Trust drives 85% of your NPS and 75% of your customer loyalty. Here's what drives the trust that drives your performance.

1. WHAT DRIVES TRUST IN ONE
BRAND, DOESN'T DO ANYTHING
FOR THE OTHER
This publication and all its contents are copyright mext 2016
PROACTIVE STUDY INTO CUSTOMER
TRUST AND LOYALTY IN TELCOS AND
HEALTH FUNDS.
November 2016

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Having worked globally with telecommunications and health-related companies, as well as government
organisations in insight, brand, experience and sales & service training, we conducted a small-scale
proactive study with 300 telco customers and non-customers in november 1016.
We explore trust in telstra, vodafone and optus, and what drives their trust best.
We look at a number of health funds to examine their levels of trust and loyalty, as well as what drives
them.
These study findings are to be used to understand the principles, impact and operationalisation of trust – and as
a good indication and hypothesis only
Additionally, in this study, we looked into customer perception of efficient delivery and the impact
of issues concerning trust and loyalty.
UNDERSTANDING TRUST
TRUST DRIVES 85% OF YOUR NPS
AND 75% OF YOUR CUSTOMER LOYALTY.

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CONTENT
Executive summary
The effect of trust on organisational
performance and KPIs
How trust works – the science of
trust
Telecommunicaton
Telstra & competitor HuTrust®
Equity Analysis
- what telcos are trusted for, and
how strongly
Telstra’s trust is driven differently
from competitors – HuTrust® Driver
Analysis
The attributes that drive Telstra
trust are surprising – HuTrust®
Attribute Analysis
How to operationalise ‘trust’
Health insurance
Average loyalty and trust scores
HuTrust® Profile
- what PHIs are trusted for, and
how strongly
HuTrust® Driver Analysis
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5
7
9
15
17
20
23
26
28
8
21

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EXECUTIVE SUMMARY
Performance is a question of trust
Trust is not the same for each brand
{
Trust – the robust kind
PWC calls trust the ‘forgotten asset’. They urge you to view trust
not as an insurance, but as your greatest growth opportunity, and
advise boards and managements to adopt a trust strategy.
Ours and others’ international studies show that trust drives the vast
majority of all organisational KPIs, the top and bottom line.
For 14 years we have specialised in the psychology of trust and
developed robust frameworks to analyse, build and track trust to
help organisations improve their performance, both internally and
externally.
Every little bit of trust, added or
lost, makes a huge impact on
sales, loyalty and advocacy
Competence and Benefit trust drive well over
1/3 of Telstra’s total trust.
Competence trust is driven by your network
quality and understanding of your long-term in-
vestment, such as e-health.
Your benefit trust, by a big margin, is driven by
Telstra’s foresight in its CEO succession.
Optus’ and Vodafone’s trust are driven by total-
ly different trust dimensions.
Trust is about ‘what you can and want to trust for’; In the 3 telcos
reviewed, it is totally different from one brand to the other. To
effectively build trust, one needs to know ‘what trust’ to build.
What drives trust for particular health insurers is very different from
one company to the next.
Our approach, HuTrust®, is a practical, robust and scientifically
proven methodology that analyses and builds trust through all
functions.

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TRUST DRIVES THE VAST MAJORITY OF
YOUR KPIs
Trust is the root cause of
your customer’s attitudes and
behaviours.
If trust is the key driver, can you
improve your kpis effectively,
without understanding it?

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TRUST:
EVERY LITTLE BIT COUNTS
Investor behaviour
Every little bit of trust, added or
lost, makes a huge impact on
acquistion and retention.
Just 20% more trust with a
customer results in an improved
attitude and behaviour by 400%
People behaviour
Customer behaviour

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Working with psychologists and
psychology professor w. Salber in
2003, we found that trust consists
of 6 distinct categories.
These 6 categories of trust drive
over 86% of trust – which, in
statistical terms, is pretty much
all of it.
The 6 categories of trust in the
HuTrust® model are also proven
to drive the vast majority of all
key customer attitudes and
behaviours.
The 6 HuTrust® dimensions are proven to be the
drivers of trust and thus your other KPIs.
HUTRUST®
: THE SCIENTIFICALLY SOUND
AND PRACTICALLY PROVEN WAY TO
MEASURE AND BUILD TRUST
HuTrust® makes trust, the key
driver of attitudes and behaviours
towards you, workable.
The program encompasses
measurement, trust driver
development and training,
and workshop programs that
empower your teams to build
more and more trust in all
functions.

