The Trust to Risk Ratio (feat. Soona + a four-step risk framework)
Feb 1, 2023
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Soona, an expert in building trust with customers and managing risks in business, discusses the trust to risk ratio. The podcast covers gaining trust from customers without social proof, balancing trust and risk in entrepreneurship, and practical insights on identifying emotional risks to foster business growth.
Understanding the Initial Challenge of Getting First Customers
Getting the first customers for a startup involves addressing the challenge of establishing trust without social proof or testimonials, especially when introducing a new product or service. The crucial aspect lies in balancing risk and trust - customers must perceive the value while feeling secure. Many entrepreneurs struggle with misconceptions like pricing or advertising adjustments, often missing the core issues of customer indifference or imbalanced trust. Focusing on customer perspectives and addressing their blocks becomes essential to drive conversions.
Strategies for Building Trust and Mitigating Risk
Entrepreneurs need to grasp the intricate dynamics of risk perception among customers, which often stem from emotional factors and hidden uncertainties. The key lies in identifying and shouldering customer risks effectively by eliminating potential blockers through product features or solutions. By offering tailored and trustworthy services that alleviate customer fears, businesses like Suna exemplify successful risk management strategies that foster trust and drive customer engagement.
The Significance of Urgency in Establishing Trust
Creating urgency around a product or service enhances trust by magnifying the need for immediate solutions. Urgency acts as a multiplier to the trust-to-risk ratio, compelling customers to seek prompt resolutions to pressing issues. By understanding and addressing customer risks promptly, businesses can capitalize on urgency to build credibility, encourage conversions, and establish a solid foundation for long-term customer relationships.
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Navigating the Initial Trust and Risk Challenges in Selling
Today, we'll help you get your first customers. We'll do it by learning how to use the trust to risk ratio - a way to identify the big risks that are holding your customer back and shoulder those risks early on to build trust. We talk through risk and trust with Find Your Lobster, Soona, and a finicky water pump.