Toolkit: Design for Trust


Trust is an essential factor in financial transactions, but what is trust made up of? By breaking down the customer's journey, how can startups skillfully engineer trust creation into their products and processes? What is the perspective of the customer in trust creation?

 

 

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Toolkit: Design for Trust


Trust is an essential factor in financial transactions, but what is trust made up of? By breaking down the customer's journey, how can startups skillfully engineer trust creation into their products and processes? What is the perspective of the customer in trust creation?

 

 

How do startups design their products or services to enhance customers’ trust?

A sense of trust depends on the existence of risk, especially in economic transactions. In Digital Financial Services (DFS), there is perceived and real risk from both the customer and the provider perspectives.

  • From the customer perspective, we know that distrust grows when providers are not transparent, do not consistently deliver on their promises and compromise customers' experience with the product. When trust is breached, it is very difficult to rebuild.
  • From the provider perspective, lack of trust adds significant costs, time and stress that affect the company’s bottom line.

If the startup knows how to design to enhance and maintain trust with customers, it gains a major competitive advantage. Trust is in fact the essence of relationships - with suppliers, clients, investors, employees - and it is a major determinant of startup success.

We saw this need across many startups we worked with, so we decided to start our toolkit to help companies design for trust creation.

 

Toolkit Area
Trust Creation

Estimated time
3 hours

References
Pirate metrics
AVL Startup resources


Definitions


Definitions



1a. Drivers of Trust in DFS

Many variables contribute to customers' perceptions of trust, but we have distilled the five elemental drivers we think matter most for DFS.

1

Competency
Give the customers proof of your capability. Ensure that you are able to perform what you have promised without errors and with consistency.


2

Appearance
Leave the customer with the best impression of the service, something that people want to follow, buy and share with friends. Establish a connection with your customers by building a beautiful product.


3

Control
Give the customer appropriate tools to manage their actions. Allow them to get a sense of control in the interaction with your product & service.


 

4

Transparency
Be open and clear on the things you ask and why are asking for them. Align your incentives with those of the customer. Be true to what you can deliver, thus maintaining strong integrity.

5

Commitment & Benevolence
Show you truly care and are committed to doing what is right for your customer. Identify, monitor and mitigate customer risks (i.e. fraud or inadequate handling of customer data). Maintain privacy, confidentiality and respect.

1b. Stages of the Customer Journey in DFS

Trust is built along the Customer Journey in DFS. There are four stages to consider throughout the customer experience and how the design of your product or service builds or erodes customer trust at each phase.

  • Acquisition: How do customers find you?
    Customers hear about the product and interact with it for the first time.

  • Activation - Do customers have a great experience?
    Customers sign up and achieve the value you promised.

  • Retention - Do customers come back?
    Customers keep using the product/service regularly over time.

  • Referral - Do customers tell others about the product or service?
    Customers talk about the product or service and refer them to their peers.

Additional reading: Pirate metrics is a well-known framework designed by Dave McClure for startups (using freemium business models) to help the management focus on the crucial decisions to make and where to measure along the customer's journey. By doing so, startups can achieve the kind of conversion that is vital for the startup's growth. The AARRR (said outloud while motioning wildly like a pirate) model is Acquisition-Activation-Retention-Referral-Revenue).

 

1c. Trust points

Trust points (TP) are specific points along the customer journey that can create or destroy trust. Refer to the trust framework below.

 

Competency


Give the customers proof of your ability.  Ensure that you are able to perform what you have promised, without errors and with consistency. Deliver real results.

Competency


Give the customers proof of your ability.  Ensure that you are able to perform what you have promised, without errors and with consistency. Deliver real results.

Customer Journey Competency Trust Driver Example

(click on logo)

Acquisition

Products design based on research on clients’ needs, preferences and behavior from the get-go and with the market characteristics in mind. Branch
M-Shwari

Activation

Simple/quick registration process (info is asked only when needed).
Time-to-First-Value is minimized.
No glitches or bugs in the process, 99.9% uptime.

Retention

Customer consistently able to conduct transactions (e.g. easy to deposit).
Clear instructions on implications of different actions
Ability and process in place to revert erroneous actions if needed.
Branch

Referral

Incentives for referrals are very clear.
There is a clear call to action on the home page.
Users know right away that if they tell their friends and family about the product, they will be rewarded.
Branch
 

Appearance


Leave the user with the best impression of the service, something that people want to follow, buy and share with friends. Establish a connection with your users by building a beautiful product.