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UNDERSTANDING TRUST
TRUST &
LOYALTY IN
TELCOS
These study findings are to be used to understand the principles, impact and operationalisation of trust – but
only as a good indication and hypothesis

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HUTRUST®
EQUITY ANALYSIS
In this study, telstra’s and optus’
customer trust sits at just below the
trust threshold.
From our other studies, we would
expect this to be a bit higher in
your own studies.
Total sample = 300
Q: I am loyal to this brand // I trust this brand
YOU ARE HERE

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LOYALTY & TRUST DISTRIBUTION –
TELCO PROVIDER
Other telcos we worked with
achieved up to 25% of customers
giving them a 10/10 on trust.
Total sample = 300
Q: I am loyal to this brand // I trust this brand
I am loyal to this brand
I trust this brand
These customers would be a prime opportunity
to shift into 9/10 or 10/10. That’s not done by
eliminating pain points and more ‘getting what I
want when I want’.

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‘Why didn’t we do this years ago?’
Global Managing Partner, Legal Firm
WHAT YOUR TRUST IS MADE OF…

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HUTRUST®
EQUITY ANALYSIS
The HuTrust® equity analysis
shows how strongly you and your
competitors are trusted in each of
the 6 trust categories.
This is what enables
organisations to do something
about trust.
Telstra’s own customers appear to
trust Telstra less in Relationship,
Benefit, Competence and Vision
trust than the customers of the
other telcos.
Total sample = 300
Customers
Telstra
Optus
Vodafone

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HUTRUST®
EQUITY ANALYSIS
As expected, non-customers
score each company far lower
than their own provider.
Amongst non-customers, Optus
and Telstra are equally trusted
for their stability and future
development (although, both only
at a trust neutral level).
Optus leads Telstra significantly in
all other trust categories.
After losing a lot of trust, Vodafone
still has a long way to go.
Total sample = 300
Non customers
Telstra
Optus
Vodafone

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WHAT DRIVES YOUR TRUST

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HUTRUST®
DRIVER
ANALYSIS – OWN CUSTOMERS
The HuTrust® driver analysis shows
which of the 6 trust categories are
most important for customers to
trust the brand.
For Telstra, the most important
trust drivers are totally different
from those of Optus and Vodafone.
Benefit trust – this brand is valuable
to me in my life – is by far the most
important for Telstra customers to
trust. It is also the most important
in regard to their loyalty.
For Telstra to build more trust,
improve their NPS, customer
experience and loyalty, a particular
emphasis needs to be placed on
building benefit trust.
We are cognisant that this study is
only a proactive, small scale study.
The research would have to be
done with the different segments
qualitatively and quantitatively
to reveal more trust drivers and
inhibitors, and to model them.
Non customers
Total sample = 300
Telstra
Optus
Vodafone
The driver analysis shows the over/
under index of each trust dimension
versustheaverageofthe6dimensions.

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HUTRUST®
DRIVER ANALYSIS –
OWN CUSTOMERS
Here, we also checked what drives
customer loyalty, as it is telstra’s key
focus.
Benefit trust shows to be even
more important to loyalty than it
is for trust.
Customer retention is obviously
critical. Loyalty means higher
lifetime value, higher degree
of product holding, less price
sensitivity and lower cost to serve.
For Optus, it becomes clear that
development trust is key.
For Vodafone it is stability,
development and relationship
trust.
Customer loyalty drivers
Telstra
Optus
Vodafone
Total sample = 300

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WHAT FILLS YOUR KEY TRUST BUCKETS BEST
HUTRUST®
ATTRIBUTE ANALYSIS –
OWN CUSTOMERS
‘It’s not training.
It’s not a lecture.
It’s playing to learn how to play better.’
Senior executive participant

