Trust plays a huge role in buying decisions, but how much more will a customer pay for trust? That depends on two key factors: industry context and personal context.
Industry context affects the Trust Premium across different professions. A trusted house painter might justify a small price increase, but a trusted surgeon? That’s a different story. The risk, complexity, and ability to recover from mistakes vary greatly between industries, which directly impacts how much customers are willing to pay for trust.
Personal context is just as important. The same service can command different Trust Premiums depending on the customer’s personal priorities, experiences, and financial situation.
In this article, I’ll focus on industry context—the factors that influence Trust Premium at the industry level and why trust is worth more in some fields than others.
1. The Severity of Consequences
How bad would it be if you hired the wrong provider? If a painter does a poor job, it’s annoying, but fixable—you can repaint the room. If a surgeon makes a mistake, the consequences could be permanent, even life-altering.
The greater the absolute severity of the consequences, the higher the Trust Premium. Customers will pay significantly more to avoid devastating mistakes, whether in healthcare, law, or financial services.
2. The Provider’s Role in the Outcome
Some providers directly shape the outcome of their work, while others act more as intermediaries.
A photographer’s skill determines the quality of your wedding photos. A bad one could ruin your once-in-a-lifetime moments.
A financial advisor makes investment decisions that could impact your financial future.
On the other hand, an insurance agent helps you choose a policy, but the final outcome—claims, coverage, and payouts—depends on the insurance company.
The more direct control a provider has over the final result, the higher the Trust Premium.
3. Commoditization, Standardization, and Regulation
When a product or service is easily interchangeable, trust plays a smaller role in decision-making.
Commoditized industries, like gas stations or certain retail products, have little room for Trust Premium—customers choose based on price and convenience.
Highly regulated industries, like public utilities, also limit Trust Premium. Even if you trust one provider more, you’re stuck with the set rates.
Specialized services, like consulting, law, or custom design, tend to have higher Trust Premiums because each provider offers something unique.
The more standardized and interchangeable a service is, the lower the Trust Premium.
4. The Customer’s Ability to Minimize Damage
Trust matters more when customers feel exposed to risk and have fewer ways to mitigate it. Several factors play into this:
Access to information – When clear, reliable information is scarce, customers rely more on trust.
Complexity – The harder it is to evaluate a service (like financial planning or legal advice), the more trust is required.
Ease of switching providers – If switching is difficult or costly, trust matters more. A bad haircut grows back, but a bad financial plan can take years to fix.
Early detection of problems – If mistakes are only discovered later (like legal missteps or tax errors), trust becomes a bigger factor.
Ease of recovery – The harder it is to recover from a bad experience, the higher the Trust Premium. A bad plumber can be replaced, but a botched surgery? That’s a different level of risk.
The more vulnerable the customer feels, the higher the Trust Premium.
5. Long-Term vs. One-Time Relationships
The longer a customer expects to work with a provider, the more important trust becomes.
A long-term financial advisor, accountant, or lawyer? Trust is critical because the relationship is ongoing.
A one-time service like a car wash or a haircut? Customers still care about trust, but they’re less likely to pay a premium for it.
The longer the expected relationship, the higher the Trust Premium.
How Trust Premium Varies by Industry
Now that we’ve covered the factors, let’s look at some specific industries.
Financial Advisors: High Trust Premium
A financial advisor’s decisions directly impact their client’s financial well-being. The risks are high, mistakes aren’t easy to detect early, and switching advisors can be costly. My survey found that the Trust Premium for financial advisors was 39.4%, the highest of any industry studied.
Insurance Brokers: Low Trust Premium
Insurance agents act as intermediaries, and their products are often standardized. While trust still matters, my survey found that the Trust Premium in this industry was just 5.5%—one of the lowest measured.
Lawyers & Accountants: High Trust Premium
Legal and financial services involve complexity, high stakes, and long-term relationships. My survey found a Trust Premium of 33.2% for lawyers and 35.0% for accountants, showing that customers are willing to pay significantly more for trust in these fields.
Consultants: High Trust Premium (Varies by Field)
Consultants provide expertise that directly impacts business decisions. Their Trust Premium varies depending on the field, but for highly specialized or strategic consulting, it can be quite high.
Final Thoughts: Where Do You Stand?
Not all industries command the same Trust Premium, and not all customers will pay the same amount for trust. But one thing is clear: the more high-risk, complex, and long-term your service is, the more trust impacts your pricing power.
Want to learn more? Listen to the latest episode of The Trust Premium podcast, where I dive even deeper into industry-specific Trust Premium insights. Or grab a copy of The Trust Premium to explore the research, strategies, and real-world applications that can help you turn trust into a competitive advantage.
Want to hear the whole story? https://podcasts.apple.com/us/podcast/s16e6-industry-context-why-different-industries-command/id1569249060?i=1000691086297
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 Trust Inventory™, and The Trust Show™ are trademarks of Yoram Solomon.
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