Appearance


Leave the user with the best impression of the service, something that people want to follow, buy and share with friends. Establish a connection with your users by building a beautiful product.

Customer Journey Appearance Trust Driver Example

(click on logo)

Acquisition

Design takes into account customers’ likely financial & technological capability levels.
Takes into account low-bandwidth environments.
Branch
M-Shwari

Activation

UX/UI uses simple design and language.
Optimized for few clicks/inputs.
Catches errors.
Branch

Retention

UI is aesthetically appealing and UX is seamless, so customers like to come back.

Referral

People feel good and proud about sharing your product with friends, leading to organic growth.
Users easily able to locate how to refer peers from the main menu.
Branch

Control


Give the user appropriate tools to manage their actions. Allow them to get a sense of control in the interaction with your product & service.

Control


Give the user appropriate tools to manage their actions. Allow them to get a sense of control in the interaction with your product & service.

Customer Journey Control Trust Drivers Example

(click on logo)

Acquisition

Customers can easily access a transparent, free/low-cost and efficient hotline in case of questions/concerns, before signing up. Branch
M-Shwari

Activation

Next step is always clearly spelled out.
No ambiguity in what the consequence of each interaction with the product will be.

Retention

Consistent ability to perform and agree to upgrades, new services etc.
Contact details for reaching the provider during business hours are easy to find for queries on how to use the service. A clear FAQs page can help too.
Branch

Referral

Customers have the ability to rate/give feedback on the service (e.g. # of stars for service quality) and openly raise issues/complaints with an hotline.
 

Transparency


Be open and clear on the things you ask and why are asking for them. Align your incentives with those of the customer. Be true to what you can deliver, thus maintaining strong integrity.

Transparency


Be open and clear on the things you ask and why are asking for them. Align your incentives with those of the customer. Be true to what you can deliver, thus maintaining strong integrity.

Customer Journey Transparency Trust Drivers Example

(click on logo)

Acquisition

All advertising is communicated with language that is simple, clear, true and not misleading.
Prices are fair and competitive with market rates. No hidden fees charged to the customer.
M-Shwari

Activation

Customers can easily access a clear, simple statement of product features, terms, fees, and any interest payable.
Information should be available digitally as well to clear and simple transaction records.
Clients receive reminders of when payments are due.
M-Shwari

Retention

Clients receive proof of each transaction and have easy access to clear and simple transaction records. These records could be digitally provided (e.g. SMS).
Clients receive reminders of when payments are due.
Branch

Referral

Customers are aware of what information they need to give about the referred person (name, phone number etc.) and given the chance to review the data shared.
 

Commitment & Benevolence


Show you truly care and are committed to doing what is right for your customer. Identify, monitor and mitigate customer risks (i.e. fraud or inadequate handling of customer data). Maintain privacy, confidentiality and respect.

Commitment & Benevolence


Show you truly care and are committed to doing what is right for your customer. Identify, monitor and mitigate customer risks (i.e. fraud or inadequate handling of customer data). Maintain privacy, confidentiality and respect.

Customer Journey Commitment & Benevolence Trust Drivers Example

(click on logo)

Acquisition

Mission, purpose, expectations and daily activities are clear.
Organization has a clear mission that unifies inspires and guides the organization on approach and doing things differently.
Branch
M-Shwari

Activation

Customer are asked to consent for use of their data.
Easy instructions on how to safeguard security credentials are provided.

Retention

Contact details for a 24-hour hotline for any issue (lost/stolen device, mistaken or unauthorized transaction, security breach) is available and easy to locate. Branch

Referral

Info about referred client is kept confidential before signup (e.g. email address or phone).

Design For Trust Framework


Design For Trust Framework


 

By combining together the drivers of trust and the stages of the customer journey into trust points (TP), we have the following Design for Trust framework to guide how to create trust from the customer's perspective. This framework helps the startup assess, structure and measure points along the customer journey where trust is created or destroyed.

 

Case Studies


Case Studies


Below are case studies that we have created by gathering and interpreting how other DFS industry players are applying trust in their products and services. These case studies were created from our own research and did not involve primary sources from the organizations other than what is available online and in the public domain.

 

Trust Creation Roadmap


Trust Creation Roadmap


Once you have identified the different trust points using the framework, you can use the Trust Creation Roadmap to prioritize the different trust points you want to pursue and or explore. You should plot the different trust point opportunities or solutions along the customer journey that you think make sense for your firm to pursue at this time. Up to three lines are provided for you to fill in. You might only use one line or need to write in more lines.