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HUTRUST®
ATTRIBUTE ANALYSIS –
TELSTRA’S OWN CUSTOMERS
THE HUTRUST
ATTRIBUTE ANALYSIS
TELLS YOU HOW
TO BEST BUILD THE
FOCUS TRUST.
We are happy to discuss the full set.
We included 61 attribute statements.
These were split into:
— Business-generic attributes—attributes that relate to an organisation
being well run.
— Category-generic attributes—attributes that relate to category product
and service factors
— Brand attributes—attributes and values that are brand unique, or could be
(in this study we included a number of attributes we know from our qualitative
research. It is not a list of your internally agreed values and attributes.
In addition, they broadly covered all 6 HuTrust® categories.
Business-generic attributes Category-generic attributes
Brand attributes
Is well managed
The management is stable
They have been around for a long time
They innovate continuously
They think about innovation beyond product and
technology – more about me
I know what they currently do that will benefit me
in the future
They understand how I want to contact them
...
They are one of the largest
They have their own network
They have been around for a long time
I know how they will improve/develop their network
in the future
They proactively let me know what happens with the
NBN
They have access to the best brands and products
They think beyond TELCO, including watches and
virtual reality
...
After the government sell-off, Telstra has shown long-term foresight in their choice and smooth transition of management
teams and styles by first using an outsider to shake the organisation up, then making the hard and big decisions
regarding the network and technology. Further, by using David Thodey to lead a customer-focused change in culture
and now Andy Penn, who worked with David as CFO, to continue that path and lay out a clear succession plan.
Telstra were founded to look after our telecommunication needs. And though now privatised, they still regard this foundation
as important.
Telstra understand how telecommunications can change our lives and, therefore, invest into the future with telehealth and
education.
At Telstra all staff, including IT and finance, regularly have to spend time with customers or join the call centre to ensure they
understand customers and what impacts them. So, you may have their CEO listen to your next call and view your next chat.
Telstra has a clear, long-term investment plan, continuing to offer their customers the best option in telecommunications.
...

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HUTRUST®
ATTRIBUTE ANALYSIS –
OWN CUSTOMERS
For telstra to improve customer
trust and loyalty, with a benefit
trust focus, we identified 3 key
attributes.
All 3 of these are unique to Telstra,
providing Telstra with a unique
opportunity to build trust and
loyalty. Business- generic and
category-generic attributes were
found NOT to be significant.
Interestingly, out of the 3 key
attributes to drive benefit trust
and loyalty, the ‘Telstra board’s
foresight in appointing Sol
Trujillo as an outsider to make
controversial, significant
structural and technological
changes (and) David Thodey to
seize on them with customer
focus and culture, and now
Andy Penn as an astute
manager with financial focus’,
drives benefit trust the most.
Currently most customers would
see the Trujillo appointment as a
distrust driver.
The other benefit trust drivers are
either well-known or functional
attributes.
However, the ‘foresight’ attribute,
as a strong driving force of trust,
shows that trust needs to be
looked at differently.
We would also suspect (although
not tested here) that this attribute
would drive the NPS considerably.
This is not to say that other attributes don’t contribute. We have identified a number of others that drive the other
trust dimensions. But, the emergence of the ‘foresight in appointing….’ attribute shows that a different perspective
reveals ample opportunity for Telstra to drive customer experience, NPS and loyalty.
Brand attributes
Foresight with appointment of Trujillo, Thodey, Penn
The best network
38%
33%
19%
10%Australia focused
New ideas like turning phone booths into hot spots

