personalization is done with the customer’s interests at the forefront, rather than the business’s short-term goals, it turns data into a tool for creating value, reinforcing trust with each interaction.
The first two levels of trust form the foundation of the “value exchange” between the business and its customers, and illustrate how the business directly cares for its customers. At its core, the “value exchange” refers to the relationship between what the customer provides—whether that be time, money, or personal data—and what the business offers in return, such as a product, service, or personalized experience. Ensuring this exchange feels fair and equitable is essential for establishing first- and second-level trust.
Once this foundational value exchange is achieved, brands can focus on strengthening their broader values and societal impact through the third and fourth levels of trust. Each level builds on the one before it, but businesses must continually reinforce and adapt the lower levels as customer expectations evolve. A company may champion strong environmental or social values (third- and fourth-level trust), but if it suffers a data breach or fails to provide a consistent, reliable customer experience, these broader efforts may be overshadowed by the failure to meet the foundational requirements.
Values
Third-level trust represents a business’s broader values and how those values manifest in its products or services. This includes everything from how the company treats its employees to how it ensures ethical practices throughout its entire value chain, from sourcing materials to delivering the final product. At this level, customers seek alignment between their personal values and the values a business claims to uphold. It’s not enough for a company to deliver a quality product; customers increasingly want to know how that product was made and whether the process aligns with their personal values.
Patagonia is a prominent example of a company that deeply understands and reflects its customers’ values through meaningful action. For instance, Patagonia’s “Worn Wear” program promotes the recycling and repair of its products, extending their life cycle and reducing environmental impact. This initiative demonstrates Patagonia’s commitment to sustainability, potentially at the cost of short-term sales, aligning with its environmentally conscious customer base.
Beyond Patagonia, brands like Ben & Jerry’s have also integrated third-level trust into their business models. Ben & Jerry’s ensures ethically sourcing of ingredients, including the use of Fair Trade-certified cocoa, sugar, and vanilla. By demonstrating a commitment to ethical sourcing, the company builds trust with consumers who share those values, proving that it’s possible to be both profitable and ethical.
Treating employees well and recruiting the right employees can serve as an additional benefit, in terms of advocacy. Employees that enjoy their work and are fairly rewarded for that work can become advocates for the businesses. This is especially important for customer-facing employees.
While third-level trust concerns how a company aligns its production values with customer expectations—such as ethical sourcing and fair treatment of workers—fourth-level trust expands this commitment to the company’s broader societal impact.
Societal Impact
The fourth level of trust reflects a company’s role as a leader or advocate on global issues such as climate change, social justice, or philanthropy. At this level, customers expect not only ethical business practices but also for the company to serve as a proactive force for good in the world.
Returning to Patagonia’s “Worn Wear” initiative, this program embodies third-level trust by promoting product longevity and recycling, reflecting the brand’s commitment to sustainability in both sourcing and operations. Patagonia goes beyond third-level trust by advocating for environmental policy reform and taking a firm stance on climate action, positioning itself as a true leader in environmental advocacy. This advocacy work—such as campaigns to protect public lands and reduce carbon emissions—propels the company into fourth-level trust. Customers don’t just trust Patagonia for its products, but because it champions values that deeply resonate with them.
Similarly, Ben & Jerry’s has successfully tapped into fourth-level trust by aligning its societal values with those of its customers. The company is well-known for its environmental activism, as well as its advocacy for social justice causes such as marriage and racial equity. By actively participating in these broader societal movements, Ben & Jerry’s has earned deep trust from customers who value more than just great ice cream—they value the company’s commitment to making the world a better place.
In the tech sector, companies like Salesforce have also achieved fourth-level trust by combining business success with strong corporate responsibility initiatives. Salesforce’s 1-1-1 model, which donates 1% of the company’s equity, products, and employee time to improving communities, is a prime example of how businesses can contribute to societal well-being. This philanthropic approach has helped Salesforce not only lead in its industry but also earn trust by demonstrating its dedication to social and community improvement.
As sustainability and corporate responsibility become more central to consumer decisions, businesses that actively demonstrate a commitment to societal good are more likely to build deep, long-lasting trust. Customers today are looking for companies that align with their values, making fourth-level trust a critical element for brands looking to differentiate themselves in a crowded market.
The second two levels of the trust hierarchy (3 and 4) demonstrate that a business cares not only for its customers but also for people beyond its direct consumer base and the planet.
Alignment and Loyalty
Ultimately, the key to building a fully trusted organization lies in the alignment of goals and values between the business, its customers, its employees, and society at large. When a company can consistently deliver on its promises at all levels of trust, it builds a relationship that fosters long-term loyalty, credibility, and positive societal impact.
Conversely, in some industries, first- and second-level trust can outweigh the importance of higher levels. Fast fashion brands, for example, often prioritize a consistent customer experience—delivering affordability and convenience—while placing less emphasis on their environmental footprint. Similarly, companies like Amazon and Apple have built their trust primarily through the quality and reliability of their products and services, even though they are less known for their leadership on social or environmental issues.
The ultimate goal is to build trust that results in emotional loyalty, the highest form of customer loyalty a business can achieve. Emotional loyalty goes beyond transactional loyalty—where customers return for practical reasons like pricing and convenience—and is rooted in a deep alignment of values between the business and its customers. Brands like Patagonia cultivated emotional loyalty by fostering a shared sense of purpose with their customers. Every purchase from these brands feels like a contribution to a larger movement. Instead of relying on discounts or rewards programs, they build loyalty by aligning their values with those of their customers, creating long-term trust and advocacy.
As the marketplace becomes more transparent and interconnected, businesses must continually ask themselves: Where do we stand in the hierarchy of trust?
By building upon each level of trust outlined in this article, companies can earn the emotional loyalty that will set them apart. In a world increasingly driven by trust, businesses that commit to this approach will not only survive but thrive.
By Alex Brown and Matt Ray, Course Leaders, Emeritus.org