 

Playbook


Playbook


Now you have learned about the theory behind trust creation, seen examples in the industry and looked over the tools in this chapter. What do you do next? The below is a simple playbook of next steps.

Step 1

With your team, including management, product management, sales and customer research teams, identify all the trust points in your customers' journeys with your product or service. Use the Design for Trust Framework to identify all possible trust points. There may be more than one in each stage of the customer journey.

Step 2

After you have identified all the trust points, prioritize the trust points in order of potential to increase market share and feasibility. Make sure all stakeholders are represented in determining the priorities for your organization. Use the Trust Creation roadmap to plot out the priority along each stage of the customer journey that your company should pursue now. What do you need to achieve in each stage, and with what metric do you measure against to assess if you are successfully creating trust?

    Step 3

    Apply the Do's and Dont's to your approach.

     
     

    TOP 4 THINGS DFS PROVIDERS
    SHOULD DO

    1. DO make the registration process as quick and simple as possible.
    2. DO give control to the user by confirming any transactions and status updates.
    3. DO have a dedicated customer questions hotline.
    4. DO have clear and compelling customer referral rewards.

    TOP 5 THINGS DFS PROVIDERS
    SHOULD NOT DO

    1. DON’T go to market  with a solution that is not designed with the needs of the target customers in mind.

    2. DON’T let bugs and errors ruin the customer experience. One bad experience, and people won’t trust you with their money.

    3. DON’T make your UI complicated and verbose.

    4. DON’T make it difficult for users to find out information on terms and conditions.

    5. DON’T assume that your customer does not need to interact or talk a human being, ever.

    Further Reading


    Further Reading


    Believing is seeing
    The Economist
    New technologies will make society richer by cultivating trust

    The Evolution of Trust
    The NYTimes
    Op-ed on the evolution of trust

    How Airbnb and Lyft Finally Got Americans to Trust Each Other
    Wired.com
    We are entrusting complete strangers with our most valuable possessions, our personal experiences—and our very lives. In the process, we are entering a new era of Internet-enabled intimacy.

    The economy of trust
    An insightful look at the sharing economy (Uber, Airbnb and TaskRabbit, amongst others) and why trust has become an undeniable force in today’s market.

    Why Trust Matters More Than Ever for Brands
    Harvard Business Review
    We’ve all been taught that trust and reputation are important elements of branding. Today, though, trust is not simply a nice thing to have, but a critical strategic asset. The drivers of brand value have changed over time, and there are three forces at play that have brought the issue of trust to the center stage.

    The right design at the right time
    Medium
    A Design Partner at Google Ventures goes over the hierarchy of design that all great companies move through:

    • Level 1, Product Design: create a product that solves a problem or satisfies a desire
    • Level 2, Interaction Design: make it easy to understand and use
    • Level 3, Visual Design: make it beautiful

    Top 10 Things to Know About M-Shwari
    CGAP M Shawari believes the relationship between savings and credit taken together is crucial for the generation of trust - an important reminder not to always think of credit and savings in separate silos.

    Branch is raising a massive funding round to launch in Uganda & Tanzania next month
    TechMoran
    Branch uses the trust networks from its users digital connections as credit scores so the friends one has matters. The advantage it has over others is that it’s going into long-term lending and not shortterm lending as its competitors.

    This App Wants You To Borrow Money From Friends, Not Banks
    FinTech Ranking
    Trust builds over time. This happens organically when you’re around a person in real life, but Puddle obviously didn’t have that luxury. The service needed to accelerate the feeling of trust in our virtual lives in order to make their idea work, and they did this by building on some core social media mechanics.

    4 UI Design Lessons For Underserved Markets
    The Ammunition-backed microlending startup Branch is a great study in how to design user experiences for the developing world.

    Consumer Trust eBulletin by Mozilla and bics
    Supported by Mozilla and bics, this eBulletin examines the issue of Consumer Trust in the mobile ecosystem. It takes an in-depth look at the business models, regulatory landscape and market drivers that are shaping mobile business through the lens of Consumer Trust and includes discussion on a healthy Internet from Chris Riley, head of public policy at Mozilla, a look at the influence of the forthcoming GDPR from senior security & risk analyst Chris Sherman at Forrester as well as a guide to global regulation, market forecasts and much more.

    The Trust Factory
    Dan Ariely, Dialogue Review
    Humans trust one another. But can they trust organizations? With the right strategies, they will.

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