Top 7 Ways Credibility Impacts Your Bottom Line
In our new book on Credibility we’ve been looking at how Credibility impacts an organization’s bottom line. Here’s what we’ve come up with:
- Shorter sales cycle/Higher closing percentage
With high levels of credibility, your customers don’t feel the need to do as much research, checking, thinking about purchase decisions, etc. as they might otherwise feel they need to do. Trust is already established and this reduces the second guessing and doubt. Ultimately the sales cycle speeds up and the closing percentage increases. - More likely to attract and gain higher quality customers.
With increased credibility, you are able to step up and swim in a larger pool. We see this often play out in the financial services industry. The higher the credibility the more likely you are to attract larger clients with more assets. This is true in all industries. Think about the automotive industry. Look at Lexus. High credibility and ability to attract a more affluent clientele. And it’s not just affluence that comes with this, but also loyalty. Apple – ditto. Fierce loyalty in spite of higher price points. - Get more opportunities and “first in” opportunities
You’ll find yourself on the short list, getting calls and requests to bid on choice projects, rather than being forced to seek out potential projects and wading through tedious administrative procedures. - More likely to get referrals and introductions
The more credible the organization, the more likely customers are to refer other customers. In a B-to-B situation, those likely to be giving the referrals are likely to have the Driver personality. Drivers will give a referral, but only after vetting the firm and making sure the firm will: 1) perform outstandingly, and 2) make them look good. When you make a referral you’re giving away part of your relationship credibility so you’re likely to do it when the firm is highly credible. - Likely to attract and retain higher quality talent
Employees want to work for an organization and leaders who are perceived as credible. We know that if you get a couple of really talented, quality people on a team it ups the odds you’ll get more talent on a team because talent attracts talent – in the same way success attracts ever higher levels. It’s a circle – The more credible the employees in the organization, particularly those in key positions, the more credible the perception of the overall organization and the more likely the organization is to attract other credible, top tier talent. - Likely to attract higher quality vendors and partners
In much the same way that you are able to attract top tier employees, you’re also able to attract higher quality vendors and partners. If you’re the larger firm, and have greater credibility, you no longer have to argue (as much) over peanuts. Higher quality vendors will seek you out. If you’re a vendor, you gain credibility by association with a larger enterprise. Higher quality enterprises will seek you out. - Better pricing
Often companies are willing to work for highly credible big name firms for less money in order to reap the benefits of the association. We (AboutPeople) did work with Microsoft at a much lower rate than we typically charge because we knew the association would provide us with increased credibility and we’d be much more likely to attract other high quality firms.
