Trust isn’t a fixed concept. While industry context determines how much trust matters in different fields, personal context plays an equally important role. The same service can command vastly different Trust Premiums depending on an individual’s knowledge, risk tolerance, and personal experiences.
Understanding these personal factors can help you focus on the right customers—those who truly value trust and are willing to pay more for it. Let’s explore the key personal context factors that shape the Trust Premium and how they influence customer decisions.
Customer Knowledge and Experience
The less knowledgeable or experienced a customer is with a product or service, the more they rely on trust to guide their decisions. When someone lacks expertise in a particular area, they often feel uncertain about how to judge quality or compare providers. Because of this, they prioritize trustworthiness in choosing who to work with and are willing to pay a higher Trust Premium.
On the other hand, experienced customers feel more confident in their ability to evaluate providers. They have enough knowledge to judge quality, anticipate potential issues, and make informed comparisons. As a result, they are less reliant on trust alone and are less likely to pay extra for it.
For example, a first-time homebuyer may pay a premium for a highly trusted real estate agent because they don’t know the process well enough to assess their options confidently. A seasoned real estate investor, however, may feel comfortable selecting an agent based on price or efficiency rather than trust alone.
Risk-Taking Profile
Some people are naturally risk-averse, while others are comfortable taking chances. This mindset directly affects how much they are willing to pay for trust. Risk-averse customers tend to be more cautious and concerned about the potential downsides of a decision. Because they prioritize stability and predictability, they are willing to pay more to work with a provider they trust to minimize uncertainty.
In contrast, risk-tolerant customers are more open to uncertainty and often prioritize other factors over trust, such as price, speed, or innovation. They are more likely to experiment with new providers or untested services if it means saving money or gaining a competitive advantage.
For example, a conservative investor may be willing to pay higher fees for a well-established financial advisor with a proven track record. Meanwhile, a more adventurous investor might be comfortable choosing a lesser-known advisor with lower fees, accepting the higher risk that comes with it.
Fear and Relative Consequences
Trust Premium is not only influenced by the actual risk of making the wrong choice but also by how that risk feels to the customer. The absolute risk of a decision may be the same for everyone, but the personal consequences of that risk can vary dramatically.
Consider two customers making a $10,000 investment. One has a net worth of $20,000, meaning this investment represents half of their total assets. Losing that money would be devastating. The other has a net worth of $1,000,000, so the same $10,000 investment is only a small fraction of their wealth. Even if they lose it all, the impact would be minimal. The absolute risk is the same, but the relative consequences are much more severe for the first customer. As a result, they will place a much higher Trust Premium on working with a trusted investment advisor than the second customer, who may not feel the need to prioritize trust as heavily.
Beyond financial concerns, emotional, social, or professional factors can also shape the perception of risk. Hiring the wrong wedding photographer might cause deep emotional distress for one couple who values perfect memories, while another couple might not care as much and be satisfied with any decent photos. Similarly, someone relying on financial advice to secure their retirement will pay a much higher Trust Premium than someone simply looking for general investment guidance.
Customer Trustfulness
Some people are naturally more trusting than others. A customer’s inherent tendency to trust others influences how much they are willing to pay for trust. Individuals who have had negative experiences in the past or who are naturally skeptical tend to place less value on trust in providers. Rather than paying a Trust Premium, they may prefer alternative ways to ensure reliability, such as relying on strict contracts, guarantees, or oversight.
On the other hand, customers who are naturally more trusting place greater value on the perceived integrity and reliability of a provider. Because they already prioritize trust in their decision-making, they are more willing to pay a higher Trust Premium for providers they feel are trustworthy.
Finding the Customers Who Offer the Highest Trust Premium
If trust is a key part of your business strategy, wouldn’t you want to focus on customers who are most willing to pay a higher Trust Premium? Mass marketing strategies like bulk emails and cold calls might cast a wide net, but they don’t distinguish between customers who care deeply about trust and those who don’t. Since building trust takes time and effort, it’s essential to focus your energy on the right customers.
The customers most likely to pay the highest Trust Premium tend to share key traits. They have low knowledge or experience in the product or service, making them more reliant on a provider’s trustworthiness. They are risk-averse and place a higher value on reducing uncertainty. They experience significant personal consequences if something goes wrong, increasing their motivation to prioritize trust. And they are naturally trustful, making them more inclined to reward trusted providers with their business.
However, it’s important to balance these insights with business realities. For example, if you’re a financial advisor, your highest Trust Premium might come from low-net-worth customers who are risk-averse. But if your fees are based on a percentage of assets, a lower Trust Premium from a high-net-worth client may still generate greater revenue. Understanding both the Trust Premium and its financial implications helps you make smarter business decisions.
Ultimately, this isn’t about targeting vulnerable customers. It’s about identifying those who genuinely value trust and see the most benefit in working with a provider they can rely on. These are the customers who will not only pay a higher Trust Premium but will also become your most loyal clients.
To learn more about how personal context affects Trust Premium, listen to the latest episode of The Trust Premium podcast or grab a copy of The Trust Premium book. Trust is more than a feel-good concept—it’s a measurable advantage that can transform your business.
Want to hear the whole story? https://podcasts.apple.com/us/podcast/s16e7-who-values-trust-the-most-understanding/id1569249060?i=1000693457320
Dr. Yoram Solomon is an expert in trust, employee engagement, teamwork, organizational culture, and leadership. He is the author of The Trust Premium, The Book of Trust, host of The Trust Show podcast, a three-time TEDx speaker, and facilitator of the Trust Habits workshop and masterclass.
The Book of Trust®, The Innovation Culture Institute®, and Trust Habits® are registered trademarks of Yoram Solomon. Trust Premium™, the Relative Tr
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