Emotional Bank Accounts
"All things being equal, people do business with people they know and trust. All things NOT being equal, people still do business with people they know and trust.”
Reading through one the great Geoffrey Gitomer’s books lately, this quote really stuck with me because it is so true. Think about it – how did you choose your family doctor, your daycare provider, etc.? More often than not, it was because 1) you personally know and trust the person or 2) it came as a recommendation from someone you know and trust.
So let’s break it down. What is trust? What is made up of? How is it established? Being an accountant, I am going to use a mathematical equation (sorry) known as the Trust Equation:
T = (C + I) / R
T = Trust, C = Credibility, I = Intimacy, R = Risk. Now some truths about the trust equation:
Dr. Stephen Covey in his masterpiece The 7 Habits of Highly Effective People describes how people build intimacy in their relationships – by making deposits in emotional bank accounts. Just like a normal bank account, people can make deposits and withdrawals from the emotional bank accounts held with other people. Often, a small withdrawal from an emotional bank account with someone can wipe out years of deposits. Also, deposits need to be made frequently and consistently with the people we deal with on a day-in, day-out basis. So here are the five types of deposits or withdrawals we can make every day:
So what kind of deposits are YOU making with your customers, co-workers, friends and family?