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HUTRUST®
ATTRIBUTE
OPERATIONALISATION
The attributes identified can be
implemented through the best
suited channels.
The attribute most
effective in improving
customer trust and
loyalty is also the
easiest and least cost
and time intensive to
implement.
In our work, we
continuously find our
clients don’t make
effective use of their
existing trust equity
in channels like
marketing, sales and
service.
Trust and
Loyalty driver
Status Action Best channels
Foresight with
appointment of
Trujillo, Thodey,
Penn…..
Unknown, in fact,
currently negatively
perceived.
The best network Well known.
Reminding from
time to time.
Possibly with
localised info.
New ideas, like
turning phone
booths into hot
spots
Well known, but
remind and look at
fresh, often small,
ideas to introduce.
Australia focused Customers are
not sure about
this. Even the SEA
investment doesn’t
take this away.
Investment into e-
health, etc., would
support this further.
FOR ILLUSTRATION ONLY

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UNDERSTANDING TRUST
TRUST &
LOYALTY
IN HEALTH
FUNDS
These study findings are to be used to understand the principles, impact and operationalisation of trust – but
only as a good indication and hypothesis.

22. 22
EXECUTIVE SUMMARY
Trust and Loyalty.
Navy Health garners the
highest level of loyalty with
28% of customers scoring
them 10/10.
For others, the loyalty levels are
far lower.
Medibank’s stability trust is
clearly impacted by recent
issues.
But, customers’ trust in
Medibank to successfully develop
is equal to other providers,
indicating a trust in Medibank to
overcome the issues.
Customers give their providers
the same scores on trust.
This is not surprising, because
the more we trust, the more
loyal we become.
Knowing what drives trust
the strongest in one’s brand
enables us to focus on and
explore how to best build or
rebuild it.
In Private Health Insurance,
this can be done in a unique
and differentiated manner.
What drives trust in each
brand is very different.

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LOYALTY & TRUST SCORES
Total sample = 300
Q: I am loyal to this brand // I trust this brand
Medibank, bupa and navy
health trust sit just above the
trust threshold in the “low trust”
category. Gmhba on average sits
below the others in “neutral trust”.
Loyalty scores for each company
are in line with their trust scores.
I trust this brand
I am loyal to this brand

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LOYALTY DISTRIBUTION
In this study, navy health garners
an impressive 28% of 10/10 in
loyalty.
Overall loyalty is not high.
Total sample = 300
Q: I am loyal to this brand // I trust this brand
I am loyal to this brand

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The trust distribution shows the
high level of correlation.
This is not surprising. The more we
trust someone, the more loyal we
are.
Total sample = 300
Q: I am loyal to this brand // I trust this brand
I trust this brand
LOYALTY & TRUST DISTRIBUTION – HEALTH
PROVIDER

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HUTRUST®
PROFILE – HEALTH PROVIDER
The privatisation and recent issues
have had a significant impact on
what medibank is trusted for.
All but development trust are
affected, indicating that customers
trust medibank to overcome the
issues.
Navy health score consistently high
in all HuTrust® dimensions – but
specifically in competence trust.
Total sample = 300
Q: Please tell us your level of agreement to the following statements....HuTrust®
Medibank
GMHBA
Bupa
Navy Health
Customers

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Interestingly, non-customers
score all other providers at
almost identical levels.
They score other providers very low
on trust – a benefit to the particular
provider – and, on average, they
don’t trust other providers.
Total sample = 300
Q: Please tell us your level of agreement to the following statements....HuTrust®
LOYALTY & TRUST DISTRIBUTION – HEALTH
PROVIDER
Non customers
Medibank
Bupa
GMHBA
Navy Health

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CUSTOMER HUTRUST®
DRIVER –
HEALTH PROVIDER
What drives trust in each provid-
er differs significantly, providing a
clear focus for effective and differ-
entiated trust building.
It shows also that while medibank’s
stability trust is diminished, it is not
the driver to focus on.
Total sample =300
Q: Please tell us your level of agreement to the following statements....HuTrust®
Medibank
Bupa
GMHBA
Navy Health
Customer trust drivers

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The loyalty driver analysis polaris-
es this further. For medibank, the
focus needs to be on rebuilding
competence trust.
Total sample =300
Q: Please tell us your level of agreement to the following statements....HuTrust®
Customer loyalty drivers
Medibank
Bupa
GMHBA
Navy Health
CUSTOMER HUTRUST®
DRIVER –
HEALTH PROVIDER

30. Grow with
vision, precision
& certainty®