Trust Is Currency: Disney’s $3B Loss Proves It

Trust is single-handedly the most important currency to prioritize when it comes to long-term customer loyalty. In the world of service-based companies, customer loyalty might be the very thing that helps you scale company to the next level or slows your progress down altogether. A drop in consumer trust could cost your company thousands - or like Disney, billions of dollars overnight. 

Unfortunately, Disney is learning about the importance of customer loyalty the hard way with the current boycott in result to the cancellation of Jimmy Kimmel’s “Jimmy Kimmel Live”. People are currently boycotting Disney because of the company’s decision to suspend Jimmy Kimmel’s late-night show from the air. The suspension is due to political backlash over Jimmy Kimmel’s commentary about the aftermath of the unfortunate assassination of conservative activist, Charlie Kirk. Customer’s question if this cancellation is a violation of freedom of our first amendment rights. 

Whether you are in support of this decision or not, the after-math of the decline in consumer-trust is telling. Disney, ranked the 79th most successful company (globally) and top ten entertainment companies in the U.S, has lost almost $4 billion in profits overnight due to a drop in consumer-trust. Due to intense backlash, Disney has caved into consumer pressure and “Jimmy Kimmel Live” will continue to air. Thus, reversing their initial decision. Despite a change in tone from Disney as a corporation, the drop in customer-trust will leave detrimental effects on Disney’s reputation as a brand.

Whether you are a Small Business Owner in the e-commerce space or a Series A SaaS company owner, it’s important that you prioritize your customer’s best interest and guard your business reputation by ensuring your decisions are ethical and unbiased. Because, like Disney, the wrong mistake may cost you. 

Your customer’s are the advocates of your brand. Prioritizing your customer’s and knowing the nature of your customer’s is crucial to ensure you make informed decisions in your business operations that strengthen, not damage, your customer relationships and thus retention. Need proof?

• A Mintel study confirms that ethical values, including transparency, sustainability, and diversity, deeply influence Gen Z's purchasing, with almost 60% preferring brands that align with their personal values.

• A large majority (83%) of millennials engage in "values-based shopping" and prioritize ethical consumption over cost.

• 66% of millennials have chosen not to purchase from a brand that engages in unethical behavior, regardless of potential savings.

Knowing your audience is CRUCIAL.

Our Podcast is now live “The Trust Crisis: Trust in Business, Education, and Community” - Click here to watch our episode exclusively on Peeples & Co.

At Peeples & Co, we help small business owners better understand their customer’s and boost customer-loyalty. If you’re interested in learning more about how we can partner together to increase customer-retention rates for your business or create powerful customer-engagement marketing content, reach out today!