The FINANCIAL — Trust is the cornerstone of any successful relationship, be it personal or professional. But what happens when the lines between public and private get blurred in a sharing economy? Trust transitions from expected to essential.
Today, more than two-thirds (68%) of global respondents in Nielsen’s Global Sharing Economies survey say they are participating in a sharing economy by leveraging the unused capacity of the things they already own (bicycles, tools, household items, cars, homes, etc.) to earn extra income. A recessionary environment and stagnant wage market set the stage for the notion of sharing personal property for extra cash. But what started as a modest income boost for some has turned into a pipeline of revenue that Forbes estimates will surpass $3.5 billion this year, according to the Nielsen Company.
“While the ability to build trust between strangers in the digital world is the foundation for share community success, it’s increasingly vital for every other business model, too,” said John Burbank, president, Strategic Initiatives, Nielsen. “And when it comes to reciprocal feedback shared via the Internet, consumers are not shy about voicing their opinions,” he added.
Viral feedback can have a pervasive effect. Almost seven of 10 respondents (69%) in Nielsen’s recent survey indicated that they use the Internet to share their feedback—whether to voice a concern, offer praise or discuss a customer service issue. For the majority of these respondents (54%), social media are their go-to platforms to vent. About one-third (32%) make their opinions known via manufacturer websites, while 30 percent voice their feedback on retailer sites. And these opinions are golden—both for the businesses being reviewed, and fellow consumers. Word-of-mouth recommendations from friends and family are the most influential source of advertising among 84 percent of global respondents, according to Nielsen’s 2013 Trust in Advertising Survey. If share communities can ease the initial concerns of renters by allowing them to draw from the experiences of others, barriers to the marketplace may be minimized and the opportunity to build trusting relationships opens wide.
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